-----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, ILcUG/fWCsvRcPT9qiZRSsiUUdklt26FcOuLOEN8ciFDeda/2B2w6fJCYO3Ba4ac R+LoXrsL0qqYWIsKvpmDrg== 0000894671-07-000123.txt : 20071012 0000894671-07-000123.hdr.sgml : 20071012 20071012161434 ACCESSION NUMBER: 0000894671-07-000123 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071012 DATE AS OF CHANGE: 20071012 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: 071169781 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 sec8k093007cover.txt EARNINGS RELEASE 093007 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, 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 October 12, 2007, 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, 2007. 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) Not applicable (d) 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, 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: October 12, 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 October 12, 2007. Page 4 EX-99 2 sec8k093007exhibit99.txt EARNINGS RELEASE 093007 October 12, 2007 - For immediate release Contact: Scott Shockey, CFO (740) 446-2631 Ohio Valley Banc Corp Reports 3rd Quarter Results GALLIPOLIS, Ohio - Ohio Valley Banc Corp [Nasdaq: OVBC] reported consolidated net income for the quarter ended September 30, 2007, of $1,833,000, an increase from the $1,817,000 earned for the third quarter of 2006. Earnings per share for the third quarter of 2007 were $.45, up 4.7 percent from the prior year third quarter. Comparing the nine months ended September 30, 2007 to the same period in 2006, net income decreased $88,000, or 1.6 percent, to reach $5,294,000. Earnings per share were $1.28 for the first nine months of 2007 versus $1.27 for the first nine months of 2006, an increase of .8 percent. Return on average assets and return on average equity both decreased to .92 percent and 11.72 percent, respectively, for the nine months ended September 30, 2007, as compared to .95 percent and 12.07 percent, respectively, for the same period in the prior year. Overall, management was pleased with the earnings performance and significant progress on asset quality. These efforts produced a reduction in provision expense, which more than offset the decrease in net interest income. In addition, the Company has been actively managing overhead expense, which was essentially unchanged from the prior year. For the nine months ended September 30, 2007, net interest income decreased $443,000, or 2.0 percent, from the same period last year. The third quarter 2007 net interest income was down only $103,000, or 1.4 percent, from the third quarter of 2006. The decrease in net interest income was attributable to a lower net interest margin, which was partially offset by the growth in the Company's earning assets. The net interest margin for the nine months ending September 30, 2007 was 3.99 percent, compared to 4.10 percent for the same period the prior year. The net interest margin compression was related to the upward pressure of the Company's funding costs in conjunction with the higher average balance of loans on noninterest accruing status. The Company's average earning assets for the first nine months of 2007 were up $7,858,000, or 1.1 percent, from the first nine months of 2006. During the first nine months of 2007, the Company's asset quality has improved significantly. The ratio of nonperforming loans to total loans stood at .85 percent at September 30, 2007, as compared to 2.14 percent at December 31, 2006. The Company's net charge-offs for the nine months ending September 30, 2007 were up $3,240,000 from the same nine-month period in 2006, primarily due to the charge-off of specific allocations established for nonperforming loans in 2006. The provision expense associated with establishing the specific allocations also occurred in 2006, primarily in the fourth quarter when the Company provided $3,731,000 to the allowance for loan losses. Based on the evaluation of the current adequacy of the allowance for loan losses, management provided $1,334,000 to the allowance for loan losses for the nine months ended September 30, 2007, a decrease of $597,000 from the same period the prior year. The allowance for loan losses was 1.07 percent of total loans at September 30, 2007, as compared to 1.51 percent at December 31, 2006. Management believes that the allowance for loan losses at September 30, 2007 was adequate and reflects probable incurred losses in the portfolio as of that date. Noninterest income totaled $4,315,000 for the nine months ended September 30, 2007, as compared to $4,393,000 for the same period last year, a decrease of 1.8 percent. For the three months ended September 30, 2007, noninterest income totaled $1,556,000, which equaled 2006's third quarter. Contributing to the decline in year-to-date noninterest income was the recognition of tax-free life insurance proceeds of $174,000 in the prior year. Providing additional noninterest income was processing fee income earned from facilitating the clearing of tax refunds for a tax software provider and interchange fees earned on transactions utilizing Ohio Valley Bank's Jeanie(R) Plus debit card. The combination of these two sources generated an additional $75,000 in noninterest income for 2007. On a year-to-date basis, noninterest expense totaled $16,599,000 in 2007, an increase of only $21,000 when compared