-----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, JOx8+eE9MhRV+iBiSlpylcjaLbXdSHeH971VDFmOnVEGTVcrkjFdWL0T8ofOpkTJ MiUMRZZrYrAjRHfKgCA/+Q== 0000894671-03-000054.txt : 20030410 0000894671-03-000054.hdr.sgml : 20030410 20030410115744 ACCESSION NUMBER: 0000894671-03-000054 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030410 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: 03645019 BUSINESS ADDRESS: STREET 1: 420 THIRD AVE CITY: GALLIPOLIS STATE: OH ZIP: 45631 BUSINESS PHONE: 6144462631 8-K 1 sec8k033103earningsrelease.txt SEC FORM 8-K FOR PERIOD ENDING MARCH 31, 2003 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 April 10, 2003 (April 9, 2003) Date of Report (Date of earliest event reported) 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 Number) 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.) Exhibit Index at Page 4. Item 7. Financial Statements and Exhibits - ----------------------------------------- (c) Exhibits: 99.1 Press Release dated April 9, 2003 of Ohio Valley Banc Corp. Item 9. Regulation FD Disclosure - -------------------------------- The following information is disclosed pursuant to Item 12 on Form 8-K: On April 9, 2003, Ohio Valley Banc Corp. issued a news release announcing its earnings for the first quarter period ending March 31, 2003. The information contained in the news release, which is attached as Exhibit 99.1 to this Form 8-K, is incorporated herein by this reference. 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: April 9, 2003 By /s/ Jeffrey E. Smith ------------------------------- Jeffrey E. Smith, President and Chief Executive Officer Page 3 EXHIBIT INDEX Exhibit Number Description 99.1 Press release of Ohio Valley Banc Corp dated April 9, 2003, announcing the company's earnings for the quarter period ending March 31, 2003. Page 4 EX-99.1 2 sec8k033103earningsrelpt2.txt EARNINGS RELEASE April 9, 2003 - For immediate release Contact: Scott Shockey, CFO or Bryna Butler, Corporate Communications 1-800-468-6682 or (740) 446-2631 OVBC Increases Dividends ------------------------ GALLIPOLIS, Ohio-- Ohio Valley Banc Corp. [Nasdaq:OVBC] President and CEO Jeffrey E. Smith announced that the Board of Directors approved an increase in quarterly cash dividends of 5.9 percent. Cash dividends will increase to $.18 per share from $.17 per share payable May 10, 2003 to shareholders of record April 21, 2003. The announcement was made at the Company's Annual Shareholders' Meeting held today at the Morris & Dorothy Haskins Ariel Theatre in Gallipolis, Ohio. Also during the meeting, Anna P. Barnitz, Lannes C. Williamson, and Thomas E. Wiseman were re-elected to the Board of Directors to each serve a three year term ending in 2006. Other announcements made during the meeting included the naming of Steven B. Chapman, CPA, as "financial expert" to the company's Audit Committee pursuant to the Sarbanes-Oxley Act. Chapman was also named as the newest member of the company's Executive Committee. Additionally, Chairman of the Board James L. Dailey announced the retirement of longtime director Merrill Evans. Just prior to the meeting, Ohio Valley Banc Corp. reported consolidated net earnings for the quarter ended March 31, 2003 of $1,460,000 representing a 16.6 percent increase over the $1,252,000 for the same time period a year ago. Net income per share increased 16.7 percent for the first quarter at $.42 per share compared to $.36 per share in the first quarter of 2002. Management was pleased to continue double-digit earnings growth into 2003. The earnings performance improved over the prior year due to net interest income growth, positive gains in noninterest income and strong expense control. For the first quarter of 2003, net interest income improved $543,000 or 8.5 percent over the prior year. Driving the growth in net interest income was the increase in average earning assets of $53,000,000 which was partially offset by modest decline in the net interest margin. For the first quarter of 2003, the net interest margin was 4.36 percent, as compared to 4.38 percent for the same period in 2002. Noninterest income totaled $1,446,000 for the first quarter of 2003 compared to $1,280,000 a year ago representing a 13 percent increase. The majority of the growth in noninterest income came from the sales of secondary market real estate loans which generated an additional $188,000 in revenue over the prior year. Noninterest expense totaled $4,924,000 in 2003, an increase of only $151,000 or 3.2 percent. Salary and employee benefits, the Company's largest noninterest expense, totaled $2,797,000 for the first quarter of 2003, up $178,000 from the prior year. The increase was affected by annual merit increases and rising benefit costs. The remaining expense categories were collectively down from the previous year. Ohio Valley Banc Corp.'s efficiency ratio continued to improve as revenue sources continue to outpace the growth in noninterest expense. The efficiency ratio for the first quarter improved to 58.3 