Allegheny Bancshares, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results
Allegheny Bancshares, Inc., the parent company of PCB, announces fourth quarter and full year net income of $1,301,915 and $5,392,010, respectively. This represents per share net income of $1.59 and $6.58 for the fourth quarter and year to date. This compares to net income of $1,826,725 ($2.23 per share) and $6,041,696 ($7.37 per share), respectively for the same periods in 2022.
Financial highlights include:
Comparisons are to the corresponding period in the prior year unless otherwise stated.
- Full year net income decreased $650 thousand (10.75%) when compared to 2022.
- Earnings per share (EPS) for the full year decreased $.79 (10.72%) versus 2022’s performance.
- Interest income for the full year increased $10.8 million to $35.3 million.
- Rising rates on deposit costs drove interest expense up $9.3 million versus 2022 to a total of $11.4 million
- Return on Average Assets (ROAA) and Return on Average Equity (ROAE) of .75% and 13.05%, respectively when compared to .94% and 14.75%, respectively in 2022.
- Tax equivalent net interest margin of 3.60% for full year 2023 which is a decrease of .21% versus full year 2022 results of 3.81%. After decreasing all year, the tax equivalent NIM of 3.55% for the fourth quarter 2023 was stable versus the third quarter.
- When compared to year end 2022, loans held for investment increased $82.5 million (16.27%) to $589.9 million.
- Deposit growth totaled $38.6 million (6.65%) for the full year in an incredibly competitive environment.
William A. Loving, President and CEO, commented, “Although we were not able to repeat in 2023 the record-breaking earnings that we experienced in 2022, I am pleased that, even in an incredibly challenging interest rate environment, we were able to produce our second highest earnings in the history of our company. I am extremely proud of the efforts of our team in 2023 as we experienced both loan and deposit growth in all three of our geographic market regions. Our growth in all areas is clear validation that our Community Banking model works. This is a result of the team we have delivering superior products and service to a wide range of individuals and businesses in all the communities we serve.
As noted above, total loan growth for the year equaled $82.5 million. This growth was well-distributed over multiple portfolios, as the commercial loan portfolio grew $31.3 million, while the residential mortgage portfolio grew $14.3 million over the prior year. Our dealer finance department experienced growth of $36.8 million to end the year at $97.6 million. Along with well diversified loan growth, we were also able to grow deposits $38.6 million or 6.65% during an incredibly competitive interest rate environment. I am confident this balance sheet growth will continue to strengthen our net interest margin, profitability, and continued success in 2024.
During the fourth quarter, PCB once again received statewide recognition in the West Virginia Living Magazine ‘Best Of’ competition. PCB has served communities in West Virginia since 1925, and it is an honor to be named ‘Best Bank’ in our home state for consecutive years. We owe this recognition to our loyal customers and shareholders who continue to support our mission. Without our family of bankers and customers, this recognition as well of other awards during 2023 in both West Virginia and Virginia, would not have been possible for which I thank each of you.”