Last10K.com

Ohio Valley Banc Corp (OVBC) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

Ohio Valley Banc Corp

CIK: 894671 Ticker: OVBC


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): April 27, 2022


OHIO VALLEY BANC CORP.
(Exact Name of Registrant as Specified in Its Charter)


000-20914
(Commission File Number)

Ohio
31-1359191
(State or Other Jurisdiction of Incorporation)
(I.R.S. Employer Identification No.)

420 THIRD AVENUE, PO BOX 240
GALLIPOLIS, Ohio 45631
(Address of principal executive offices, including zip code)

(740) 446-2631
(Registrant’s telephone number, including area code)

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:


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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
 
Trading
Symbol(s)
 
Name of each exchange on which registered
Common Shares, without par value

OVBC

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition

GALLIPOLIS, Ohio - Ohio Valley Banc Corp. [Nasdaq: OVBC] (the “Company”) reported consolidated net income for the quarter ended March 31, 2022, of $4,125,000, an increase of $594,000, or 16.8%, from the same period the prior year.  Earnings per share for the first quarter of 2022 was $.87, compared to $.74 for the first quarter of 2021.  Return on average assets and return on average equity were 1.34% and 11.78%, respectively, for the first quarter of 2022, versus 1.20% and 10.47%, respectively, for the same period the prior year.

“OVBC has had a successful quarter, and we intend to build on this momentum,” said Chairman and CEO Tom Wiseman.  “At Ohio Valley Bank, we recently demonstrated this by expanding operating hours and announcing that contactless OVB credit cards are arriving in May.  Loan Central has completed another season of tax advance loans and is helping the members of its communities prepare for summer expenses.  At Race Day Mortgage, we are pushing out of the starting gate as we have now realized full staffing and are lending in more states with more lead generation partners.  All these plans stem from a dedication to enhance the communities we serve.  I cannot think of a better way to honor the bank’s 150th anniversary year.”

For the first quarter of 2022, net interest income decreased $58,000 from the first quarter of 2021.  For the three months ended March 31, 2022, average earning assets increased $61 million from the same period the prior year.  The increase was due to average securities and average balances maintained at the Federal Reserve, which increased $69 million and $11 million, respectively, from the first quarter of last year in relation to higher average deposit balances.  Partially offsetting the growth in these areas was the $18 million decrease in average loan balances.  The decrease in average loans was related to SBA Paycheck Protection Program (PPP) loans.  As of March 31, 2022, all PPP loans have been paid off.  As a result, the average balance of PPP loans decreased $27 million and the corresponding interest and fees on PPP loans decreased $352,000 for the first quarter of 2022, as compared to the same period last year.  The earnings contribution from the higher balance of earning assets was offset by a decrease in the net interest margin.  For the quarter ended March 31, 2022, the net interest margin was 3.51%, compared to 3.73% for the same period the prior year.  The decrease was attributable to the higher relative balances maintained in securities and the Federal Reserve, which generally yield less than loans.

For the three months ended March 31, 2022, the provision for loan loss expense was negative $1,126,000, a decrease of $1,074,000 from the first quarter of 2021.  The negative provision for loan loss expense for the first quarter of 2022 was primarily related to lower general reserves in association with improved economic risk factors and a decrease in loan balances since December 31, 2021, which was partly offset by quarterly net charge-offs of $88,000.  The decrease in general reserves was related to lower criticized and classified loans and the partial release of the COVID reserve for the pandemic environment.  Based on positive asset quality trends and low net charge offs, management released $645,000 of the COVID economic risk factor.  We will monitor the pandemic environment and asset quality trends moving forward to determine the appropriate level of the COVID economic risk factor, which totaled $1,936,000 at March 31, 2022.  The allowance for loan losses was .65% of total loans at March 31, 2022, compared to .78% at December 31, 2021 and .83% at March 31, 2021.

For the first quarter of 2022, noninterest income totaled $3,720,000, an increase of $381,000 from the first quarter of 2021.  The increase was related to a $153,000 increase in service charges on deposit accounts, an $85,000 increase in interchange income on debit and credit card transactions, and a $56,000 increase in mortgage banking income in relation to our new mortgage company, Race Day Mortgage.

