Financial Highlights include:
Comparisons are to the corresponding period in the prior year unless otherwise stated.
- Tax equivalent net interest margin (NIM) of 3.86% for the first quarter. This represents a .31% increase over the same period in 2024 and a .12% increase when compared to the fourth quarter of 2024.
- Total assets increased $4.3 million (0.56%) to $782.7 million versus year end and $18.2 million (2.38%) compared to the prior year.
- Loans held for investment totaled $624.9 million. This is a decrease of $3.0 million (or .48%) and an increase of $23.3 million (3.87%), respectively for the quarter and the trailing twelve months.
- Deposits increased $15.6 million (2.34%) for the quarter and $35.3 million (5.47%) for the trailing twelve months, to $681.4 million.
- Non-performing assets totaled $4.1 million (.53% of total assets), versus $5.0 million (.64% of total assets) for the year ended 2024.
- Provision for loan losses was $600 thousand for the first quarter vs. $496 thousand for the same period in 2024.
William A. Loving, Jr., ABI President & CEO, stated, “The first quarter of 2025 is off to a strong start. Our quarterly net income increased 34.1% compared to the first quarter of 2024. Improvements in both our cost of funds and yield on earning assets factor into these results. As noted above, year-over-year NIM increased by .31%, with the cost of funds decreasing .12% and our yield on assets increasing .19%. We anticipate this trend will continue as adjustable-rate loans originated during COVID begin repricing at levels tied to current treasury yields. Our cost of funds also continues to improve as we have used lower cost deposits to pay off more expensive FHLB borrowings.
I am especially pleased with our quarterly and trailing twelve-month deposit growth, as mentioned above. This growth has been spread across all our markets and reflects the efforts of our team members, as well as our strong product offerings. While the loan portfolio decreased $3.0 million in the first quarter, this decrease was impacted by the sale of a $5 million tranche of dealer finance loans. This is the fourth loan sale in the last fifteen months. This strategy has worked well for us as it allows us to maintain liquidity levels, support our network of dealers and generate servicing fees. Aggregate balance of dealer finance loans serviced for others totals $17.5 million as of quarter end.
We continue to grow our presence throughout our footprint as we recently received regulatory approval to open our fifteenth office located in Summersville, West Virginia. While an opening date has not been established, we anticipate it will open during the fourth quarter following construction/remodeling of a leased facility. Also, based on the success of our courier program launched in our Virginia market in fall of 2023, we recently sought, and received, regulatory approval to extend courier activities throughout all our markets.
We will be acquiring additional vehicles and hiring drivers in the coming months so that we can offer these services more broadly to meet the needs of our growing customer base.
As noted in our most recent press release, we are commemorating 100 years of community banking in 2025. All PCB locations will host a day of celebration, culminating in a grand anniversary event in Franklin, West Virginia, on October 4th. Please, join us at one of our local events and watch for more details regarding the October celebration.”