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

WHEELING, W.Va., Nov. 6, 2017 /PRNewswire/ -- First West Virginia Bancorp, Inc. (OTCQX: FWVB) President and Chief Executive Officer, William G. Petroplus, today announced third 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 $400,934 or $0.23 per share for the nine months ended September 30, 2017 compared to $1,460,203 or $0.85 per share for the same period during 2016.  The decrease in net income for the nine months ended September 30, 2017 as compared to the same period in 2016 of $1,059,269 was primarily the result of the increase in the provision for loan losses and the decrease in noninterest income, offset in part by the increase in net interest income and decrease in income tax expense and noninterest expense.  For the nine months ended September 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 $1,163,311 or 61.0% 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.  Net interest income increased $702,084 or 11.7%, 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 $460,283 during the first nine months of 2017 over the same period in 2016.    Noninterest expenses decreased $16,675 or 0.3% during the nine month period ended September 30, 2017 as compared to the same period in 2016 as a result of the decrease in other operating expenses, offset in part by increases in salary and employee benefits expenses and occupancy expenses.  The return on average assets was 0.15% for the nine months ended September 30, 2017 as compared to 0.57% for the same period of the prior year.  For the nine months ended September 30, 2017 compared to September 30, 2016, the return on average equity was 1.54% and 5.55%, respectively. 

Total assets increased $7.9 million, or 2.3%, to $343.1 million at September 30, 2017 from $335.3 million at December 31, 2016.  This increase was primarily the result of the $8.0 million increase in the investment portfolio combined with the $4.2 million increase in net loans, offset in part by the $3.6 million decline in cash and cash equivalents.  Total deposits increased $9.7 million from December 31, 2016 to September 30, 2017 primarily due to the increase in noninterest bearing demand deposits as well as a slight increase in interest bearing demand deposits, offset in part by declines in time deposits and savings accounts.

Net income for the third quarter of 2017 was reported at $356,724 or $0.20 per share, as compared to $502,224 or $0.29 per share reported for the same period a year earlier.  The decrease in net income for the three months ended September 30, 2017 as compared to the same period of the prior year of $145,500 was primarily the result of the decrease in noninterest income, offset in part by the increase in net interest income and the decreases in noninterest expenses and income taxes.  Noninterest income decreased $562,161 or 71.1% primarily due to the decrease in the net gains on sales of investment securities.  Net interest income increased $248,611 or 12.7%, 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.  Noninterest expenses decreased $141,546 or 6.6% during the third quarter of 2017 as compared to the same period in 2016 as a result of the decrease in other operating expenses combined with smaller declines in salary and employee benefit expenses and occupancy expenses.  Income tax expense decreased $26,504 during the third quarter of 2017 over the same period in 2016. 

SOURCE First West Virginia Bancorp, Inc.