sec8kearningsrels093013ex-99.htm

November 7, 2013 - For immediate release

Contact: Scott Shockey, CFO (740) 446-2631

Exhibit 99.1

Ohio Valley Banc Corp. Revises 3rd Quarter Earnings

GALLIPOLIS, Ohio - Ohio Valley Banc Corp. [Nasdaq: OVBC] (the “Company”) revised consolidated net income for the quarter ended September 30, 2013 to $1,061,000 from $1,407,000 reported in the October 24, 2013 earnings announcement. Earnings per share for the third quarter of 2013 were revised to $.26 from the previously reported $.35. For the nine months ended September 30, 2013, net income was revised to $6,226,000, or $1.53 per share, from the previously reported $6,572,000, or $1.62 per share.

Subsequent to the earnings announcement, management obtained new information related to the collateral value of an impaired loan that resulted in an additional allocation within the allowance for loan losses. Based on the new collateral value assessment, the total specific allocation associated with the loan relationship increased $524,000 from management’s previous estimate. The additional impairment resulted in an increase in provision for loan loss expense of $524,000, which reduced net income by $346,000.

Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns Ohio Valley Bank, with 15 offices in Ohio and West Virginia, and Loan Central, with seven consumer finance offices in Ohio. Learn more about Ohio Valley Banc Corp. at www.ovbc.com.

Forward-Looking Information

Certain statements contained in this earnings 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,” “appears,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including: (i) changes in political, economic or other factors, such as inflation rates, recessionary or expansive trends, taxes, the effects of implementation of the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012 and the continuing economic uncertainty in various parts of the world; (ii) competitive pressures; (iii) fluctuations in interest rates; (iv) the level of defaults and prepayment on loans made by the Company; (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 the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events. See Item 1.A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, for further discussion of the risks affecting the business of the Company and the value of an investment in its shares.

OHIO VALLEY BANC CORP - Financial Highlights (Unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
PER SHARE DATA
Earnings per share	$	0.26		$	0.27		$	1.53		$	1.35
Dividends per share	$	0.21		$	0.21		$	0.52		$	0.67
Book value per share	$	19.46		$	18.77		$	19.46		$	18.77
Dividend payout ratio (a)		80.37	%		76.44	%		33.93	%		49.54	%
Weighted average shares outstanding		4,062,204			4,029,439			4,062,204			4,028,944

PERFORMANCE RATIOS
Return on average equity		5.39	%		5.89	%		10.72	%		9.89	%
Return on average assets		0.56	%		0.55	%		1.05	%		0.87	%
Net interest margin (b)		4.57	%		4.23	%		4.43	%		4.30	%
Efficiency ratio (c)		76.05	%		72.02	%		70.52	%		66.42	%
Average earning assets (in 000's)	$	698,975		$	751,393		$	740,518		$	782,491

(a) Total dividends paid as a percentage of net income.
(b) Fully tax-equivalent net interest income as a percentage of average earning assets.
(c) Noninterest expense as a percentage of fully tax-equivalent net interest income plus noninterest income.

OHIO VALLEY BANC CORP - Consolidated Statements of Income (Unaudited)

	Three months ended						Nine months ended
(in $000's)	September 30,						September 30,
		2013			2012			2013			2012
Interest income:
Interest and fees on loans	$	8,174		$	8,781		$	25,260		$	27,678
Interest and dividends on securities		574			624			1,732			2,049
Total interest income		8,748			9,405			26,992			29,727
Interest expense:
Deposits		666			1,235			2,294			3,911
Borrowings		152			303			506			984
Total interest expense		818			1,538			2,800			4,895
Net interest income		7,930			7,867			24,192			24,832
Provision for loan losses		833			1,183			675			3,023
Noninterest income:
Service charges on deposit accounts		472			471			1,340			1,381
Trust fees		56			51			158			151
Income from bank owned life insurance and
annuity assets		171			198			974			592
Mortgage banking income		85			166			331			398
Electronic refund check / deposit fees		21			15			2,532			2,279
Debit / credit card interchange income		502			422			1,447			1,238
Gain (loss) on other real estate owned		(6	)		30			(46	)		181
Other		273			321			743			907
Total noninterest income		1,574			1,674			7,479			7,127
Noninterest expense:
Salaries and employee benefits		4,326			4,118			13,132			12,571
Occupancy		418			397			1,199			1,182
Furniture and equipment		230			238			664			710
FDIC insurance		114			63			375			629
Data processing		276			278			838			786
Foreclosed assets		51			69			390			244
Other		1,905			1,794			5,987			5,329
Total noninterest expense		7,320			6,957			22,585			21,451
Income before income taxes		1,351			1,401			8,411			7,485
Income taxes		290			294			2,185			2,037
NET INCOME	$	1,061		$	1,107		$	6,226		$	5,448

OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)

(in $000's, except share data)	September 30,			December 31,
	2013			2012
ASSETS
Cash and noninterest-bearing deposits with banks	$	9,950		$	10,617
Interest-bearing deposits with banks		22,947			35,034
Total cash and cash equivalents		32,897			45,651
Securities available for sale		88,850			94,965
Securities held to maturity
(estimated fair value: 2013 - $23,480; 2012 - $24,624)		23,327			23,511
Federal Home Loan Bank and Federal Reserve Bank stock		7,776			6,281
Total loans		556,213			558,288
Less: Allowance for loan losses		(7,266	)		(6,905	)
Net loans		548,947			551,383
Premises and equipment, net		9,007			8,680
Other real estate owned		2,798			3,667
Accrued interest receivable		2,051			2,057
Goodwill		1,267			1,267
Bank owned life insurance and annuity assets		24,802			25,056
Other assets		5,784			6,705
Total assets	$	747,506		$	769,223

LIABILITIES
Noninterest-bearing deposits	$	133,411		$	139,526
Interest-bearing deposits		495,422			515,538
Total deposits		628,833			655,064
Other borrowed funds		18,986			14,285
Subordinated debentures		8,500			13,500
Accrued liabilities		12,141			10,554
Total liabilities		668,460			693,403

SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value per share, 10,000,000 shares
authorized; 4,721,943 shares issued)		4,722			4,722
Additional paid-in capital		34,109			34,109
Retained earnings		55,208			51,094
Accumulated other comprehensive income		719			1,607
Treasury stock, at cost (659,739 shares)		(15,712	)		(15,712	)
Total shareholders' equity		79,046			75,820
Total liabilities and shareholders' equity	$	747,506		$	769,223