First West Virginia Bancorp, Inc. Announces Second Quarter 2016 Earnings

WHEELING, W.Va., July 21, 2016 /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 $957,979 or $.56 per share for the six months ended June 30, 2016 compared to $1,370,069 or $.80 per share for the same period during 2015.  The decrease in net income for the six months ended June 30, 2016 as compared to the same period in 2015 of $412,090 or 30.1% was primarily the result of the decrease in noninterest income and net interest income, offset in part by the decrease in income tax expense and noninterest expense. Noninterest income decreased $507,668 or 31.3% primarily due to the decrease in the net gains on sales of investment securities offset in part by increases in other operating income and service charges and fees earned on deposit accounts.  Net interest income decreased $107,699 or 2.6%, primarily due to the decline in the interest and fees earned on loans, offset in part by the increase in the interest earned on investment securities as well as the decrease in the interest expense paid on interest bearing liabilities.  Income tax expense decreased $152,373 during the first six months of 2016 over the same period in 2015. Noninterest expenses decreased $50,904 or 1.2% during the six month period ended June 30, 2016 as compared to the same period in 2015 primarily due to decreases in other operating expenses, offset in part by increases in salary and employee benefits expenses and occupancy expenses.  The decline in other operating expenses was primarily attributed to decreased audit, advertising, and investment service expenses.  The return on average assets was .57% for the six months ended June 30, 2016 as compared to .83% for the same period of the prior year.  For the six months ended June 30, 2016 compared to June 30, 2015, the return on average equity was 5.50% and 8.03%, respectively.  

For the second quarter of 2016, net income was $300,895 or $.18 per share as compared to $332,017 or $.20 per share for the same period in 2015.  The decrease in net income for the three months ended June 30, 2016 as compared to the same period of the prior year of $31,122 or 9.4% was primarily the result of declines in noninterest income and the income tax benefit, offset in part by the increase in net interest income and decrease in noninterest expenses.  Noninterest income decreased $103,298 or 24.3% for the three months ended June 30, 2016 as compared to the same period of the prior year primarily due to the decrease in the net gains on sales of investment securities, which was partially offset by increases in other operating income and service charges and fees earned on deposit accounts.  The income tax benefit was reduced by $19,981.  Net interest income increased $72,524 or 3.7% primarily due to the increase in the interest earned on investment securities and decrease in the interest expense paid on interest bearing liabilities, offset in part by the decline in the interest and fees earned on loans.  Noninterest expense decreased $19,633 or .9% during the three month period ended June 30, 2016 as compared to the same period in 2015 primarily due to the decline in other operating expenses, which was partially offset by increases in salary and employee benefits expenses and occupancy expenses.  Declines in advertising and audit expenses contributed to the decrease noted in other operating expenses.      

SOURCE First West Virginia Bancorp, Inc.