OVBC |
Annual Report 2019 |
Our Community pride is bank wide!
A Message from Management
Dear Neighbors and Friends,
Ohio Valley Bank and Loan Central’s dedication to put Community First has not soared higher than it did in 2019. We put our mission statement to work with a $7+ million project to revitalize downtown Gallipolis, a new branch in Mason, cosmetic improvements to our Wellston and Waverly offices, 3,015 volunteer hours given, and over $400,000 in local donations and sponsorships.
Strategic decisions like the sale of our Mt. Sterling and New Holland offices, streamlining of our Jackson offices, and the offering of an optional early retirement package were acted upon to move the bank closer to an efficiency ratio in line with our peers. It is our hope that these efforts will help secure Ohio Valley Bank’s future as an independent community bank for years to come.
2019 also brought new challenges. The most impactful of these was the sudden loss of tax refund processing income and associated legal expense affecting not only Ohio Valley Bank’s bottom line, but that of Loan Central as well. Still, your Company prevailed and ended the year with net income reaching $9.9 million.
However, there is still more work to do in 2020. Our management and staff remain diligent in their pursuit to increase income and decrease expense, without sacrificing our commitment to the communities we serve. The finetuning of our branch network in 2019 laid a solid foundation for growth.
We invite you to review this Annual Report of the Company and let us know if you have any questions. Make plans now to attend the Annual Meeting of Shareholders on May 20th.
Thank you for making a deliberate and positive impact on your community through your support of Ohio Valley Bank and Loan Central.
Sincerely,
/s/Jeffrey E. Smith | /s/Thomas E. Wiseman | /s/Larry E.Miller, II |
Jeffrey E. Smith | Thomas E. Wiseman | Larry E. Miller, II |
Chairman of the Board | Chief Executive Officer | President & Chief Operating Officer |
Ohio Valley Banc Corp. | Ohio Valley Banc Corp. | Ohio Valley Banc Corp. |
$421,999 |
Given to local charities, schools, organizations, and youth through donations and sponsorships. |
$90,781,407.49 |
Loaned to businesses, spurring economic growth in our communities. |
3,904 |
Average transactions per month conducted for customers at the new OVB Bend Area Office. |
Over 3,000 |
Shopped for their next vehicle online at OVB’s Auto Loan Center.www.autos.ovbc.com |
$1.013 billion |
Total assets as of December 31, 2019. |
$7,562,103.04 |
Deposited using a cell phone or tablet on the go. $831,170 in the month of December alone. |
[Photo] Vice President Adam Massie takes time out to read to students at Bundy Elementary. |
[Photo] Ohio Valley Bank’s surprise gift to Gallipolis in Lights. We hope the OVB Tree made your holiday extra special this year and for years to come. |
[Photo] Jadah and Jansen were two of five winners in the Main Office’s Halloween Coloring Contest. OVB’s first-ever Luggage Drive collected 70 backpacks stuffed with supplies and 40 pieces of luggage for local foster children. Jackson City Library Children’s Director Sharon Lewli and Lewy the dog get ready for the library’s shark exhibit made possible by OVB. |
[Photo] Loan Central Manager Greg Kauffman makes an impact in his community by cleaning and painting an underpass in the Chillicothe area. OVB partners with Eastern High School to reward academic achievers with lunches throughout the year. OVB’s Kyla Carpenter and Tony Staley were part of the “Buy Day Friday” crowd that surprised Poppy’s Coffee, Tea, and Remedies with a flash of customers to gain awareness for buying local. |
[Photo] OVB Financial Literacy Leader Hope Roush spent two days at Green Elementary teaching students the basics of savings and credit. Ohio Valley Bank was named the winner of this year’s iGIVE Award for all that they do in their communities, bestowed by the iBELIEVE Foundation and presented by Roger Mace. CEO Tom Wiseman accepted the award on the bank’s behalf. OVB employees who are River Valley alumni geared up for the annual OVB Community Bowl with this photo for their Gallia Academy alumni co-workers. |
OVBC DIRECTORS | OVBC Officers | |||
Jeffrey E. Smith | Jeffrey E. Smith, Chairman of the Board | |||
Chairman, Ohio Valley Banc Corp. and Ohio Valley Bank | Thomas E. Wiseman, Chief Executive Officer | |||
Larry E. Miller, II, President & Chief Operating Officer | ||||
Thomas E. Wiseman | Katrinka V. Hart-Harris, Senior Vice President | |||
Chief Executive Officer, Ohio Valley Banc Corp. and Ohio Valley Bank | Scott W. Shockey, Senior Vice President & Chief Financial Officer | |||
Tommy R. Shepherd, Senior Vice President & Secretary | ||||
Larry E. Miller, II | ||||
President & Chief Operating Officer, Ohio Valley Banc Corp. and Ohio Valley Bank | Mario P. Liberatore, Vice President | |||
Cherie A. Elliott, Vice President | ||||
David W. Thomas, Lead Director | Jennifer L. Osborne, Vice President | |||
Former Chief Examiner, Ohio Division of Financial Institutions | Bryan F. Stepp, Vice President | |||
bank supervision and regulation | Frank W. Davison, Vice President | |||
Bryan W. Martin, Vice President | ||||
Anna P. Barnitz | Ryan J. Jones, Vice President | |||
Treasurer & CFO, Bob’s Market & Greenhouses, Inc. | Paula W. Clay, Assistant Secretary | |||
wholesale horticultural products and retail landscaping stores | Cindy H. Johnston, Assistant Secretary | |||
Brent A. Saunders | ||||
Chairman of the Board, Holzer Health System | LOAN CENTRAL DIRECTORS | |||
Attorney, Halliday, Sheets & Saunders | Larry E. Miller, II | |||
healthcare | Cherie A. Elliott | |||
Katrinka V. Hart-Harris | ||||
Harold A. Howe | Ryan J. Jones | |||
Self-employed, Real Estate Investment and Rental Property | ||||
Brent R. Eastman | LOAN CENTRAL OFFICERS | |||
President and Co-owner, Ohio Valley Supermarkets | Larry E. Miller, II | Chairman of the Board | ||
Partner, Eastman Enterprises | Cherie A. Elliott | President | ||
Timothy R. Brumfield | Vice President & Secretary | |||
Kimberly A. Canady | Manager, Gallipolis Office | |||
Owner, Canady Farms, LLC | John J. Holtzapfel | Compliance Officer & | ||
agricultural products and agronomy services | Manager, Wheelersburg Office | |||
T. Joe Wilson | Manager, Waverly Office | |||
Edward J. Robbins | Joseph I. Jones | Manager, South Point Office | ||
President & CEO, Ohio Valley Veneer, Inc. | Gregory G. Kauffman | Manager, Chillicothe Office | ||
wood harvesting, processing and manufacturing of dry | Steven B. Leach | Manager, Jackson Office | ||
lumber & flooring in Ohio, Kentucky, and Tennessee | ||||
WEST VIRGINIA ADVISORY BOARD | ||||
Mario P. Liberatore | E. Allen Bell | |||
OHIO VALLEY BANK DIRECTORS | Richard L. Handley | John A. Myers | ||
Jeffrey E. Smith | Brent A. Saunders | Stephen L. Johnson | ||
Thomas E. Wiseman | Brent R. Eastman | |||
David W. Thomas | Kimberly A. Canady | DIRECTORS EMERITUS | ||
Harold A. Howe | Edward J. Robbins | W. Lowell Call | Barney A. Molnar | |
Anna P. Barnitz | Larry E. Miller, II | Steven B. Chapman | Wendell B. Thomas | |
Robert E. Daniel | Lannes C. Williamson | |||
John G. Jones |
OHIO VALLEY BANK OFFICERS | ||||
EXECUTIVE OFFICERS | ASSISTANT VICE PRESIDENTS | |||
Jeffrey E. Smith | Chairman of the Board | Melissa P. Wooten | Shareholder Relations Manager | |
Thomas E. Wiseman | Chief Executive Officer | & Trust Officer | ||
Larry E. Miller, II | President and Chief Operating Officer | Kimberly R. Williams | Systems Officer | |
Katrinka V. Hart-Harris | Executive Vice President, | Paula W. Clay | Assistant Secretary | |
Special Projects | Cindy H. Johnston | Assistant Secretary | ||
Scott W. Shockey | Executive Vice President, | Joe J. Wyant | Region Manager Jackson County | |
Chief Financial Officer | Brenda G. Henson | Manager Deposit Services | ||
Tommy R. Shepherd | Executive Vice President and Secretary | Randall L. Hammond | Security Officer/Loss Prevention | |
Mario P. Liberatore | President, OVB West Virginia | Barbara A. Patrick | BSA Officer/Loss Prevention | |
Richard P. Speirs | Facilities Manager | |||
SENIOR VICE PRESIDENTS | Raymond G. Polcyn | Manager of Loan Production Office | ||
Jennifer L. Osborne | Retail Lending | Stephanie L. Stover | Retail Lending Operations Manager | |
Bryan F. Stepp | Chief Lending Officer | Brandon O. Huff | Director of IT | |
Frank W. Davison | Financial Bank Group | Anita M. Good | Regional Branch Administrator | |
Bryan W. Martin | Managed Assets Officer | Angela S. Kinnaird | Customer Support Manager | |
Ryan J. Jones | Chief Risk Officer | Laura F. Conger | Risk Administration Officer | |
Allen W. Elliott | Branch Administration | Terri M. Camden | Human Resources Officer | |
Shelly N. Boothe | Business Development Officer | |||
VICE PRESIDENTS | Stephenie L. Peck | Regional Branch Administrator | ||
Patrick H. Tackett | Corporate Banking | |||
Marilyn E. Kearns | Director of Human Resources | |||
Rick A. Swain | Western Division Branch Manager | ASSISTANT CASHIERS | ||
