-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B/pcYDeIre4/G4JSoq6FWknR9Bgro3J4xllYBAqxASmtdt9gI7/FGF+YY9sEdBPr mkY1lhPBhE6hoY9Svy/F7A== 0000894671-02-000131.txt : 20021011 0000894671-02-000131.hdr.sgml : 20021011 20021011153101 ACCESSION NUMBER: 0000894671-02-000131 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020930 ITEM INFORMATION: Other events FILED AS OF DATE: 20021011 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OHIO VALLEY BANC CORP CENTRAL INDEX KEY: 0000894671 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 311359191 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20914 FILM NUMBER: 02787528 BUSINESS ADDRESS: STREET 1: 420 THIRD AVE CITY: GALLIPOLIS STATE: OH ZIP: 45631 BUSINESS PHONE: 6144462631 8-K 1 sec8k093002earningsrelease.txt SEC8KEARNINGSRELEASE093002 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 October 11, 2002 (October 11, 2002) Date of Report (Date of earliest event reported) OHIO VALLEY BANC CORP (Exact name of registrant as specified in its charter) Ohio (State or other jurisdiction of incorporation) 0-20914 31-1359191 (Commission file number) (IRS Employer Identification Number) 420 Third Avenue, Gallipolis, Ohio 45631 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (740) 446-2631 Not Applicable (Former name or former address, if changed since last report.) Exhibit Index at Page 4. Item 1. Changes in Control of Registrant. Not applicable. Item 2. Acquisition or Disposition of Assets. Not applicable. Item 3. Bankruptcy or Receivership. Not applicable. Item 4. Changes in Registrant's Certifying Accountant. Not applicable. Item 5. Other Events. On October 11, 2002, Ohio Valley Banc Corp issued a news release announcing its earnings for the third quarter and year-to-date periods ending September 30, 2002. The information contained in the news release, which is attached as Exhibit 99 to this Form 8-K, is incorporated herein by this reference. Item 6. Resignations of Registrant's Directors. Not applicable. Item 7. Financial Statements and Exhibits. (a) Financial statements of business acquired: Not applicable. (b) Pro forma financial information: Not applicable. (c) Exhibits: 99 Press release of Ohio Valley Banc Corp dated October 11, 2002, announcing the company's earnings for the third quarter and year-to-date periods ending September 30, 2002. Item 8. Change in Fiscal Year. Not applicable. Item 9. Sales of Equity Securities Pursuant to Regulation S. Not applicable. Page 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. OHIO VALLEY BANC CORP Date: October 11, 2002 By /s/ Jeffrey E. Smith ------------------------------- Jeffrey E. Smith, President and Chief Executive Officer Page 3 EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99 Press release of Ohio Valley Banc Corp dated October 11, 2002, announcing the company's earnings for the third quarter and year-to-date periods ending September 30, 2002. Page 4 Exhibit 99 Ohio Valley Banc Corp Continues Earnings Growth Gallipolis, Ohio, October 11, 2002 Ohio Valley Banc Corp [Nasdaq:OVBC] reported consolidated net earnings for the quarter ended September 30, 2002, of $1,410,000 representing an increase of 15.6 percent over the prior year. Earnings per share for the third quarter of 2002 were $.41, up 17.1 percent from the $.35 earned the third quarter of 2001. For the nine months ended September 30, 2002, consolidated net earnings were $4,014,000, up 15.3 percent compared to $3,482,000 a year ago. Earnings per share were $1.16 for the first nine months of 2002 versus $1.00 last year, an increase of 16.0 percent. Strong net interest income growth continues to drive OVBC's double-digit earnings growth. For the nine months ended September 30, 2002, net interest income improved $2,859,000 or 16.8 percent over last year. The increase in net interest income was the result of a decline in total interest expense of $2,793,000 or 15.1 percent versus relatively no change in total interest income due to strong loan growth. For the third quarter of 2002, net interest income increased $745,000 or 12.2 percent over the prior year third