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
January 18, 2002 (January 17, 2002)
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 1. Changes in Control of Registrant.
Not applicable.
Item 2. Acquisition or Disposition of Assets.
Not applicable.
Item 3. Bankruptcy or Receivership.
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not applicable.
Item 5. Other Events.
On January 17, 2002, Ohio Valley Banc Corp issued a news release announcing
its earnings for the fourth quarter and three months ended December 31, 2001.
The information contained in the news release, which is attached as Exhibit 99
to this Form 8-K, is incorporated herein by this reference.
Item 6. Resignations of Registrant's Directors.
Not applicable.
Item 7. Financial Statements and Exhibits.
(a) Financial statements of business acquired:
Not applicable.
(b) Pro forma financial information:
Not applicable.
(c) Exhibits:
99 Press release of Ohio Valley Banc Corp dated January
17, 2002, announcing the company's earnings for the
fourth quarter and twelve months ended December 31,
2001.
Item 8. Change in Fiscal Year.
Not applicable.
Item 9. Sales of Equity Securities Pursuant to Regulation S.
Not applicable.
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 18, 2002 By /s/ Jeffrey E. Smith
-------------------------------
Jeffrey E. Smith, President and
Chief Executive Officer
Page 3
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
99 Press release of Ohio Valley Banc Corp dated January
17, 2002, announcing the company's earnings for the
fourth quarter and twelve months ended December 31,
2001.
Page 4
Exhibit 99
OHIO VALLEY BANC CORP ANNOUNCES RECORD EARNINGS
Gallipolis, Ohio, January 17, 2002
Ohio Valley Banc Corp today reported consolidated net earnings for the year
ended December 31, 2001 of $4.90 million representing an 11.3% increase over the
$4.40 million for the same time period a year ago. Consolidated net earnings on
a per share basis were $1.41, a 12.8% increase over the $1.25 for the same
period ending December 31, 2000.
For the three months ended December 31, 2001, consolidated net income was $1.41
million, a 12.3% increase over the $1.26 million for the quarter ended December
31, 2000. Net earnings per share for the fourth quarter of 2001 ending December
31 were $.41, a 13.9% increase compared to the $.36 earned in the same period in
2000.
Comparing the Company's return on equity (ROE) and return on assets (ROA) for
the year 2001 to 2000, both measures improved. ROE was 10.80% and ROA was .83%
for the current year as compared to a ROE of 10.29% and a ROA of .81% for the
prior year.
The earnings performance improved over the prior year due to a combination of a
10.5% increase in net interest income and a 32.9% increase in noninterest
income. Net interest income benefited from the decline in interest rates that
occurred throughout 2001. The Company's net interest margin improved from 4.21%
in 2000 to 4.29% in 2001. The increase in the net interest margin was evident by
total interest income growth of 5.3% or $2.4 million over 2000 versus total
interest expense growth of .7% or $.2 million.
"We are pleased with the growth in net interest income, and are equally pleased
with the performance of its investments in insurance subsidiaries: Profinance
Holdings Corporation, BSG Title Services Agency, LLC and Ohio Valley Financial
Services Agency, LLC", commented Jeffrey E. Smith, President and Chief Executive
Officer of Ohio Valley Banc Corp. "These investments have been a significant
source of noninterest income growth and have benefited from the hardening
insurance markets as well as the significant mortgage refinancing activity that
has taken place in the last year." These new sources of income when combined
with the growth in traditional banking services, such as service charges on
deposit accounts, increased the Company's noninterest income by $1.3 million
over the previous year.
On a year-to-date basis, noninterest expense totaled $18.2 million in 2001, an
increase of $1.2 million or 7.0%. Contributing the most to this increase was
salary and employee benefits, which are up $.5 million over 2000. The increase
was affected by annual merit increases, rising benefit costs and increases to
incentive compensation plans based on improved earnings. The Company's
efficiency ratio improved over last year as a result of the growth in revenue
sources (net interest income and noninterest income) outpacing the growth in
noninterest expense. The efficiency ratio for 2001 improved to 62.5% from 66.3%
in 2000.
For 2001, the Company's provision for loan losses increased $1.6 million in
relation to an increase in net charge-offs of $1.1 million. Consumer and
commercial loans comprised the largest portion of net charge-offs. During 2001,
management has strived to improve the Company's asset quality. At year end 2001,
nonperforming loans as a percent of total loans was 1.24% compared to 1.48% at
year end 2000. At December 31, 2001, the allowance for loan losses totaled $6.3
million, or 1.23% of total loans, up $.9 million from year end 2000 when the
allowance was 1.20% of total loans. Management increased the allowance as a
percent of total loans based on a general decline in economic conditions and
feels that the allowance for loan losses is adequate to absorb losses inherent
in the loan portfolio.