Noninterest expense totaled $9,788,000 for the first quarter of 2022, an increase of $601,000, or 6.5%, from the same period last year.  The Company’s largest noninterest expense, salaries and employee benefits, increased $300,000, or 5.7%, from the first quarter of 2021.  The increase was primarily related to staffing Race Day Mortgage and to annual merit increases.  Further contributing to higher noninterest expense was data processing.  For the three months ended March 31, 2022, data processing expense increased $97,000 from the same period last year due to higher credit and debit card transaction volume.  Also contributing to higher noninterest expense for the first quarter of 2022 was a $59,000 increase in professional fees and a $54,000 increase in software expense, as compared to the same period last year.

The Company’s total assets at March 31, 2022 were $1.258 billion, an increase of $8 million from December 31, 2021.  The increase in assets was related to a $12 million increase in both securities and balances maintained at the Federal Reserve, which was partially offset by a $20 million decrease in loans.  The decrease in loans was largely related to the payoff of a limited number of large commercial loans.  At March 31, 2022, total deposits increased $15 million and shareholders’ equity decreased $5 million from year end 2021.  The decrease in shareholders’ equity was related to recording the fair value adjustment for securities classified as available-for-sale.  Based on the increase in market rates during the first quarter of 2022, the fair value of securities decreased $8 million on an after-tax basis.

Ohio Valley Banc Corp. common stock is traded on The NASDAQ Global Market under the symbol OVBC.  The Company owns The Ohio Valley Bank Company, with 16 offices in Ohio and West Virginia; Loan Central, Inc. with six consumer finance offices in Ohio; and Race Day Mortgage, Inc., an online consumer direct mortgage company.  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) impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; (ii) the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; (iii) 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; (iv) competitive pressures;  (v) fluctuations in interest rates; (vi) the level of defaults and prepayment on loans made by the Company; (vii) unanticipated litigation, claims, or assessments; (viii) fluctuations in the cost of obtaining funds to make loans; (ix) regulatory changes; and (x) 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)
       
             
   
Three months ended
 
   
March 31,
 
   
2022
   
2021
 
PER SHARE DATA
           
  Earnings per share
 
$
0.87
   
$
0.74
 
  Dividends per share
 
$
0.21
   
$
0.21
 
  Book value per share
 
$
28.63
   
$
28.77
 
  Dividend payout ratio (a)
   
24.20
%
   
28.47
%
  Weighted average shares outstanding
   
4,761,072
     
4,787,446
 
                 
DIVIDEND REINVESTMENT (in 000's)
               
  Dividends reinvested under
               
     employee stock ownership plan (b)
 
$
154
   
$
188
 
  Dividends reinvested under
               
     dividend reinvestment plan (c)
 
$
515
   
$
425
 
                 
PERFORMANCE RATIOS
               
  Return on average equity
   
11.78
%
   
10.47
%
  Return on average assets
   
1.34
%
   
1.20
%
  Net interest margin (d)
   
3.51
%
   
3.73
%
  Efficiency ratio (e)
   
70.81
%
   
68.03
%
  Average earning assets (in 000's)
 
$
1,167,366
   
$
1,105,984
 
                 
(a) Total dividends paid as a percentage of net income.
               
(b) Shares may be purchased from OVBC and on secondary market.
               
(c) Shares may be purchased from OVBC and on secondary market.
               
(d) Fully tax-equivalent net interest income as a percentage of average earning assets.
               