quarter. The Company's net interest income has benefited from the current interest rate environment and is reflected in the net interest margin which improved to 4.36 percent for the first nine months of 2002 from 4.28 percent the prior year. Providing additional revenue growth was an increase of $368,000 or 9.8 percent in noninterest income which totaled $4,118,000 for the nine months ended September 30, 2002, as compared to $3,750,000 for the same time period last year. For the three months ended September 30, 2002, noninterest income increased $152,000 over the prior year third quarter. Income from deposit and loan service fees as well as bank owned life insurance provided a majority of the growth. On a year-to-date basis, noninterest expense totaled $14,935,000 in 2002, an increase of $1,123,000 or 8.1 percent compared to $13,812,000 the previous year. Salaries and employee benefits, OVBC's largest noninterest expense grew $628,000 or 8.5 percent for the first nine months of 2002, as compared to the same time period in 2001. The increase was related to annual merit increases, incentive-based compensation and the rising cost of medical insurance. Impacting the 2002 year-to-date results was the charge off of fraudulent checks during the second quarter with the impact net of recoveries being $389,000 on other noninterest expense. The remaining noninterest expense categories have increased minimally from 2001. For the third quarter of 2002, noninterest expense totaled $4,752,000, up $173,000 or 3.8 percent compared to the same time period last year. OVBC's efficiency ratio continues to improve driven by revenue growth (net interest income plus noninterest income) of 15.5 percent versus total expense growth of 8.1 percent. The efficiency ratio was 61.0 percent for the nine months ending September 30, 2002, as compared to 65.0 percent the prior year. For the first nine months of 2002, the Company's provision for loan losses increased $1,330,000 over the same time period last year in relation to an increase in net charge-offs of $1,239,000. Nonperforming loans at September 30, 2002 stood at $9,216,000 compared to $7,036,000 at September 30, 2001 and $6,310,000 at year end. The increase in nonperforming loans was the result of a single commercial line which is in the process of collection. The commercial line represented .79 percent of total loans. Nonperforming loans as a percentage of total loans were 1.64 percent for the quarter ending September 30, 2002 compared to 1.42 percent at September 30, 2001 and 1.24 percent at year end 2001. The allowance for loan losses stood at 1.25 percent of total loans at September 30, 2002, which included a specific allocation of $450,000 for the commercial line mentioned above, should a loss become reality. The 1.25 percent allowance for loan losses for September 30, 2002 compares to 1.21 percent at September 30, 2001 and to 1.23 percent at year end 2001. Management has increased the ratio of allowance to total loans based on an increase in nonperforming loans and the continued uncertainty of economic conditions. While management is comfortable that the allowance for loan losses is adequate to absorb future losses inherent in the loan portfolio, management is prepared to increase the allowance should economic conditions dictate. Total assets increased $60,181,000 or 9.5 percent from year end 2001 to reach $695,180,000 at September 30, 2002. Driving asset growth was an increase in total loans of $51,906,000 or 10.2 percent from year end. For the first nine months of 2002, loan growth has exceeded management's expectations, particularly in commercial real estate and indirect automobile lending. Funding came primarily from deposits which are up $50,773,000 or 11.1 percent from December 31, 2001. A significant portion of the deposit growth occurred in NOW accounts and time deposits. President and CEO Jeff Smith stated, "We are pleased with the third quarter results which produced double digit earnings growth. Strong revenue growth and expense control continues to make Ohio Valley a more efficient Company which is reflected