GALLIPOLIS, Ohio, April 28, 2016 /PRNewswire/ -- Ohio Valley
Banc Corp. (Nasdaq: OVBC) (the "Company") reported consolidated net
income for the quarter ended March 31,
2016, of $2,832,000, a
decrease of $792,000 from the same
period the prior year. Earnings per share for the first
quarter of 2016 were $.69, compared
to $.88 earned the first quarter of
2015. Return on average assets and return on average equity
were 1.29 percent and 12.50 percent, respectively, for the first
quarter of 2016, versus 1.67 percent and 16.94 percent,
respectively, for the same period the prior year.
"The 21.9 percent decline in net income was generally due to
higher provision for loan losses, lower tax refund processing fees
and merger related expenses," stated Thomas
E. Wiseman, President and CEO. "It's always a
challenge following a record breaking year, but our bankers
continue to position the company to take full advantage of the
opportunities before us. The proposed merger with The Milton
Banking Company and the opening of the OVB Athens Loan Office are
just two examples of opportunities we hope to capitalize on in 2016
and beyond. The business of community banking isn't getting
any easier, but our team is committed to pursuing our 'Community
First' mission."
For the first quarter of 2016, net interest income increased
$170,000, or 1.9 percent, from the
same period last year. With the Federal Reserve increasing
short-term interest rates in December
2015 by 25 basis points, the interest earned on the
heightened liquidity maintained during the first quarter in
relation to seasonal tax refund processing contributed an
additional $97,000 to interest
income. Furthermore, the higher rate on balances maintained
at the Federal Reserve contributed to an increase in the net
interest margin. For the three months ended March 31, 2016, the net interest margin was 4.50
percent compared to 4.45 percent for the same period the prior
year. For the first quarter of 2016, average earning assets
decreased $1.7 million from the same
period last year. Comparing the first quarter of 2016 to the
first quarter of 2015, average loan balances decreased $11.5 million, which was largely offset by growth
in average investments and Federal Reserve balances. The
decrease in average loan balances was primarily related to a
decrease in average participation loans of $12.8 million, due to an increase in payoffs.
For the three months ended March 31,
2016, provision for loan loss expense totaled $479,000, as compared to negative provision of
$78,000 for the same period last
year. The increase in provision expense was partly due to an
increase in net charge-offs. For the three months ended
March 31, 2016, net charge-offs
totaled $181,000, an increase of
$245,000 from the net recoveries of
$64,000 for the three months ended
March 31, 2015. Also
contributing to additional provision expense during the first
quarter of 2016 was the increase in specific allocations on
impaired loans of $87,000.
Furthermore, the general reserve for loan losses increased due to
certain economic risk factors, such as the balance of classified
loans, which was partially offset by the improvement in lower
historical loan loss factors. The ratio of nonperforming
loans to total loans at March 31,
2016 was 1.24 percent compared to 1.24 percent at
December 31, 2015 and 1.60 percent at
March 31, 2015. Based on the
evaluation of the adequacy of the allowance for loan losses,
management believes that the allowance for loan losses at
March 31, 2016 was adequate and
reflects probable incurred losses in the portfolio. The
allowance for loan losses was 1.19 percent of total loans at
March 31, 2016, compared to 1.13
percent at December 31, 2015 and 1.40
percent at March 31, 2015.
For the first quarter of 2016, noninterest income totaled
$3,235,000, a decrease of
$254,000, or 7.3 percent, from the
first quarter of 2015. For the three months ended
March 31, 2016, tax refund processing
fees totaled $1,754,000, a decrease
of $341,000 from the same period the
prior year. The decrease was related to the lower per item
fee received by the Company as defined in the contract with the
third-party tax refund product provider. For the first
quarter of 2016, all other noninterest income sources increased
$87,000 in the aggregate from the
same period last year, led by service charges on deposit accounts
and interchange fees earned on debit and credit card
transactions.
Noninterest expense totaled $7,969,000 for the first quarter of 2016, an
increase of $542,000, or 7.3 percent,
from the same period last year. The Company's largest
noninterest expense, salaries and employee benefits, increased
$170,000 from the first quarter of
2015. The increase was primarily related to annual merit
increases and higher health insurance expense. Also
contributing to higher noninterest expense in the first quarter of
2016 were expenses related to the announced merger with Milton
Bancorp. During the first quarter, the Company incurred
$227,000 in merger related
expenses. The remaining noninterest expenses were limited to
an increase of $145,000.
