Allegheny Bancshares, Inc. Announces Second Quarter 2025 Financial Results

Allegheny Bancshares, Inc. (ABI), the parent company of Pendleton Community Bank (PCB), announces its second quarter 2025 results.

Net income totaled $1,583,153 versus $1,147,442 for the same period in 2024 or a 37.97% increase. This represents per share net income of $1.93 and compares to $1.40 per share for the same period in 2024.

Financial Highlights include:
Comparisons are to the corresponding period in the prior year unless otherwise stated.

Second quarter net income increased $239,354 (17.81%) when compared to first quarter net income of $1,343,799.
Year to date net income totaled $2,926,952 ($3.57 per share) an increase of $777,332 (36.16%) versus $2,149,620 ($2.62 per share) for the prior year.
Second quarter tax equivalent net interest margin was 4.00%, which is an increase of .43% when compared to second quarter 2024.
Year to date tax equivalent net interest margin (NIM) was 3.93%, which is an increase of .37% compared to the same period in 2024.
Loans held for investment totaled $645.6 million. This is an increase of $17.7 million (2.82%) and $38.2 million (6.28%), respectively for the year to date and the trailing twelve-month periods.
Deposits increased $21.1 million (3.17%) year to date and $35.7 million (5.47%) for the trailing twelve months, to $687 million.
Total assets increased $11.8 million (1.52%) to $790.2 million versus year end and $24.1 million (3.14%) compared to the prior year.
Non-performing assets totaled $4.3 million (.55% of total assets), versus $5.0 million (.64%) at year end 2024.
Year to date provision for loan losses totaled $1.5 million versus $946 thousand for the same period in 2024, resulting from continued loan growth and adjustments in the Allowance for Credit Losses model.

William A. Loving, Jr., ABI President & CEO, commented, “With the completion of the second quarter, we continue to build earnings momentum as reflected by two consecutive quarters where net income increased more than 30% compared to the same quarter in the prior year. I’m especially pleased with the growth in earnings, as we also increased our funding of the Allowance for Credit Losses approximately $514 thousand to support the continued loan growth. As noted above, our tax equivalent NIM increased to 3.93% for the first six months and 4.00% for the second quarter of 2025. This quarter marks the first time since June 2020 that our NIM has reached or exceeded the 4.00% mark. Driving these results are improvements in both our Cost of Funds (decrease of .14%) and Yield on Earning Assets (increase of .22%) for the first half of the year.

Following a modest decrease in the first quarter, our loan portfolio has now grown $17.7 million year to date. This growth is also net of approximately $8.5 million of dealer finance loan sales that occurred in two separate transactions during the year. While all major loan categories increased year to date, the most rapid growth occurred in our commercial portfolio ($10.8 million), followed by consumer real estate ($6.2 million).

Our deposit model is continuing to produce positive results for us throughout our footprint, as each of our geographic regions experienced stable growth year to date and year over year. Contributing to the NIM improvement mentioned above is the composition of our year-to-date deposit growth, as all our growth has been comprised of lower cost deposits and a slight decrease in higher cost time deposits. The last financial metric that I want to cover is our Efficiency Ratio. The combination of our NIM improvement and cost controls have contributed to a significant improvement in this ratio. Through six months of 2024, this ratio stood at 76.78% and has now improved to 69.65% at quarter-end. I want to take this opportunity to thank our staff for their efforts in monitoring expense categories and suggesting areas for improvement.

Our footprint in the southern West Virginia region continues to expand. As noted in our first quarter financials release, we were granted regulatory approval to move forward with a new financial center located in Summersville, West Virginia. Renovations are underway, and we anticipate a late 2025 opening date. We are also thrilled to announce that we received regulatory approval for what will be our sixteenth office in Daniels, West Virginia. Although an opening date has not been established, we anticipate renovations to begin later this year. This location helps strengthen our roots in the Raleigh County community and complements our current Beckley Financial Center.

During the second quarter, PCB received local and statewide recognition in various contests. We were honored to be named the “Best Company to Work For” in the Daily News Record’s Best of the Valley competition, as well as “Best Customer Service” and “Best Home Mortgage” in Harrisonburg Radio Group’s Shenandoah Valley Best contest. We were also finalists in various categories in both competitions. Additionally, PCB is excited to be in the running for “Best Bank”, “Best Corporate Citizen”, and “Best Place to Work” in West Virginia Living Magazine’s Best of West Virginia contest. These accolades mean the world to me and our team, and we are appreciative of our community’s continued support.

Last, but certainly not least, PCB is celebrating 100 years of community banking throughout 2025, all leading to a grand event in Franklin, West Virginia, on Saturday, October 4^th, from 1pm to 5pm. Our community fall festival will feature free food, live music, children’s activities, door prizes, a cruise in, drive in movie, and more! We hope you will save the date and plan to join the festivities as we thank our shareholders, customers, community members, and team members who have all contributed to this milestone achievement.”

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