ALLEGHENY BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2017 FINANCIAL RESULTS
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce third quarter 2017 net income of $916,000 or $1.09 per share. This represents a 19.74% increase from third quarter 2016 income of $765,000 or $0.90 per share.
For the first nine months of 2017, Allegheny had net income of $2,534,000, which is an increase of 6.29% from the net income of $2,384,000 earned the first nine months of 2016 and an increase in earnings per share of $.21 to $3.00 for the first 9 months of 2017. Return on Average Assets (ROAA) for the first 9 months was 1.19% and the Return on Average Equity (ROAE) was 9.27%. This compares to a ROAA of 1.16% and a ROAE of 8.90% for the same period of 2016.
Assets increased 6.65% from December 31, 2016 to September 30, 2017 and on that date, totaled $294,758,000. Shareholders' Equity at the end of the third quarter totaled $37,690,000.
The increase in earnings resulted from an increase in net interest income as well as a decrease in our provision for loan losses. Net Interest Income increased 2.8% or $239,000 over last year and provision for loan loss decreased by 33% or $180,000 comparing September 30 year to date 2016 and 2017. Salaries and occupancy expense both increased over 2016, much of that increase was a result of our September 2016 opening of our downtown Harrisonburg financial center. The net expense of this expansion for year to date 2017 is $231,000 higher than it was for the same period in 2016. However, this increase in expenses was more than offset by an increase in net interest income after provision for loan losses.
W.A. (Bill) Loving, President and CEO, indicated he was extremely pleased with the 2017 year to date performance. According to Loving, "While we have seen an increase in operating expenses associated with our new financial center in downtown Harrisonburg, Virginia, our income from operations is growing at a pace sufficient to cover these costs and drive higher earnings. The reported 1.19% ROAA, in today's environment, continues to be above the State's and national industry averages. Our continued focus on balance sheet management provided a 2.8% increase ($235,000) in our net interest income and continuing to post margin performance at a level also above industry averages. Additionally, and as we continue to see improvement in the economy and asset quality, we were able to decrease our loan loss contribution; and, collectively, these contributions to our operating income has allowed us to fund market opportunities such as our newest financial center in downtown Harrisonburg, VA. We believe this financial center will augment our existing location in Virginia and provide long-term earnings potential. Additionally we believe our investment in this location and the expansion of our presence in Harrisonburg, will provide the catalyst for growth in our "traditional banking channels" as we continue to expand our presence in the ever-growing electronic world."
This press release includes forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward looking statements are subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control. Accordingly, actual results may differ materially from anticipated results.
Pendleton Community Bank, an independent community bank since 1925, currently has six full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and in the Virginia community of Harrisonburg. Pendleton Community Bank also has a Loan Production office in Wardensville, WV. Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in our Harrisonburg location.