EXHIBIT 99
OAK HILL
fINANCIAL, INC.
For Immediate Release
Thursday, January 13, 2005
Contact: David G. Ratz, Executive Vice President & COO
(740) 286-3283
Oak Hill Financial Reports Earnings Up 9% in Fourth Quarter of 2004
Jackson, Ohio -- Oak Hill Financial, Inc. (Nasdaq NMS: OAKF) today reported net
earnings from operations for the three months ended December 31, 2004 of
$3,394,000, or $.60 per diluted share. The fourth quarter 2004 earnings
represent an increase of 9.3% over the $3,104,000, or $.54 per diluted share, in
operating earnings that the company recorded for the quarter ended December 31,
2003.
For the fiscal year ended December 31, 2004, Oak Hill Financial recorded net
earnings from operations of $13,096,000, or $2.30 per diluted share, an increase
of 8.7% over the $12,046,000, or $2.14 per diluted share, in operating earnings
for fiscal 2003. The operating earnings for the fourth quarter and the year 2004
do not include a $2.3 million after-tax charge related to the previously
announced closure and sale of the consumer loan portfolio of the company's
Action Finance Company subsidiary on December 31, 2004. The operating earnings
for the fourth quarter and the year 2004 also exclude $11,000 and $104,000,
respectively, in after-tax expenses related to Oak Hill Financial's acquisition
of Ripley National Bank, which was completed on October 9, 2004, and its pending
merger with Lawrence Financial Holdings, Inc. Including these charges, the
company's net income was $1,053,000, or $.19 per diluted share, for the fourth
quarter and $10,662,000, or $1.87 per diluted share, for the year 2004.
Operating earnings for the fourth quarter and the year 2003 have been adjusted
for non-recurring tax savings of $132,000 and $531,000, respectively, resulting
from a one-time tax savings. Including the non-recurring savings, the company's
net income was $3,236,000, or $.57 per diluted share, for the fourth quarter and
$12,577,000, or $2.23 per diluted share, for the year 2003.
Oak Hill Financial's total assets ended 2004 at $1.08 billion, an increase of
15.4% over the $938.3 million in assets at December 31, 2003 and 6.4% over the
$1.02 billion in assets at September 30, 2004. Net loans at December 31, 2004
were $811.0 million, up 15.5% over the $701.9 million in net loans at December
31, 2003, and 4.2% over the $778.5 million in net loans at the end of the third
quarter of 2004. The year-over-year and fourth quarter increase in assets and
loans included $55.8 million in assets and $38.7 million in loans from the
acquisition of Ripley National Bank.
Reviewing the fourth quarter and the year 2004, Oak Hill Financial President and
Chief Executive Officer R.E. Coffman, Jr. said, "Coming into the year, we knew
2004 would be a challenge. We had been extremely successful in originating
mortgages during the refinancing boom and when that ended in late 2003, we knew
that our non-interest income could be substantially less in 2004. While we
didn't reach our objective of double-digit earnings growth - and we are
disappointed we didn't hit our target - we did get almost 9% and were able to
limit the decrease in non-interest income to 11%."
Looking forward, Coffman stated, "2005 will have its challenges as well, but we
are optimistic about the coming year. The integration of Ripley National Bank
has gone very well, and we are hopeful that our pending merger with Lawrence
Financial Holdings will close around the beginning of the second quarter. Both
transactions fill open areas within our Southern Ohio footprint and should be
nicely accretive. We also think the prospects are good for renewed loan growth,
and our SBA lending activity is on the upswing. With the closing of Action
Finance and the clean-up of some older problem loans, we also are on a positive
track with respect to asset quality. Overall, our focus will be on growing our
core banking business, maintaining the net interest margin, increasing
non-interest income, and controlling our operating expenses."
"We're not changing our standards based on 2004, either," he added. "Our
earnings growth objective for next year is north of 13%, and we think we've got
the right plans in place to achieve that goal."
