-----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, Hd96LmA8LDirF961v3wu5zewXPz1nuuTlIcNNLj7uOsgw3H208e3e0Ser55dKIPQ +cw6Bi9Ov7sn7pMuHckiCw== 0000894671-07-000001.txt : 20070117 0000894671-07-000001.hdr.sgml : 20070117 20070117172241 ACCESSION NUMBER: 0000894671-07-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070117 DATE AS OF CHANGE: 20070117 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: 07535848 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 sec8k123106cover.txt EARNINGS RELEASE 12/31/06 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): January 16, 2007 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 January 16, 2007, Ohio Valley Banc Corp. (the "Company"), issued a press release announcing financial results for its fourth quarter and year-to-date periods ending December 31, 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 January 16, 2007. 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 17, 2007 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 January 16, 2007. Page 4 EX-99 2 sec8k123106exhibit99.txt EARNINGS RELEASE 12/31/06 January 16, 2007 - For immediate release Contact: Scott Shockey, CFO (740) 446-2631 Ohio Valley Banc Corp Reports 4th Quarter and Fiscal Year Results GALLIPOLIS, Ohio - Ohio Valley Banc Corp [Nasdaq: OVBC] reported consolidated net income for the quarter ended December 31, 2006, of $16,000, or $.00 per share, compared to $1,979,000, or $.46 per share, for the fourth quarter of 2005. For the year ended December 31, 2006, consolidated net income was $5,398,000, a decrease of 23.1 percent from the year ended December 31, 2005 net income of $7,017,000. Earnings per share were $1.27 for the year of 2006 versus $1.64 for the year of 2005, a decrease of 22.6 percent. Return on average assets and return on average equity both decreased to .71 percent and 9.00 percent, respectively, for the twelve months ended December 31, 2006, as compared to .97 percent and 12.18 percent, respectively, for the same time period in the prior year. The decline in quarterly and year-to-date earnings was related to a higher provision for loan losses. Contributing to the higher provision expense was an increase in both nonperforming loans and loan charge-offs. During the fourth quarter, a loan relationship totaling $6.7 million, or 1.07 percent of total loans, was determined by management to be impaired due to certain events and subsequently placed on nonaccrual status. The loans are primarily secured by commercial real estate and based on management's assessment of the loan relationship; a specific allocation for loan losses was made totaling $2 million, which required a corresponding increase in provision for loan losses. Additionally, management charged off $2.3 million on existing nonperforming loans during the fourth quarter. While the allowance for loan losses already reflected the probable loss on these previously identified nonperforming loans, the charge-offs increased the Company's historical loss experience for commercial loans, resulting in an increase in the allowance for loan losses for general allocations to reflect increased risk in the portfolio. Due to both the increase in specific allocations of the allowance for loan losses and increased loss history which called for an increase in the general allocations, management provided $3,731,000 to the allowance for loan losses for the three months ended December 31, 2006, an increase of $3,082,000 from the same time period the prior year. For the fiscal year ended December 31, 2006, the provision for loan losses totaled $5,662,000, as compared to $1,797,000 for the prior fiscal year, an increase of $3,865,000. The Company's ratio of nonperforming loans to total loans was at 2.14 percent at December 31, 2006, compared to .41 percent at December 31, 2005. The ratio of nonperforming assets to total assets was 2.00 percent at December 31, 2006, compared to .62 percent at December 31, 2005. The Company's net charge-offs for the twelve months ended December 31, 2006 were up $1,543,000 from the same twelve-month period in 2005, occurring primarily in commercial loans. The allowance for loan losses was 1.51 percent of total loans at December 31, 2006, 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. Net interest income, the Company's largest revenue source, totaled $28,490,000 for the twelve months ended December 31, 2006, an increase of $556,000, or 2.0 percent, over the same time period last year. This increase was attributable to the growth in the Company's earning assets during 2006, partially offset by a decline in the net interest margin. The average earning assets for the year 2006 were up $32,100,000, or 4.7 percent, from the same time period in 2005, driven by commercial and residential real estate lending. The net interest margin for the twelve months ended December 31, 2006 was 4.02 percent, compared to 4.11 percent for the same time period the prior year. For the fourth quarter of 2006, net interest income was down $403,000, or 5.6 percent, from the prior year fourth quarter. Although the Company's earning assets were up $27,430,000 for the fourth quarter of 2006, as compared to the fourth quarter of 2005, the growth was more than offset by a lower net interest margin. Comparing the fourth quarter of 2006 to the fourth quarter of 2005, the net interest margin was down 36 basis points. The decline in net interest margin was partially related to a higher balance of loans on nonaccrual status. Noninterest income totaled $5,830,000 for the twelve months ended December 31, 2006, compared to $5,522,000 for the same time period last year, an increase of 5.6 percent. For the three months ended December 31, 2006, noninterest income totaled $1,437,000 and was down 1.5 percent from 2005's fourth quarter. Contributing to the year-to-date 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 year 2006 were up 