Allegheny Bancshares Inc. Announces First Quarter 2020 Financial Results
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce first quarter 2020 net income of $629,000 or $0.76 per share. This compares with first quarter 2019 income of $858,000 or $1.03 per share. Return on Average Assets (ROAA) for the quarter was 0.57% and the Return on Average Equity (ROAE) was 6.21%. This compares to a ROAA of 1.12% and ROAE of 9.07% for the same period of 2019.
The decrease in net income for the first quarter in 2020 compared to first quarter 2019 was attributed to the information technology conversion expense and other costs associated with the 4th quarter 2019 merger with the Bank of Mount Hope.
Assets increased by 40.6% from March 31, 2019 to March 31, 2020 and, at the end of the quarter, totaled $449,338,000 and Shareholders’ Equity at the end of the quarter totaled $41,222,000.
W.A. (Bill) Loving, President and CEO, indicated he was pleased with the first quarter’s performance. According to Loving, “During the first quarter of 2020 we completed the final steps in the acquisition of The Bank of Mt Hope. The drag on 1st quarter earnings was attributable to the finalization of the acquisition and data conversion expenses. While accounted for as an expense on the income statement, I look at these costs as investments into our future and providing the basis to enhance earnings, provide greater returns for our stakeholders and, provide additional opportunities to serve our customers and expand our footprint. First quarter operations, without consideration of merger related expenses, are reflecting an increase of $281,000 over 2019’s first quarter and reflective of the earnings power of an increased asset base. As we ended the 1st quarter, we began to see a change in our operations and potential challenges that lie ahead for us due to COVID-19. We are working with impacted customers and providing various means of support, including participation in the PPP program; however, the full impact of this pandemic was unclear at quarter end and we are closely monitoring any adverse changes in credit quality and will be making the necessary allocations to loan loss reserves in future quarters as warranted. We are confident that once we transition to a more normal mode of operations and stabilization of the yield curve, we will continue to see the impact of the investments we have made in our company over time.
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 ten full-service financial centers, with 8 being located in the West Virginia communities of Beckley, Fayetteville, Franklin, Marlinton, Moorefield, Mount Hope, Petersburg, and Wardensville. Two offices and mortgage operation are located in the Virginia community of Harrisonburg, VA.
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.
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.
With respect to Allegheny:
William A. Loving, Jr., President & CEO
Telephone: (304) 358-2311
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.