GALLIPOLIS, Ohio, July 26,
2024 /PRNewswire/ -- Ohio Valley Banc Corp.
[Nasdaq: OVBC] (the "Company") reported consolidated net income for
the quarter ended June 30, 2024, of
$2,972,000, a decrease of
$277,000 from the same period the
prior year. Earnings per share for the second quarter of 2024 were
$.63 compared to $.68 for the prior year second quarter. For the
six months ended June 30, 2024, net
income totaled $5,765,000, a decrease
of $1,392,000, or 19.4%, from the
same period the prior year. Earnings per share were $1.21 for the first six months of 2024 versus
$1.50 for the first six months of
2023. Return on average assets and return on average equity were
.84% and 8.01%, respectively, for the first half of 2024, compared
to 1.16% and 10.63%, respectively, for the same period in the prior
year.
Ohio Valley Banc Corp. President and CEO, Larry Miller said, "Your company continues to
face the dual headwinds of a difficult interest rate environment
and rising costs due to inflation. These same headwinds affect
many, if not everyone, especially when it comes to home ownership
and affordability. This is why we were pleased to recently partner
with the Ohio state treasurer to
offer an enhanced interest savings alternative, our SWEET HOME
OHIO account. The purpose of the
SWEET HOME OHIO account is to
offer high interest savings to encourage individuals to save toward
buying a home in Ohio. Visit our
website at www.ovbc.com for more details on this exciting new
account or stop by your local Ohio Valley Bank office to start your
SWEET HOME OHIO savings
today!"
For the three months ended June 30,
2024, net interest income increased $349,000, and for the six months ended
June 30, 2024, net interest income
decreased $183,000 from the same
respective periods last year. Contributing to the increase in
quarterly net interest income was the $129
million increase in average earning assets, which was
partially offset by a decrease in the net interest margin of 29
basis points. For the six months ended June
30, 2024, the decrease in net interest income was
attributable to the 44 basis point decrease in the net interest
margin, which more than offset the contribution from the
$124 million increase in average
earning assets. In general, the decrease in the net interest margin
for the respective periods was related to the cost of funding
sources increasing more than the yield on earning assets. This
increase in the cost of funding was partially linked to the
Company's decision to increase rates on deposit accounts to attract
deposits amidst heightened market competition for such funds. In
addition, the composition of funding sources trended toward
certificates of deposit and wholesale funding sources, which
generally cost more than other funding sources, such as checking,
NOW, savings and money market deposit products. Although the net
interest margin decreased from the prior year periods, the net
interest margin increased 13 basis points from the first quarter to
the second quarter of 2024. The increase was related to higher
relative balances in loans due to quarterly loan growth of
$50 million and to the deposit mix
trending back towards checking, NOW, savings and money market
deposit accounts since the first quarter of 2024.
For the three months ended June 30,
2024, the provision for credit loss expense totaled
$181,000, an increase of $157,000 from the same period last year. The
quarterly provision for credit loss expense was primarily
associated with the $50 million
quarterly increase in loan balances, which was partially offset by
quarter-to-date net recoveries of $65,000 and the improvement in a certain economic
risk factor for residential loans. For the six months ended
June 30, 2024, the provision for
credit losses was $932,000, an
increase of $419,000 from the same
period last year. The year-to-date provision for credit loss
expense was primarily associated with the $68 million in loan growth and net charge-offs of
$331,000. The allowance for credit
losses was .91% of total loans at June 30,
2024, compared to .90% at December
31, 2023, and .80% at June 30,
2023. The ratio of nonperforming loans to total loans
increased to .50% at June 30, 2024,
compared to .26% at December 31,
2023, and .29% at June 30,
2023. The increase in nonperforming loans was largely
impacted by a single loan relationship secured primarily by
commercial real estate property.
For the three and six months ended June
30, 2024, noninterest income decreased $12,000 and $83,000, respectively, from the same periods last
year. The decreases were largely due to the closure of Race Day
Mortgage at the end of 2023. Due to the closure, there was no
mortgage application referral income earned in 2024 compared to
$247,000 in commissions earned during
the first half of 2023. The decline in other noninterest income was
partially offset by the $192,000
year-to-date increase in service charges on deposit accounts.
