EXHIBIT 99.1
April 13, 2005 - For immediate release
Contact:
Scott Shockey, CFO or Bryna Butler, Corporate Communications
1-800-468-6682 or (740) 446-2631
OVBC - 25% Stock Split and Dividend Increase
GALLIPOLIS, Ohio-- Ohio Valley Banc Corp. [Nasdaq:OVBC] President and CEO
Jeffrey E. Smith announced that the Board of Directors declared a 25% stock
split and increased the cash dividend, adjusted for the stock split, from $.15
per share to $.16 per share payable on May 10, 2005, to shareholders of record
on April 25, 2005. This represents a 6.6 percent increase in the quarterly cash
dividend. The announcement was made at the Company's Annual Shareholders'
Meeting held today at the Morris & Dorothy Haskins Ariel Theatre in Gallipolis,
Ohio. Also during the meeting, W. Lowell Call, Harold A. Howe and Brent A.
Saunders were re-elected to the Board of Directors to each serve a three year
term ending in 2008.
Just prior to the meeting, Ohio Valley Banc Corp. reported consolidated net
income for the three months ended March 31, 2005 of $1,570,000 as compared to
$1,566,000 earned during the same time period a year ago. For the first quarter
of 2005, net income per share was $.46; a 2.2 percent increase compared to $.45
per share in the first quarter of 2004.
Given a challenged economy, especially in Ohio, management was pleased to meet
last year's first quarter earnings and to continue to build on 2004's improved
asset quality. The Company's nonperforming loans continue to decline producing a
stronger balance sheet. The ratio of nonperforming loans to total loans stood at
..41 percent at March 31, 2005, as compared to .53 percent at March 31, 2004.
This decrease in nonperforming loans resulted in a reduction in the provision
for loan losses. For the three months ended March 31, 2005, provision for loan
losses was $317,000, a decrease of $451,000 from the three months ended March
31, 2004. The allowance for loan losses was 1.21 percent of total loans at March
31, 2005, as compared to 1.38 percent at March 31, 2004.
For the first quarter of 2005, net interest income of $6,837,000 decreased
$86,000 from the same period last year due to the growth in earning assets being
offset by a decrease in the net interest margin. The Company's growth in average
earning assets for the first quarter of 2005 exceeded the prior year by
$15,212,000 or 2.3 percent. The net interest margin decreased to 4.12 percent
for the first quarter of 2005, as compared to 4.24 percent for the same period
in 2004. Comparing linked quarters, the net interest margin for the first
quarter of 2005 was higher than 2004's fourth quarter net interest margin of
3.98 percent.
Noninterest income totaled $1,253,000 for the first quarter of 2005 compared to
$1,306,000 a year ago representing a 4.1 percent decrease. The decrease in
noninterest income was related to a decline in service charges on deposit
accounts, which was primarily related to overdraft volume being down. Offsetting
a portion of the decline was an increase in revenue from interchange fees on the
Company's debit and credit cards of $34,000 and the gain on sale of secondary
market real estate loans being up $22,000.
Noninterest expense totaled $5,484,000 for the three months ending March 31,
2005, an increase of $297,000 or 5.7 percent. Salary and employee benefits, the
Company's largest noninterest expense, totaled $3,182,000 for the first quarter
of 2005, up only $142,000 or 4.7 percent from the prior year. The increase was
due to annual merit compensation increases and rising benefit costs. The
remaining noninterest expenses are up modestly from the first quarter of 2004
led mostly by the cost of complying with the Sarbanes-Oxley Act of 2002,
specifically the implementation of Section 404.
Smith also announced during the meeting the appointment of two new members to
the Board of Directors of the Company's subsidiary, The Ohio Valley Bank. Robert
E. Daniel, the Administrator of Holzer Clinic, represents an organization with
650 employees in an industry, health care, which; when added to Holzer Medical
Center, is the largest employer in Gallia County, Ohio. Roger D. Williams, an
Executive Vice President for the Food Products Division of Bob Evans Farms,
Inc., a Fortune 1000 company with over 670 restaurants and 46,000 employees.
Within Gallia County, Bob Evans Farms, Inc. and its subsidiaries have five
separate operations with nearly 350 employees and an annual payroll of $7.7
million. The addition of these two business leaders will certainly help guide
the Company into the future.
