GALLIPOLIS, Ohio, April 25,
2024 /PRNewswire/ -- Ohio Valley Banc Corp.
[Nasdaq: OVBC] (the "Company") reported consolidated net income for
the quarter ended March 31, 2024, of
$2,793,000, a decrease of
$1,115,000, or 28.5%, from the same
period the prior year. Earnings per share for the first quarter of
2024 were $.58, compared to
$.82 for the first quarter of 2023.
Return on average assets and return on average equity were .83% and
7.77%, respectively, for the first quarter of 2024, versus 1.28%
and 11.85%, respectively, for the same period the prior year.
Ohio Valley Banc Corp. President and CEO, Larry Miller stated, "Though this year's
unfavorable interest rate environment slowed earnings by reducing
the net interest margin as we expected, the Company still netted
nearly $2.8 million for the quarter.
We believe consistent, quality loan growth is key. We are
determined to work even harder to maximize returns and improve the
quality of life for our shareholders, employees, customers, and the
community as a whole."
For the first quarter of 2024, net interest income decreased
$532,000 from the first quarter of
2023. The decrease was largely related to the decrease in the net
interest margin, which was partially offset by growth in average
earning assets, led by strong growth in the loan portfolio. For the
first quarter of 2024, the net interest margin was 3.61%, a
decrease from 4.21% for the first quarter of 2023. The decrease in
the net interest margin 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. Partially offsetting the decrease in
the net interest margin was the $119
million growth in average earning assets. The average
balance of loans for the first quarter of 2024 was $976 million, an increase of $79 million from the first quarter of 2023, led
by commercial and residential real estate lending. For the same
period, the average balance maintained at the Federal Reserve
increased $60 million and average
securities decreased $17 million,
as maturities were deployed into higher yielding loans.
For the three months ended March 31,
2024, the provision for credit loss expense was $751,000, an increase of $262,000 from the first quarter of 2023. The
provision for credit loss expense for the first quarter of 2024 was
primarily related to quarterly net charge-offs of $396,000, general reserves associated with the
$18 million increase in total loans
since December 31, 2023, and a minor
increase in select qualitative risk factors. The ratio of
nonperforming loans to total loans was .37% at March 31, 2024, compared to .26% at December 31, 2023 and .39% at March 31, 2023. The allowance for credit losses
was .93% of total loans at March 31,
2024, compared to .90% at December
31, 2023 and .84% at March 31,
2023.
Noninterest income totaled $3,696,000 for the first quarter of 2024, a
decrease of $71,000 from the same
period last year. For the first quarter of 2024, other noninterest
income decreased $161,000 from the
first quarter of 2023. The decrease was largely related 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 $231,000 in
commissions earned during the first quarter of 2023. The decline in
other noninterest income was partially offset by a $114,000 increase in service charges on deposit
accounts.
Noninterest expense totaled $10,741,000 for the first quarter of 2024, an
increase of $469,000, or 4.6%, from
the same period last year. The Company's largest noninterest
expense, salaries and employee benefits, increased $283,000, or 4.8%, from the first quarter 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
$192,000 for the first quarter of
2024, when compared to the same period last year. For the three
months ended March 31, 2024, data
processing expense increased $87,000
from the same period last year. The increase was primarily related
to debit card processing due to higher transaction volume. Also
contributing to higher noninterest expense for the first quarter of
2024 was a $59,000 increase in
software expense, as compared to the same period last year.
The Company's total assets at March 31,
2024 were $1.373 billion, an
increase of $20 million from
December 31, 2023. The increase in
assets was primarily the result of an $18
million increase in loans. At March
31, 2024, total deposits increased $22 million from year end 2023, which occurred
primarily within time deposits. Total shareholders' equity
increased $1.8 million from year end
2023.