Total assets increased $73.3 million or 13.1% from year end 2000 to reach $635.0
million at December 31, 2001. Contributing to the growth in assets was loan
growth of 13.5%, led primarily by commercial loans. Management funded the loan
growth with a combination of FHLB borrowings and deposits. Other borrowed funds
increased $37.2 million and deposits increased $23.5 million. Management
utilized FHLB advances based on lower rates and the ability to borrow for longer
time periods as compared to traditional retail sources of funds. Based on
historical low interest rates, Management has extended the average term of its
funding sources to protect against rising interest rates.
Overall, Management is pleased with the financial results achieved in 2001.
Management was able to achieve double-digit earnings growth, improve asset
quality and establish new sources of revenue via insurance investments. In
addition, the financial results represent Management's commitment to enhance
earnings to improve shareholders' value.
Ohio Valley Banc Corp common stock is traded on the NASDAQ Stock Market under
the symbol OVBC. The holding company owns two subsidiaries: Ohio Valley Bank,
with 17 offices in Ohio and West Virginia, and Loan Central, with four consumer
finance company offices in Ohio. Learn more about Ohio Valley Banc Corp at
www.ovbc.com.
OHIO VALLEY BANC CORP - Financial Highlights (Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
PER SHARE DATA
Earnings per share $0.41 $0.36 $1.41 $1.25
Dividend per share $0.32 $0.15 $0.79 $0.59
Book value per share $13.42 $12.76 $13.42 $12.76
Dividend payout ratio 78.01% 41.69% 55.84% 47.14%
Weighted average shares
outstanding 3,444,312 3,494,781 3,461,856 3,516,205
PERFORMANCE RATIOS
Return on average equity 12.10% 11.54% 10.80% 10.29%
Return on average assets 0.90% 0.89% 0.83% 0.81%
Net interest margin 4.34% 4.04% 4.29% 4.21%
Efficiency Ratio 55.64% 60.43% 62.47% 66.31%
Average Earning Assets
(in 000's) $585,069 $525,201 $552,980 $510,316
OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)
Three months ended Twelve months ended
(in $000's) December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Interest income:
Interest and fees on loans $11,060 10,659 $43,321 40,470
Interest and dividends on
securities 976 1,157 4,264 4,725
Total interest income 12,036 11,816 47,585 45,195
Interest expense:
Deposits 4,373 5,496 19,281 20,367
Borrowings 1,362 1,129 4,954 3,698
Total interest expense 5,735 6,625 24,235 24,065
Net interest income 6,301 5,191 23,350 21,130
Provision for loan losses 1,338 725 3,503 1,890
Noninterest income:
Service charges on deposit
accounts 773 861 3,003 2,016
Trust fees 54 54 222 217
Income from bank owned insurance 166 124 596 482
Other 386 301 1,308 1,143
Total noninterest income 1,379 1,340 5,129 3,858
Noninterest expense:
Salaries and employee benefits 2,397 2,319 9,815 9,300
Occupancy expense 312 318 1,255 1,337
Furniture and equipment expense 335 324 1,141 1,253
Data processing expense 89 147 496 480
Other 1,226 937 5,464 4,608
Total noninterest expense 4,359 4,045 18,171 16,978
Income before income taxes 1,983 1,761 6,805 6,120
Income taxes 570 503 1,910 1,720
NET INCOME $1,413 1,258 $4,895 4,400
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in 000's) December 31, December 31,
2001 2000
---------------- -----------------
ASSETS
Cash and noninterest-bearing
deposits with banks $17,288 14,569
Federal funds sold 9,000
Total cash and cash equivalents 26,288 14,569
Interest-bearing balances with banks 1,264 816
Securities available-for-sale 61,559 59,819
Securities held-to-maturity
(estimated fair value: 2001 -
$14,422 , 2000 - $16,111) 13,973 15,767
Total loans 508,660 448,303
Less: Allowance for loan losses (6,251) (5,385)
Net loans 502,409 442,918
Premises and equipment, net 8,702 9,285
Accrued income receivable 3,420 4,104
Intangible assets, net 1,267 1,396
Bank owned life insurance 12,089 9,408
Other assets 4,028 3,576
Total assets $634,999 561,658
LIABILITIES
Noninterest-bearing deposits $56,735 47,661
Interest-bearing deposits 399,126 384,710
Total deposits 455,861 432,371
Securities sold under agreements to
repurchase 29,274 18,345
Other borrowed funds 90,856 53,622
Obligated mandatorily redeemable
capital securities of subsidiary trust 5,000 5,000
Accrued liabilities 7,708 7,828
Total liabilities 588,699 517,166
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
10,000,000 shares authorized; 2001 -
3,579,250 shares issued,
2000 - 3,559,770 shares issued) 3,579 3,560
Additional paid-in capital 29,207 28,760
Retained earnings 15,979 13,817
Accumulated other comprehensive income 1,043 436
Treasury stock at cost (2001 -
129,990 shares, 2000 - 72,489 shares) (3,508) (2,081)
Total shareholders' equity 46,300 44,492
Total liabilities and
shareholders' equity $634,999 561,658
Contact: Scott Shockey or Chris Petro
1-800-468-6682 or (740) 446-2631