in shareholder value as return on equity improved to 11.33 percent for the first nine months of 2002 from 10.35 percent the same time period last year." Ohio Valley Banc Corp common stock is traded on the NASDAQ Stock Market under the symbol OVBC. The holding company owns three subsidiaries: Ohio Valley Bank, Loan Central, and Ohio Valley Financial Services Agency. Learn more about Ohio Valley Banc Corp at www.ovbc.com. OHIO VALLEY BANC CORP - Financial Highlights (Unaudited) Three months ended Nine months ended September 30, September 30, 2002 2001 2002 2001 ---------- ---------- ---------- ---------- PER SHARE DATA Earnings per share $0.41 $0.35 $1.16 $1.00 Dividend per share $0.17 $0.16 $0.50 $0.47 Book value per share $14.22 $13.39 $14.22 $13.39 Dividend payout ratio 41.68% 45.31% 43.07% 46.84% Weighted average shares outstanding 3,459,337 3,456,661 3,459,768 3,467,768 PERFORMANCE RATIOS Return on average equity 11.58% 10.64% 11.33% 10.35% Return on average assets 0.82% 0.81% 0.81% 0.80% Net interest margin 4.28% 4.36% 4.36% 4.28% Efficiency Ratio 56.68% 60.89% 61.02% 64.99% Average Earning Assets (in 000's) $643,279 $563,472 $620,009 $542,612 OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited) Three months ended Nine months ended (in $000's) September 30, September 30, 2002 2001 2002 2001 --------- --------- --------- --------- Interest income: Interest and fees on loans $11,159 11,145 $32,746 32,261 Interest and dividends on securities 960 1,014 2,869 3,288 Total interest income 12,119 12,159 35,615 35,549 Interest expense: Deposits 3,827 4,729 11,467 14,907 Borrowings 1,453 1,336 4,240 3,593 Total interest expense 5,280 6,065 15,707 18,500 Net interest income 6,839 6,094 19,908 17,049 Provision for loan losses 1,541 1,092 3,495 2,165 Noninterest income: Service charges on deposit accounts 806 757 2,301 2,229 Trust fees 51 53 164 168 Income from bank owned insurance 172 146 512 430 Other 395 316 1,141 923 Total noninterest income 1,424 1,272 4,118 3,750 Noninterest expense: Salaries and employee benefits 2,726 2,464 8,045 7,417 Occupancy expense 324 317 959 943 Furniture and equipment expense 280 267 814 806 Data processing expense 144 185 435 408 Other 1,278 1,346 4,682 4,238 Total noninterest expense 4,752 4,579 14,935 13,812 Income before income taxes 1,970 1,695 5,596 4,822 Income taxes 560 475 1,582 1,340 NET INCOME $1,410 1,220 $4,014 3,482 OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited) (in 000's) September 30, December 31, 2002 2001 ---------------- ---------------- ASSETS Cash and noninterest-bearing deposits with banks $19,592 $17,288 Federal funds sold 12,300 9,000 Total cash and cash equivalents 31,892 26,288 Interest-bearing balances with banks 1,495 1,264 Securities available-for-sale 63,338 61,559 Securities held-to-maturity (estimated fair value: 2002 - $16,193 , 2001 - $14,421) 15,119 13,973 Total loans 560,566 508,660 Less: Allowance for loan losses (6,982) (6,251) Net loans 553,584 502,409 Premises and equipment, net 8,346 8,702 Accrued income receivable 3,512 3,420 Intangible assets, net 1,169 1,267 Bank owned life insurance 12,526 12,089 Other assets 4,199 4,028 Total assets $695,180 $634,999 LIABILITIES Noninterest-bearing deposits $56,438 $56,735 Interest-bearing deposits 450,196 399,126 Total deposits 506,634 455,861 Securities sold under agreements to repurchase 26,163 29,274 Other borrowed funds 91,299 90,856 Obligated mandatorily redeemable capital securities of subsidiary trust 13,500 5,000 Accrued liabilities 8,435 7,708 Total liabilities 646,031 588,699 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2002 - 3,602,854 shares issued, 2001 - 3,579,250 shares issued) 3,603 3,579 Additional paid-in capital 29,751 29,207 Retained Earnings 18,264 15,979 Accumulated other comprehensive income 1,441 1,043 Treasury stock at cost (2002 - 147,115 shares, 2001 - 129,990 shares) (3,910) (3,508) Total shareholders' equity 49,149 46,300 Total liabilities and shareholders' equity $695,180 $634,999 Contact: Scott Shockey or Chris Petro 1-800-468-6682 or (740) 446-2631 -----END PRIVACY-ENHANCED MESSAGE-----