Ohio Valley Banc Corp. common stock is traded on the NASDAQ
Global Market under the symbol OVBC. The holding company owns
Ohio Valley Bank, with 14 offices in Ohio and West
Virginia, and Loan Central, with seven consumer finance
offices in Ohio. Learn more about Ohio Valley Banc Corp. at
www.ovbc.com.
Caution Regarding 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," "appears," "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,
taxes, the effects of implementation of federal legislation with
respect to taxes and government spending and the continuing
economic uncertainty in various parts of the world; (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 the Company
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. See Item
1.A. "Risk Factors" in the Company's Annual Report on Form 10-K for
the fiscal year ended December 31,
2015, for further discussion of the risks affecting the
business of the Company and the value of an investment in its
shares.
Important Information for Investors and Shareholders
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of the Company.
The Company's common shares to be issued in connection with the
merger have not been and will not be registered under the
Securities Act of 1933 or the securities laws of any state and may
not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements.
OHIO VALLEY BANC
CORP - Financial Highlights (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
$
0.69
|
|
$
0.88
|
Dividends per
share
|
|
|
|
|
|
|
$
0.21
|
|
$
0.21
|
Book value per
share
|
|
|
|
|
|
|
$
22.60
|
|
$
21.68
|
Dividend
payout ratio (a)
|
|
|
|
|
|
|
30.53%
|
|
23.86%
|
Weighted
average shares outstanding
|
|
|
|
|
4,127,666
|
|
4,117,675
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on
average equity
|
|
|
|
|
|
|
12.50%
|
|
16.94%
|
Return on
average assets
|
|
|
|
|
|
|
1.29%
|
|
1.67%
|
Net interest
margin (b)
|
|
|
|
|
|
|
4.50%
|
|
4.45%
|
Efficiency
ratio (c)
|
|
|
|
|
|
|
63.80%
|
|
58.99%
|
Average
earning assets (in 000's)
|
|
|
|
|
|
|
$
827,318
|
|
$ 829,036
|
|
|
|
|
|
|
|
|
|
|
(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
|
(in
$000's)
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
|
|
|
|
|
$
8,927
|
|
$
8,899
|
Interest and dividends on
securities
|
|
|
|
|
|
843
|
|
728
|
Total interest income
|
|
|
|
|
|
|
9,770
|
|
9,627
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
498
|
|
535
|
Borrowings
|
|
|
|
|
|
|
172
|
|
162
|
Total interest expense
|
|
|
|
|
|
|
670
|
|
697
|
Net interest
income
|
|
|
|
|
|
|
9,100
|
|
8,930
|
Provision for loan
losses
|
|
|
|
|
|
|
479
|
|
(78)
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts
|
|
|
|
|
405
|
|
353
|
Trust fees
|
|
|
|
|
|
|
60
|
|
58
|
Income from bank owned life
insurance and annuity assets
|
|
|
|
209
|
|
176
|
Mortgage banking
income
|
|
|
|
|
|
|
57
|
|
59
|
Electronic refund check /
deposit fees
|
|
|
|
|
1,754
|
|
2,095
|
Debit / credit card
interchange income
|
|
|
|
|
586
|
|
538
|
Gain on other real estate
owned
|
|
|
|
|
|
|
(5)
|
|
15
|
Other
|
|
|
|
|
|
|
169
|
|
195
|
Total noninterest income
|
|
|
|
|
|
|
3,235
|
|
3,489
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
