Allegheny Bancshares, Inc., the parent company of PCB, announces fourth quarter and full year net income of $1,538,829 and $5,074,636, respectively. This represents per share net income of $1.88 and $6.19 for the fourth quarter and year to date. This compares to net income of $1,301,915 ($1.59 per share) and $5,392,011 ($6.58 per share), respectively for the same periods in 2023.
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.
- Fourth quarter net income and earnings per share increased $237 thousand (18.20%) and $.29, respectively when compared to the same period in 2023.
- Total assets increased $44.0 million (6.0%) to $778.2 million compared to 2023.
- Loans held for investment totaled $627.8 million. This is an increase of $38.0 million (6.45%) when compared to 2023.
- Non-performing assets totaled $5.0 million (.64% of total assets) versus $2.6 million (.35%) for the year ended 2023.
- Tax equivalent net interest margin of 3.64% for the full year 2024 which is an increase of .04% versus the full year 2023 results of 3.60%.
- Year to date provision for loan losses of $2.0 million vs. $1.4 million for the year ended 2023, as a result of continued loan growth.
- Total deposits increased $46.5 million (7.51%) to $665.9 million compared to 2023.
William A Loving, Jr., President & CEO, commented, “I am pleased to share our fourth quarter and full year results. As noted above, our fourth quarter earnings increased $236,914 compared to the same period of 2023 and $152,642 versus the third quarter of 2024. The primary driving factor of these results is an improvement in our net interest margin (NIM). While the full year NIM increased only .04%, from 3.60% to 3.64%, our fourth quarter NIM when compared to the fourth quarter of 2023 increased .18%, from 3.56% to 3.74%.
As stated in prior quarterly releases, banks have faced a challenging interest rate environment that began in early 2022 when the Federal Reserve began aggressively increasing rates in an effort to combat an overheated economy and fight rising inflation. Within 18 months, the Federal Funds effective rate rose from .08% to 5.33%. This put tremendous pressure on bank margins throughout 2023 and much of 2024 as the cost of deposits moved sharply higher, but the yield on assets was fixed based on the term of the underlying loans or investments. Beginning in September 2024, the Federal Reserve reduced its overnight rate on three separate occasions by a total of 1.00%. The improved margin in the fourth quarter reflects the savings achieved as many deposits repriced quickly due to the short duration of our liabilities. We are also realizing improved loan yields as adjustable-rate loans that were made three to five years ago have begun repricing at today’s market rates.
Regarding our balance sheet, both loans and deposits grew at controlled and sustainable rates. Loans increased $38 million (6.45%) while deposits grew $46.5 million (7.51%). I am especially pleased that deposits grew in all three of our distinct regions. The deposit growth further enhanced our liquidity position and allowed us to pay off some of our higher cost borrowings.
For the third consecutive year, PCB was voted Best Bank in West Virginia Living Magazine’s annual Best of West Virginia competition. This statewide recognition is an honor and reflects the hard work of our dedicated team members, and we owe this recognition to our customers. We would not be celebrating a century of community banking without your continued support of our mission.
Throughout 2025, we will celebrate our 100th anniversary at each of our financial centers, leading to a grand anniversary event in Franklin, West Virginia, on October 4th. We hope you will join us at nearby events as we thank our customers, communities, and shareholders for allowing us to reach this milestone. While we reflect upon our history, we also look ahead to the future. We are excited for the year ahead as we embark on another century as Your Bank for GenerationsTM. To stay updated on details related to our anniversary, please visit our website, yourbank.bank, or follow our social media channels.”