Key Issue Review and Outlook
Net Interest Margin - Net interest margin for the fourth quarter was 3.96%,
which was a decrease over the third quarter's 4.08%. The margin was impacted by
slow loan growth in the fourth quarter, the flatter yield curve, and a greater
than anticipated rise in short-term liability costs driven by upward competitive
pressure on retail deposit rates within the company's market areas. In addition,
purchase price accounting adjustments pursuant to the Ripley National
transaction had a slight negative impact on the margin. Factoring in the sale of
the Action Finance portfolio, management currently projects that the margin can
be maintained in its current range in 2005. To the extent that the yield curve
remains relatively shallow, it will be difficult to increase the margin. Should
intermediate and long-term rates rise, management projects that the margin will
increase.
Operating Expenses & Efficiency - On an operating basis, the company's
non-interest expense was 2.70% of average assets for the fourth quarter of 2004,
which compares to 2.64% in the third quarter and 2.75% in the fourth quarter of
2003. The company's efficiency ratio for the fourth quarter of 2004 was 55.3%,
compared to 52.5% in the third quarter and 52.8% for the fourth quarter of 2003.
Aided by the Ripley National acquisition, revenues during the fourth quarter
increased at a healthy 18.4% annual rate. The revenue growth was offset by
higher non-interest expense due primarily to the opening of new branches,
conversion expenses related to the company's change of ATM networks during the
quarter, and the addition of Ripley National's operating expenses.
For the year 2004, the non-interest expense to average assets and efficiency
ratios were 2.69% and 54.1%, respectively, versus 2.86% and 55.5% for the year
2003. With a continued focus on controlling operating expenses and the full
realization of the cost savings from the Ripley National transaction, management
expects that the non-interest expense to average assets and efficiency ratios,
excluding the potential short-term impact of the pending Lawrence Financial
Holdings merger, can be maintained at or near their current levels in 2005.
Non-Interest Income - Non-interest income in the fourth quarter was $2,725,000,
an increase of 12.9% over the third quarter and about equal to the fourth
quarter of 2003. Leading the linked-quarter increase was growth in excess of 16%
in both gain on sale of loans and insurance commissions, with the increase in
gain on sale of loans driven by strong volume in SBA lending. In addition,
non-interest income from other sources increased nearly 10% on a linked-quarter
basis, with the income resulting from the addition of bank-owned life insurance
contributing the bulk of the increase. Offsetting this growth was an increase in
amortization and impairment expense related to the company's mortgage servicing
rights (MSRs), which are generated through the origination of residential
mortgages and SBA loans. The quarter-over-quarter comparison shows a similar
pattern. Compared to the fourth quarter of 2003, the fourth quarter of 2004
showed a 35.7% increase in gain on sale of loans and a 15.4% increase in
insurance commissions. These increases were offset by substantially higher
expense from amortization and impairment of MSRs.
For the full year 2004, non-interest income decreased 11.1%. The decline, which
management had expected, was due to the substantially lower demand for mortgage
loans following the end of the refinancing boom in late 2003. Offsetting the
resulting year-over-year decrease in gain on sale of loans were strong increases
in service charges, insurance commissions, and real estate loan servicing fees,
as well as a significant decrease in amortization and impairment of MSRs. For
2005, the company anticipates that non-interest income overall will continue to
increase, with SBA originations, brokerage and financial planning services, and
service charges expected to be the largest contributors to growth. Insurance
commissions are expected to grow more modestly due to changing market conditions
within the group health sector.