Bryna S. Butler | Corporate Communications | Lois J. Scherer | EFT Officer | |
Tamela D. LeMaster | Branch Administration/CRM | Linda K. Roe | Lead Cultural Engineer & | |
Christopher L. Preston | Business DevelopmentWest Virginia | Talent Development Specialist | ||
Gregory A. Phillips | Consumer Lending | Glen P. Arrowood, II | Manager of Indirect Lending | |
Diana L. Parks | Internal Audit Liaison | Patricia G. Hapney | Retail Lending & Personal Banker | |
John A. Anderson | Loan Operations | Anthony W. Staley | Product Development | |
Kyla R. Carpenter | Director of Marketing | Business Sales & Support | ||
E. Kate Cox | Director of Cultural Enhancement | Jon C. Jones | Western Cabell Region Manager | |
Brian E. Hall | Corporate Banking | Daniel F. Short | Bend Area Region Manager | |
Daniel T. Roush | Senior Compliance Officer | Pamela K. Smith | Eastern Cabell Region Manager | |
Adam D. Massie | Northern Region Manager | William F. Richards | Advertising Manager | |
Shawn R. Siders | Senior Credit Officer | Austin P. Arvon | Senior Credit Analyst | |
Jay D. Miller | Business Development Officer | |||
Jody M. DeWees | Trust | |||
Christopher S. Petro | Comptroller | |||
Benjamin F. Pewitt | Business Development | |||
Lori A. Edwards | Secondary Market Officer |
Our Vision is to remain an |
independent |
community bank. |
22 Convenient Offices | ||
Strategically located in | ||
southern Ohio and western West Virginia | ||
OHIO VALLEY BANK | ||
Athens, Ohio Loan Office | ||
2097 East State Street Suite C | ||
Gallia County, Ohio | ||
Main Office - 420 Third Avenue | ||
Mini Bank - 437 Fourth Avenue | ||
Inside Walmart - 2145 Eastern Avenue | ||
Jackson Pike - 3035 State Route 160 | ||
Inside Holzer - 100 Jackson Pike | ||
Loan Office - Walmart Plaza, 2145 Eastern Avenue | ||
Rio Grande - 27 North College Avenue | ||
LOAN CENTRAL | ||
Jackson County, Ohio | ||
Upper Main - 740 East Main Street | ||
Oak Hill - 116 Jackson Street | Chillicothe | |
Wellston - 123 South Ohio Avenue | 1080 N. Bridge Street, Unit 43 | |
Waverly, Ohio | Gallipolis, Ohio | |
507 West Emmitt Avenue | 2145 Eastern Avenue | |
Barboursville, West Virginia | Jackson, Ohio | |
6431 East State Route 60 | 420 East Main Street | |
Bend Area Office, Mason, West Virginia | South Point, Ohio | |
156 Mallard Lane | 348 County Road 410 | |
Milton, West Virginia | Waverly, Ohio | |
280 East Main Street | 505 West Emmitt Avenue | |
Point Pleasant, West Virginia | Wheelersburg, Ohio | |
328 Viand Street | 326 Center Street |
OHIO VALLEY BANC CORP. |
ANNUAL REPORT 2019 |
FINANCIALS |
Years Ended December 31 | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(dollars in thousands, except share and per share data) | ||||||||||||||||||||
SUMMARY OF OPERATIONS: | ||||||||||||||||||||
Total interest income | $ | 50,317 | $ | 49,197 | $ | 45,708 | $ | 39,348 | $ | 36,334 | ||||||||||
Total interest expense | 7,265 | 5,471 | 3,975 | 3,022 | 2,839 | |||||||||||||||
Net interest income | 43,052 | 43,726 | 41,733 | 36,326 | 33,495 | |||||||||||||||
Provision for loan losses | 1,000 | 1,039 | 2,564 | 2,826 | 1,090 | |||||||||||||||
Total other income | 9,166 | 8,938 | 9,435 | 8,239 | 8,597 | |||||||||||||||
Total other expenses | 39,498 | 37,426 | 36,609 | 32,899 | 29,619 | |||||||||||||||
Income before income taxes | 11,720 | 14,199 | 11,995 | 8,840 | 11,383 | |||||||||||||||
Income taxes | 1,813 | 2,255 | 4,486 | 1,920 | 2,809 | |||||||||||||||
Net income | 9,907 | 11,944 | 7,509 | 6,920 | 8,574 | |||||||||||||||
PER SHARE DATA: | ||||||||||||||||||||
Earnings per share | $ | 2.08 | $ | 2.53 | $ | 1.60 | $ | 1.59 | $ | 2.08 | ||||||||||
Cash dividends declared per share | $ | 0.84 | $ | 0.84 | $ | 0.84 | $ | 0.82 | $ | 0.89 | ||||||||||
Book value per share | $ | 26.77 | $ | 24.87 | $ | 23.26 | $ | 22.40 | $ | 21.97 | ||||||||||
Weighted average number of common shares outstanding | 4,767,279 | 4,725,971 | 4,685,067 | 4,351,748 | 4,117,675 | |||||||||||||||
AVERAGE BALANCE SUMMARY: | ||||||||||||||||||||
Total loans | $ | 775,860 | $ | 773,995 | $ | 753,204 | $ | 644,690 | $ | 589,953 | ||||||||||
Securities(1) | 189,187 | 223,390 | 193,199 | 196,389 | 188,754 | |||||||||||||||
Deposits | 850,400 | 886,639 | 845,227 | 749,054 | 694,218 | |||||||||||||||
Other borrowed funds(2) | 45,850 | 48,967 | 47,663 | 39,553 | 32,878 | |||||||||||||||
Shareholders’ equity | 122,314 | 112,393 | 108,110 | 98,133 | 88,720 | |||||||||||||||
Total assets | 1,035,230 | 1,063,256 | 1,014,115 | 899,209 | 828,444 | |||||||||||||||
PERIOD END BALANCES: | ||||||||||||||||||||
Total loans | $ | 772,774 | $ | 777,052 | $ | 769,319 | $ | 734,901 | $ | 585,752 | ||||||||||
Securities(1) | 166,761 | 184,925 | 189,941 | 151,985 | 155,900 | |||||||||||||||
Deposits | 821,471 | 846,704 | 856,724 | 790,452 | 660,746 | |||||||||||||||
Shareholders’ equity | 128,179 | 117,874 | 109,361 | 104,528 | 90,470 | |||||||||||||||
Total assets | 1,013,272 | 1,030,493 | 1,026,290 | 954,640 | 796,285 | |||||||||||||||
KEY RATIOS: | ||||||||||||||||||||
Return on average assets | .96 | % | 1.12 | % | 0.74 | % | 0.77 | % | 1.03 | % | ||||||||||
Return on average equity | 8.10 | % | 10.63 | % | 6.95 | % | 7.05 | % | 9.66 | % | ||||||||||
Dividend payout ratio | 40.37 | % | 33.20 | % | 52.36 | % | 51.79 | % | 42.74 | % | ||||||||||
Average equity to average assets | 11.82 | % | 10.57 | % | 10.66 | % | 10.91 | % | 10.71 | % |
As of December 31 | ||||||||
2019 | 2018 | |||||||
(dollars in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Cash and noninterest-bearing deposits with banks | $ | 12,812 | $ | 13,806 | ||||
Interest-bearing deposits with banks | 39,544 | 57,374 | ||||||
Total cash and cash equivalents | 52,356 | 71,180 | ||||||
Certificates of deposit in financial institutions | 2,360 | 2,065 | ||||||
Securities available for sale | 105,318 | 102,164 | ||||||
Securities held to maturity (estimated fair value: 2019 - $12,404; 2018 - $16,234) | 12,033 | 15,816 | ||||||
Restricted investments in bank stocks | 7,506 | 7,506 | ||||||
Total loans | 772,774 | 777,052 | ||||||
Less: Allowance for loan losses | (6,272 | ) | (6,728 | ) | ||||
Net loans | 766,502 | 770,324 | ||||||
Premises and equipment, net | 19,217 | 14,855 | ||||||
Premises and equipment held for sale, net | 653 | ---- | ||||||
Other real estate owned, net | 540 | 430 | ||||||
Accrued interest receivable | 2,564 | 2,638 | ||||||
Goodwill | 7,319 | 7,371 | ||||||
Other intangible assets, net | 174 | 379 | ||||||
Bank owned life insurance and annuity assets | 30,596 | 29,392 | ||||||
Operating lease right-of-use asset, net | 1,053 | ---- | ||||||
Other assets | 5,081 | 6,373 | ||||||
Total assets | $ | 1,013,272 | $ | 1,030,493 | ||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 222,607 | $ | 237,821 | ||||
Interest-bearing deposits | 598,864 | 608,883 | ||||||
Total deposits | 821,471 | 846,704 | ||||||
Other borrowed funds | 33,991 | 39,713 | ||||||
Subordinated debentures | 8,500 | 8,500 | ||||||
Operating lease liability | 1,053 | ---- | ||||||
Accrued liabilities | 20,078 | 17,702 | ||||||
Total liabilities | 885,093 | 912,619 | ||||||
Commitments and Contingent Liabilities (See Note L) | ---- | ---- | ||||||
Shareholders’ Equity | ||||||||
Common stock ($1.00 stated value per share, 10,000,000 shares authorized; 2019 – 5,447,185 shares issued; 2018 - 5,400,065 shares issued) | 5,447 | 5,400 | ||||||
Additional paid-in capital | 51,165 | 49,477 | ||||||
Retained earnings | 86,751 | 80,844 | ||||||
Accumulated other comprehensive income (loss) | 528 | (2,135 | ) | |||||
Treasury stock, at cost (659,739 shares) | (15,712 | ) | (15,712 | ) | ||||
Total shareholders’ equity | 128,179 | 117,874 | ||||||
Total liabilities and shareholders’ equity | $ | 1,013,272 | $ | 1,030,493 |
For the years ended December 31 | 2019 | 2018 | 2017 | |||||||||
(dollars in thousands, except per share data) | ||||||||||||
Interest and dividend income: | ||||||||||||
Loans, including fees | $ | 45,766 | $ | 44,365 | $ | 42,182 | ||||||
Securities: | ||||||||||||
Taxable | 2,542 | 2,377 | 2,116 | |||||||||
Tax exempt | 344 | 369 | 411 | |||||||||
Dividends | 393 | 440 | 392 | |||||||||
Interest-bearing deposits with banks | 1,221 | 1,608 | 582 | |||||||||
Other interest | 51 | 38 | 25 | |||||||||
50,317 | 49,197 | 45,708 | ||||||||||
Interest expense: | ||||||||||||
Deposits | 6,026 | 4,155 | 2,843 | |||||||||
Other borrowed funds | 883 | 986 | 884 | |||||||||
Subordinated debentures | 356 | 330 | 248 | |||||||||
7,265 | 5,471 | 3,975 | ||||||||||
Net interest income | 43,052 | 43,726 | 41,733 | |||||||||
Provision for loan losses | 1,000 | 1,039 | 2,564 | |||||||||
Net interest income after provision for loan losses | 42,052 | 42,687 | 39,169 | |||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 2,118 | 2,084 | 2,137 | |||||||||
Trust fees | 264 | 263 | 240 | |||||||||
Income from bank owned life insurance and annuity assets | 704 | 717 | 1,226 | |||||||||
Mortgage banking income | 310 | 342 | 265 | |||||||||
Electronic refund check / deposit fees | 5 | 1,579 | 1,692 | |||||||||