(e) 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
 
(in $000's)
 
March 31,
 
     
2022
     
2021
 
Interest income:
               
     Interest and fees on loans
 
$
9,798
   
$
10,565
 
     Interest and dividends on securities
   
805
     
533
 
     Interest on interest-bearing deposits with banks
   
54
     
28
 
          Total interest income
   
10,657
     
11,126
 
Interest expense:
               
     Deposits
   
519
     
883
 
     Borrowings
   
148
     
195
 
          Total interest expense
   
667
     
1,078
 
Net interest income
   
9,990
     
10,048
 
Provision for loan losses
   
(1,126
)
   
(52
)
Noninterest income:
               
     Service charges on deposit accounts
   
558
     
405
 
     Trust fees
   
81
     
72
 
     Income from bank owned life insurance and
               
       annuity assets
   
274
     
248
 
     Mortgage banking income
   
235
     
179
 
     Electronic refund check/deposit fees
   
540
     
540
 
     Debit / credit card interchange income
   
1,135
     
1,050
 
     Gain on other real estate owned
   
7
     
1
 
     Tax preparation fees
   
688
     
694
 
     Other
   
202
     
150
 
          Total noninterest income
   
3,720
     
3,339
 
Noninterest expense:
               
     Salaries and employee benefits
   
5,570
     
5,270
 
     Occupancy
   
478
     
467
 
     Furniture and equipment
   
266
     
296
 
     Professional fees
   
489
     
430
 
     Marketing expense
   
229
     
268
 
     FDIC insurance
   
82
     
79
 
     Data processing
   
672
     
575
 
     Software
   
503
     
449
 
     Foreclosed assets
   
1
     
14
 
     Amortization of intangibles
   
10
     
13
 
     Other
   
1,488
     
1,326
 
          Total noninterest expense
   
9,788
     
9,187
 
Income before income taxes
   
5,048
     
4,252
 
Income taxes
   
923
     
721
 
NET INCOME
 
$
4,125
   
$
3,531
 




OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
 
             
(in $000's, except share data)
 
March 31,
   
December 31
 
   
2022
   
2021
 
ASSETS
           
Cash and noninterest-bearing deposits with banks
 
$
14,604
   
$
14,111
 
Interest-bearing deposits with banks
   
149,120
     
137,923
 
     Total cash and cash equivalents
   
163,724
     
152,034
 
Certificates of deposit in financial institutions
   
2,124
     
2,329
 
Securities available for sale
   
189,605
     
177,000
 
Securities held to maturity (estimated fair value:  2022 - $9,677; 2021 - $10,450)
   
10,071
     
10,294
 
Restricted investments in bank stocks
   
7,265
     
7,265
 
Total loans
   
811,646
     
831,191
 
  Less:  Allowance for loan losses
   
(5,268
)
   
(6,483
)
     Net loans
   
806,378
     
824,708
 
Premises and equipment, net
   
20,560
     
20,730
 
Premises and equipment held for sale, net
   
435
     
438
 
Other real estate owned, net
   
15
     
15
 
Accrued interest receivable
   
2,811
     
2,695
 
Goodwill
   
7,319
     
7,319
 
Other intangible assets, net
   
54
     
64
 
Bank owned life insurance and annuity assets
   
37,555
     
37,281
 
Operating lease right-of-use asset, net
   
1,155
     
1,195
 
Other assets
   
9,105
     
6,402
 
          Total assets
 
$
1,258,176
   
$
1,249,769
 
                 
LIABILITIES
               
Noninterest-bearing deposits
 
$
345,653
   
$
353,578
 
Interest-bearing deposits
   
728,765
     
706,330
 
     Total deposits
   
1,074,418
     
1,059,908
 
Other borrowed funds
   
18,929
     
19,614
 
Subordinated debentures
   
8,500
     
8,500
 
Operating lease liability
   
1,155
     
1,195
 
Other liabilities
   
18,563
     
19,196
 
          Total liabilities
   
1,121,565
     
1,108,413
 
                 
SHAREHOLDERS' EQUITY
               
Common stock ($1.00 stated value per share, 10,000,000 shares authorized;
 
  2022 - 5,465,707 shares issued; 2021 - 5,447,185 shares issued)
   
5,465
     
5,447
 
Additional paid-in capital
   
51,722
     
51,165
 
Retained earnings
   
103,829
     
100,702
 
Accumulated other comprehensive income
   
(7,739
)
   
708
 
Treasury stock, at cost (693,933 shares)
   
(16,666
)
   
(16,666
)
          Total shareholders' equity
   
136,611
     
141,356
 
               Total liabilities and shareholders' equity
 
$
1,258,176
   
$
1,249,769
 



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 27, 2022
By:
/s/Thomas E. Wiseman
     
Thomas E. Wiseman
Chief Executive Officer





The following information was filed by Ohio Valley Banc Corp (OVBC) on Wednesday, April 27, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Ohio Valley Banc Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Ohio Valley Banc Corp.

