-----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, H8Fj32Ui7LpZmjVULyNGxF+KyK7u//la9YcHVmiCNaMnranyefy7vFZCltNBD0on TCaMHEAcuUqz0LenS2TvXg== 0000894671-06-000130.txt : 20061012 0000894671-06-000130.hdr.sgml : 20061012 20061012165756 ACCESSION NUMBER: 0000894671-06-000130 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061012 DATE AS OF CHANGE: 20061012 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: 061142540 BUSINESS ADDRESS: STREET 1: 420 THIRD AVE CITY: GALLIPOLIS STATE: OH ZIP: 45631 BUSINESS PHONE: 7404462631 MAIL ADDRESS: STREET 1: 420 THIRD AVENUE STREET 2: PO BOX 240 CITY: GALLIPOLIS STATE: OH ZIP: 45631 8-K 1 sec8k093006cover.txt EARNINGS RELEASE 09/30/06 UNITED STATES 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 Date of Report (Date of earliest event reported): October 12, 2006 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 No.) 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.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Exhibit Index at Page 4. Item 2.02 - Results of Operations and Financial Condition - --------------------------------------------------------- On October 12, 2006, Ohio Valley Banc Corp. (the "Company"), issued a press release announcing financial results for its third quarter and year-to-date periods ending September 30, 2006. A copy of the press release is furnished with this Form 8-K as Exhibit 99.1 and is incorporated herein by reference. Item 9.01 - Financial Statements and Exhibits - --------------------------------------------- (a) Not applicable (b) Not applicable (c) Exhibits - The following exhibit is being filed with this Current Report on Form 8-K: Exhibit No. Description - ----------- ----------- 99.1 Press release issued by Ohio Valley Banc Corp. on October 12, 2006. 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 12, 2006 By: /s/ Jeffrey E. Smith ------------------------------- Jeffrey E. Smith, President and Chief Executive Officer Page 3 EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Press release issued by Ohio Valley Banc Corp. on October 12, 2006. Page 4 EX-99 2 sec8k093006exhibit99_1.txt EARNINGS RELEASE 09/30/06 October 12, 2006 - For immediate release Contact: Scott Shockey, CFO (740) 446-2631 Ohio Valley Banc Corp Reports Earnings Growth --------------------------------------------- GALLIPOLIS, Ohio - Ohio Valley Banc Corp [Nasdaq: OVBC] reported consolidated net income for the quarter ended September 30, 2006, of $1,817,000, an increase of 4.7 percent over the $1,736,000 earned for the third quarter of 2005. Earnings per share for the third quarter of 2006 were $.43, up 4.9 percent from the prior year third quarter. Comparing the nine months ended September 30, 2006 to the same time period in 2005, net income increased 6.8 percent to reach $5,382,000. Earnings per share were $1.27 for the first nine months of 2006 versus $1.18 for the first nine months of 2005, an increase of 7.6 percent. Return on average assets and return on average equity both improved to .95 percent and 12.07 percent, respectively, for the nine months ended September 30, 2006, as compared to .93 percent and 11.76 percent, respectively, for the same time period in the prior year. Net interest income, the Company's largest revenue source, contributed to the increased earnings. For the nine months ended September 30, 2006, net interest income increased $959,000, or 4.6 percent, over the same time period last year. This increase was attributable to the growth in the Company's earning assets during the first nine months of 2006; while the Company's net interest margin remained stable. The average earning assets for the first nine months of 2006 were up $33,675,000, or 4.9 percent, from the same time period in 2005 driven by commercial and residential real estate lending. The net interest margin for the nine months ending September 30, 2006 was 4.10 percent, compared to 4.11 percent for the same time period the prior year. For the third quarter of 2006, net interest income was up $13,000 from the prior year third quarter. Although the Company's average earning assets were up $30,880,000 during the third quarter of 2006, as compared to the third quarter of 2005, this growth was offset by a lower net interest margin. Comparing the third quarter of 2006 to the third quarter of 2005, the net interest margin was down 16 basis points. The decline in net interest margin was partially related to a higher balance of loans on nonaccrual status. Based on the evaluation of the adequacy of the allowance for loan losses, management provided $1,931,000 to the allowance for loan losses for the nine months ended September 30, 2006, an