Ohio Valley Banc Corp. Reports 2nd Quarter Earnings
Ohio Valley Banc Corp. [Nasdaq: OVBC] reported Q2 2024 consolidated net income of $2,972,000, down $277,000 from Q2 2023. Earnings per share decreased to $0.63 from $0.68 year-over-year. For H1 2024, net income was $5,765,000, a 19.4% decline from H1 2023, with EPS falling to $1.21 from $1.50. Return on average assets and equity for H1 2024 were 0.84% and 8.01%, respectively, down from 1.16% and 10.63% in H1 2023.
The company faced challenges from a difficult interest rate environment and rising inflation-related costs. Q2 net interest income increased by $349,000, while H1 net interest income decreased by $183,000 year-over-year. The allowance for credit losses was 0.91% of total loans as of June 30, 2024. Total assets reached $1.403 billion, up $51 million from December 31, 2023, with loan balances increasing by $68 million.
Ohio Valley Banc Corp. [Nasdaq: OVBC] ha riportato un reddito netto consolidato per il secondo trimestre del 2024 di $2.972.000, in diminuzione di $277.000 rispetto al secondo trimestre del 2023. L'utile per azione è sceso a $0.63 da $0.68 su base annua. Per il primo semestre del 2024, il reddito netto è stato di $5.765.000, una diminuzione del 19,4% rispetto al primo semestre del 2023, con l'EPS che è sceso a $1.21 da $1.50. Il ritorno sugli attivi e sul capitale per il primo semestre del 2024 erano rispettivamente allo 0,84% e all'8,01%, in calo rispetto all'1,16% e al 10,63% del primo semestre del 2023.
L'azienda ha affrontato sfide a causa di un ambiente di tassi di interesse difficile e costi in aumento legati all'inflazione. Il reddito netto da interessi del secondo trimestre è aumentato di $349.000, mentre il reddito netto da interessi del primo semestre è diminuito di $183.000 su base annua. L'accantonamento per perdite su crediti era lo 0,91% del totale dei prestiti al 30 giugno 2024. Gli attivi totali hanno raggiunto $1,403 miliardi, in aumento di $51 milioni rispetto al 31 dicembre 2023, con i saldi dei prestiti cresciuti di $68 milioni.
Ohio Valley Banc Corp. [Nasdaq: OVBC] informó un ingreso neto consolidado del segundo trimestre de 2024 de $2,972,000, una disminución de $277,000 en comparación con el segundo trimestre de 2023. Las ganancias por acción cayeron a $0.63 desde $0.68 en comparación anual. Para la primera mitad de 2024, el ingreso neto fue de $5,765,000, una disminución del 19.4% desde la primera mitad de 2023, con el EPS cayendo a $1.21 desde $1.50. El retorno sobre activos y capital para la primera mitad de 2024 fue del 0.84% y 8.01%, respectivamente, por debajo del 1.16% y 10.63% en la primera mitad de 2023.
La compañía enfrentó desafíos debido a un ambiente de tasas de interés difícil y costos relacionados con la inflación que están en aumento. El ingreso neto por intereses del segundo trimestre aumentó en $349,000, mientras que el ingreso neto por intereses de la primera mitad disminuyó en $183,000 en comparación anual. La provisión para pérdidas crediticias fue del 0.91% del total de préstamos al 30 de junio de 2024. Los activos totales alcanzaron $1.403 mil millones, un aumento de $51 millones desde el 31 de diciembre de 2023, con saldos de préstamos aumentando en $68 millones.
오하이오 밸리 뱅크 코퍼레이션 [Nasdaq: OVBC]은 2024년 2분기 consolidated net income을 $2,972,000으로 보고했으며, 이는 2023년 2분기보다 $277,000 감소한 수치입니다. 주당 순이익(EPS)은 전년 대비 $0.68에서 $0.63으로 감소했습니다. 2024년 상반기 순이익은 $5,765,000으로, 2023년 상반기보다 19.4% 감소하였으며, EPS는 $1.50에서 $1.21로 감소했습니다. 2024년 상반기 평균 자산 수익률과 자기자본이익률은 각각 0.84%와 8.01%로, 2023년 상반기의 1.16%와 10.63%에서 감소했습니다.