Debit / credit card interchange income | 3,905 | 3,662 | 3,376 | |||||||||
Loss on other real estate owned | (65 | ) | (559 | ) | (189 | ) | ||||||
Net gain on branch divestitures | 1,256 | ---- | ---- | |||||||||
Other | 669 | 850 | 688 | |||||||||
9,166 | 8,938 | 9,435 | ||||||||||
Noninterest expense: | ||||||||||||
Salaries and employee benefits | 23,524 | 22,191 | 20,809 | |||||||||
Occupancy | 1,771 | 1,754 | 1,770 | |||||||||
Furniture and equipment | 1,060 | 1,023 | 1,049 | |||||||||
Professional fees | 2,508 | 2,016 | 1,792 | |||||||||
Marketing expense | 841 | 777 | 1,034 | |||||||||
FDIC insurance | 113 | 447 | 465 | |||||||||
Data processing | 1,996 | 2,115 | 2,081 | |||||||||
Software | 1,705 | 1,533 | 1,486 | |||||||||
Foreclosed assets | 266 | 238 | 499 | |||||||||
Amortization of intangibles | 206 | 135 | 156 | |||||||||
Other | 5,508 | 5,197 | 5,468 | |||||||||
39,498 | 37,426 | 36,609 | ||||||||||
Income before income taxes | 11,720 | 14,199 | 11,995 | |||||||||
Provision for income taxes | 1,813 | 2,255 | 4,486 | |||||||||
NET INCOME | $ | 9,907 | $ | 11,944 | $ | 7,509 | ||||||
Earnings per share | $ | 2.08 | $ | 2.53 | $ | 1.60 |
For the years ended December 31 | 2019 | 2018 | 2017 | |||||||||
(dollars in thousands) | ||||||||||||
NET INCOME | $ | 9,907 | $ | 11,944 | $ | 7,509 | ||||||
Other comprehensive income (loss): | ||||||||||||
Change in unrealized gain (loss) on available for sale securities | 3,371 | (1,373 | ) | 171 | ||||||||
Related tax (expense) benefit | (708 | ) | 289 | (58 | ) | |||||||
Total other comprehensive income (loss), net of tax | 2,663 | (1,084 | ) | 113 | ||||||||
Total comprehensive income | $ | 12,570 | $ | 10,860 | $ | 7,622 |
For the years ended December 31, 2019, 2018, and 2017 | ||||||||||||||||||||||||
(dollars in thousands, except share and per share data) | ||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income(Loss) | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||
Balances at January 1, 2017 | $ | 5,326 | $ | 46,788 | $ | 69,117 | $ | (991 | ) | $ | (15,712 | ) | $ | 104,528 | ||||||||||
Net income | ---- | ---- | 7,509 | ---- | ---- | 7,509 | ||||||||||||||||||
Other comprehensive income (loss), net | ---- | ---- | ---- | 113 | ---- | 113 | ||||||||||||||||||
Common stock issued to ESOP, 15,118 shares | 15 | 413 | ---- | ---- | ---- | 428 | ||||||||||||||||||
Common stock issued through dividend reinvestment, 21,383 shares | 21 | 694 | ---- | ---- | ---- | 715 | ||||||||||||||||||
Cash dividends, $.84 per share | ---- | ---- | (3,932 | ) | ---- | ---- | (3,932 | ) | ||||||||||||||||
Balances at December 31, 2017 | 5,362 | 47,895 | 72,694 | (878 | ) | (15,712 | ) | 109,361 | ||||||||||||||||
Net income | ---- | ---- | 11,944 | ---- | ---- | 11,944 | ||||||||||||||||||
Other comprehensive income (loss), net | ---- | ---- | ---- | (1,084 | ) | ---- | (1,084 | ) | ||||||||||||||||
Amount reclassified out of accumulated other comprehensive income (loss) per ASU 2018-02 | ---- | ---- | 173 | (173 | ) | ---- | ||||||||||||||||||
Common stock issued to ESOP, 7,294 shares | 7 | 288 | ---- | ---- | ---- | 295 | ||||||||||||||||||
Common stock issued through dividend reinvestment, 30,766 shares | 31 | 1,294 | ---- | ---- | ---- | 1,325 | ||||||||||||||||||
Cash dividends, $.84 per share | ---- | ---- | (3,967 | ) | ---- | ---- | (3,967 | ) | ||||||||||||||||
Balances at December 31, 2018 | 5,400 | 49,477 | 80,844 | (2,135 | ) | (15,712 | ) | 117,874 | ||||||||||||||||
Net income | ---- | ---- | 9,907 | ---- | ---- | 9,907 | ||||||||||||||||||
Other comprehensive income (loss), net | ---- | ---- | ---- | 2,663 | ---- | 2,663 | ||||||||||||||||||
Common stock issued to ESOP, 8,333 shares | 8 | 320 | ---- | ---- | ---- | 328 | ||||||||||||||||||
Common stock issued through dividend reinvestment, 38,787 shares | 39 | 1,368 | ---- | ---- | ---- | 1,407 | ||||||||||||||||||
Cash dividends, $.84 per share | ---- | ---- | (4,000 | ) | ---- | ---- | (4,000 | ) | ||||||||||||||||
Balances at December 31, 2019 | $ | 5,447 | $ | 51,165 | $ | 86,751 | $ | 528 | $ | (15,712 | ) | $ | 128,179 |
For the years ended December 31 | 2019 | 2018 | 2017 | |||||||||
(dollars in thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 9,907 | $ | 11,944 | $ | 7,509 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation of premises and equipment | 1,183 | 1,141 | 1,277 | |||||||||
Net (accretion) of purchase accounting adjustments | (494 | ) | (188 | ) | (526 | ) | ||||||
Net amortization of securities | 173 | 260 | 378 | |||||||||
Proceeds from sale of loans in secondary market | 9,840 | 11,034 | 7,857 | |||||||||
Loans disbursed for sale in secondary market | (9,530 | ) | (10,692 | ) | (7,592 | ) | ||||||
Amortization of mortgage servicing rights | 68 | 55 | 71 | |||||||||
Gain on sale of loans | (378 | ) | (397 | ) | (336 | ) | ||||||
Amortization of intangible assets | 206 | 135 | 156 | |||||||||
Deferred tax (benefit) expense | 367 | (134 | ) | 1,907 | ||||||||
Provision for loan losses | 1,000 | 1,039 | 2,564 | |||||||||
Common stock issued to ESOP | 328 | 295 | 428 | |||||||||
Earnings on bank owned life insurance and annuity assets | (704 | ) | (717 | ) | (1,226 | ) | ||||||
Loss on sale of other real estate owned | 57 | 21 | 134 | |||||||||
Net write-down of other real estate owned | 8 | 538 | 55 | |||||||||
Net gain on branch divestitures | (1,256 | ) | ---- | ---- | ||||||||
Change in accrued interest receivable | 74 | (135 | ) | (188 | ) | |||||||
Change in accrued liabilities | 2,376 | 1,946 | 1,681 | |||||||||
Change in other assets | 1,528 | 1,996 | 347 | |||||||||
Net cash provided by operating activities | 14,753 | 18,141 | 14,496 | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from maturities and paydowns of securities available for sale | 20,199 | 21,139 | 20,389 | |||||||||
Purchases of securities available for sale | (20,126 | ) | (23,757 | ) | (25,177 | ) | ||||||
Proceeds from calls and maturities of securities held to maturity | 3,754 | 1,711 | 1,419 | |||||||||
Purchases of securities held to maturity | ---- | ---- | (389 | ) | ||||||||
Proceeds from maturities of certificates of deposit in financial institutions | ---- | ---- | 245 | |||||||||
Purchases of certificates of deposit in financial institutions | (295 | ) | (245 | ) | (395 | ) | ||||||
Net change in loans | 2,323 | (9,981 | ) | (37,918 | ) | |||||||
Proceeds from sale of other real estate owned | 392 | 1,132 | 1,466 | |||||||||
Purchases of premises and equipment | (6,232 | ) | (2,725 | ) | (1,727 | ) | ||||||
Disposals of premises and equipment | 402 | ---- | ---- | |||||||||
Proceeds from bank owned life insurance and annuity assets | ---- | ---- | 2,107 | |||||||||
Purchases of bank owned life insurance and annuity assets | (500 | ) | ---- | (2,200 | ) | |||||||
Net cash (used in) investing activities | (83 | ) | (12,726 | ) | (42,180 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Change in deposits | (25,179 | ) | (9,930 | ) | 66,444 | |||||||
Proceeds from common stock through dividend reinvestment | 1,407 | 1,325 | 715 | |||||||||
Cash dividends | (4,000 | ) | (3,967 | ) | (3,932 | ) | ||||||
Proceeds from Federal Home Loan Bank borrowings | ---- | 8,000 | 4,785 | |||||||||
Repayment of Federal Home Loan Bank borrowings | (3,676 | ) | (3,162 | ) | (5,318 | ) | ||||||
Change in other long-term borrowings | (2,046 | ) | (989 | ) | (459 | ) | ||||||
Change in other short-term borrowings | ---- | (85 | ) | (144 | ) | |||||||
Net cash provided by (used in) by financing activities | (33,494 | ) | (8,808 | ) | 62,091 | |||||||
Cash and cash equivalents: | ||||||||||||
Change in cash and cash equivalents | (18,824 | ) | (3,393 | ) | 34,407 | |||||||
Cash and cash equivalents at beginning of year | 71,180 | 74,573 | 40,166 | |||||||||
Cash and cash equivalents at end of year | $ | 52,356 | $ | 71,180 | $ | 74,573 | ||||||
Supplemental disclosure: | ||||||||||||
Cash paid for interest | $ | 6,931 | $ | 5,008 | $ | 3,724 | ||||||
Cash paid for income taxes | 890 | 2,050 | 2,236 | |||||||||
Proceeds from bank owned life insurance and annuity assets not settled | ---- | ---- | 1,993 | |||||||||
Transfers from loans to other real estate owned | 570 | 547 | 1,337 | |||||||||
Other real estate owned sales financed by The Ohio Valley Bank Company | ---- | ---- | 237 | |||||||||
Initial recognition of operating lease right-of-use asset | 1,280 | ---- | ---- | |||||||||
Operating lease liability arising from obtaining right-of-use asset | 1,280 | ---- | ---- |
% of Total Loans | ||||||||
2019 | 2018 | |||||||
Residential real estate loans | 40.15 | % | 39.13 | % | ||||
Commercial real estate loans | 28.75 | % | 27.84 | % | ||||
Consumer loans | 18.16 | % | 18.46 | % | ||||
Commercial and industrial loans | 12.94 | % | 14.57 | % | ||||
100.00 | % | 100.00 | % |
Earnings Per Share: Earnings per share is based on net income divided by the following weighted average number of common shares outstanding during the periods: 4,767,279 for 2019; 4,725,971 for 2018; 4,685,067 for 2017. Ohio Valley had no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented.