Asset Quality - The company's nonperforming loans/total loans and nonperforming
assets/total assets ratios decreased from 0.93% and 0.87%, respectively, at
September 30 to 0.69% and 0.73%, respectively, at December 31. The improvement
was resulted primarily from the disposition of the Action Finance portfolio, the
return of one large nonperforming loan to performing status, and the partial
charge-off of another large nonperforming loan. The largest of the remaining
nonperforming loans at December 31 accounts for 0.06% of the nonperforming loan
ratio. This loan was acquired with the Ripley National transaction. A
foreclosure sale has been held on this property, and it is currently under a
purchase contract. The sale is expected to close before the end of January at no
loss to the company. With that sale, the largest remaining nonperforming loan
contributed 0.05% to the nonperforming loan ratio. The other nonperforming loans
are a mix of commercial real estate, commercial, residential real estate and
consumer loans.
The company's Other Real Estate Owned increased during the fourth quarter as it
purchased through foreclosure the property securing what had previously been its
largest non-performing loan. However, this property was sold on January 12,
resulting in a nominal loss of $14,000.
Net charge-offs (non-annualized) for the fourth quarter of 2004 were 0.08% of
average loans, up from 0.07% in the third quarter and 0.04% in the fourth
quarter of 2003. For the year 2004, net charge-offs were 0.26%, as compared to
the company's ongoing objective of 0.20%. Much of this increase came from the
Action Finance portfolio prior to its sale. With the resolution of the two large
nonperforming assets in January, the company expects the nonperforming ratios to
decline further and, combined with the disposition of Action Finance, the net
charge-off rate should decline as well.
Consistent with generally accepted accounting principles and regulatory
guidelines, the company uses various formulas to determine its allowance for
loan and lease losses (ALLL). The methodology takes into consideration not only
charge-offs but also the rated quality of the company's loans based on loan
review grades and the types and amounts of loans comprising the portfolio, while
allowing some discretion by management to make adjustments based on near-term
economic conditions. With the disposition of the Action Finance portfolio, this
methodology resulted in an ALLL/total loans ratio of 1.28%, which has been the
ALLL/total loans ratio at the company's Oak Hill Banks subsidiary (now its sole
lending affiliate) for the past several quarters.
Asset/Loan Growth - The company's total assets grew 6.4% during the fourth
quarter, while loans increased at 4.3%. Most of these increases came from the
Ripley National acquisition. Excluding Ripley National and the sale of the
Action Finance portfolio, assets increased less than 1% during the quarter as
loan demand slowed in its market areas. On a stand-alone basis, the company's
objectives for 2005 call for approximately 9% growth in both loans and assets.
When the pending Lawrence Financial merger is included, the objective translates
into 20% total balance sheet growth.
Overall Strategy - Oak Hill Financial will continue to pursue revenue growth
through originating adjustable-rate commercial loans, commercial real estate
loans, and residential mortgage loans; fixed-rate residential mortgage loans and
SBA loans for sale in the secondary market; and consumer loans. Management
continues to believe that commercial and commercial real estate loans hold the
greatest potential for growth and margin improvement within its bank subsidiary.
Non-interest income growth and continued diversification of non-interest
revenues are also major elements in the company's strategy.
Expansion - In addition to completing the Ripley National Bank acquisition, in
the fourth quarter Oak Hill Financial opened a new full-service banking office
in Chillicothe, Ohio, its third in that community. In 2005, the company plans to
open four de novo branches. The first areas targeted are Mt. Orab, Ohio, which
is in the same market area as the branches acquired with Ripley National, and
Circleville, Ohio, where the company currently has one branch.
Estimates - Management has reiterated its estimate that earnings per share from
operations for 2005 will be in the range of $2.60 to $2.70.
Oak Hill Financial is a financial holding company headquartered in Jackson,
Ohio. Its subsidiary, Oak Hill Banks, operates 30 full-service banking offices
and four bank loan production offices in 15 counties across southern and central
Ohio. A second subsidiary, Oak Hill Financial Insurance Agency, provides group
health plans and other insurance services to over 350 business and public-sector
organizations throughout the same region. The company also holds 49% of Oak Hill
Title Agency, LLC, which provides title services for commercial and residential
real estate transactions.