to the previous year. On a quarter-to-date basis, noninterest expense decreased $11,000 from the third quarter in 2006. Salaries and employee benefits, the Company's largest noninterest expense, was down $155,000, or 1.6 percent, for the first nine months of 2007, as compared to the same period in 2006. Offsetting the savings in personnel expense was the increase in costs associated with resolving nonperforming loans. The Company's foreclosure costs for the nine months ended September 30, 2007 were up $160,000 from the same period the prior year. Overall, management was pleased with the cost containment demonstrated through the first nine months of 2007. "The emphasis of our employees on asset quality and operating efficiency continued throughout the third quarter as the ratio of nonperforming loans to total loans at September 30, 2007 stood at .85%, which represents a 38% improvement from September 30, 2006 and a 60% improvement from December 31, 2006," said Jeffrey E. Smith, President and CEO. "While costs associated with the resolution of nonperforming loans increased $160,000 for the nine-month period ending September 30, 2007 compared to the same period a year ago, our employees continued their emphasis on cost containment resulting in an increase of only .13%, or $21,000, in total noninterest expense for this same period. On a quarter-to-date basis, comparing the period ended September 30, 2007 with September 30, 2006, noninterest expense actually decreased by $11,000. I continue to be pleased with not only the emphasis of our employees, but also their priority of asset quality and operating efficiency, in that order." 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 15 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 Banc Corp 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, 2007 2006 2007 2006 ---------------- ---------------- ----------------- ------------------- PER SHARE DATA Earnings per share $0.45 $0.43 $1.28 $1.27 Dividends per share $0.18 $0.17 $0.53 $0.50 Book value per share $14.93 $14.51 $14.93 $14.51 Dividend payout ratio (a) 40.28% 39.57% 41.61% 39.39% Weighted average shares outstanding 4,101,908 4,228,798 4,149,040 4,239,291 PERFORMANCE RATIOS Return on average equity 12.10% 12.03% 11.72% 12.07% Return on average assets 0.95% 0.95% 0.92% 0.95% Net interest margin (b) 3.90% 3.97% 3.99% 4.10% Efficiency ratio (c) 64.47% 64.09% 64.16% 63.02% Average earning assets (in 000's) $723,612 $717,736 $722,079 $714,221 (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 Nine months ended (in $000's) September 30, September 30, 2007 2006 2007 2006 ----------------- ---------------- ----------------- ------------------- Interest income: Interest and fees on loans $ 12,731 $ 12,410 $ 37,877 $ 36,279 Interest and dividends on securities 1,053 997 3,129 2,802 Total interest income 13,784 13,407 41,006 39,081 Interest expense: Deposits 5,386 4,964 15,943 13,341 Borrowings 1,393 1,335 3,821 4,055 Total interest expense 6,779 6,299 19,764 17,396 Net interest income 7,005 7,108 21,242 21,685 Provision for loan losses 332 474 1,334 1,931 Noninterest income: Service charges on deposit accounts 776 806 2,192 2,245 Trust fees 58 56 172 165 Income from bank owned insurance 173 270 515 727 Gain on sale of loans 23 21 82 75 Other 526 403 1,354 1,181 Total noninterest income 1,556 1,556 4,315 4,393 Noninterest expense: Salaries and employee benefits 3,247 3,278 9,648 9,803 Occupancy 378 347 1,099 999 Furniture and equipment 276 268 810 811 Data processing 221 197 626 613 Other 1,470 1,513 4,416 4,352 Total noninterest expense 5,592 5,603 16,599 16,578 Income before income taxes 2,637 2,587 7,624 7,569 Income taxes 804 770 2,330 2,187 NET INCOME $ 1,833 $ 1,817 $ 5,294 $ 5,382
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share and per share data) September 30, December 31, 2007 2006 ----------------- ----------------- ASSETS Cash and noninterest-bearing deposits with banks $ 16,800 $ 18,965 Federal funds sold 11,756 1,800 Total cash and cash equivalents 28,556 20,765 Interest-bearing deposits in other financial institutions 620 508 Securities available-for-sale 69,536 70,267 Securities held-to-maturity (estimated fair value: 2007 - $15,976, 2006 - $13,586) 15,937 13,350 FHLB stock 6,036 6,036 Total loans 627,616 625,164 Less: Allowance for loan losses (6,727) (9,412) Net loans 620,889 615,752 Premises and equipment, net 9,937 9,812 Accrued income receivable 3,288 3,234 Goodwill 1,267 1,267 Bank owned life insurance 16,464 16,054 Other assets 6,916 7,316 Total assets $ 779,446 $ 764,361 LIABILITIES Noninterest-bearing deposits $ 76,476 $ 77,960 Interest-bearing deposits 519,464 515,826 Total deposits 595,940 593,786 Securities sold under agreements to repurchase 34,168 22,556 Other borrowed funds 61,398 63,546 Subordinated debentures 13,500 13,500 Accrued liabilities 13,421 10,691 Total liabilities 718,427 704,079 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2007 - 4,639,724 shares issued, 2006 - 4,626,340 shares issued) 4,640 4,626 Additional paid-in-capital 32,615 32,282 Retained earnings 37,495 34,404 Accumulated other comprehensive loss (627) (981) Treasury stock at cost (2007 - 553,830 shares, 2006 - 432,852 shares) (13,104) (10,049) Total shareholders' equity 61,019 60,282 Total liabilities and shareholders' equity $ 779,446 $ 764,361
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