Note A - Summary of Significant Accounting Policies (continued)
Note A - Summary of Significant Accounting Policies (continued)
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Securities Available for Sale | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
U.S. Government sponsored entity securities | $ | 16,579 | $ | 163 | $ | (6 | ) | $ | 16,736 | |||||||
Agency mortgage-backed securities, residential | 88,071 | 807 | (296 | ) | 88,582 | |||||||||||
Total securities | $ | 104,650 | $ | 970 | $ | (302 | ) | $ | 105,318 | |||||||
December 31, 2018 | ||||||||||||||||
U.S. Government sponsored entity securities | $ | 16,837 | $ | 8 | $ | (215 | ) | $ | 16,630 | |||||||
Agency mortgage-backed securities, residential | 88,030 | 92 | (2,588 | ) | 85,534 | |||||||||||
Total securities | $ | 104,867 | $ | 100 | $ | (2,803 | ) | $ | 102,164 |
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Estimated Fair Value | |||||||||||||
Securities Held to Maturity | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
Obligations of states and political subdivisions | $ | 12,031 | $ | 372 | $ | (1 | ) | $ | 12,402 | |||||||
Agency mortgage-backed securities, residential | 2 | ---- | ---- | 2 | ||||||||||||
Total securities | $ | 12,033 | $ | 372 | $ | (1 | ) | $ | 12,404 | |||||||
December 31, 2018 | ||||||||||||||||
Obligations of states and political subdivisions | $ | 15,813 | $ | 502 | $ | (84 | ) | $ | 16,231 | |||||||
Agency mortgage-backed securities, residential | 3 | ---- | ---- | 3 | ||||||||||||
Total securities | $ | 15,816 | $ | 502 | $ | (84 | ) | $ | 16,234 |
Available for Sale | Held to Maturity | |||||||||||||||
Debt Securities: | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Due in one year or less | $ | 3,399 | $ | 3,413 | $ | 641 | $ | 644 | ||||||||
Due in one to five years | 13,180 | 13,323 | 6,652 | 6,813 | ||||||||||||
Due in five to ten years | ---- | ---- | 4,738 | 4,945 | ||||||||||||
Due after ten years | ---- | ---- | ---- | ---- | ||||||||||||
Agency mortgage-backed securities, residential | 88,071 | 88,582 | 2 | 2 | ||||||||||||
Total debt securities | $ | 104,650 | $ | 105,318 | $ | 12,033 | $ | 12,404 |
December 31, 2019 | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Securities Available for Sale | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
U.S. Government sponsored entity securities | $ | ---- | $ | ---- | $ | 1,999 | $ | (6 | ) | $ | 1,999 | $ | (6 | ) | ||||||||||
Agency mortgage-backed securities residential | 15,041 | (84 | ) | 21,344 | (212 | ) | 36,385 | (296 | ) | |||||||||||||||
Total available for sale | $ | 15,041 | $ | (84 | ) | $ | 23,343 | $ | (218 | ) | $ | 38,384 | $ | (302 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Securities Held to Maturity | Fair Value | Unrecognized Loss | Fair Value | Unrecognized Loss | Fair Value | Unrecognized Loss | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 204 | $ | (1 | ) | $ | ---- | $ | ---- | $ | 204 | $ | (1 | ) | ||||||||||
Total held to maturity | $ | 204 | $ | (1 | ) | $ | ---- | $ | ---- | $ | 204 | $ | (1 | ) |
December 31, 2018 | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Securities Available for Sale | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
U.S. Government sponsored entity securities | $ | 1,981 | $ | (1 | ) | $ | 8,679 | $ | (214 | ) | $ | 10,660 | $ | (215 | ) | |||||||||
Agency mortgage-backed securitie residential | 8,564 | (43 | ) | 62,619 | (2,545 | ) | 71,183 | (2,588 | ) | |||||||||||||||
Total available for sale | $ | 10,545 | $ | (44 | ) | $ | 71,298 | $ | (2,759 | ) | $ | 81,843 | $ | (2,803 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Securities Held to Maturity | Fair Value | Unrecognized Loss | Fair Value | Unrecognized Loss | Fair Value | Unrecognized Loss | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 484 | $ | (3 | ) | $ | 1,312 | $ | (81 | ) | $ | 1,796 | $ | (84 | ) | |||||||||
Total held to maturity | $ | 484 | $ | (3 | ) | $ | 1,312 | $ | (81 | ) | $ | 1,796 | $ | (84 | ) |
2019 | 2018 | |||||||
Residential real estate | $ | 310,253 | $ | 304,079 | ||||
Commercial real estate: | ||||||||
Owner-occupied | 55,825 | 61,694 | ||||||
Nonowner-occupied | 131,398 | 117,188 | ||||||
Construction | 34,913 | 37,478 | ||||||
Commercial and industrial | 100,023 | 113,243 | ||||||
Consumer: | ||||||||
Automobile | 63,770 | 70,226 | ||||||
Home equity | 22,882 | 22,512 | ||||||
Other | 53,710 | 50,632 | ||||||
772,774 | 777,052 | |||||||
Less: Allowance for loan losses | (6,272 | ) | (6,728 | ) | ||||
Loans, net | $ | 766,502 | $ | 770,324 |
December 31, 2019 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 1,583 | $ | 2,186 | $ | 1,063 | $ | 1,896 | $ | 6,728 | ||||||||||
Provision for loan losses | 98 | (1,745 | ) | 1,807 | 840 | 1,000 | ||||||||||||||
Loans charged off | (1,060 | ) | (602 | ) | (1,513 | ) | (1,917 | ) | (5,092 | ) | ||||||||||
Recoveries | 629 | 2,089 | 90 | 828 | 3,636 | |||||||||||||||
Total ending allowance balance | $ | 1,250 | $ | 1,928 | $ | 1,447 | $ | 1,647 | $ | 6,272 |
December 31, 2018 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 1,470 | $ | 2,978 | $ | 1,024 | $ | 2,027 | $ | 7,499 | ||||||||||
Provision for loan losses | 772 | (1,311 | ) | (80 | ) | 1,658 | 1,039 | |||||||||||||
Loans charged off | (874 | ) | (4 | ) | (208 | ) | (2,514 | ) | (3,600 | ) | ||||||||||
Recoveries | 215 | 523 | 327 | 725 | 1,790 | |||||||||||||||
Total ending allowance balance | $ | 1,583 | $ | 2,186 | $ | 1,063 | $ | 1,896 | $ | 6,728 |
December 31, 2017 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 939 | $ | 4,315 | $ | 907 | $ | 1,538 | $ | 7,699 | ||||||||||
Provision for loan losses | 1,016 | (632 | ) | 658 | 1,522 | 2,564 | ||||||||||||||
Loans charged off | (745 | ) | (1,067 | ) | (627 | ) | (1,642 | ) | (4,081 | ) | ||||||||||
Recoveries | 260 | 362 | 86 | 609 | 1,317 | |||||||||||||||
Total ending allowance balance | $ | 1,470 | $ | 2,978 | $ | 1,024 | $ | 2,027 | $ | 7,499 |
December 31, 2019 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | ---- | $ | 385 | $ | 303 | $ | 119 | $ | 807 | ||||||||||
Collectively evaluated for impairment | 1,250 | 1,543 | 1,144 | 1,528 | 5,465 | |||||||||||||||
Total ending allowance balance | $ | 1,250 | $ | 1,928 | $ | 1,447 | $ | 1,647 | $ | 6,272 | ||||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 438 | $ | 11,300 | $ | 4,910 | $ | 487 | $ | 17,135 | ||||||||||
Loans collectively evaluated for impairment | 309,815 | 210,836 | 95,113 | 139,875 | 755,639 | |||||||||||||||
Total ending loans balance | $ | 310,253 | $ | 222,136 | $ | 100,023 | $ | 140,362 | $ | 772,774 |
December 31, 2018 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total | |||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | ---- | $ | 98 | $ | ---- | $ | ---- | $ | 98 | ||||||||||
Collectively evaluated for impairment | 1,583 | 2,088 | 1,063 | 1,896 | 6,630 | |||||||||||||||
Total ending allowance balance | $ | 1,583 | $ | 2,186 | $ | 1,063 | $ | 1,896 | $ | 6,728 | ||||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,667 | $ | 3,835 | $ | 7,116 | $ | ---- | $ | 12,618 | ||||||||||
Loans collectively evaluated for impairment | 302,412 | 212,525 | 106,127 | 143,370 | 764,434 | |||||||||||||||
Total ending loans balance | $ | 304,079 | $ | 216,360 | $ | 113,243 | $ | 143,370 | $ | 777,052 |
December 31, 2019 | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Impaired Loans | Interest Income Recognized | Cash Basis Interest Recognized | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | $ | 2,030 | $ | 2,030 | $ | 385 | $ | 1,375 | $ | 197 | $ | 197 | ||||||||||||
Commercial and industrial | 4,861 | 4,861 | 303 | 4,796 | 319 | 319 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Automobile | 8 | 8 | 8 | 2 | ---- | ---- | ||||||||||||||||||
Other | 111 | 111 | 111 | 22 | 9 | 9 | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Residential real estate | 438 | 438 | ---- | 453 | 23 | 23 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 1,778 | 1,778 | ---- | 1,902 | 113 | 113 | ||||||||||||||||||
Nonowner-occupied | 7,492 | 7,492 | ---- | 6,160 | 477 | 477 | ||||||||||||||||||
Construction | 319 | ---- | ---- | ---- | 20 | 20 | ||||||||||||||||||
Commercial and industrial | 49 | 49 | ---- | 300 | 111 | 111 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity | 368 | 368 | ---- | 143 | 19 | 19 | ||||||||||||||||||
Total | $ | 17,454 | $ | 17,135 | $ | 807 | $ | 15,153 | $ | 1,288 | $ | 1,288 |
December 31, 2018 | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Impaired Loans | Interest Income Recognized | Cash Basis Interest Recognized | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Nonowner-occupied | $ | 362 | $ | 362 | $ | 98 | $ | 367 | $ | 15 | $ | 15 | ||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Residential real estate | 1,667 | 1,667 | ---- | 511 | 101 | 101 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 2,527 | 2,527 | ---- | 2,475 | 141 | 141 | ||||||||||||||||||