For the three months ended June 30,
2024, noninterest expense totaled $10,863,000, an increase of $448,000 from the same period last year. For the
six months ended June 30, 2024,
noninterest expense totaled $21,604,000, an increase of $917,000 from the same period last year. The
Company's largest noninterest expense, salaries and employee
benefits, increased $345,000 as
compared to the second quarter of 2023 and increased $628,000 as compared to the first half of 2023.
The increase was primarily related to annual merit increases and
higher health insurance premiums. However, the growth in salaries
and employee benefit expense was partially offset by the
elimination of staffing for Race Day Mortgage by April 2023, which resulted in a savings of
$216,000 for the first half of 2024,
when compared to the same period last year. Further contributing to
higher noninterest expense were data processing and professional
fees. For the three months and six months ended June 30, 2024, data processing increased
$62,000 and $149,000, respectively, from the same periods
last year. The increase was primarily related to debit card
processing due to higher transaction volume and to higher costs
associated with enhancements to the Company's digital banking
platform. Professional fees increased $74,000 during the second quarter of 2024 and
increased $127,000 during the first
half of 2024, as compared to the same periods in 2023. The increase
was related to higher director fees and a general increase in legal
fees.
The Company's total assets at June 30,
2024 were $1.403 billion, an
increase of $51 million from
December 31, 2023. Since December 31, 2023, loan balances increased
$68 million, which increase was
largely in the residential real estate, commercial real estate and
commercial segments. The growth in these segments was partially
offset by a decrease in consumer loans, as this segment has been
deemphasized by the Company due to profitability relative to other
loan portfolio segments. The increase was primarily funded by a
$51 million increase in deposits and
a $21 million decrease in funds
maintained at the Federal Reserve. At June
30, 2024, shareholders' equity increased $1.8 million from year end 2023. As part of the
current stock buyback plan, the Company repurchased $1,931,000 in shares during the second quarter of
2024. Of the $5 million in shares
authorized to be purchased by the plan, the Company has repurchased
a total of $2,967,000.
Ohio Valley Banc Corp. common stock is traded on the NASDAQ
Global Market under the symbol OVBC. The holding company owns The
Ohio Valley Bank Company with 17 offices in Ohio and West
Virginia, and Loan Central, Inc. with six 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 that 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; (vii) regulatory
changes; and (viii) other factors that may be described in the
Company's Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q as filed with the Securities and Exchange Commission from time
to time. 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.
OHIO VALLEY BANC
CORP - Financial Highlights (Unaudited)
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Three months
ended
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Six months
ended
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June 30,
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June 30,
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|
2024
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2023
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2024
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2023
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PER SHARE
DATA
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Earnings per
share
|
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$
0.63
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|
$
0.68
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$
1.21
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$
1.50
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Dividends per
share
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|
$
0.22
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|
$
0.37
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$
0.44
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$
0.58
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Book value per
share
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$
30.94
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$
28.91
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$
30.94
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|
$
28.91
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Dividend payout
ratio (a)
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35.48 %
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54.39 %
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36.51 %
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38.69 %
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Weighted average
shares outstanding
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4,740,073
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4,776,520
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4,762,923
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4,774,999
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DIVIDEND REINVESTMENT
(in 000's)
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Dividends
reinvested under
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employee stock ownership
plan (b)
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$
-
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$
-
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|
$
202
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|
$
193
|
Dividends
reinvested under
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|
dividend reinvestment plan
(c)
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|
$
391
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|
$
637
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|
$
782
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|
$
1,147
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PERFORMANCE
RATIOS
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Return on
average equity
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8.25 %
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9.46 %
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8.01 %
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10.63 %
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Return on
average assets
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0.86 %
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1.03 %
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0.84 %
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|
1.16 %
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Net interest
margin (d)
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3.74 %
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|
4.03 %
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|
3.68 %
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|
4.12 %
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Efficiency ratio
(e)
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73.37 %
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71.93 %
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72.41 %
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|
68.70 %
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Average earning
assets (in 000's)
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|
$
1,300,720
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$
1,171,792
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|
$
1,280,968
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$
1,156,896
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(a) Total dividends
paid as a percentage of net income.