Ohio Valley Banc Corp. common stock is traded on The NASDAQ Stock Market under
the symbol OVBC. The Company owns three subsidiaries: Ohio Valley Bank, with 16
offices in Ohio and West Virginia; Loan Central, with five consumer finance
company offices in Ohio, and Ohio Valley Financial Services, an insurance agency
based in Jackson, Ohio. The company's Web site is www.ovbc.com.
Forward-Looking Information
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Certain statements contained in this release which 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," "intends," "targeted" and similar expressions are
intended to identify forward-looking statements but are not the exclusive means
of identifying those statements. Forward-looking statements involve risks and
uncertainties. Actual results may differ materially from those predicted by the
forward-looking statements because of various factors and possible events,
including: (i) changes in political, economic or other factors such as inflation
rates, recessionary or expansive trends, and taxes; (ii) competitive pressures;
(iii) fluctuations in interest rates; (iv) the level of defaults and prepayment
on loans; (v) unanticipated litigation, claims, or assessments; (vi)
fluctuations in the cost of obtaining funds to make loans; and (vii) regulatory
changes. Forward-looking statements speak only as of the date on which they are
made and Ohio Valley 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,
2005 2004
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PER SHARE DATA
Earnings per share $0.46 $0.45
Dividend per share $0.19 $0.18
Book value per share $16.59 $15.71
Dividend payout ratio 41.52% 40.22%
Weighted average shares
outstanding 3,430,859 3,500,359
PERFORMANCE RATIOS
Return on average equity 11.23% 11.54%
Return on average assets 0.88% 0.89%
Net interest margin 4.12% 4.24%
Efficiency ratio 67.26% 62.46%
Average earning assets
(in 000's) $679,818 $664,606
OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)
Three months ended
(in $000's) March 31,
2005 2004
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Interest income:
Interest and fees on loans $10,081 $ 9,959
Interest and dividends on securities 871 932
Total interest income 10,952 10,891
Interest expense:
Deposits 2,858 2,741
Borrowings 1,257 1,227
Total interest expense 4,115 3,968
Net interest income 6,837 6,923
Provision for loan losses 317 768
Noninterest income:
Service charges on deposit accounts 705 759
Trust fees 53 52
Income from bank owned insurance 148 163
Gain on sale of loans 28 6
Other 319 326
Total noninterest income 1,253 1,306
Noninterest expense:
Salaries and employee benefits 3,182 3,040
Occupancy 334 328
Furniture and equipment 295 283
Data processing 164 178
Other 1,509 1,358
Total noninterest expense 5,484 5,187
Income before income taxes 2,289 2,274
Income taxes 719 708
NET INCOME $1,570 $1,566
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share
and per share data) March 31, December 31,
2005 2004
---------------- ----------------
ASSETS
Cash and cash equivalents $ 15,523 $ 16,279
Interest-bearing deposits in other banks 516 525
Securities available-for-sale 70,820 74,155
Securities held-to-maturity
(estimated fair value: 2005 - $12,277,
2004 - $12,534) 11,801 11,994
Total loans 589,973 600,574
Less: Allowance for loan losses (7,162) (7,177)
Net loans 582,811 593,397
Premises and equipment, net 8,962 8,860
Accrued income receivable 2,791 2,643
Goodwill 1,267 1,267
Bank owned life insurance 14,105 13,988
Other assets 6,613 6,012
Total assets $715,209 $729,120
LIABILITIES
Noninterest-bearing deposits $ 66,810 $ 69,936
Interest-bearing deposits 466,765 465,217
Total deposits 533,575 535,153
Securities sold under agreements to
repurchase 22,829 39,753
Other borrowed funds 79,969 76,550
Subordinated debentures 13,500 13,500
Accrued liabilities 8,409 7,585
Total liabilities 658,282 672,541
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
10,000,000 shares authorized; 2005 and
2004 - 3,689,828 shares issued) 3,690 3,690
Additional paid-in capital 31,931 31,931
Retained earnings 29,383 28,465
Accumulated other comprehensive income (789) (219)
Treasury stock, at cost (2005 and
2004 - 258,970 shares) (7,288) (7,288)
Total shareholders' equity 56,927 56,579
Total liabilities and
shareholders' equity $715,209 $729,120