Nonowner-occupied | 2,368 | 946 | ---- | 1,912 | 57 | 57 | ||||||||||||||||||
Construction | 336 | ---- | ---- | ---- | 20 | 20 | ||||||||||||||||||
Commercial and industrial | 7,116 | 7,116 | ---- | 5,802 | 414 | 414 | ||||||||||||||||||
Total | $ | 14,376 | $ | 12,618 | $ | 98 | $ | 11,067 | $ | 748 | $ | 748 |
December 31, 2017 | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Impaired Loans | Interest Income Recognized | Cash Basis Interest Recognized | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Nonowner-occupied | $ | 372 | $ | 372 | $ | 94 | $ | 378 | $ | 17 | $ | 17 | ||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Residential real estate | 1,420 | 1,420 | ---- | 851 | 66 | 66 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 3,427 | 3,427 | ---- | 2,456 | 184 | 184 | ||||||||||||||||||
Nonowner-occupied | 4,989 | 3,534 | ---- | 3,521 | 81 | 81 | ||||||||||||||||||
Construction | 352 | ---- | ---- | ---- | 19 | 19 | ||||||||||||||||||
Commercial and industrial | 9,154 | 9,154 | ---- | 8,544 | 481 | 481 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity | 203 | 201 | ---- | 208 | 7 | 7 | ||||||||||||||||||
Total | $ | 19,917 | $ | 18,108 | $ | 94 | $ | 15,958 | $ | 855 | $ | 855 |
Loans Past Due 90 Days And Still Accruing | Nonaccrual | |||||||
December 31, 2019 | ||||||||
Residential real estate | $ | 255 | $ | 6,119 | ||||
Commercial real estate: | ||||||||
Owner-occupied | ---- | 863 | ||||||
Nonowner-occupied | ---- | 804 | ||||||
Construction | ---- | 229 | ||||||
Commercial and industrial | ---- | 590 | ||||||
Consumer: | ||||||||
Automobile | 239 | 61 | ||||||
Home equity | ---- | 392 | ||||||
Other | 395 | 91 | ||||||
Total | $ | 889 | $ | 9,149 |
Loans Past Due 90 Days And Still Accruing | Nonaccrual | |||||||
December 31, 2018 | ||||||||
Residential real estate | $ | 19 | $ | 6,661 | ||||
Commercial real estate: | ||||||||
Owner-occupied | ---- | 470 | ||||||
Nonowner-occupied | 362 | 574 | ||||||
Construction | 66 | 416 | ||||||
Commercial and industrial | 31 | 228 | ||||||
Consumer: | ||||||||
Automobile | 270 | 59 | ||||||
Home equity | 91 | 183 | ||||||
Other | 228 | 86 | ||||||
Total | $ | 1,067 | $ | 8,677 |
December 31, 2019 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or More Past Due | Total Past Due | Loans Not Past Due | Total | ||||||||||||||||||
Residential real estate | $ | 4,015 | $ | 1,314 | $ | 1,782 | $ | 7,111 | $ | 303,142 | $ | 310,253 | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 383 | 59 | 144 | 586 | 55,239 | 55,825 | ||||||||||||||||||
Nonowner-occupied | 12 | ---- | 697 | 709 | 130,689 | 131,398 | ||||||||||||||||||
Construction | 186 | 19 | 49 | 254 | 34,659 | 34,913 | ||||||||||||||||||
Commercial and industrial | 1,320 | 312 | 241 | 1,873 | 98,150 | 100,023 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Automobile | 986 | 329 | 246 | 1,561 | 62,209 | 63,770 | ||||||||||||||||||
Home equity | 106 | 18 | 279 | 403 | 22,479 | 22,882 | ||||||||||||||||||
Other | 559 | 139 | 443 | 1,141 | 52,569 | 53,710 | ||||||||||||||||||
Total | $ | 7,567 | $ | 2,190 | $ | 3,881 | $ | 13,638 | $ | 759,136 | $ | 772,774 |
December 31, 2018 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or More Past Due | Total Past Due | Loans Not Past Due | Total | ||||||||||||||||||
Residential real estate | $ | 3,369 | $ | 1,183 | $ | 1,642 | $ | 6,194 | $ | 297,885 | $ | 304,079 | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner-occupied | 298 | ---- | 129 | 427 | 61,267 | 61,694 | ||||||||||||||||||
Nonowner-occupied | 299 | ---- | 747 | 1,046 | 116,142 | 117,188 | ||||||||||||||||||
Construction | 31 | ---- | 265 | 296 | 37,182 | 37,478 | ||||||||||||||||||
Commercial and industrial | 428 | 192 | 110 | 730 | 112,513 | 113,243 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Automobile | 1,287 | 286 | 289 | 1,862 | 68,364 | 70,226 | ||||||||||||||||||
Home equity | 171 | 92 | 260 | 523 | 21,989 | 22,512 | ||||||||||||||||||
Other | 593 | 291 | 228 | 1,112 | 49,520 | 50,632 | ||||||||||||||||||
Total | $ | 6,476 | $ | 2,044 | $ | 3,670 | $ | 12,190 | $ | 764,862 | $ | 777,052 |
TDRs Performing to Modified Terms | TDRs Not Performing to Modified Terms | Total TDRs | ||||||||||
December 31, 2019 | ||||||||||||
Residential real estate: | ||||||||||||
Interest only payments | $ | 209 | $ | ---- | $ | 209 | ||||||
Commercial real estate: | ||||||||||||
Owner-occupied | ||||||||||||
Interest only payments | 882 | ---- | 882 | |||||||||
Reduction of principal and interest payments | 1,521 | ---- | 1,521 | |||||||||
Maturity extension at lower stated rate than market rate | 393 | ---- | 393 | |||||||||
Credit extension at lower stated rate than market rate | 393 | ---- | 393 | |||||||||
Nonowner-occupied | ||||||||||||
Credit extension at lower stated rate than market rate | 395 | ---- | 395 | |||||||||
Commercial and industrial | ||||||||||||
Interest only payments | 4,574 | ---- | 4,574 | |||||||||
Reduction of principal and interest payments | 185 | ---- | 185 | |||||||||
Total TDRs | $ | 8,552 | $ | ---- | $ | 8,552 |
TDRs Performing to Modified Terms | TDRs Not Performing to Modified Terms | Total TDRs | ||||||||||
December 31, 2018 | ||||||||||||
Residential real estate: | ||||||||||||
Interest only payments | $ | 216 | $ | ---- | $ | 216 | ||||||
Commercial real estate: | ||||||||||||
Owner-occupied | ||||||||||||
Interest only payments | 968 | ---- | 968 | |||||||||
Reduction of principal and interest payments | 529 | ---- | 529 | |||||||||
Maturity extension at lower stated rate than market rate | 469 | ---- | 469 | |||||||||
Credit extension at lower stated rate than market rate | 402 | 402 | ||||||||||
Nonowner-occupied | ||||||||||||
Interest only payments | ---- | 385 | 385 | |||||||||
Rate reduction | ---- | 362 | 362 | |||||||||
Credit extension at lower stated rate than market rate | 561 | ---- | 561 | |||||||||
Commercial and industrial | ||||||||||||
Interest only payments | 4,742 | ---- | 4,742 | |||||||||
Total TDRs | $ | 7,887 | $ | 747 | $ | 8,634 |
TDRs Performing to Modified Terms | TDRs Not Performing to Modified Terms | |||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner-occupied | ||||||||||||||||||||
Reduction of principal and interest payments | 1 | $ | 1,036 | $ | 1,036 | $ | ---- | $ | ---- | |||||||||||
Commercial and industrial: | ||||||||||||||||||||
Reduction of principal and interest payments | 1 | 199 | 199 | ---- | ---- | |||||||||||||||
Total TDRs | 2 | $ | 1,235 | $ | 1,235 | $ | ---- | $ | ---- |
TDRs Performing to Modified Terms | TDRs Not Performing to Modified Terms | |||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner-occupied | ||||||||||||||||||||
Interest only payments | 1 | $ | 997 | $ | 997 | $ | ---- | $ | ---- | |||||||||||
Credit extension at lower stated rate than market rate | 1 | 412 | 412 | ---- | ---- | |||||||||||||||
Total TDRs | 2 | $ | 1,409 | $ | 1,409 | $ | ---- | $ | ---- |
December 31, 2019 | Pass | Criticized | Classified | Total | ||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 49,486 | $ | 2,889 | $ | 3,450 | $ | 55,825 | ||||||||
Nonowner-occupied | 123,847 | ---- | 7,551 | 131,398 | ||||||||||||
Construction | 34,864 | ---- | 49 | 34,913 | ||||||||||||
Commercial and industrial | 89,749 | 298 | 9,976 | 100,023 | ||||||||||||
Total | $ | 297,946 | $ | 3,187 | $ | 21,026 | $ | 322,159 |
December 31, 2018 | Pass | Criticized | Classified | Total | ||||||||||||
Commercial real estate: | ||||||||||||||||
Owner-occupied | $ | 50,474 | $ | 7,724 | $ | 3,496 | $ | 61,694 | ||||||||
Nonowner-occupied | 115,170 | ---- | 2,018 | 117,188 | ||||||||||||
Construction | 37,321 | ---- | 157 | 37,478 | ||||||||||||
Commercial and industrial | 92,417 | 6,536 | 14,290 | 113,243 | ||||||||||||
Total | $ | 295,382 | $ | 14,260 | $ | 19,961 | $ | 329,603 |
Consumer | ||||||||||||||||||||
December 31, 2019 | Automobile | Home Equity | Other | Residential Real Estate | Total | |||||||||||||||
Performing | $ | 63,470 | $ | 22,490 | $ | 53,224 | $ | 303,879 | $ | 443,063 | ||||||||||
Nonperforming | 300 | 392 | 486 | 6,374 | 7,552 | |||||||||||||||
Total | $ | 63,770 | $ | 22,882 | $ | 53,710 | $ | 310,253 | $ | 450,615 |
Consumer | ||||||||||||||||||||
December 31, 2018 | Automobile | Home Equity | Other | Residential Real Estate | Total | |||||||||||||||
Performing | $ | 69,897 | $ | 22,238 | $ | 50,318 | $ | 297,399 | $ | 439,852 | ||||||||||
Nonperforming | 329 | 274 | 314 | 6,680 | 7,597 | |||||||||||||||
Total | $ | 70,226 | $ | 22,512 | $ | 50,632 | $ | 304,079 | $ | 447,449 |
2019 | 2018 | |||||||
Land | $ | 2,633 | $ | 2,744 | ||||
Buildings | 20,890 | 16,154 | ||||||
Leasehold improvements | 1,267 | 1,267 | ||||||
Furniture and equipment | 6,847 | 6,039 | ||||||
31,637 | 26,204 | |||||||
