-----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, WFcDxaZjQVsuMpHD7M8kTN3/2YOQlEKGubDpSRYt/z38sM4DMA7aTKXQZVb9MCuI 6pV0Ef556opSGINbkMamew== 0000894671-08-000003.txt : 20080114 0000894671-08-000003.hdr.sgml : 20080114 20080114130333 ACCESSION NUMBER: 0000894671-08-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080114 DATE AS OF CHANGE: 20080114 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: 08528038 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 sec8k123107cover.txt AT 12/31/07 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 14, 2008 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 14, 2008, 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, 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 January 14, 2008. 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 14, 2008 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 14, 2008. Page 4 EX-99 2 sec8k123107exhibit99.txt EARNINGS RELEASE FOR 123107 January 14, 2008 - For immediate release Contact: Scott Shockey, CFO (740) 446-2631 Ohio Valley Banc Corp Reports 4th Quarter and Fiscal Year Earnings GALLIPOLIS, Ohio - Ohio Valley Banc Corp [Nasdaq: OVBC] (the Company) reported consolidated net income for the quarter ended December 31, 2007, of $1,003,000, or $.24 per share, compared to $16,000, or $.00 per share, for the fourth quarter of 2006. For the year ended December 31, 2007, consolidated net income was $6,297,000, an increase of 16.7 percent from the year ended December 31, 2006 net income of $5,398,000. Earnings per share were $1.52 for the year of 2007 versus $1.27 for the year of 2006, an increase of 19.7 percent. Return on average assets and return on average equity both increased to .82 percent and 10.40 percent, respectively, for the twelve months ended December 31, 2007, as compared to .71 percent and 9.00 percent, respectively, for the same time period in the prior year. The increase in quarterly and year-to-date earnings was related to lower provision for loan losses. During 2007, the Company's asset quality improved significantly, which contributed to a 60.2 percent decrease in year-to-date provision expense. At December 31, 2007, the ratio of nonperforming loans to total loans stood at .57 percent compared to 2.14 percent at December 31, 2006. As part of reducing nonperforming loans, the Company's net charge-offs for the twelve months ending December 31, 2007 were up $1,543,000 from the same period in 2006, primarily related to the charge-off of specific allocations identified and established for the higher nonperforming loans in 2006. The provision expense associated with establishing the specific allocations 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 $2,252,000 to the allowance for loan losses for the twelve months ended December 31, 2007, a decrease of $3,410,000 from the same period the prior year. The allowance for loan losses was 1.06 percent of total loans at December 31, 2007, as compared to 1.51 percent at December 31, 2006. Management believes that the allowance for loan losses at December 31, 2007 was adequate and reflects probable incurred losses in the portfolio as of that date. Net interest income, the Company's largest revenue source, totaled $28,527,000 for the twelve months ended December 31, 2007, an increase of $37,000, from the same time period last year. The increase in net interest income was attributable to the growth in the Company's earning assets during 2007 which was partially offset by a decline in the net interest margin. The average earning assets for the year 2007 were up $8,253,000 from the same time period in 2006. The net interest margin for the twelve months ended December 31, 2007 was 3.99 percent, compared to 4.02 percent for the same time 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 fourth quarter 2007 net interest income was up $480,000, or 7.1 percent, from the fourth quarter of 2006. The quarterly net interest income was significantly enhanced by the decrease in nonperforming loans, which peaked during the fourth quarter of the prior year. Noninterest income totaled $5,236,000 for the twelve months ended December 31, 2007, compared to $5,830,000 for the same time period last year, a decrease of 10.2 percent. For the three months ended December 31, 2007, noninterest income totaled $921,000 and was down 35.9 percent from 2006's fourth quarter. Contributing to the decline in noninterest income was the loss on sale of real estate acquired through foreclosure. During the fourth quarter of 2007, the Company's largest nonperforming asset was liquidated creating a pretax loss of $686,000. With the reduction in nonperforming loans and liquidation of foreclosed real estate, the ratio of nonperforming assets improved to .50 percent at December 31, 2007 from 2.00 percent the prior year end. 