Allegheny Bancshares, Inc. Announces Second Quarter 2023 Results
Allegheny Bancshares, Inc., the parent company of PCB, announces second quarter net income of $1,283,115 versus $1,487,349 for the same period in 2022 or a 13.73% decrease. Per share net income for 2023 of $1.57 compares to $1.81 for the same period in 2022.
Financial Highlights include:
Comparisons are to the corresponding period in the prior year unless otherwise stated.
Comparisons are to the corresponding period in the prior year unless otherwise stated.
- Year to date net income totaled $2,604,148 ($3.18 per share) versus $2,576,152 ($3.14 per share) for the prior year.
- Loans held for investment total $568.0 million. This is an increase of $36.3 million (6.82%), $60.7 million (11.97%) and $163.4 million (40.38%), respectively for the second quarter, year to date and the trailing twelve months.
- Non-performing assets totaled $363 thousand (.05%) of total assets versus $727 thousand (.11%).
- Second quarter net interest margin of 3.58% (on a fully tax equivalent basis) is down slightly from 3.62% in the second quarter of 2022.
Year to date provision for loan losses of $574 thousand vs. $360 thousand, as a result of the strong loan growth.- Total deposits increased $29.0 million (4.99%) year to date and $26.1 million (4.48%) for the trailing twelve months.
- Total assets increased $68.6 million (10.42%) to $727.0 million year to date and $85.6 million (13.35%) in the preceding twelve months.
William A. Loving, Jr., President & CEO, commented, “Rapidly rising interest rates are tightening margins for all financial institutions, and we are no exception. Although our margin for the second quarter has changed minimally compared to second quarter 2022, our second quarter 2023 margin at 3.58% is down fifteen basis points compared to 3.73% for the 2022 full year. This margin compression has placed downward pressure on earnings; however, I am pleased with our overall financial results and reflecting slightly higher year-to-date revenue compared to 2022. A major component of the net income increase is continued balance sheet growth.
We continue to experience strong loan growth and year over year have increased the Dealer Finance portfolio $80.6 million, the Commercial portfolio $57.6 million, and the Residential Real Estate portfolio $25.6 million. During the second quarter, PCB was proud to be named a ‘Top Lender’ by the Independent Community Bankers Association (ICBA) for the Consumer/Mortgage segment. Ranked thirteenth in the nation among peers of similar asset size, our team was honored to be recognized for the combined Consumer and Mortgage loan growth over the prior year.
Building customer relationships while equipping our team with competitive products and services has been key in growing our deposit balance. Our financial results illustrate the efforts of our team, and we were once again proud to be publicly recognized for those efforts in two local contests. For the second year, PCB was honored to win the titles of ‘Best Bank’, ‘Best Mortgage Company’, and ‘Best Company to Work For’ in the Daily News Record’s Best of the Valley competition. Additionally, we were grateful to win gold for ‘Best Ag Lender’ and ‘Best Home Mortgage’ and silver for ‘Best Bank’ in Harrisonburg Radio Group’s Shenandoah Valley Best contest. I want to publicly thank our team for their delivery of PCB’s brand of community banking and allowing us to be recognized by the communities we serve.
Our team members continue to focus on deposit growth through relationship building and community involvement, and our brand of community banking is positively recognized. While the industry was impacted by the financial uncertainty during the first quarter of this year with many seeing deposit outflows, I am pleased to report that we continued to see deposit growth both on a year-over year basis, as well as when looking at the trailing twelve month results. I am confident that as we stay committed to fulfilling our mission, vision, and core values, success will continue to follow.”