Forward-Looking Statements Disclosure
This release contains certain forward-looking statements related to the future
performance and condition of Oak Hill Financial, Inc. These statements, which
are subject to numerous risks and uncertainties, are presented in good faith
based on the company's current condition and management's understanding,
expectations, and assumptions regarding its future prospects as of the date of
this release. Actual results could differ materially from those projected or
implied by the statements contained herein. The factors that could affect the
company's future results are set forth in the periodic reports and registration
statements filed by the company with the Securities and Exchange Commission.
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At December 31,
(In thousands) 2004 2003
- ----------------------------------------------------------------------------------
SUMMARY OF FINANCIAL CONDITION
Total assets $1,082,948 $ 938,281
Interest-bearing deposits and federal funds sold 2,705 1,285
Investment securities 91,881 79,545
Loans receivable - net 912,538 811,021
Deposits 862,096 717,821
Federal Home Loan Bank advances and other borrowings 131,660 135,352
Stockholders' equity 84,951 79,928
The Company discloses net earnings, diluted earnings per share and certain
performance ratios adjusted for non-recurring items. Management believes that
presenting this information is an additional measure of performance that
investors can use to compare operating results between reporting periods. These
measures should not be considered an alternative to measurements required by
accounting principles generally accepted in the United States of America ("U.S.
GAAP"). In accordance with Securities and Exchange Commission Regulation G,
reconciliation of the Company's U.S. GAAP information to its operating
information is presented in the table below.
For the For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------
RECONCILIATION OF NON-GAAP NET EARNINGS,
DILUTED EARNINGS PER SHARE AND OTHER PERFORMANCE MEASURES
Net earnings (U.S. GAAP) $ 1,053 $ 3,236 $ 10,662 $ 12,577
Non-recurring items, net of tax:
Loss on sale of consumer finance loan portfolio 2,115 -- 2,115 --
Expenses related to the discontinuation of operations at
consumer finance subsidiary 215 -- 215 --
Merger-related expenses 11 -- 104 --
Reduction in tax expense -- (132) -- (531)
- ---------------------------------------------------------------------------------------------------------------------
Net earnings from operations $ 3,394 $ 3,104 $ 13,096 $ 12,046
=====================================================================================================================
Diluted earnings per share (U.S. GAAP) $ 0.19 $ 0.57 $ 1.87 $ 2.23
Non-recurring items, net of tax:
Loss on sale of consumer finance loan portfolio 0.37 -- 0.37 --
Expenses related to the discontinuation of operations at
consumer finance subsidiary 0.04 -- 0.04 --
Merger-related expenses -- -- 0.02 --
Reduction in tax expense -- (0.03) -- (0.09)
- ---------------------------------------------------------------------------------------------------------------------
Diluted earnings per share from operations $ 0.60 $ 0.54 $ 2.30 $ 2.14
=====================================================================================================================
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
For the For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
RECONCILIATION OF NON-GAAP NET EARNINGS,
DILUTED EARNINGS PER SHARE AND OTHER PERFORMANCE MEASURES (continued)
Other non-interest income (U.S. GAAP) ($ 1,883) $ 1,675 $ 2,069 $ 4,631
Non-recurring items, net of tax:
Loss on sale of consumer finance loan portfolio 3,254 -- -- 3,254
Net earnings from operations $ 1,371 $ 1,675 $ 5,323 $ 4,631
======================================================================================================================
Non-interest expense (U.S. GAAP) $ 7,606 $ 6,142 $ 27,275 $ 24,049
Non-recurring items:
Expenses related to the discontinuation of operations at
consumer finance subsidiary (331) -- (331) --
Merger-related expenses (17) -- (160) --
Reduction in tax expense -- 202 -- 810
- ----------------------------------------------------------------------------------------------------------------------
Non-interest expense from operations $ 7,258 $ 6,344 $ 26,784 $ 24,859
