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 11, 2002 (April 11, 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 April 11, 2002, Ohio Valley Banc Corp issued a news release announcing
its earnings for the three months ended March 31, 2002. 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 April
11, 2002, announcing the company's earnings for the
three months ended March 31, 2002.
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: April 11, 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 April
11, 2002, announcing the company's earnings for the
three months ended March 31, 2002.
Page 4
Exhibit 99
OVBC DIVIDENDS & EARNINGS UP
Gallipolis, Ohio, April 11, 2002
Ohio Valley Banc Corp today reported consolidated net earnings for the quarter
ended March 31, 2002 of $1,252,000 representing a 13.1% increase over the
$1,107,000 for the same time period a year ago. Net income per share increased
12.5% for the first quarter at $.36 per share compared to $.32 per share in the
first quarter of 2001. With continued strong earnings growth, OVBC directors
approved a 6.25% increase in quarterly cash dividends. Cash dividends will
increase to $.17 per share from $.16 per share payable May 10, 2002 to
shareholders of record April 22, 2002. President and CEO Jeffrey E. Smith made
the announcement at the Company's annual shareholders' meeting held Wednesday
afternoon at the Morris and Dorothy Haskins Ariel Theatre in Gallipolis, Ohio.
Also, during the meeting, Phil A. Bowman, W. Lowell Call and James L. Dailey
were reelected to the Ohio Valley Banc Corp Board of Directors to serve a three
year term ending in 2005.
Management was pleased to continue the accomplishments achieved in 2001 of
double-digit earnings growth while improving asset quality. The earnings
performance improved over the prior year due to a strong 23% increase in net
interest income. The Company's net interest margin benefited from the decline in
interest rates that occurred throughout 2001. For the first quarter of 2002, the
net interest margin was 4.38% , as compared to 4.06% for the same period in
2001. The increase in the net interest margin combined with the growth in
earning assets of 14% provided additional net interest income of $1,204,000.
Noninterest income totaled $1,280,000 for the first quarter of 2002 compared to
$1,166,000 a year ago representing a 9.8% increase. Income from bank owned life
insurance and loan service fees provided a majority of the growth. Noninterest
expense totaled $4,773,000 in 2002, an increase of $394,000 or 9.0%. Salary and
employee benefits, the Company's largest noninterest expense, totaled $2,619,000
for the first quarter of 2002, up $256,000 from the prior year. The increase was
affected by annual merit increases and rising benefit costs. The Company's
efficiency ratio continues to improve as revenue sources (net interest income
and noninterest income) continue to outpace the growth in noninterest expense.
The efficiency ratio for the first quarter of 2002 improved to 61.2% from 67.5%
in 2001.
During the first quarter of 2002, management continued to emphasize asset
quality which is important in a period of economic slowdown. The Company's
provision for loan losses increased $715,000 over the first quarter of 2001 in
relation to an increase in net charge-offs of $614,000 that occurred mostly in
installment and commercial loans. Nonperforming loans as a percent of total
loans declined to 1.06% at March 31, 2002 as compared to 1.24% at year end 2001.
The allowance for loan losses was 1.23% of total loans at March 31, 2002,
unchanged from December 31, 2001. Management feels that the allowance for loan
losses is adequate to absorb probable losses inherent in the loan portfolio
based on collateral values and decline in nonperforming loans.
The financial results for the first quarter continue Management's commitment to
enhance earnings to improve shareholders' value. The double-digit earnings
growth led to an improved return on average equity of 10.86% for the three
months ended March 31, 2002 versus 10.11% for the first three months of 2001.
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
March 31,
2002 2001
---------- ----------
PER SHARE DATA
Earnings per share $0.36 $0.32
Dividend per share $0.16 $0.15
Book value per share $13.58 $12.97
Dividend payout ratio 44.17% 47.26%
Weighted average shares
outstanding 3,459,235 3,480,615
PERFORMANCE RATIOS
Return on average equity 10.86% 10.11%
Return on average assets 0.80% 0.80%
Net interest margin 4.38% 4.06%
Efficiency Ratio 61.21% 67.53%
Average Earning Assets
(in 000's) $599,272 $525,927
OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)
Three months ended
(in $000's) March 31,
2002 2001
---------- ----------
Interest income:
Interest and fees on loans $10,647 $10,389
Interest and dividends on
securities 962 1,134
Total interest income 11,609 11,523
Interest expense:
Deposits 3,900 5,256
Borrowings 1,336 1,098
Total interest expense 5,236 6,354
Net interest income 6,373 5,169
Provision for loan losses 1,142 427
Noninterest income:
Service charges on deposit
accounts 694 698
Trust fees 54 55
Income from bank owned insurance 171 138
Other 361 275
Total noninterest income 1,280 1,166
Noninterest expense:
Salaries and employee benefits 2,619 2,363
Occupancy expense 311 316
Furniture and equipment expense 263 273
Data processing expense 147 107
Other 1,433 1,320
Total noninterest expense 4,773 4,379
Income before income taxes 1,738 1,529
Income taxes 486 422
NET INCOME $1,252 $1,107
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in 000's) March 31, December 31,
2002 2001
---------------- ----------------
ASSETS
Cash and noninterest-bearing
deposits with banks $15,874 $17,288
Federal funds sold 24,600 9,000
Total cash and cash equivalents 40,474 26,288
Interest-bearing balances with banks 1,791 1,264
Securities available-for-sale 54,079 61,559
Securities held-to-maturity
(estimated fair value: 2002 -
$14,688 , 2001 - $14,421) 14,303 13,973
Total loans 517,676 508,660
Less: Allowance for loan losses (6,377) (6,251)
Net loans 511,299 502,409
Premises and equipment, net 8,449 8,702
Accrued income receivable 3,314 3,420
Intangible assets, net 1,234 1,267
Bank owned life insurance 12,237 12,089
Other assets 4,467 4,028
Total assets $651,647 $634,999
LIABILITIES
Noninterest-bearing deposits $58,247 $56,735
Interest-bearing deposits 421,748 399,126
Total deposits 479,995 455,861
Securities sold under agreements to
repurchase 16,410 29,274
Other borrowed funds 87,137 90,856
Obligated mandatorily redeemable
capital securities of subsidiary trust 13,500 5,000
Accrued liabilities 7,590 7,708
Total liabilities 604,632 588,699
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
10,000,000 shares authorized; 2002 -
3,592,956 shares issued,
2001 - 3,579,250 shares issued) 3,593 3,579
Additional paid-in capital 29,524 29,207
Retained Earnings 16,677 15,979
Accumulated other comprehensive income 729 1,043
Treasury stock at cost (2002 and 2001 -
129,990 shares) (3,508) (3,508)
Total shareholders' equity 47,015 46,300
Total liabilities and
shareholders' equity $651,647 $634,999
Contact: Scott Shockey or Chris Petro
1-800-468-6682 or (740) 446-2631