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(b) Shares may be
purchased from OVBC and on secondary market.
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(c) Shares may be
purchased from OVBC and on secondary market.
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(d) Fully
tax-equivalent net interest income as a percentage of average
earning assets.
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(e) Noninterest expense
as a percentage of fully tax-equivalent net interest income plus
noninterest income.
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OHIO VALLEY BANC CORP - Consolidated Statements of
Income (Unaudited)
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Three months
ended
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Six months
ended
|
(in $000's)
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Interest income:
|
|
|
|
|
|
|
|
|
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Interest and fees on
loans
|
|
|
$
16,130
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|
$
13,293
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|
$
31,380
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|
$
25,569
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Interest and dividends on
securities
|
|
1,076
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|
1,053
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|
2,093
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|
2,145
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Interest on interest-bearing
deposits with banks
|
1,446
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|
671
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|
2,863
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|
1,097
|
Total interest income
|
|
|
18,652
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|
15,017
|
|
36,336
|
|
28,811
|
Interest expense:
|
|
|
|
|
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Deposits
|
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|
6,102
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|
3,091
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|
12,001
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|
4,923
|
Borrowings
|
|
|
587
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|
312
|
|
1,182
|
|
552
|
Total interest expense
|
|
|
6,689
|
|
3,403
|
|
13,183
|
|
5,475
|
Net interest income
|
|
|
11,963
|
|
11,614
|
|
23,153
|
|
23,336
|
Provision for (recovery of) credit
losses
|
181
|
|
24
|
|
932
|
|
513
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts
|
731
|
|
653
|
|
1,456
|
|
1,264
|
Trust fees
|
|
|
101
|
|
82
|
|
205
|
|
168
|
Income from bank owned life
insurance and
|
|
|
|
|
|
|
|
annuity
assets
|
|
|
226
|
|
211
|
|
451
|
|
418
|
Mortgage banking
income
|
|
|
40
|
|
44
|
|
79
|
|
91
|
Electronic refund
check/deposit fees
|
135
|
|
135
|
|
675
|
|
675
|
Debit / credit card
interchange income
|
1,223
|
|
1,215
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|
2,368
|
|
2,388
|
Tax preparation
fees
|
|
|
26
|
|
33
|
|
633
|
|
664
|
Other
|
|
|
219
|
|
340
|
|
530
|
|
812
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Total noninterest income
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|
|
2,701
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|
2,713
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|
6,397
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|
6,480
|
Noninterest expense:
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|
Salaries and employee
benefits
|
|
6,186
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|
5,841
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|
12,353
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|
11,725
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Occupancy
|
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|
537
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|
485
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|
1,006
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|
947
|
Furniture and
equipment
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|
326
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|
330
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|
660
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|
628
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Professional fees
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|
507
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|
433
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|
993
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|
866
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Marketing expense
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|
221
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|
241
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|