Less accumulated depreciation | 12,420 | 11,349 | ||||||
Total premises and equipment | $ | 19,217 | $ | 14,855 |
2019 | 2018 | |||||||
Land | $ | 153 | $ | ---- | ||||
Buildings | 563 | ---- | ||||||
716 | ---- | |||||||
Less accumulated depreciation | 63 | ---- | ||||||
Total premises and equipment held for sale | $ | 653 | $ | ---- |
December 31, 2019 | ||||
Operating leases: | ||||
Operating lease right-of-use assets | $ | 1,053 | ||
Operating lease liabilities | $ | 1,053 |
December 31, 2019 | ||||
Operating lease cost | $ | 282 | ||
Short-term lease expense | $ | 52 |
Operating Leases | ||||
2020 | $ | 180 | ||
2021 | 157 | |||
2022 | 157 | |||
2023 | 116 | |||
2024 | 95 | |||
Thereafter | 546 | |||
Total lease payments | 1,251 | |||
Less: Imputed Interest | (198 | ) | ||
Total operating leases | $ | 1,053 |
December 31, 2019 | ||||
Weighted-average remaining lease term for operating leases | 10.6 years | |||
Weighted-average discount rate for operating leases | 2.76% |
2019 | 2018 | 2017 | ||||||||||
Beginning of year | $ | 7,371 | $ | 7,371 | $ | 7,801 | ||||||
Acquired goodwill | ---- | ---- | ---- | |||||||||
Impairment | ---- | ---- | ---- | |||||||||
Finalization of Milton branch sale | (52 | ) | ---- | ---- | ||||||||
Finalization of Milton acquisition accounting | ---- | ---- | (430 | ) | ||||||||
End of year | $ | 7,319 | $ | 7,371 | $ | 7,371 |
2019 | 2018 | |||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Core deposit intangibles | $ | 738 | $ | 564 | $ | 738 | $ | 359 |
2020 | $ | 62 | ||
2021 | 48 | |||
2022 | 35 | |||
2023 | 21 | |||
2024 | 8 | |||
Total | $ | 174 |
2019 | 2018 | |||||||
NOW accounts | $ | 158,434 | $ | 155,166 | ||||
Savings and Money Market | 230,672 | 237,868 | ||||||
Time: | ||||||||
In denominations of $250,000 or less | 175,334 | 178,736 | ||||||
In denominations of more than $250,000 | 34,424 | 37,113 | ||||||
Total time deposits | 209,758 | 215,849 | ||||||
Total interest-bearing deposits | $ | 598,864 | $ | 608,883 |
2020 | $ | 116,666 | ||
2021 | 58,585 | |||
2022 | 22,833 | |||
2023 | 9,077 | |||
2024 | 1,978 | |||
Thereafter | 619 | |||
Total | $ | 209,758 |
FHLB Borrowings | Promissory Notes | Totals | ||||||||||
2019 | $ | 29,758 | $ | 4,233 | $ | 33,991 | ||||||
2018 | $ | 33,434 | $ | 6,279 | $ | 39,713 |
FHLB Borrowings | Promissory Notes | Totals | ||||||||||
2020 | $ | 3,722 | $ | 3,600 | $ | 7,322 | ||||||
2021 | 3,000 | 633 | 3,633 | |||||||||
2022 | 2,841 | ---- | 2,841 | |||||||||
2023 | 2,705 | ---- | 2,705 | |||||||||
2024 | 2,301 | ---- | 2,301 | |||||||||
Thereafter | 15,189 | ---- | 15,189 | |||||||||
Total | $ | 29,758 | $ | 4,233 | $ | 33,991 |
2019 | 2018 | 2017 | ||||||||||
Current tax expense | $ | 1,446 | $ | 2,389 | $ | 2,579 | ||||||
Deferred tax (benefit) expense | 367 | (134 | ) | 1,907 | ||||||||
Total income taxes | $ | 1,813 | $ | 2,255 | $ | 4,486 |
2019 | 2018 | |||||||
Items giving rise to deferred tax assets: | ||||||||
Allowance for loan losses | $ | 1,364 | $ | 1,463 | ||||
Unrealized loss on securities available for sale | ---- | 568 | ||||||
Deferred compensation | 1,700 | 1,580 | ||||||
Deferred loan fees/costs | 110 | 119 | ||||||
Other real estate owned | 4 | 434 | ||||||
Accrued bonus | 204 | 280 | ||||||
Purchase accounting adjustments | 24 | 61 | ||||||
Net operating loss | 115 | 132 | ||||||
Lease liability | 274 | ---- | ||||||
Other | 346 | 257 | ||||||
Items giving rise to deferred tax liabilities: | ||||||||
Mortgage servicing rights | (77 | ) | (80 | ) | ||||
FHLB stock dividends | (676 | ) | (676 | ) | ||||
Unrealized gain on securities available for sale | (140 | ) | ---- | |||||
Prepaid expenses | (182 | ) | (191 | ) | ||||
Depreciation and amortization | (579 | ) | (656 | ) | ||||
Right-of-use asset | (274 | ) | ---- | |||||
Other | ---- | (3 | ) | |||||
Net deferred tax asset | $ | 2,213 | $ | 3,288 |
2019 | 2018 | 2017 | ||||||||||
Statutory tax | $ | 2,461 | $ | 2,982 | $ | 4,078 | ||||||
Effect of nontaxable interest | (336 | ) | (352 | ) | (514 | ) | ||||||
Effect of nontaxable insurance premiums | (212 | ) | (218 | ) | (303 | ) | ||||||
Income from bank owned insurance, net | (141 | ) | (142 | ) | (230 | ) | ||||||
Effect of postretirement benefits | 54 | 20 | (78 | ) | ||||||||
Effect of nontaxable life insurance death proceeds | ---- | ---- | (175 | ) | ||||||||
Impact from TCJA | ---- | ---- | 1,783 | |||||||||
Effect of state income tax | 100 | 33 | 70 | |||||||||
Tax credits | (145 | ) | (217 | ) | (191 | ) | ||||||
Milton Merger Costs | ---- | ---- | 4 | |||||||||
Other items | 32 | 149 | 42 | |||||||||
Total income taxes | $ | 1,813 | $ | 2,255 | $ | 4,486 |
2019 | 2018 | |||||||
Fixed rate | $ | 660 | $ | 121 | ||||
Variable rate | 70,561 | 66,580 | ||||||
Standby letters of credit | 3,957 | 4,325 |
Total loans at January 1, 2019 | $ | 3,674 | ||
New loans | 890 | |||
Repayments | (391 | ) | ||
Other changes | (199 | ) | ||
Total loans at December 31, 2019 | $ | 3,974 |
Years ended December 31 | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Number of shares issued | 8,333 | 7,294 | 15,118 | |||||||||
Fair value of stock contributed | $ | 328 | $ | 295 | $ | 428 | ||||||
Cash contributed | 500 | 500 | 250 | |||||||||
Total expense | $ | 828 | $ | 795 | $ | 678 |
Fair Value Measurements at December 31, 2019, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Assets: | ||||||||||||
U.S. Government sponsored entity securities | ---- | $ | 16,736 | ---- | ||||||||
Agency mortgage-backed securities, residential | ---- | 88,582 | ---- | |||||||||
Interest rate swap derivatives | ---- | 465 | ---- | |||||||||
Interest rate swap derivatives | ---- | (465 | ) | ---- |
Fair Value Measurements at December 31, 2018, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Assets: | ||||||||||||
U.S. Government sponsored entity securities | ---- | $ | 16,630 | ---- | ||||||||
Agency mortgage-backed securities, residential | ---- | 85,534 | ---- | |||||||||
Interest rate swap derivatives | ---- | 101 | ---- | |||||||||
Interest rate swap derivatives | ---- | (101 | ) | ---- |
Fair Value Measurements at December 31, 2019, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Assets: | ||||||||||||
Impaired loans: | ||||||||||||
Commercial real estate: | ||||||||||||
Owner-occupied | $ | ---- | $ | ---- | $ | 1,644 | ||||||
Commercial and Industrial | ---- | | ---- | 4,559 |
Fair Value Measurements at December 31, 2018, Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Assets: | ||||||||||||
Impaired loans: | ||||||||||||
Commercial real estate: | ||||||||||||
Nonowner-occupied | $ | ---- | $ | ---- | $ | 264 | ||||||
Other real estate owned: | ||||||||||||
Commercial real estate: | ||||||||||||
Construction | ---- | 228 | ---- |
December 31, 2019 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | (Weighted Average) | ||||||||
Impaired loans: | |||||||||||||
Commercial real estate: | |||||||||||||
Owner-occupied | $ | 1,644 | Sales approach | Adjustment to comparables | 0% to 20% | 9.7% | |||||||
Commercial and Industrial | 4,559 | Sales approach | Adjustment to comparables | 0% to 61% | 10.3% |
December 31, 2018 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | (Weighted Average) | ||||||||
Impaired loans: | |||||||||||||
Commercial real estate: | |||||||||||||
Nonowner-occupied | $ | 264 | Sales approach | Adjustment to comparables | 6.8% to 66.7% | 18.0% |
Fair Value Measurements at December 31, 2019 Using: | ||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 52,356 | $ | 52,356 | $ | ---- | $ | ---- | $ | 52,356 | ||||||||||
Certificates of deposit in financial institutions | 2,360 | ---- | 2,360 | ---- | 2,360 | |||||||||||||||
Securities available for sale | 105,318 | ---- | 105,318 | ---- | 105,318 | |||||||||||||||
Securities held to maturity | 12,033 | ---- | 6,446 | 5,958 | 12,404 | |||||||||||||||
Loans, net | 766,502 | ---- | ---- | 771,285 | 771,285 | |||||||||||||||
Interest rate swap derivatives | 465 | ---- | 465 | ---- | 465 | |||||||||||||||
Accrued interest receivable | 2,564 | ---- | 315 | 2,249 | 2,564 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | 821,471 | 222,607 | 599,937 | ---- | 822,544 | |||||||||||||||
Other borrowed funds | 33,991 | ---- | 34,345 | ---- | 34,345 | |||||||||||||||
Subordinated debentures | 8,500 | ---- | 6,275 | ---- | 6,275 | |||||||||||||||
Interest rate swap derivatives | 465 | ---- | 465 | ---- | 465 | |||||||||||||||
Accrued interest payable | 1,589 | 3 | 1,586 | ---- | 1,589 |
Fair Value Measurements at December 31, 2018 Using: | ||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 71,180 | $ | 71,180 | $ | ---- | $ | ---- | $ | 71,180 | ||||||||||
Certificates of deposit in financial institutions | 2,065 | ---- | 2,065 | ---- | 2,065 | |||||||||||||||
Securities available for sale | 102,164 | ---- | 102,164 | ---- | 102,164 | |||||||||||||||
Securities held to maturity | 15,816 | ---- | 7,625 | 8,609 | 16,234 | |||||||||||||||
