First West Virginia Bancorp, Inc. Announces Second Quarter 2017 Earnings

WHEELING, W. Va., July 28, 2017 /PRNewswire/ -- First West Virginia Bancorp, Inc. (OTCQX: FWVB) President and Chief Executive Officer, William G. Petroplus, today announced second quarter earnings for the Wheeling, West Virginia, based holding company. First West Virginia Bancorp, Inc. is the parent company of Progressive Bank, N.A., Wheeling, West Virginia.

The Company reported net income of $44,210 or $0.03 per share for the six months ended June 30, 2017 compared to $957,979 or $0.56 per share for the same period during 2016.  The decrease in net income for the six months ended June 30, 2017 as compared to the same period in 2016 of $913,769 was primarily the result of the increase in the provision for loan losses and, to a lesser extent, the decrease in noninterest income and the increase in noninterest expense, offset in part by the increase in net interest income and decrease in income tax expense.  For the six months ended June 30, 2017, a provision for loan losses was recorded in the amount of $1,075,000 while no provision was recorded during the same period in 2016.  The increase in the provision for loan losses was primarily due to a significant partial charge-off of one commercial real estate loan.  The Company does not believe that this charge-off is indicative of the risks and potential losses in the rest of the loan portfolio.  Noninterest income decreased $601,150 or 53.9% primarily due to the decrease in the net gains on sales of investment securities.  Small declines were noted in service charges and fees earned on deposit accounts and in other operating income.  Noninterest expenses increased $124,870 or 3.1% during the six month period ended June 30, 2017 as compared to the same period in 2016 as a result of increases in salary and employee benefits expenses, other operating expenses, and occupancy expenses.  Net interest income increased $453,472 or 11.3%, primarily due to the increase in the interest and fees earned on investment securities and loans combined with the decrease in the interest expense paid on interest bearing liabilities.  Income tax expense decreased $433,779 during the first six months of 2017 over the same period in 2016.  The return on average assets was 0.03% for the six months ended June 30, 2017 as compared to 0.57% for the same period of the prior year.  For the six months ended June 30, 2017 compared to June 30, 2016, the return on average equity was 0.25% and 5.50%, respectively. 

Total assets increased $20.5 million, or 6.1%, to $355.8 million at June 30, 2017 from $335.3 million at December 31, 2016.  This increase was primarily the result of the $10.2 million increase in the investment portfolio combined with the $7.5 million increase in cash and cash equivalents and the $3.1 million increase in net loans.  Total deposits increased $24.6 million from December 31, 2016 to June 30, 2017 primarily due to the increase in noninterest bearing demand deposits as well as a slight increase in savings accounts, offset in part by declines in interest bearing demand deposits and time deposits.

For the second quarter of 2017, there was a net loss of $265,684 as compared to net income of $300,895 for the same period in 2016.  The decrease in net income for the three months ended June 30, 2017 as compared to the same period of the prior year of $566,579 was primarily the result of the increase in the provision for loan losses as well as a slight decrease in noninterest income and increase in noninterest expense, offset in part by the increases in net interest income and the income tax benefit.  A provision for loan losses was recorded in the amount of $1,075,000 for the second quarter of 2017 while no provision was recorded during the same period in 2016.  As noted in the preceding paragraph, the increase in the provision for loan losses was primarily due to a significant partial charge-off of one commercial real estate loan.  Noninterest income decreased $53,129 or 16.5% primarily due to decreases in other operating income and service charges and fees earned on deposit accounts.  Noninterest expenses increased $38,504 or 1.9% during the second quarter of 2017 as compared to the same period in 2016 as a result of increases in occupancy expenses, other operating expenses, and salary and employee benefits expenses.  Net interest income increased $304,449 or 15.0%, primarily due to the increase in the interest and fees earned on investment securities and loans combined with the decrease in the interest expense paid on interest bearing liabilities.  The income tax benefit increased $295,605 during the second quarter of 2017 over the same period in 2016. 

FIRST WEST VIRGINIA BANCORP, INC. FINANCIAL HIGHLIGHTS

View original content:http://www.prnewswire.com/news-releases/first-west-virginia-bancorp-inc-announces-second-quarter-2017-earnings-300495983.html

SOURCE First West Virginia Bancorp, Inc.