======================================================================================================================
SUMMARY OF OPERATIONS (1)(2)
Interest income $ 15,756 $ 14,179 $ 59,251 $ 55,170
Interest expense 5,732 5,004 20,838 20,468
- ----------------------------------------------------------------------------------------------------------------------
Net interest income 10,024 9,175 38,413 34,702
Provision for losses on loans 851 841 3,136 3,347
- ----------------------------------------------------------------------------------------------------------------------
Net interest income after provision for losses on loans 9,173 8,3343 5,277 31,355
Gain on sale of loans 528 389 1,882 4,080
Insurance commissions 826 716 3,050 2,827
Other non-interest income 1,371 1,675 5,323 4,631
General, administrative and other expense 7,258 6,344 26,784 24,859
- ----------------------------------------------------------------------------------------------------------------------
Earnings before federal income taxes 4,640 4,770 18,748 18,034
Federal income taxes 1,246 1,666 5,652 5,988
- ----------------------------------------------------------------------------------------------------------------------
Net earnings from operations $ 3,394 $ 3,104 $ 13,096 $ 12,046
======================================================================================================================
SELECTED PERFORMANCE RATIOS FROM OPERATIONS (1)(2)(5)
Diluted earnings per share (4) $ 0.60 $ 0.54 $ 2.30 $ 2.14
======================================================================================================================
Return on average assets 1.26% 1.35% 1.31% 1.39%
Return on average equity 15.78% 15.74% 15.83% 16.36%
Non-interest expense to average assets 2.70% 2.75% 2.69% 2.86%
Efficiency ratio
55.30% 52.77% 54.12% 53.53%
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At or For the At or For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------
PER SHARE INFORMATION (U.S. GAAP)
Basic earnings per share (3) $ 0.19 $ 0.58 $ 1.92 $ 2.29
===============================================================================================
Diluted earnings per share (4) $ 0.19 $ 0.57 $ 1.87 $ 2.23
===============================================================================================
Dividends per share (3) $ 0.17 $ 0.15 $ 0.62 $ 0.54
===============================================================================================
Book value per share $ 15.29 $ 14.34
===============================================================================================
OTHER STATISTICAL AND OPERATING DATA (U.S. GAAP) (5)
Return on average assets 0.39% 1.40% 1.07% 1.45%
Return on average equity 4.89% 16.41% 12.89% 17.08%
Non-interest expense to average assets 2.83% 2.66% 2.74% 2.77%
Net interest margin (fully-taxable equivalent) 3.96% 4.17% 4.05% 4.19%
Total allowance for losses on loans to non-performing loans 186.83% 133.46%
Total allowance for losses on loans to total loans 1.28% 1.32%
Non-performing loans to total loans 0.69% 0.99%
Non-performing assets to total assets 0.73% 0.93%
Net charge-offs to average loans (actual for the period) 0.08% 0.04% 0.26% 0.21%
Net charge-offs to average loans (annualized) 0.33% 0.16% 0.26% 0.21%
Equity to assets at period end 7.84% 8.52%
Efficiency ratio 57.99% 51.09% 55.11% 51.79%
- ------------------------------------------------------------------------------------------------------------
(1) Includes $202,500 and $810,000, pre-tax reduction in tax expense for the
three and twelve months ended December 31, 2003, respectively, resulting
from a one-time pre-tax savings of $810,000 for 2003.
(2) Does not include $17,000 and $160,000, pre-tax, merger-related charges for
the three and twelve months ended December 31, 2004. Also does not include
a $3.3 million, pre-tax, loss on the sale of the consumer finance loan
portfolio and $331,000, pre-tax, expenses related to the discontinuation of
operations at the consumer finance subsidiary for the three and twelve
months ended December 31, 2004.
(3) Based on 5,546,680, 5,549,855, 5,545,236 and 5,487,436 weighted-average
shares outstanding for the three and twelve months ended December 31, 2004
and 2003, respectively.
(4) Based on 5,685,557, 5,692,468, 5,709,260 and 5,628,430 weighted-average
shares outstanding for the three and twelve months ended September 31, 2004
and 2003, respectively.
