-----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, Usb0n4DkYSroqF06GEiOj/Dn9I68cOoSezxReqALLXxVgpkVJLLY/gH2dY7l4nnw Jk3QjQGvk6y0IcMYjUowRA== 0000894671-03-000003.txt : 20030115 0000894671-03-000003.hdr.sgml : 20030115 20030115144836 ACCESSION NUMBER: 0000894671-03-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 ITEM INFORMATION: Other events FILED AS OF DATE: 20030115 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: 03514821 BUSINESS ADDRESS: STREET 1: 420 THIRD AVE CITY: GALLIPOLIS STATE: OH ZIP: 45631 BUSINESS PHONE: 6144462631 8-K 1 sec8k123102earningsrelease.txt SEC8K123102EARNINGS RELEASE 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 January 15, 2003 (January 15, 2003) 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 January 15, 2003, Ohio Valley Banc Corp issued a news release announcing its earnings for the fourth quarter and year-to-date periods ending December 31, 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 January 15, 2003, announcing the company's earnings for the fourth quarter and year-to-date periods ending December 31, 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: January 15, 2003 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 January 15, 2003, announcing the company's earnings for the fourth quarter and year-to-date periods ending December 31, 2002. Page 4 Exhibit 99 Ohio Valley Banc Corp Continues Earnings Growth Gallipolis, Ohio, January 15, 2003 Ohio Valley Banc Corp [Nasdaq: OVBC] reported consolidated net earnings for the quarter ended December 31, 2002, of $1,661,000 representing an increase of 17.6 percent over the same time period last year. Earnings per share for the fourth quarter of 2002 were $.48, up 17.1 percent from the $.41 earned the fourth quarter of 2001. For the fiscal year ended December 31, 2002, consolidated net earnings were $5,675,000, up 15.9 percent compared to $4,895,000 a year ago. Earnings per share were $1.64 for 2002 versus $1.41 last year, an increase of 16.3 percent. Contributing to OVBC's double-digit earnings growth was strong net interest income growth. For the fourth quarter of 2002, net interest income increased $752,000 or 11.9 percent over the prior year fourth quarter. For the fiscal year ended December 31, 2002, net interest income improved $3,611,000 or 15.5 percent over last year. The increase in net interest income was the result of strong loan growth which kept total interest income unchanged despite falling interest rates combined with a decline in total interest expense of $3,425,000 or 14.1 percent. 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 4.35 percent year-to-date for 2002 from 4.29 percent the prior year. Providing additional revenue growth was positive gains in noninterest income. For the three months ended December 31, 2002, noninterest income increased $137,000 over the prior year fourth quarter and on a year-to-date basis noninterest income was up $505,000 or 9.8% from 2001. Income from deposit and loan service fees, bank owned life insurance and gain on sale of mortgage loans provided a majority of the growth in revenue. For the fourth quarter of 2002, noninterest expense totaled $4,241,000, which is a decline of $118,000 or 2.7 percent compared to the same time period last year. On a year-to-date basis, noninterest expense totaled $19,175,000 in 2002, an increase of $1,004,000 or 5.5 percent compared to $18,171,000 the previous year. Salaries and employee benefits, OVBC's largest noninterest expense grew $826,000 or 8.4 percent for fiscal year 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 $374,000 on other noninterest expense. The remaining noninterest expense categories have declined or increased minimally from 2001. OVBC's efficiency ratio continues to improve driven by revenue growth (net interest income plus noninterest income) of 14.5 percent versus total expense growth of 5.5 percent. The efficiency ratio was 58.1 percent for 2002, as compared to 62.5 percent the prior year. For the fiscal year 2002, the Company's provision for loan losses increased $1,967,000 over the same time period last year in relation to an increase in net charge-offs of $2,014,000. During 2002, Management emphasized asset quality by charging off nonperforming loans, particularly commercial and installment loans. Nonperforming loans at December 31, 2002 stood at $8,032,000 compared to $6,310,000 at year end 2001. The increase in nonperforming loans was the result of a single commercial line which was discussed in the third quarter's earnings release. This line represented .70 percent of total loans which increased nonperforming loans as a percentage of total loans to 1.44 percent for the year ending December 31, 2002 compared to 1.24 percent at