Wheeling, WV: First West Virginia Bancorp, Inc. reported net income of $1,903,905 or $1.11 per share for the year ended December 31, 2014 as compared to $2,241,048 or $1.30 per share for the year ended December 31, 2013.
The decline in net income during 2014 over 2013 of $337,143 or 15.0% was primarily the result of the increase in the provision for loan losses, increase in noninterest expense, and change in income tax benefit to income tax expense, offset in part by an increase in net interest income and noninterest income.
The firm recorded a negative provision for loan losses in 2013 in the amount of $400,000 to reduce the allowance for loan losses based upon the decline in specific reserves required on nonperforming assets. No provision was recorded in 2014. Noninterest expenses increased $387,813 or 5.1% in 2014 over 2013 primarily due to the increase in salary and employee benefit costs, occupancy expenses, and other operating expenses. Net interest income increased $261,894 or 3.3% in 2014 as compared to 2013 primarily due to the increase in the interest earned on investment securities and the decrease in the interest expense paid on interest bearing liabilities, offset in part by the decrease in the interest earned on loans.