|
|
|
|
4,570
|
|
4,400
|
Occupancy
|
|
|
|
|
|
|
429
|
|
402
|
Furniture and
equipment
|
|
|
|
|
|
|
185
|
|
178
|
Professional fees
|
|
|
|
|
|
|
337
|
|
356
|
Marketing expense
|
|
|
|
|
|
|
247
|
|
234
|
FDIC
insurance
|
|
|
|
|
|
|
149
|
|
166
|
Data
processing
|
|
|
|
|
|
|
353
|
|
368
|
Software
|
|
|
|
|
|
|
292
|
|
247
|
Foreclosed assets
|
|
|
|
|
|
|
65
|
|
35
|
Merger related
expenses
|
|
|
|
|
|
|
227
|
|
0
|
Other
|
|
|
|
|
|
|
1,115
|
|
1,041
|
Total noninterest expense
|
|
|
|
|
|
|
7,969
|
|
7,427
|
Income before income
taxes
|
|
|
|
|
|
|
3,887
|
|
5,070
|
Income
taxes
|
|
|
|
|
|
|
1,055
|
|
1,446
|
NET
INCOME
|
|
|
|
|
|
|
$
2,832
|
|
$
3,624
|
|
|
|
|
|
|
|
|
|
|
OHIO VALLEY BANC
CORP - Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in $000's, except
share data)
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and
noninterest-bearing deposits with banks
|
|
|
|
|
$
10,311
|
|
$
9,475
|
Interest-bearing
deposits with banks
|
|
|
|
|
|
128,993
|
|
36,055
|
Total cash and cash
equivalents
|
|
|
|
|
|
|
139,304
|
|
45,530
|
Certificates of
deposit in financial institutions
|
|
|
|
|
1,470
|
|
1,715
|
Securities available
for sale
|
|
|
|
|
|
|
87,979
|
|
91,651
|
Securities held to
maturity
|
|
|
|
|
|
|
|
|
|
(estimated
fair value: 2016 - $20,527; 2015 - $20,790)
|
|
|
|
19,506
|
|
19,903
|
Federal Home Loan
Bank and Federal Reserve Bank stock
|
|
|
|
6,576
|
|
6,576
|
Total
loans
|
|
|
|
|
|
|
585,845
|
|
585,752
|
Less:
Allowance for loan losses
|
|
|
|
|
|
|
(6,946)
|
|
(6,648)
|
Net loans
|
|
|
|
|
|
|
578,899
|
|
579,104
|
Premises and
equipment, net
|
|
|
|
|
|
|
10,372
|
|
10,404
|
Other real estate
owned
|
|
|
|
|
|
|
2,179
|
|
2,358
|
Accrued interest
receivable
|
|
|
|
|
|
|
1,778
|
|
1,819
|
Goodwill
|
|
|
|
|
|
|
1,267
|
|
1,267
|
Bank owned life
insurance and annuity assets
|
|
|
|
|
28,561
|
|
28,352
|
Other
assets
|
|
|
|
|
|
|
5,626
|
|
7,606
|
Total assets
|
|
|
|
|
|
|
$
883,517
|
|
$ 796,285
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
$
240,642
|
|
$ 176,499
|
Interest-bearing
deposits
|
|
|
|
|
|
|
500,363
|
|
484,247
|
Total deposits
|
|
|
|
|
|
|
741,005
|
|
660,746
|
Other borrowed
funds
|
|
|
|
|
|
|
28,133
|
|
23,946
|
Subordinated
debentures
|
|
|
|
|
|
|
8,500
|
|
8,500
|
Accrued
liabilities
|
|
|
|
|
|
|
12,248
|
|
12,623
|
Total liabilities
|
|
|
|
|
|
|
789,886
|
|
705,815
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock ($1.00
stated value per share, 10,000,000 shares authorized;
|
|
|
|
|
2016 -
4,801,986 shares issued; 2015 - 4,777,414 shares issued)
|
|
|
4,802
|
|
4,777
|
Additional paid-in
capital
|
|
|
|
|
|
|
35,868
|
|
35,318
|
Retained
earnings
|
|
|
|
|
|
|
67,749
|
|
65,782
|
Accumulated other
comprehensive income
|
|
|
|
|
924
|
|
305
|
Treasury stock, at
cost (659,739 shares)
|
|
|
|
|
(15,712)
|
|
(15,712)
|
Total shareholders' equity
|
|
|
|
|
|
|
93,631
|
|
90,470
|
Total liabilities and shareholders' equity
|
|
|
|
|
$
883,517
|
|
$ 796,285
|
|
|
|
|
|
|
|
|
|
|
Contact: Scott Shockey, CFO (740) 446-2631
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-1st-quarter-earnings-300259648.html
SOURCE Ohio Valley Banc Corp.