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Investor Relations

Investor Relations

Allegheny Bancshares Inc. Announces Fourth Quarter 2019 Financial Results

Allegheny Bancshares, Inc. (Allegheny), the parent company of Pendleton Community Bank, is pleased to announce its results of operations for the 4th quarter and year ending December 31, 2019. 
 
Allegheny’s net income for 2019 was $3,413,449 or $4.07 per share.  This represents a 10.76% decrease in net income from 2018’s level of $3,825,122.  It also represents a 10.35% decrease in earnings per share from 2018’s earnings per share of $4.54.
 
Net interest income grew $1,687,153 (13.80%) from $12,224,497 in 2018 to $13,911,950 in 2019.  While assets grew by $134.6 million (43.77%) in 2019, most of this increase was due to the acquisition of the Bank of Mount Hope on October 1st of 2019.  This transaction added $126.2 million to Allegheny’s assets. Loans purchased amounted to $64.4 million and investments, fed funds and cash purchased totaled $58.3 million.  Deposit balances increased by $106.0 million due to this acquisition and assets, at year end, totaled $442,156,663 and total loans $328,223,767.  Total loan loss provision for 2019 was $540,000 compared to $370,000 in 2018; 4th quarter provision totaled $105,000 in 2019 as compared to $145,000 in fourth quarter 2018.  The decrease in net income and earnings per share was due to the costs related to the acquisition that was expensed during 2019.
 
Even with these one-time acquisition costs, Allegheny’s key financial performance indicators continued to be strong and compare favorably with state, national, and local peer group data.
 
William A. (Bill) Loving, President and CEO, indicated he was pleased with 2019’s performance.  According to Loving, “We are excited to report our 2019 earnings and result of operations.  While net income was down from 2018’s level, income from normal operations (not including merger related costs) grew in 2019 and reflective of the investments we have made in our company over time.  In addition to completing our first “whole bank” acquisition, we also transitioned our Wardensville Loan Production Office into a full-service facility that opened for business December 30, 2019.  Collectively, we have added 4 full-service facilities to our footprint, increased the convenience and avenues customers can transact their banking business, and grew our institution to the year-end level of approximately $442 million in total assets.  I am confident that the acquisition of The Bank of Mt Hope will be accretive to earnings and earnings per share in 2020 and the new office in Wardensville will only strengthen our position in the Hardy County market.
 
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 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 ten full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, Wardensville, Mount Hope, Oak Hill, and Beckley and two financial centers in the Virginia community of Harrisonburg. 
 
Allegheny BancShares, Inc., Completes Acquisition of Bank of Mount Hope, Inc.
Allegheny Bancshares, Inc. (“Allegheny”), parent company of Pendleton Community Bank, Inc., announced that, effective today, it completed its acquisition of Bank of Mount Hope, Inc. (“Bank of Mount Hope”). Immediately following the acquisition, Bank of Mount Hope was merged into Pendleton Community Bank, with Pendleton Community Bank as the resulting institution.
 
“Bank of Mount Hope has a long-standing history of excellent service to its customers and the communities they serve—which is also a tradition at Pendleton Community Bank,” said William A. Loving, Jr., President and Chief Executive Officer. “We are excited to be joining our banks together and are confident that this transaction will further strengthen our company, expand our footprint in West Virginia and provide more banking options for customers of Pendleton Community Bank and Bank of Mount Hope.  We look forward to welcoming Bank of Mount Hope’s customers as we work toward a seamless transition.”
 
Following the merger, Bank of Mount Hope clients will continue to enjoy a highly personalized banking experience, as well as Pendleton Community Bank’s expanded line of financial services and innovative solutions.
 
Bank of Mount Hope was advised by the investment banking firm of ProBank Austin and the law firm Bowles Rice LLP. Allegheny was advised by the investment banking firm of Vining Sparks Community Bank Advisory Group and was represented by the law firm Jackson Kelly PLLC.
 
About Allegheny
Allegheny is a $440 million bank holding company headquartered in Franklin, West Virginia. Pendleton Community Bank, Inc., an independent community bank since 1925, currently has four full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and two financial centers and mortgage division in the Virginia community of Harrisonburg. In addition, the Bank has a loan production office in Wardensville, West Virginia that is in the process of being transitioned into a full-service facility.
 
Allegheny Contact:
With respect to Allegheny:
William A. Loving, Jr., President & CEO
Telephone:  (304) 358-2311
Email:  bloving@yourbank.com
 
Cautionary Note Regarding Forward Looking Statements
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 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.