(5) Annualized where appropriate.
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At December 31,
(In thousands, except share data) 2004 2003
- --------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL
BALANCE SHEET - ASSETS
Cash and cash equivalents 31,997 20,513
Trading account securities -- --
Securities available for sale 88,241 75,886
Securities held to maturity 3,640 3,659
Other securities 6,590 5,998
Total securities 98,471 85,543
Total cash and securities 130,468 106,056
Loans and leases held for investment (1) 924,129 818,680
Loans and leases held for sale (1) 256 194
Total loans and leases (1) 924,385 818,874
Allowance for losses on loans 11,847 10,836
Goodwill 1,674 413
Other intangible assets 1,270 --
Total intangible assets 2,944 413
Mortgage servicing rights 3,146 2,983
Purchased credit card relationships -- --
Other real estate owned 1,614 585
Bank owned life insurance 10,118 --
Other assets 22,120 20,206
Total assets 1,082,948 938,281
BALANCE SHEET - LIABILITIES
Deposits 862,096 717,821
Borrowings 113,660 130,352
Other liabilities 4,233 5,172
Total liabilities 979,989 853,345
Redeemable preferred stock -- --
Trust preferred securities 18,000 5,000
Minority interests 8 8
Other mezzanine level items -- --
Total mezzanine level items 18,008 5,008
Total liabilities and mezzanine level items 997,997 858,353
BALANCE SHEET - EQUITY
Preferred equity -- --
Common equity 84,951 79,928
MEMO ITEM: Net unrealized gain (loss) on securities
available for sale, net of tax 513 915
End of period shares outstanding (2) 5,557,281 5,572,686
Options outstanding 582,466 577,022
Treasury shares held by the Company 96,302 21,542
- --------------------------------------------------------------------------------
(1) Data is net of unearned interest, gross of allowance for losses on loans
(2) Excludes treasury shares
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At or For the At or For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
Repurchase plan announced? No No Yes No
Number of shares to be repurchased in plan N/A N/A 300,000 N/A
Number of shares repurchased during the period -- N/A 134,936 N/A
Average price of repurchased shares -- N/A $ 32.38 N/A
INCOME STATEMENT
Interest income 15,756 14,179 59,251 55,170
Interest expense 5,732 5,004 20,838 20,468
Net interest income 10,024 9,175 38,413 34,702
Net interest income (fully-taxable equivalent) 10,218 9,303 39,057 35,246
Provision for losses on loans 851 841 3,136 3,347
Non-recurring income -- -- -- --
Non-recurring expense
Loss on sale of consumer finance loan portfolio 3,254 -- 3,254 --
Expenses related to the discontinuation of operations at
consumer finance subsidiary 331 -- 331 --
Merger-related expenses 17 -- 160 --
Trading account income -- -- -- --
Foreign exchange income -- -- -- --
Trust income -- -- -- --
Insurance commissions 826 716 3,050 2,827
Service charges on deposits 925 879 3,562 3,058
Gain on sale of loans 528 389 1,882 4,080
Gain on investment securities transactions -- 57 276 314
Other non-interest income 446 739 1,485 1,259
Total non-interest income 2,725 2,780 10,225 11,538
Employee compensation and benefits 3,776 3,429 14,519 14,201
Occupancy and equipment expense 954 749 3,400 2,910
Foreclosed property expense -- -- -- --
Amortization of intangibles 72 -- 72 --
Other general, administrative and other expense 2,456 1,964 8,793 6,939
Total non-interest expenses 7,186 6,142 26,712 24,050
Net income before taxes 1,038 4,972 15,003 18,843
Federal income taxes (15) 1,736 4,341 6,266
Net income before extraordinary items 1,053 3,236 10,662 12,577
Extraordinary items
Net income 1,053 3,236 10,662 12,577
CHARGE-OFFS
Loan charge-offs 1,588 401 3,545 2,044
Recoveries on loans 823 84 1,291 467
Net loan charge-offs 765 317 2,254 1,577
AVERAGE BALANCE SHEET
Average loans and leases 924,372 802,322 869,849 754,519
Average other earning assets 101,438 83,284 93,816 86,484
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At or For the At or For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
AVERAGE BALANCE SHEET (continued)