16.1 percent from the year 2005. For the same time period, monthly service charge fees decreased 17.5 percent due to the growth in the number of Easy Checking accounts featuring no service charge or minimum balance requirements. The Easy Checking account, a transaction account with electronic features, increases the company's core deposits, increases interchange fees and decreases processing costs. On a year-to-date basis, noninterest expense totaled $21,199,000 in 2006, a decrease of $160,000 when compared to the previous year. On a quarter-to-date basis, noninterest expense decreased $463,000, or 9.1 percent, from the fourth quarter in 2005. Salaries and employee benefits, the Company's largest noninterest expense, decreased $340,000, or 2.6 percent, for the twelve months ended December 31, 2006 and decreased $574,000, or 17.6 percent, for the three months ended December 31, 2006. The decrease in personnel expense was related to a decline in the number of employees in addition to a reduction in incentive compensation due to lower corporate performance. The remaining noninterest expense categories were collectively up only 2.1 percent, or $180,000, 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 improved to 61.20 percent for 2006, as compared to 63.49 percent for 2005. Total assets increased $14,642,000 from year end 2005 to reach $764,361,000 at December 31, 2006. The asset growth resulted from an increase in loans of $7,632,000, 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 $30,920,000 from year end 2005. The growth in retail deposits permitted the Company to reduce borrowed funds by $19,141,000 from year end 2005. "The 2006 financial results are not reflective of the effort given by our employees but are the result of prudent and necessary actions required to address asset quality," stated Jeffrey E. Smith, President and CEO. "Employee efforts contributed to solid growth in both interest and noninterest income and strong expense control. Those efforts will continue as our lenders, collectors and attorneys continue to work diligently to resolve or liquidate problem credits." 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 Twelve months ended December 31, December 31, 2006 2005 2006 2005 ------------- ------------ ------------- --------------- PER SHARE DATA Earnings per share $0.00 $0.46 $1.27 $1.64 Dividends per share $0.17 $0.16 $0.67 $0.63 Book value per share $14.38 $13.90 $14.38 $13.90 Dividend payout ratio (a) 4639.40% 34.49% 52.56% 38.55% Weighted average shares outstanding 4,204,616 4,268,096 4,230,551 4,278,562 PERFORMANCE RATIOS Return on average equity 0.10% 13.38% 9.00% 12.18% Return on average assets 0.01% 1.06% 0.71% 0.97% Net interest margin (b) 3.78% 4.14% 4.02% 4.11% Efficiency ratio (c) 55.44% 58.26% 61.20% 63.49% Average earning assets (in 000's) $724,415 $696,985 $716,790 $684,690
(a) Total dividends paid as a percentage of net income. (b) Fully tax-equivalent net interest income as a percentage of average earning assets. (c) Noninterest expense as a percentage of fully tax-equivalent net interest income plus noninterest income. OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)
Three months ended Twelve months ended (in $000's) December 31, December 31, 2006 2005 2006 2005 ------------- ------------ ------------- --------------- Interest income: Interest and fees on loans $ 12,235 $ 11,362 $ 48,514 $ 42,621 Interest and dividends on securities 1,105 869 3,907 3,450 Total interest income 13,340 12,231 52,421 46,071 Interest expense: Deposits 5,253 3,682 18,594 12,973 Borrowings 1,282 1,341 5,337 5,164 Total interest expense 6,535 5,023 23,931 18,137 Net interest income 6,805 7,208 28,490 27,934 Provision for loan losses 3,731 649 5,662 1,797 Noninterest income: Service charges on deposit accounts 742 797 2,987 3,096 Trust fees 56 51 221 211 Income from bank owned insurance 180 149 907 589 Gain on sale of loans 29 32 104 120 Other 430 430 1,611 1,506 Total noninterest income 1,437 1,459 5,830 5,522 Noninterest expense: Salaries and employee benefits 2,694 3,268 12,497 12,837 Occupancy 339 330 1,338 1,309 Furniture and equipment 309 305 1,120 1,206 Data processing 74 132 687 633 Other 1,205 1,049 5,557 5,374 Total noninterest expense 4,621 5,084 21,199 21,359 Income before income taxes -110 2,934 7,459 10,300 Income taxes -126 955 2,061 3,283 NET INCOME $ 16 $ 1,979 $ 5,398 $ 7,017
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share and per share data) December 31, December 31, 2006 2005 --------------- ----------------- ASSETS Cash and noninterest-bearing deposits with banks $ 18,965 $ 18,516 Federal funds sold 1,800 1,100 Total cash and cash equivalents 20,765 19,616 Interest-bearing deposits in other financial institutions 508 510 Securities available-for-sale 70,267 66,328 Securities held-to-maturity (estimated fair value: 2006 - $13,586, 2005 - $12,373) 13,350 12,088 FHLB stock 6,036 5,697 Total loans 625,164 617,532 Less: Allowance for loan losses (9,412) (7,133) Net loans 615,752 610,399 Premises and equipment, net 9,812 8,299 Accrued income receivable 3,234 2,819 Goodwill 1,267 1,267 Bank owned life insurance 16,054 15,962 Other assets 7,316 6,734 Total assets $ 764,361 $ 749,719 LIABILITIES Noninterest-bearing deposits $ 77,960 $ 82,561 Interest-bearing deposits 515,826 480,305 Total deposits 593,786 562,866 Securities sold under agreements to repurchase 22,556 29,070 Other borrowed funds 63,546 76,173 Subordinated debentures 13,500 13,500 Accrued liabilities 10,691 8,839 Total liabilities 704,079 690,448 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 34,404 31,843 Accumulated other comprehensive income (981) (1,231) Treasury stock at cost (2006 - 432,851 shares, 2005 - 361,365 shares) (10,049) (8,249) Total shareholders' equity 60,282 59,271 Total liabilities and shareholders' equity $ 764,361 $ 749,719
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