percent from 61.2 percent in 2002. For the first quarter of 2003, the Company's provision for loan losses increased $243,000 over the first quarter of 2002, in relation to an increase in net charge-offs of $368,000 which occurred primarily in commercial loans. Non-performing loans as a percent of total loans increased to 1.70 percent as of the end of the first quarter of 2003, compared to 1.44 percent at year end 2002. The nonperforming loan balance consists principally of two commercial lines which total two thirds of the nonperforming balance. The first line, which represents .37 percent of total loans outstanding, was disclosed in the third quarter of 2002. The second line represents .24 percent of total loans outstanding and became available for liquidation on March 31, 2003. The allowance for loan losses was 1.27 percent of total loans on March 31, 2003, as compared to 1.26 percent on December 31, 2002. Management feels that the allowance for loan losses is adequate to absorb probable losses in the loan portfolio. Smith commented, "The financial results for the first quarter of 2003 reflect management's commitment to increase the efficiency of the company, thereby improving shareholder total cumulative return." The double-digit earnings growth led to an improved return on average equity of 11.67 percent for the three months ended March 31, 2003 versus 10.86 percent for the first three months of 2002. Ohio Valley Banc Corp. common stock is traded on The NASDAQ Stock Market under the symbol OVBC. The holding company owns three subsidiaries: Ohio Valley Bank, with 17 offices in Ohio and West Virginia; Loan Central, with five consumer finance company offices in Ohio, and Ohio Valley Financial Services, an insurance agency based in Jackson, Ohio. The company's Web site is www.ovbc.com. Forward-Looking Information --------------------------- Certain statements contained in this 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 March 31, 2002 2001 ---------- ---------- PER SHARE DATA Earnings per share $0.42 $0.36 Dividend per share $0.17 $0.16 Book value per share $14.77 $13.58 Dividend payout ratio 40.34% 44.17% Weighted average shares outstanding 3,469,079 3,459,235 PERFORMANCE RATIOS Return on average equity 11.67% 10.86% Return on average assets 0.86% 0.80% Net interest margin 4.36% 4.38% Efficiency Ratio 58.25% 61.21% Average Earning Assets (in 000's) $652,017 $599,272 OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited) Three months ended (in $000's) March 31, 2003 2002 ---------- ---------- Interest income: Interest and fees on loans $10,687 $10,647 Interest and dividends on securities 925 962 Total interest income 11,612 11,609 Interest expense: Deposits 3,316 3,900 Borrowings 1,380 1,336 Total interest expense 4,696 5,236 Net interest income 6,916 6,373 Provision for loan losses 1,385 1,142 Noninterest income: Service charges on deposit accounts 697 694 Trust fees 52 54 Income from bank owned insurance 172 171 Gain on sale of loans 196 8 Other 329 353 Total noninterest income 1,446 1,280 Noninterest expense: Salaries and employee benefits 2,797 2,619 Occupancy expense 332 311 Furniture and equipment expense 237 263 Data processing expense 160 147 Other 1,398 1,433 Total noninterest expense 4,924 4,773 Income before income taxes 2,053 1,738 Income taxes 593 486 NET INCOME $1,460 $1,252 OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited) (dollars in thousands except share and per share data) March 31, December 31, 2003 2002 ---------------- ---------------- ASSETS Cash and noninterest-bearing deposits with banks $15,588 $18,826 Federal funds sold 13,325 4,625 Total cash and cash equivalents 28,913 23,451 Interest-bearing balances with banks 1,487 1,505 Securities available-for-sale 68,552 75,264 Securities held-to-maturity (estimated fair value: 2003 - $14,727 , 2002 - $14,834) 13,938 13,990 Total loans 558,139 559,561 Less: Allowance for loan losses (7,070) (7,069) Net loans 551,069 552,492 Premises and equipment, net 8,270 8,247 Accrued income receivable 3,291 3,144 Intangible assets, net 1,267 1,267 Bank owned life insurance 12,819 12,673 Other assets 5,227 4,323 Total assets $694,833 $696,356 LIABILITIES Noninterest-bearing deposits $58,133 $58,997 Interest-bearing deposits 453,810 438,407 Total deposits 511,943 497,404 Securities sold under agreements to repurchase 21,238 33,052 Other borrowed funds 89,769 95,435 Obligated mandatorily redeemable capital securities of subsidiary trust 13,500 13,500 Accrued liabilities 7,059 6,590 Total liabilities 643,509 645,981 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2003 - 3,630,882 shares issued, 2002 - 3,620,335 shares issued) 3,631 3,620 Additional paid-in capital 30,315 30,092 Retained Earnings 20,210 19,339 Accumulated other comprehensive income 1,283 1,439 Treasury stock at cost (2003 and 2002 - 157,115 shares) (4,115) (4,115) Total shareholders' equity 51,324 50,375 Total liabilities and shareholders' equity $694,833 $696,356 -----END PRIVACY-ENHANCED MESSAGE-----