446
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|
482
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FDIC insurance
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|
|
161
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|
142
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|
309
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|
280
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Data processing
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|
788
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|
726
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|
1,595
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|
1,446
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Software
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|
|
541
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|
588
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|
1,162
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|
1,150
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Foreclosed assets
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|
|
2
|
|
7
|
|
0
|
|
9
|
Amortization of
intangibles
|
|
|
4
|
|
6
|
|
7
|
|
13
|
Other
|
|
|
1,590
|
|
1,616
|
|
3,073
|
|
3,141
|
Total noninterest expense
|
|
|
10,863
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|
10,415
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|
21,604
|
|
20,687
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Income before income
taxes
|
|
|
3,620
|
|
3,888
|
|
7,014
|
|
8,616
|
Income taxes
|
|
|
$
648
|
|
639
|
|
1,249
|
|
1,459
|
NET INCOME
|
|
|
$
2,972
|
|
$
3,249
|
|
$
5,765
|
|
$
7,157
|
OHIO VALLEY BANC CORP - Consolidated Balance Sheets
(Unaudited)
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(in $000's, except
share data)
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June 30,
|
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December
31,
|
|
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|
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|
2024
|
|
2023
|
ASSETS
|
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Cash and
noninterest-bearing deposits with banks
|
|
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|
$
14,862
|
|
$
14,252
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Interest-bearing
deposits with banks
|
|
|
|
|
|
92,817
|
|
113,874
|
Total cash and cash
equivalents
|
|
|
|
|
|
107,679
|
|
128,126
|
Securities available
for sale
|
|
|
|
|
|
|
162,749
|
|
162,258
|
Securities held to
maturity, net of allowance for credit losses of $2 in 2024 and
2023
|
7,930
|
|
7,986
|
Restricted investments
in bank stocks
|
|
|
|
|
5,016
|
|
5,037
|
Total loans
|
|
|
|
|
|
|
1,040,284
|
|
971,900
|
Less:
Allowance for credit losses
|
|
|
|
|
|
(9,431)
|
|
(8,767)
|
Net loans
|
|
|
|
|
|
|
1,030,853
|
|
963,133
|
Premises and equipment,
net
|
|
|
|
|
|
|
21,466
|
|
21,450
|
Premises and equipment
held for sale, net
|
|
|
|
|
517
|
|
573
|
Accrued interest
receivable
|
|
|
|
|
|
|
4,300
|
|
3,606
|
Goodwill
|
|
|
|
|
|
|
7,319
|
|
7,319
|
Other intangible
assets, net
|
|
|
|
|
|
|
1
|
|
8
|
Bank owned life
insurance and annuity assets
|
|
|
|
|
40,913
|
|
40,593
|
Operating lease
right-of-use asset, net
|
|
|
|
|
1,114
|
|
1,205
|
Deferred tax
assets
|
|
|
|
|
|
|
6,442
|
|
6,306
|
Other assets
|
|
|
|
|
|
|
7,018
|
|
4,535
|
Total assets
|
|
|
|
|
|
|
$
1,403,317
|
|
$
1,352,135
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
$ 343,209
|
|
$ 322,222
|
Interest-bearing
deposits
|
|
|
|
|
|
|
835,219
|
|
804,914
|
Total deposits
|
|
|
|
|
|
|
1,178,428
|
|
1,127,136
|
Other borrowed
funds
|
|
|
|
|
|
|
42,056
|
|
44,593
|
Subordinated
debentures
|
|
|
|
|
|
|
8,500
|
|
8,500
|
Operating lease
liability
|
|
|
|
|
|
|
1,114
|
|
1,205
|
Allowance for credit
losses on off-balance sheet commitments
|
|
|
|
629
|
|
692
|
Other
liabilities
|
|
|
|
|
|
|
26,833
|
|
26,002
|
Total liabilities
|
|
|
|
|
|
|
1,257,560
|
|
1,208,128
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock ($1.00
stated value per share, 10,000,000 shares authorized;
|
|
|
|
|
2024 - 5,490,995
shares issued; 2023 - 5,470,453 shares issued)
|
|
|
5,491
|
|
5,470
|
Additional paid-in
capital
|
|
|
|
|
|
|
52,321
|
|
51,842
|
Retained
earnings
|
|
|
|
|
|
|
118,531
|
|
114,871
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
(11,907)
|
|
(11,428)
|
Treasury stock, at cost
(2024 - 779,994 shares; 2023 - 697,321 shares)
|
|
(18,679)
|
|
(16,748)
|
Total shareholders' equity
|
|
|
|
|
|
|
145,757
|
|
144,007
|
Total liabilities and shareholders' equity
|
|
|
|
|
$
1,403,317
|
|
$
1,352,135
|
|
|
|
|
|
|
|
|
|
|
Contact: Scott Shockey, CFO
(740) 446-2631
View original
content:https://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-2nd-quarter-earnings-302207862.html
SOURCE Ohio Valley Banc Corp.