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 $89,000 in noninterest income for 2007. Noninterest expense totaled $22,583,000 in 2007, an increase of $1,384,000, or 6.5 percent, when compared to the previous year. For the fourth quarter, noninterest expense increased $1,363,000, or 29.5 percent, from the fourth quarter in 2006. Salaries and employee benefits, the Company's largest noninterest expense, increased $548,000, or 4.4 percent, for the twelve months ended December 31, 2007, as compared to 2006. The increase in personnel expense was related to annual cost of living salary increases and an increase in incentive compensation due to higher corporate performance. The remaining noninterest expense categories increased $836,000 from 2006, led by an increase in costs associated with resolving nonperforming loans. The Company's foreclosure costs for the twelve months ended December 31, 2007 were up $363,000 from the same time period the prior year. "At this time last year, I said that our lenders, collectors and attorneys would work diligently to resolve or liquidate problem credits throughout 2007. From those efforts, the Company's nonperforming loans were reduced 73 percent," stated Jeffrey E. Smith, President and CEO. "The end result was over a 60 percent reduction in provision for loan losses leading to nearly a 20 percent improvement in earnings per share. I would like to thank the employees for their significant contribution to 2007's financial results and a stronger balance sheet as we enter 2008." 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 six 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 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)
Three months ended Twelve months ended December 31, December 31, 2007 2006 2007 2006 ---------------- ---------------- ----------------- ------------------- PER SHARE DATA Earnings per share $0.24 $0.00 $1.52 $1.27 Dividends per share $0.18 $0.17 $0.71 $0.67 Book value per share $15.10 $14.38 $15.10 $14.38 Dividend payout ratio (a) 73.28% 4639.40% 46.66% 52.56% Weighted average shares outstanding 4,079,932 4,204,616 4,131,621 4,230,551 PERFORMANCE RATIOS Return on average equity 6.52% 0.10% 10.40% 9.00% Return on average assets 0.51% 0.01% 0.82% 0.71% Net interest margin (b) 4.00% 3.78% 3.99% 4.02% Efficiency ratio (c) 71.91% 55.44% 66.05% 61.20% Average earning assets (in 000's) $733,834 $724,415 $725,043 $716,790 (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 December 31, December 31, 2007 2006 2007 2006 ----------------- ---------------- ----------------- ------------------- Interest income: Interest and fees on loans $ 12,794 $ 12,235 $ 50,671 $ 48,514 Interest and dividends on securities 1,147 1,105 4,276 3,907 Total interest income 13,941 13,340 54,947 52,421 Interest expense: Deposits 5,372 5,253 21,315 18,594 Borrowings 1,284 1,282 5,105 5,337 Total interest expense 6,656 6,535 26,420 23,931 Net interest income 7,285 6,805 28,527 28,490 Provision for loan losses 918 3,731 2,252 5,662 Noninterest income: Service charges on deposit accounts 790 742 2,982 2,987 Trust fees 58 56 230 221 Income from bank owned insurance 242 180 757 907 Gain on sale of loans 20 29 102 104 Other -189 430 1,165 1,611 Total noninterest income 921 1,437 5,236 5,830 Noninterest expense: Salaries and employee benefits 3,397 2,694 13,045 12,497 Occupancy 368 339 1,467 1,338 Furniture and equipment 276 309 1,086 1,120 Data processing 218 74 844 687 Other 1,725 1,205 6,141 5,557 Total noninterest expense 5,984 4,621 22,583 21,199 Income before income taxes 1,304 -110 8,928 7,459 Income taxes 301 -126 2,631 2,061 NET INCOME $ 1,003 $ 16 $ 6,297 $ 5,398
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share and per share data) December 31, December 31, 2007 2006 ----------------- ----------------- ASSETS Cash and noninterest-bearing deposits with banks $ 15,584 $ 18,965 Federal funds sold 1,310 1,800 Total cash and cash equivalents 16,894 20,765 Interest-bearing deposits in other financial institutions 633 508 Securities available-for-sale 78,063 70,267 Securities held-to-maturity (estimated fair value: 2007 - $15,763; 2006 - $13,586) 15,981 13,350 FHLB stock 6,036 6,036 Total loans 637,103 625,164 Less: Allowance for loan losses (6,737) (9,412) Net loans 630,366 615,752 Premises and equipment, net 9,871 9,812 Accrued income receivable 3,254 3,234 Goodwill 1,267 1,267 Bank owned life insurance 16,339 16,054 Other assets 4,714 7,316 Total assets $ 783,418 $ 764,361 LIABILITIES Noninterest-bearing deposits $ 78,589 $ 77,960 Interest-bearing deposits 510,437 515,826 Total deposits 589,026 593,786 Securities sold under agreements to repurchase 40,390 22,556 Other borrowed funds 67,002 63,546 Subordinated debentures 13,500 13,500 Accrued liabilities 11,989 10,691 Total liabilities 721,907 704,079 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value, 10,000,000 shares authorized; 2007 - 4,641,747 shares issued; 2006 - 4,626,340 shares issued) 4,642 4,626 Additional paid-in-capital 32,664 32,282 Retained earnings 37,763 34,404 Accumulated other comprehensive loss (115) (981) Treasury stock at cost (2007 - 567,403 shares; 2006 - 432,852 shares) (13,443) (10,049) Total shareholders' equity 61,511 60,282 Total liabilities and shareholders' equity $ 783,418 $ 764,361
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