year end 2001. The allowance for loan losses stood at $7,069,000 or 1.26 percent of total loans at December 31, 2002, which included a specific allocation of $450,000 for the commercial line mentioned above. The 1.26 percent allowance for loan losses for December 31, 2002 compares 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 $61,357,000 or 9.7 percent from year end 2001 to reach $696,356,000 at December 31, 2002. Driving asset growth was an increase in total loans of $50,901,000 or 10.0 percent from 2001. For 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 $41,543,000 or 9.1 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 double-digit earnings growth delivered by our employees for the fourth quarter and fiscal year 2002 which reflects our commitment to increasing financial performance. We will continue to focus on revenue growth, expense control and asset quality to make Ohio Valley a more efficient company. By doing so, we will continue to enhance shareholder value by improving return on equity which increased to 11.85 percent for 2002 from 10.80 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 Twelve months ended December 31, December 31, 2002 2001 2002 2001 ---------- ---------- ---------- ---------- PER SHARE DATA Earnings per share $0.48 $0.41 $1.64 $1.41 Dividend per share $0.17 $0.32 $0.67 $0.79 Book value per share $14.55 $13.42 $14.55 $13.42 Dividend payout ratio 35.27% 78.01% 40.79% 55.84% Weighted average shares outstanding 3,453,944 3,444,312 3,458,300 3,461,856 PERFORMANCE RATIOS Return on average equity 13.35% 12.10% 11.85% 10.80% Return on average assets 0.95% 0.90% 0.85% 0.83% Net interest margin 4.33% 4.34% 4.35% 4.29% Efficiency Ratio 50.07% 55.64% 58.14% 62.47% Average Earning Assets (in 000's) $654,929 $585,069 $628,811 $552,980 OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited) Three months ended Twelve months ended (in $000's) December 31, December 31, 2002 2001 2002 2001 --------- --------- --------- --------- Interest income: Interest and fees on loans $11,201 11,060 $43,947 43,321 Interest and dividends on securities 955 976 3,824 4,264 Total interest income 12,156 12,036 47,771 47,585 Interest expense: Deposits 3,662 4,373 15,129 19,281 Borrowings 1,441 1,362 5,681 4,954 Total interest expense 5,103 5,735 20,810 24,235 Net interest income 7,053 6,301 26,961 23,350 Provision for loan losses 1,974 1,338 5,470 3,503 Noninterest income: Service charges on deposit accounts 817 773 3,118 3,003 Trust fees 50 54 215 222 Income from bank owned insurance 172 166 684 596 Other 477 386 1,617 1,308 Total noninterest income 1,516 1,379 5,634 5,129 Noninterest expense: Salaries and employee benefits 2,596 2,397 10,641 9,815 Occupancy expense 315 312 1,274 1,255 Furniture and equipment expense 269 335 1,083 1,141 Data processing expense 50 89 484 496 Other 1,011 1,226 5,693 5,464 Total noninterest expense 4,241 4,359 19,175 18,171 Income before income taxes 2,354 1,983 7,950 6,805 Income taxes 693 570 2,275 1,910 NET INCOME $1,661 1,413 $5,675 4,895 OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited) (in 000's) December 31, December 31, 2002 2001 ---------------- ---------------- ASSETS Cash and noninterest-bearing deposits with banks $18,826 $17,288 Federal funds sold 4,625 9,000 Total cash and cash equivalents 23,451 26,288 Interest-bearing balances with banks 1,505 1,264 Securities available-for-sale 75,264 61,559 Securities held-to-maturity (estimated fair value: 2002 - $14,834 , 2001 - $14,421) 13,990 13,973 Total loans 559,561 508,660 Less: Allowance for loan losses (7,069) (6,251) Net loans 552,492 502,409 Premises and equipment, net 8,247 8,702 Accrued income receivable 3,144 3,420 Intangible assets, net 1,226 1,267 Bank owned life insurance 12,673 12,089 Other assets 4,364 4,028 Total assets $696,356 $634,999 LIABILITIES Noninterest-bearing deposits $58,997 $56,735 Interest-bearing deposits 438,407 399,126 Total deposits 497,404 455,861 Securities sold under agreements to repurchase 33,052 29,274 Other borrowed funds 95,435 90,856 Obligated mandatorily redeemable capital securities of subsidiary trust 13,500 5,000 Accrued liabilities 6,590 7,708 Total liabilities 645,981 588,699 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2002 - 3,620,335 shares issued, 2001 - 3,579,250 shares issued) 3,620 3,579 Additional paid-in capital 30,092 29,207 Retained Earnings 19,339 15,979 Accumulated other comprehensive income 1,439 1,043 Treasury stock at cost (2002 - 157,115 shares, 2001 - 129,990 shares) (4,115) (3,508) Total shareholders' equity 50,375 46,300 Total liabilities and shareholders' equity $696,356 $634,999 Contact: Scott Shockey or Chris Petro 1-800-468-6682 or (740) 446-2631 -----END PRIVACY-ENHANCED MESSAGE-----