increase of $783,000 from the same time period the prior year. The increase in the provision for loan losses was primarily associated with higher nonperforming loan balances. The Company's ratio of nonperforming loans to total loans stood at 1.36 percent at September 30, 2006, as compared to .41 percent at December 31, 2005, and the ratio of nonperforming assets to total assets was 1.36 percent at September 30, 2006, as compared to .62 percent at December 31, 2005. The higher nonperforming loan balance consists primarily of two commercial loan relationships representing .90 percent of total loans. The loans are secured by liens on commercial real estate and equipment, personal guarantees and life insurance. The Company's net charge-offs for the nine months ending September 30, 2006 were down $542,000 from the same nine-month time period in 2005, occurring primarily in commercial loans. The allowance for loan losses was 1.32 percent of total loans at September 30, 2006, as compared to 1.16 percent at December 31, 2005. Management believes that the allowance for loan losses is adequate and reflects probable incurred losses in the portfolio. Noninterest income totaled $4,475,000 for the nine months ended September 30, 2006, as compared to $4,064,000 for the same time period last year, an increase of 10.1 percent. For the three months ended September 30, 2006, noninterest income totaled $1,616,000 and was up 16.0 percent from 2005's third quarter. Contributing to the 2006 noninterest income growth was the increase in revenue from additional investments in bank owned life insurance throughout 2005 in addition to life insurance proceeds received in 2006. Furthermore, income growth continues to be enhanced by the increased volume of transactions utilizing the Company's Jeanie(R) Plus debit card. Interchange fees earned for the first nine months of 2006 were up 17.0 percent from the first nine months in 2005. For the same time period, monthly service charge fees decreased 15.8% due to the growth in the number of Easy Checking accounts featuring no service charge or minimum balance requirements. On a year-to-date basis, noninterest expense totaled $16,660,000 in 2006, an increase of $384,000, or only 2.4 percent, when compared to $16,276,000 the previous year. On a quarter-to-date basis, noninterest expense increased $206,000, or 3.8 percent, from the third quarter in 2005. Salaries and employee benefits, the Company's largest noninterest expense, grew $233,000, or 2.4 percent, for the first nine months of 2006, as compared to the same time period in 2005. The remaining noninterest expense categories were up $151,000 collectively from 2005, led by additional collection expense associated with the higher nonperforming loans. The emphasis management placed on expense control contributed to an improvement in efficiency. The efficiency ratio, which represents the cost to generate a dollar of revenue, improved to 63.14 percent for the nine months ended September 30, 2006, as compared to 65.17 percent for the nine months ended September 30, 2005. Total assets increased $22,482,000 from year-end 2005 to reach $772,201,000 at September 30, 2006. The asset growth resulted from an increase in loans of $11,279,000, occurring primarily in commercial and residential real estate loans. Funding loan growth was an increase in money market deposits and certificates of deposit which contributed to total deposit growth of $36,170,000 from December 31, 2005. The growth in retail deposits permitted the Company to reduce borrowed funds by $18,822,000 from year-end 2005. "The third quarter continues to reflect mixed results from operations," stated Jeffrey E. Smith, President and CEO. "On the down side our earnings increase, on a year-to-date basis, was limited to 6.8 percent by higher provision for loan loss expense as well as increased collection expenses due to higher nonperforming loans. The higher nonperforming loans at 1.36 percent of total loans consist primarily of two commercial relationships which account for ..90 percent of the total nonperforming ratio. While our lenders, collectors and attorneys are working diligently to resolve or liquidate the problem credits; they could linger into fiscal year 2007. On the other hand, we are pleased with our employees' continued efforts in the areas of revenue growth and expense control. Our debit card interchange fees continue to increase and our internet-related services helped to hold the increase in noninterest expense to just 2.4 percent." Ohio Valley Banc Corp common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns three subsidiaries: Ohio Valley Bank, with 16 offices in Ohio