Average total earning assets 1,025,810 885,606 963,665 841,003
Average total assets 1,070,287 914,479 997,026 868,006
Average non-interest bearing deposits 80,293 65,560 72,142 62,627
Average total time deposits 547,112 436,810 509,340 422,905
Average other interest-bearing deposits 218,093 191,402 205,576 188,426
Average total interest-bearing deposits 765,205 628,212 714,916 611,331
Average borrowings 135,869 139,303 124,514 117,328
Average interest-bearing liabilities 901,074 767,515 839,430 728,659
Average preferred equity -- -- -- --
Average common equity 85,565 78,228 82,708 73,641
ASSET QUALITY AND OTHER DATA
Non-accrual loans 5,549 7,602
Renegotiated loans -- --
Loans 90+ days past due and still accruing 791 517
Total non-performing loans 6,340 8,119
Other real estate owned 1,614 585
Total non-performing assets 7,954 8,704
ADDITIONAL DATA
1 - 4 family mortgage loans serviced for others 252,079 255,695
Proprietary mutual fund balances -- --
Fair value of securities held to maturity 3,906 3,583
Full-time equivalent employees 377 346
Total number of full-service banking offices 29 25
Total number of bank and thrift subsidiaries 1 1
Total number of ATMs 35 28
LOANS RECEIVABLE
1 - 4 family residential 199,987 174,952
Home Equity 41,744 33,173
Multi-family residential 25,215 24,072
Commercial real estate 347,303 316,862
Construction and land development 63,132 56,436
Commercial and other 173,766 140,550
Consumer 68,074 72,645
Credit cards 2,020 1,729
- ---------------------------------------------------------------------------------------------------------------
Loans receivable - gross 921,241 820,419
Unearned interest (2) (1,545)
- ---------------------------------------------------------------------------------------------------------------
Loans receivable - net of unearned interest 921,239 818,874
Allowance for losses on loans (11,847) (10,836)
- ---------------------------------------------------------------------------------------------------------------
Loans receivable - net (1) 909,392 808,038
===============================================================================================================
(1) Does not include mortgage servicing rights. Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
January 13, 2005 Press Release
At or For the At or For the
three months ended twelve months ended
December 31, December 31,
(In thousands, except share data) 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
DEPOSITS
Transaction accounts
Non-interest bearing 88,712 66,712
Interest-bearing 65,395 62,033
Savings accounts 58,978 48,225
Money market deposit accounts 89,539 76,543
Other core interest-bearing 365,125 314,800
- --------------------------------------------------------------------------------------------------------
Total core deposit accounts 667,749 568,313
Non-core interest-bearing 194,347 149,508
- --------------------------------------------------------------------------------------------------------
Total deposits 862,096 717,821
========================================================================================================
Yield/average earning assets (fully-taxable equivalent) 6.18% 6.41% 6.22% 6.62%
Cost/average earning assets 2.22% 2.24% 2.17% 2.43%
- --------------------------------------------------------------------------------------------------------
Net interest income (fully-taxable equivalent) 3.96% 4.17% 4.05% 4.19%
========================================================================================================
NEW MARKETS TAX CREDIT
Qualified equity investment in Oak Hill Banks Community Development Corp. 10,000 --
========================================================================================================
Tax benefit:
Credit Tax Expense
Year Percentage Reduction
- -----------------------------------------------------------
2004 5% 500
2005 5% 500
2006 5% 500
2007 6% 600
2008 6% 600
2009 6% 600
2010 6% 600
- -----------------------------------------------------------
Totals 39% 3,900
===========================================================