Loans, net | 770,324 | ---- | ---- | 766,784 | 766,784 | |||||||||||||||
Interest rate swap derivatives | 101 | ---- | 101 | ---- | 101 | |||||||||||||||
Accrued interest receivable | 2,638 | ---- | 312 | 2,326 | 2,638 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | 846,704 | 237,821 | 607,593 | ---- | 845,414 | |||||||||||||||
Other borrowed funds | 39,713 | ---- | 37,644 | ---- | 37,644 | |||||||||||||||
Subordinated debentures | 8,500 | ---- | 7,054 | ---- | 7,054 | |||||||||||||||
Interest rate swap derivatives | 101 | ---- | 101 | ---- | 101 | |||||||||||||||
Accrued interest payable | 1,255 | 3 | 1,252 | ---- | 1,255 |
Actual | Minimum Regulatory | Minimum To Be Well | ||||||||||||||
2019 | Amount | Ratio | Capital Ratio | Capitalized (1) | ||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||
Consolidated | $ | 134,930 | 18.7% | 8.0% | 10.0% | |||||||||||
Bank | 120,716 | 17.0 | 8.0 | 10.0 | ||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||
Consolidated | 120,158 | 16.6 | 4.5 | N/A | ||||||||||||
Bank | 114,772 | 16.1 | 4.5 | 6.5 | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||
Consolidated | 128,658 | 17.8 | 6.0 | 6.0 | ||||||||||||
Bank | 114,772 | 16.1 | 6.0 | 8.0 | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||
Consolidated | 128,658 | 12.5 | 4.0 | N/A | ||||||||||||
Bank | 114,772 | 11.3 | 4.0 | 5.0 |
Actual | Minimum Regulatory | Minimum To Be Well | ||||||||||||||
2018 | Amount | Ratio | Capital Ratio | Capitalized (1) | ||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||
Consolidated | $ | 127,487 | 17.7% | 8.0% | 10.0% | |||||||||||
Bank | 114,947 | 16.2 | 8.0 | 10.0 | ||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||
Consolidated | 112,259 | 15.6 | 4.5 | N/A | ||||||||||||
Bank | 108,547 | 15.3 | 4.5 | 6.5 | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||
Consolidated | 120,759 | 16.7 | 6.0 | 6.0 | ||||||||||||
Bank | 108,547 | 15.3 | 6.0 | 8.0 | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||
Consolidated | 120,759 | 11.8 | 4.0 | N/A | ||||||||||||
Bank | 108,547 | 10.7 | 4.0 | 5.0 |
(1) | For the Company, these amounts would be required for the Company to engage in activities permissible only for a bank holding company that meets the financial holding company requirements if the Company were not subject to the SBHCP. For the Bank, these are the amounts required for the Bank to be deemed well capitalized under the prompt corrective action regulations. |
Years ended December 31: | ||||||||
Assets | 2019 | 2018 | ||||||
Cash and cash equivalents | $ | 4,308 | $ | 4,032 | ||||
Investment in subsidiaries | 134,910 | 126,059 | ||||||
Notes receivable – subsidiaries | 1,963 | 3,000 | ||||||
Other assets | 48 | 93 | ||||||
Total assets | $ | 141,229 | $ | 133,184 | ||||
Liabilities | ||||||||
Notes payable | $ | 4,233 | $ | 6,279 | ||||
Subordinated debentures | 8,500 | 8,500 | ||||||
Other liabilities | 317 | 531 | ||||||
Total liabilities | 13,050 | 15,310 | ||||||
Shareholders’ Equity | ||||||||
Total shareholders’ equity | 128,179 | 117,874 | ||||||
Total liabilities and shareholders’ equity | $ | 141,229 | $ | 133,184 |
Years ended December 31: | ||||||||||||
Income: | 2019 | 2018 | 2017 | |||||||||
Interest on notes | $ | 47 | $ | 53 | $ | 51 | ||||||
Dividends from subsidiaries | 4,375 | 4,225 | 4,400 | |||||||||
Expenses: | ||||||||||||
Interest on notes | 139 | 185 | 211 | |||||||||
Interest on subordinated debentures | 356 | 330 | 248 | |||||||||
Operating expenses | 377 | 351 | 332 | |||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 3,550 | 3,412 | 3,660 | |||||||||
Income tax benefit | 169 | 164 | 244 | |||||||||
Equity in undistributed earnings of subsidiaries | 6,188 | 8,368 | 3,605 | |||||||||
Net Income | $ | 9,907 | $ | 11,944 | $ | 7,509 | ||||||
Comprehensive Income | $ | 12,570 | $ | 10,860 | $ | 7,622 |
Years ended December 31: | ||||||||||||
Cash flows from operating activities: | 2019 | 2018 | 2017 | |||||||||
Net Income | $ | 9,907 | $ | 11,944 | $ | 7,509 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (6,188 | ) | (8,368 | ) | (3,605 | ) | ||||||
Common stock issued to ESOP | 328 | 295 | 428 | |||||||||
Change in other assets | 45 | (26 | ) | (15 | ) | |||||||
Change in other liabilities | (214 | ) | 262 | (97 | ) | |||||||
Net cash provided by operating activities | 3,878 | 4,107 | 4,220 | |||||||||
Cash flows from investing activities: | ||||||||||||
Cash paid for Milton Bancorp, Inc. acquisition | ---- | ---- | ---- | |||||||||
Change in notes receivable | 1,037 | 320 | 100 | |||||||||
Net cash provided by (used in) investing activities | 1,037 | 320 | 100 | |||||||||
Cash flows from financing activities: | ||||||||||||
Change in notes payable | (2,046 | ) | (1,045 | ) | (558 | ) | ||||||
Proceeds from common stock through dividend reinvestment | 1,407 | 1,325 | 715 | |||||||||
Cash dividends paid | (4,000 | ) | (3,967 | ) | (3,932 | ) | ||||||
Net cash provided by (used in) financing activities | (4,639 | ) | (3,687 | ) | (3775 | ) | ||||||
Cash and cash equivalents: | ||||||||||||
Change in cash and cash equivalents | 276 | 740 | 545 | |||||||||
Cash and cash equivalents at beginning of year | 4,032 | 3,292 | 2,747 | |||||||||
Cash and cash equivalents at end of year | $ | 4,308 | $ | 4,032 | $ | 3,292 |
Year Ended December 31, 2019 | ||||||||||||
Banking | Consumer Finance | Total Company | ||||||||||
Net interest income | $ | 39,865 | $ | 3,187 | $ | 43,052 | ||||||
Provision expense | 875 | 125 | 1,000 | |||||||||
Noninterest income | 8,989 | 177 | 9,166 | |||||||||
Noninterest expense | 37,026 | 2,472 | 39,498 | |||||||||
Tax expense | 1,653 | 160 | 1,813 | |||||||||
Net income | 9,300 | 607 | 9,907 | |||||||||
Assets | 1,000,315 | 12,957 | 1,013,272 |
Year Ended December 31, 2018 | ||||||||||||
Banking | Consumer Finance | Total Company | ||||||||||
Net interest income | $ | 40,380 | $ | 3,346 | $ | 43,726 | ||||||
Provision expense | 850 | 189 | 1,039 | |||||||||
Noninterest income | 8,243 | 695 | 8,938 | |||||||||
Noninterest expense | 34,841 | 2,585 | 37,426 | |||||||||
Tax expense | 1,990 | 265 | 2,255 | |||||||||
Net income | 10,942 | 1,002 | 11,944 | |||||||||
Assets | 1,017,902 | 12,591 | 1,030,493 |
Year Ended December 31, 2017 | ||||||||||||
Banking | Consumer Finance | Total Company | ||||||||||
Net interest income | $ | 38,366 | $ | 3,367 | $ | 41,733 | ||||||
Provision expense | 2,415 | 149 | 2,564 | |||||||||
Noninterest income | 8,834 | 601 | 9,435 | |||||||||
Noninterest expense | 34,079 | 2,530 | 36,609 | |||||||||
Tax expense | 3,973 | 513 | 4,486 | |||||||||
Net income | 6,733 | 776 | 7,509 | |||||||||
Assets | 1,013,386 | 12,904 | 1,026,290 |
Quarters Ended | ||||||||||||||||
Mar. 31 | Jun. 30 | Sept. 30 | Dec. 31 | |||||||||||||
2019 | ||||||||||||||||
Total interest income | $ | 13,058 | $ | 12,483 | $ | 12,521 | $ | 12,255 | ||||||||
Total interest expense | 1,671 | 1,830 | 1,895 | 1,869 | ||||||||||||
Net interest income | 11,387 | 10,653 | 10,626 | 10,386 | ||||||||||||
Provision for loan losses | 2,377 | (806 | ) | 444 | (1,015 | ) | ||||||||||
Noninterest income | 1,846 | 2,003 | 2,107 | 3,210 | ||||||||||||
Noninterest expense | 9,568 | 9,791 | 9,738 | 10,401 | ||||||||||||
Net income | 1,193 | 3,079 | 2,137 | 3,498 | ||||||||||||
Earnings per share | $ | 0.25 | $ | 0.65 | $ | 0.45 | $ | 0.73 | ||||||||
2018 | ||||||||||||||||
Total interest income | $ | 12,709 | $ | 11,938 | $ | 12,181 | $ | 12,369 | ||||||||
Total interest expense | 1,199 | 1,298 | 1,418 | 1,556 | ||||||||||||
Net interest income | 11,510 | 10,640 | 10,763 | 10,813 | ||||||||||||
Provision for loan losses | 756 | (23 | ) | 962 | (656 | ) | ||||||||||
Noninterest income | 3,076 | 2,538 | 1,927 | 1,397 | ||||||||||||
Noninterest expense | 9,808 | 9,674 | 9,761 | 8,183 | ||||||||||||
Net income | 3,366 | 2,976 | 1,746 | 3,856 | ||||||||||||
Earnings per share | $ | 0.71 | $ | 0.63 | $ | 0.37 | $ | 0.82 |
/s/Crowe LLP |
Crowe LLP |
/s/Crowe LLP |
Crowe LLP |
Ohio Valley Banc Corp. | |
/s/Thomas E. Wiseman | /s/Scott W. Shockey |
Thomas E. Wiseman | Scott W. Shockey |
Chief Executive Officer | Senior Vice President, CFO |
March 16, 2020 |
December 31 | ||||||||||||||||||||||||||||||||||||
Table I | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Income/ Expense | Yield/ Average | Average Balance | Income/ Expense | Yield/ Average | Average Balance | Income/ Expense | Yield/ Average | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Interest-bearing balances with banks | $ | 60,796 | $ | 1,272 | 2.09 | % | $ | 96,769 | $ | 1,646 | 1.70 | % | $ | 66,159 | $ | 607 | 0.92 | % | ||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||
Taxable | 117,530 | 2,935 | 2.50 | 114,278 | 2,817 | 2.46 | 113,699 | 2,508 | 2.21 | |||||||||||||||||||||||||||
Tax exempt | 10,861 | 432 | 3.98 | 12,343 | 464 | 3.76 | 13,341 | 617 | 4.63 | |||||||||||||||||||||||||||