and West Virginia; Loan Central, with five consumer finance offices in Ohio; and Ohio Valley Financial Services, an insurance agency based in Jackson, Ohio. Learn more about Ohio Valley Banc Corp at www.ovbc.com. Forward-Looking Information Certain statements contained in this earnings release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believes," "anticipates," "expects," "intends," "targeted" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including: (i) changes in political, economic or other factors such as inflation rates, recessionary or expansive trends, and taxes; (ii) competitive pressures; (iii) fluctuations in interest rates; (iv) the level of defaults and prepayment on loans made by the Company; (v) unanticipated litigation, claims, or assessments; (vi) fluctuations in the cost of obtaining funds to make loans; and (vii) regulatory changes. Forward-looking statements speak only as of the date on which they are made and Ohio Valley undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events. OHIO VALLEY BANC CORP - Financial Highlights (Unaudited)
Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 ------------- ------------ ------------- -------------- PER SHARE DATA Earnings per share $0.43 $0.41 $1.27 $1.18 Dividend per share $0.17 $0.16 $0.50 $0.47 Book value per share $14.51 $13.71 $14.51 $13.71 Dividend payout ratio 39.57% 39.42% 39.39% 40.14% Weighted average shares outstanding 4,228,798 4,270,276 4,239,291 4,282,089 PERFORMANCE RATIOS Return on average equity 12.03% 11.86% 12.07% 11.76% Return on average assets 0.95% 0.94% 0.95% 0.93% Net interest margin 3.97% 4.13% 4.10% 4.11% Efficiency ratio 64.34% 63.84% 63.14% 65.17% Average earning assets (in 000's) $717,736 $686,856 $714,221 $680,546
OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)
Three months ended Nine months ended (in $000's) September 30, September 30, 2006 2005 2006 2005 ------------- ------------ ------------- -------------- Interest income: Interest and fees on loans $ 12,410 $ 10,933 $ 36,279 $ 31,259 Interest and dividends on securities 997 840 2,802 2,581 Total interest income 13,407 11,773 39,081 33,840 Interest expense: Deposits 4,964 3,349 13,341 9,291 Borrowings 1,335 1,329 4,055 3,823 Total interest expense 6,299 4,678 17,396 13,114 Net interest income 7,108 7,095 21,685 20,726 Provision for loan losses 474 501 1,931 1,148 Noninterest income: Service charges on deposit accounts 806 783 2,245 2,299 Trust fees 56 54 165 161 Income from bank owned insurance 270 149 727 440 Gain on sale of loans 21 32 75 88 Other 463 375 1,263 1,076 Total noninterest income 1,616 1,393 4,475 4,064 Noninterest expense: Salaries and employee benefits 3,278 3,244 9,803 9,570 Occupancy 347 327 999 978 Furniture and equipment 268 310 811 902 Data processing 197 170 613 501 Other 1,573 1,406 4,434 4,325 Total noninterest expense 5,663 5,457 16,660 16,276 Income before income taxes 2,587 2,530 7,569 7,366 Income taxes 770 794 2,187 2,328 NET INCOME $ 1,817 $ 1,736 $ 5,382 $ 5,038
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share and per share data) September 30, December 31, 2006 2005 --------------- ----------------- ASSETS Cash and noninterest-bearing deposits with banks $ 15,125 $ 18,516 Federal funds sold 9,900 1,100 Total cash and cash equivalents 25,025 19,616 Interest-bearing deposits in other financial institutions 515 510 Securities available-for-sale 68,972 66,328 Securities held-to-maturity (estimated fair value: 2006 - $13,800, 2005 - $12,373) 13,519 12,088 FHLB stock 5,946 5,697 Total loans 628,811 617,532 Less: Allowance for loan losses (8,285) (7,133) Net loans 620,526 610,399 Premises and equipment, net 9,908 8,299 Accrued income receivable 3,383 2,819 Goodwill 1,267 1,267 Bank owned life insurance 15,906 15,962 Other assets 7,234 6,734 Total assets $ 772,201 $ 749,719 LIABILITIES Noninterest-bearing deposits $ 72,363 $ 82,561 Interest-bearing deposits 526,673 480,305 Total deposits 599,036 562,866 Securities sold under agreements to repurchase 19,923 29,070 Other borrowed funds 66,498 76,173 Subordinated debentures 13,500 13,500 Accrued liabilities 12,066 8,839 Total liabilities 711,023 690,448 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2006 - 4,626,339 shares issued, 2005 - 4,626,336 shares issued) 4,626 4,626 Additional paid-in-capital 32,282 32,282 Retained earnings 35,106 31,843 Accumulated other comprehensive income (1,356) (1,231) Treasury stock at cost (2006 - 410,220 shares, 2005 - 361,365 shares) (9,480) (8,249) Total shareholders' equity 61,178 59,271 Total liabilities and shareholders' equity $ 772,201 $ 749,719
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