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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March 31,
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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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$
0.58
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$
0.82
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Dividends per
share
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$
0.22
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$
0.21
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Book value per
share
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$
30.41
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$
28.80
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Dividend payout
ratio (a)
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37.60 %
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25.64 %
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Weighted average
shares outstanding
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4,785,773
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4,773,461
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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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$
202
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$
193
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Dividends
reinvested under
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dividend reinvestment plan
(c)
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$
391
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$
510
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PERFORMANCE
RATIOS
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Return on
average equity
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7.77 %
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11.85 %
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Return on
average assets
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0.83 %
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1.28 %
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Net interest
margin (d)
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3.61 %
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4.21 %
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Efficiency ratio
(e)
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71.47 %
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65.70 %
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Average earning
assets (in 000's)
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$ 1,261,217
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$
1,141,835
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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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(in $000's)
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March 31,
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2024
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2023
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Interest
income:
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Interest and fees on
loans
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$
15,250
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$
12,276
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Interest and dividends on
securities
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1,017
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1,092
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Interest on interest-bearing
deposits with banks
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1,417
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426
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Total interest income
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17,684
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13,794
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Interest
expense:
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Deposits
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5,899
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1,832
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Borrowings
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595
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240
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Total interest expense
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6,494
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2,072
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Net interest
income
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11,190
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11,722
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Provision for
(recovery of) credit losses
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751
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489
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Noninterest
income:
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Service charges on deposit
accounts
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725
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611
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Trust fees
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104
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86
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Income from bank owned life
insurance and
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annuity
assets
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225
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207
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Mortgage banking
income
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39
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47
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Electronic refund
check/deposit fees
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540
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540
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Debit / credit card
interchange income
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1,145
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1,173
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Tax preparation
fees
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607
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631
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Other
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311
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472
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Total noninterest income
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3,696
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3,767
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Noninterest
expense:
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Salaries and employee
benefits
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6,167
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5,884
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Occupancy
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469
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462
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Furniture and
equipment
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334
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298
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Professional fees
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486
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433
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Marketing expense
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225
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241
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FDIC
insurance
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148
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138
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Data
processing
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807
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720
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Software
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621
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562
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Foreclosed assets
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(2)
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2
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Amortization of
intangibles
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3
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7
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Other
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1,483
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1,525
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Total noninterest expense
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10,741
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10,272
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Income before income
taxes
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3,394
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4,728
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Income taxes
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601
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820
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NET
INCOME
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$
2,793
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$
3,908
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OHIO VALLEY BANC
CORP - Consolidated Balance Sheets (Unaudited)
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(in $000's, except
share data)
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March 31,
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December 31,
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2024
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2023
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ASSETS
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Cash and
noninterest-bearing deposits with banks
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$
15,422
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$
14,252
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Interest-bearing
deposits with banks
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113,638
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113,874
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Total cash and cash
equivalents
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129,060
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128,126
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Securities available
for sale
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162,186
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162,258
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Securities held to
maturity, net of allowance for credit losses of $2 in 2024 and
2023;
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7,968
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7,986
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(estimated fair
value: 2024 - $7,248; 2023 - $7,390)
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Restricted investments
in bank stocks
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4,983
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5,037
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Total
loans
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989,862
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971,900
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Less:
Allowance for credit losses
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(9,229)
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(8,767)
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Net loans
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980,633
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963,133
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Premises and equipment,
net
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21,728
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21,450
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Premises and equipment
held for sale, net
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568
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573
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Accrued interest
receivable
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4,338
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3,606
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Goodwill
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7,319
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7,319
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Other intangible
assets, net
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5
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8
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Bank owned life
insurance and annuity assets
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40,745
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40,593
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Operating lease
right-of-use asset, net
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1,159
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1,205
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Deferred tax
assets
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6,438
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6,306
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Other assets
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5,469
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4,535
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Total assets
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$ 1,372,599
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$
1,352,135
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LIABILITIES
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Noninterest-bearing
deposits
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$
306,574
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$
322,222
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Interest-bearing
deposits
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842,210
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804,914
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Total deposits
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1,148,784
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1,127,136
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Other borrowed
funds
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43,261
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44,593
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Subordinated
debentures
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8,500
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8,500
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Operating lease
liability
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1,159
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1,205
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Allowance for credit
losses on off-balance sheet commitments
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586
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692
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Other
liabilities
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24,527
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26,002
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Total liabilities
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1,226,817
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1,208,128
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SHAREHOLDERS'
EQUITY
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Common stock ($1.00
stated value per share, 10,000,000 shares authorized;
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2024 - 5,490,995
shares issued; 2023 - 5,470,453 shares issued)
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5,491
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5,470
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Additional paid-in
capital
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52,321
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51,842
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Retained
earnings
|
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116,614
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114,871
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Accumulated other
comprehensive income (loss)
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(11,896)
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(11,428)
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Treasury stock, at cost
(697,321 shares)
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(16,748)
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(16,748)
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Total shareholders' equity
|
|
|
|
|
|
|
145,782
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144,007
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Total liabilities and shareholders' equity
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$ 1,372,599
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$
1,352,135
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Contact: Scott Shockey, CFO
(740) 446-2631
View original
content:https://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-1st-quarter-earnings-302128123.html
SOURCE Ohio Valley Banc Corp.