Continue

Assess how Ohio Valley Banc Corp's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Ohio Valley Banc Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Legal
Financial
Revenue
Other
Filter Subcategory:
All
Earnings
Expense
Income
Dividend
Product
Cash Flow
Other
Inside Ohio Valley Banc Corp's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (Parenthetical)
Consolidated Statements Of Changes In Shareholders' Equity (Unaudited)
Consolidated Statements Of Changes In Shareholders' Equity (Unaudited) (Parenthetical)
Consolidated Statements Of Comprehensive Income (Unaudited)
Consolidated Statements Of Income (Unaudited)
Fair Value Of Financial Instruments
Fair Value Of Financial Instruments (Tables)
Fair Value Of Financial Instruments, Assets And Liabilities Measured On Nonrecurring Basis (Details)
Fair Value Of Financial Instruments, Assets And Liabilities Measured On Recurring Basis (Details)
Fair Value Of Financial Instruments, Carrying Amounts And Estimated Fair Values Of Financial Instruments (Details)
Fair Value Of Financial Instruments, Quantitative Information About Level 3 Inputs (Details)
Financial Instruments With Off-Balance Sheet Risk
Financial Instruments With Off-Balance Sheet Risk (Details)
Leases
Leases (Tables)
Leases, Balance Sheet Information (Details)
Leases, Components Of Lease Cost (Details)
Leases, Maturities Of Lease Liabilities (Details)
Leases, Other Information (Details)
Loans And Allowance For Loan Losses
Loans And Allowance For Loan Losses (Tables)
Loans And Allowance For Loan Losses, Allowance For Loan Losses By Portfolio Segment (Details)
Loans And Allowance For Loan Losses, Allowance For Loans Losses And Recorded Investment In Loans By Portfolio Segment Based On Impairment Method (Details)
Loans And Allowance For Loan Losses, Impaired Loans (Details)
Loans And Allowance For Loan Losses, Loans (Details)
Loans And Allowance For Loan Losses, Nonaccrual Loans And Loans Past Due 90 Days Or More And Still Accruing (Details)
Loans And Allowance For Loan Losses, Past Due Loans (Details)
Loans And Allowance For Loan Losses, Recorded Investment Of Residential And Consumer Loans (Details)
Loans And Allowance For Loan Losses, Risk Category Of Commercial Loans By Class Of Loans (Details)
Loans And Allowance For Loan Losses, Tdr Loan Modifications (Details)
Loans And Allowance For Loan Losses, Tdrs Pre-Modification And Post-Modification (Details)
Other Borrowed Funds
Other Borrowed Funds (Details)
Other Borrowed Funds (Tables)
Securities
Securities (Tables)
Securities, Amortized Cost And Fair Value Of Securities Available-For-Sale (Details)
Securities, Amortized Cost And Fair Value Of Securities By Contractual Maturity (Details)
Securities, Amortized Cost And Fair Value Of Securities Held-To-Maturity (Details)
Securities, Available-For-Sale Securities With Unrealized Losses In Continuous Unrealized Loss Position (Details)
Securities, Held-To-Maturity Securities With Unrealized Losses In Continuous Unrealized Loss Position (Details)
Segment Information
Segment Information (Details)
Segment Information (Tables)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Details)
Summary Of Significant Accounting Policies (Policies)
Ticker: OVBC
CIK: 894671
Form Type: 10-Q Quarterly Report
Accession Number: 0000894671-22-000013
Submitted to the SEC: Mon May 16 2022 2:54:07 PM EST
Accepted by the SEC: Mon May 16 2022
Period: Thursday, March 31, 2022
Industry: State Commercial Banks

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/ovbc/0000894671-22-000013.htm