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First West Virginia Bancorp, Inc. Announces Second Quarter 2011 Earnings

The Company reported net income of $959,042 or $.58 per share for the six months ended June 30, 2011 compared to $1,128,685 or $.68 per share for the same period during 2010. The decrease in net income for the six months ended June 30, 2011 as compared to the same period in 2010 of $169,643 or 15.0% was primarily the result of the increase in the provision for loan losses combined with the decrease in noninterest income, offset in part by the increase in net interest income and decreases in noninterest expenses and in income tax expense. Net interest income increased $211,952 or 4.9%, primarily due to the decrease in the interest expense paid on interest bearing liabilities combined with the increase in the interest earned on investment securities, offset in part by a decline in the interest and fees earned on loans. The provision for loan losses increased $540,000 during the six month period ended June 30, 2011 as compared to the same period in 2010 primarily due to a specific reserve allocation for one impaired commercial real estate loan. Noninterest income decreased $39,499 or 4.5% primarily due to the decline in service charges and fees earned on deposit accounts, which was offset in part by the increase in the net gains on sales of investment securities combined with the increase in other operating income. Noninterest expenses decreased $18,937 or .5% during the six month period ended June 30, 2011 as compared to the same period in 2010 primarily due to the decrease in occupancy expenses, offset in part by increases in other operating expenses and salary and employee benefits expenses. The ROA was .69% for the six months ended June 30, 2011 as compared to .84% for the same period of the prior year. For the six months ended June 30, 2011, compared to June 30, 2010, the ROE was 6.39% and 7.83%, respectively.

    FIRST WEST VIRGINIA BANCORP, INC. FINANCIAL HIGHLIGHTS

                                 (Unaudited)
    (Dollars in thousands,
     except                        June 30,    December 31,
     share and per share data)           2011          2010
                                         ----          ----

    AT PERIOD END
    Total Assets                     $284,197      $277,959
    Total Deposits                    232,828       228,475
    Total Loans                       117,249       121,367
    Total Investment Securities       140,908       133,169
    Shareholders' Equity               32,214        31,101
    Shareholders' Equity Per
     Share of
      Common Stock                      19.49         18.82

    (Dollars in thousands,
     except                        June 30,      June 30,
     share and per share data)           2011          2010
                                         ----          ----

    FOR THE THREE MONTHS ENDED
    Net income                            409           668
    Provision for Loan Losses             570            30
    Earnings Per Share of
     Common Stock*                        .25           .40
    Dividends Per Share of
     Common Stock*                        .19           .19
    Return on Average Assets              .58%          .98%
    Return on Average Equity             5.39%         9.18%



    FOR THE SIX MONTHS ENDED
    Net income                            959         1,129
    Provision for Loan Losses             600            60
    Earnings Per Share of
     Common Stock*                        .58           .68
    Dividends Per Share of
     Common Stock*                        .38           .37
    Return on Average Assets              .69%          .84%
    Return on Average Equity             6.39%         7.83%



    Weighted average shares
     outstanding                    1,652,814     1,652,814

    *Share and per share data were adjusted for the 4
     percent common stock dividend to stock holders of
     record as of December 20, 2010.

First West Virginia Bancorp, Inc. stock is traded on the NYSE Amex under the symbol "FWV."

SOURCE First West Virginia Bancorp, Inc.