Loans | 775,860 | 46,107 | 5.94 | 773,995 | 44,716 | 5.78 | 753,204 | 42,754 | 5.68 | |||||||||||||||||||||||||||
Total interest-earning assets | 965,047 | 50,746 | 5.26 | % | 997,385 | 49,643 | 4.98 | % | 946,403 | 46,486 | 4.91 | % | ||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 12,259 | 13,027 | 12,235 | |||||||||||||||||||||||||||||||||
Other nonearning assets | 65,397 | 60,825 | 62,867 | |||||||||||||||||||||||||||||||||
Allowance for loan losses | (7,473 | ) | (7,981 | ) | (7,390 | ) | ||||||||||||||||||||||||||||||
Total noninterest-earning assets … | 70,183 | 65,871 | 67,712 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,035,230 | $ | 1,063,256 | $ | 1,014,115 | ||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 162,910 | $ | 538 | 0.33 | % | $ | 162,899 | $ | 508 | 0.31 | % | $ | 157,796 | $ | 464 | 0.29 | % | ||||||||||||||||||
Savings and money market | 236,496 | 1,290 | 0.55 | 235,992 | 657 | 0.28 | 239,236 | 575 | 0.24 | |||||||||||||||||||||||||||
Time deposits | 215,378 | 4,198 | 1.95 | 209,714 | 2,990 | 1.43 | 189,035 | 1,804 | 0.95 | |||||||||||||||||||||||||||
Other borrowed money | 37,350 | 883 | 2.37 | 40,467 | 986 | 2.44 | 39,163 | 884 | 2.26 | |||||||||||||||||||||||||||
Subordinated debentures | 8,500 | 356 | 4.18 | 8,500 | 330 | 3.89 | 8,500 | 248 | 2.91 | |||||||||||||||||||||||||||
Total int.-bearing liabilities | 660,634 | 7,265 | 1.10 | % | 657,572 | 5,471 | 0.83 | % | 633,730 | 3,975 | 0.63 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Demand deposit accounts | 235,616 | 278,034 | 259,160 | |||||||||||||||||||||||||||||||||
Other liabilities | 16,666 | 15,257 | 13,115 | |||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 252,282 | 293,291 | 272,275 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 122,314 | 112,393 | 108,110 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,035,230 | $ | 1,063,256 | $ | 1,014,115 | ||||||||||||||||||||||||||||||
Net interest earnings | $ | 43,481 | $ | 44,172 | $ | 42,511 | ||||||||||||||||||||||||||||||
Net interest earnings as a percent of interest-earning assets | 4.51 | % | 4.43 | % | 4.49 | % | ||||||||||||||||||||||||||||||
Net interest rate spread | 4.16 | % | 4.15 | % | 4.28 | % | ||||||||||||||||||||||||||||||
Average interest-bearing liabilities to average earning assets | 68.46 | % | 65.93 | % | 66.96 | % |
RATE VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME & EXPENSE |
Table II |
(dollars in thousands) | 2019 | 2018 | ||||||||||||||||||||||
Increase (Decrease) From Previous Year Due to | Increase (Decrease) From Previous Year Due to | |||||||||||||||||||||||
Volume | Yield/Rate | Total | Volume | Yield/Rate | Total | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Interest-bearing balances with banks | $ | (699 | ) | $ | 325 | $ | (374 | ) | $ | 365 | $ | 674 | $ | 1,039 | ||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 81 | 37 | 118 | 13 | 296 | 309 | ||||||||||||||||||
Tax exempt | (58 | ) | 26 | (32 | ) | (44 | ) | (109 | ) | (153 | ) | |||||||||||||
Loans | 108 | 1,283 | 1,391 | 1,193 | 769 | 1,962 | ||||||||||||||||||
Total interest income | (568 | ) | 1,671 | 1,103 | 1,527 | 1,630 | 3,157 | |||||||||||||||||
Interest expense | ||||||||||||||||||||||||
NOW accounts | ---- | 30 | 30 | 16 | 28 | 44 | ||||||||||||||||||
Savings and money market | 2 | 631 | 633 | (8 | ) | 90 | 82 | |||||||||||||||||
Time deposits | 83 | 1,125 | 1,208 | 215 | 971 | 1,186 | ||||||||||||||||||
Other borrowed money | (75 | ) | (28 | ) | (103 | ) | 30 | 72 | 102 | |||||||||||||||
Subordinated debentures | ---- | 26 | 26 | ---- | 82 | 82 | ||||||||||||||||||
Total interest expense | 10 | 1,784 | 1,794 | 253 | 1,243 | 1,496 | ||||||||||||||||||
Net interest earnings | $ | (578 | ) | $ | (113 | ) | $ | (691 | ) | $ | 1,274 | $ | 387 | $ | 1,661 |
Investment Portfolio Composition |
at December 31, 2019 | at December 31, 2018 |
SECURITIES
MATURING | ||||||||||||||||||||||||||||||||
As of December 31, 2019 | Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | ||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||
U.S. Government sponsored entity securities | $ | 3,413 | 2.15 | % | $ | 13,323 | 2.35 | % | $ | ---- | ---- | $ | ---- | ---- | ||||||||||||||||||
Obligations of states and political subdivisions | 644 | 3.35 | % | 6,813 | 5.05 | % | 4,945 | 5.58 | % | ---- | ---- | |||||||||||||||||||||
Agency mortgage-backed securities, residential | 676 | 3.45 | % | 78,080 | 2.54 | % | 9,828 | 2.50 | % | ---- | ---- | |||||||||||||||||||||
Total securities | $ | 4,733 | 2.50 | % | $ | 98,216 | 2.69 | % | $ | 14,773 | 3.53 | % | $ | ---- | ---- |
Loan Portfolio Composition | |
at December 31, 2019 | at December 31, 2018 |
(dollars in thousands) | Years Ended December 31 | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Commercial loans(1) | $ | 3,375 | $ | 3,249 | $ | 4,002 | $ | 5,222 | $ | 4,548 | ||||||||||
Percentage of loans to total loans | 41.68 | % | 42.41 | % | 41.66 | % | 42.81 | % | 42.89 | % | ||||||||||
Residential real estate loans | 1,250 | 1,583 | 1,470 | 939 | 1,087 | |||||||||||||||
Percentage of loans to total loans | 40.15 | % | 39.13 | % | 40.19 | % | 38.92 | % | 38.22 | % | ||||||||||
Consumer loans(2) | 1,647 | 1,896 | 2,027 | 1,538 | 1,013 | |||||||||||||||
Percentage of loans to total loans | 18.17 | % | 18.46 | % | 18.15 | % | 18.27 | % | 18.89 | % | ||||||||||
Allowance for loan losses | $ | 6,272 | $ | 6,728 | $ | 7,499 | $ | 7,699 | $ | 6,648 | ||||||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||
Ratio of net charge-offs to average loans | .19 | % | .23 | % | .37 | % | .28 | % | .47 | % |
(dollars in thousands) | At December 31 | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Impaired loans | $ | 17,135 | $ | 12,618 | $ | 18,108 | $ | 22,709 | $ | 17,228 | ||||||||||
Past due 90 days or more and still accruing | 889 | 1,067 | 334 | 327 | 39 | |||||||||||||||
Nonaccrual | 9,149 | 8,677 | 10,112 | 8,961 | 7,236 | |||||||||||||||
Accruing loans past due 90 days or more to total loans | .12 | % | .14 | % | .04 | % | .04 | % | .01 | % | ||||||||||
Nonaccrual loans as a % of total loans | 1.18 | % | 1.11 | % | 1.32 | % | 1.22 | % | 1.23 | % | ||||||||||
Impaired loans as a % of total loans | 2.22 | % | 1.62 | % | 2.35 | % | 3.09 | % | 2.94 | % | ||||||||||
Allowance for loan losses as a % of total loans | .81 | % | .87 | % | .97 | % | 1.05 | % | 1.13 | % |
(dollars in thousands) | MATURING / REPRICING | |||||||||||||||
Within One Year | After One but Within Five Years | After Five Years | Total | |||||||||||||
Residential real estate loans | $ | 97,110 | $ | 140,332 | $ | 72,811 | $ | 310,253 | ||||||||
Commercial loans(1) | 129,675 | 147,010 | 45,474 | 322,159 | ||||||||||||
Consumer loans(2) | 45,513 | 71,292 | 23,557 | 140,362 | ||||||||||||
Total loans | $ | 272,298 | $ | 358,634 | $ | 141,842 | $ | 772,774 |
Loans maturing or repricing after one year with: | ||||
Variable interest rates | $ | 284,507 | ||
Fixed interest rates | 215,969 | |||
Total | $ | 500,476 |
Composition of Total Deposits | |
at December 31, 2019 | at December 31, 2018 |
Table VII
As of December 31 | ||||||||||||
(dollars in thousands) | 2019 | 2018 | 2017 | |||||||||
Interest-bearing deposits: | ||||||||||||
NOW accounts | $ | 158,434 | $ | 155,166 | $ | 158,650 | ||||||
Money market | 130,385 | 121,294 | 133,220 | |||||||||
Savings accounts | 100,287 | 116,574 | 107,798 | |||||||||
IRA accounts | 41,898 | 43,249 | 45,312 | |||||||||
Certificates of deposit | 167,860 | 172,600 | 158,089 | |||||||||
598,864 | 608,883 | 603,069 | ||||||||||
Noninterest-bearing deposits: | ||||||||||||
Demand deposits | 222,607 | 237,821 | 253,655 | |||||||||
Total deposits | $ | 821,471 | $ | 846,704 | $ | 856,724 |
Payments Due In | ||||||||||||||||||||||||
(dollars in thousands) | Note Reference | Less than One Year | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||||||||
Deposits without a stated maturity | G | $ | 611,713 | $ | ---- | $ | ---- | $ | ---- | $ | 611,713 | |||||||||||||
Consumer and brokered time deposits | G | 116,666 | 81,418 | 11,055 | 619 | 209,758 | ||||||||||||||||||
Other borrowed funds | I | 7,322 | 6,474 | 5,006 | 15,189 | 33,991 | ||||||||||||||||||
Subordinated debentures | J | ---- | ---- | ---- | 8,500 | 8,500 | ||||||||||||||||||
Lease obligations | 178 | 223 | 32 | ---- | 433 | |||||||||||||||||||
Total | $ | 735,879 | $ | 88,115 | $ | 16,093 | $ | 24,308 | $ | 864,395 |
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Return on average assets | .96 | % | 1.12 | % | .74 | % | .77 | % | 1.03 | % | ||||||||||
Return on average equity | 8.10 | % | 10.63 | % | 6.95 | % | 7.05 | % | 9.66 | % | ||||||||||
Dividend payout ratio | 40.37 | % | 33.20 | % | 52.36 | % | 51.79 | % | 42.74 | % | ||||||||||
Average equity to average assets | 11.82 | % | 10.57 | % | 10.66 | % | 10.91 | % | 10.71 | % |