회사는 어려운 금리 환경과 상승하는 인플레이션 관련 비용으로 어려움을 겪었습니다. 2분기 순이자 수익은 $349,000 증가했지만, 상반기 순이자 수익은 전년 대비 $183,000 감소했습니다. 2024년 6월 30일 기준 신용 손실을 위한 적립금은 총 대출의 0.91%였습니다. 총 자산은 $1.403 billion에 도달했으며, 2023년 12월 31일 대비 $51 million 증가했고, 대출 잔액은 $68 million 증가했습니다.
Ohio Valley Banc Corp. [Nasdaq: OVBC] a annoncé un bénéfice net consolidé pour le deuxième trimestre 2024 de 2 972 000 $, en baisse de 277 000 $ par rapport au deuxième trimestre 2023. Le bénéfice par action a diminué pour atteindre 0,63 $ contre 0,68 $ d'une année sur l'autre. Pour le premier semestre 2024, le bénéfice net s'élevait à 5 765 000 $, ce qui représente une baisse de 19,4 % par rapport au premier semestre 2023, avec un EPS chutant de 1,50 $ à 1,21 $. Le retour sur actifs et sur fonds propres pour le premier semestre 2024 était de 0,84 % et 8,01 %, respectivement, en baisse par rapport à 1,16 % et 10,63 % dans le premier semestre 2023.
L'entreprise a rencontré des défis en raison d'un environnement de taux d'intérêt difficile et de coûts liés à l'inflation en hausse. Les revenus nets d'intérêts du deuxième trimestre ont augmenté de 349 000 $, tandis que les revenus nets d'intérêts du premier semestre ont diminué de 183 000 $ d'une année sur l'autre. La provision pour créances douteuses était de 0,91 % du total des prêts au 30 juin 2024. Les actifs totaux ont atteint 1,403 milliard $, en hausse de 51 millions $ par rapport au 31 décembre 2023, les soldes de prêts ayant crû de 68 millions $.
Die Ohio Valley Banc Corp. [Nasdaq: OVBC] berichtete für das 2. Quartal 2024 einen konsolidierten Nettogewinn von 2.972.000 $, was einem Rückgang von 277.000 $ im Vergleich zum 2. Quartal 2023 entspricht. Der Gewinn pro Aktie fiel von 0,68 $ auf 0,63 $ im Jahresvergleich. Für das erste Halbjahr 2024 lag der Nettogewinn bei 5.765.000 $, ein Rückgang um 19,4 % im Vergleich zum ersten Halbjahr 2023, wobei das EPS von 1,50 $ auf 1,21 $ gefallen ist. Die Rendite auf durchschnittliche Vermögenswerte und Eigenkapital für das erste Halbjahr 2024 betrugen 0,84 % und 8,01 %, jeweils ein Rückgang gegenüber 1,16 % und 10,63 % im ersten Halbjahr 2023.
Das Unternehmen sah sich Herausforderungen durch ein schwieriges Zinssatzumfeld und steigende inflationsbedingte Kosten gegenüber. Die Nettzins- einkünfte stiegen im 2. Quartal um 349.000 $, während die Nettzinsen im ersten Halbjahr um 183.000 $ im Jahresvergleich sanken. Die Rücklagen für Kreditverluste lagen am 30. Juni 2024 bei 0,91 % der Gesamtdarlehen. Die Gesamtsumme der Vermögenswerte erreichte 1,403 Milliarden $, was einem Anstieg um 51 Millionen $ gegenüber dem 31. Dezember 2023 entspricht, und die Darlehenssalden stiegen um 68 Millionen $.
- Q2 net interest income increased by $349,000 year-over-year
- Total assets grew to $1.403 billion, up $51 million from December 31, 2023
- Loan balances increased by $68 million since December 31, 2023
- Deposits increased by $51 million since December 31, 2023
- Net interest margin improved by 13 basis points from Q1 to Q2 2024
- Q2 2024 net income decreased by $277,000 compared to Q2 2023
- H1 2024 net income declined by 19.4% year-over-year
- Earnings per share for H1 2024 decreased to $1.21 from $1.50 in H1 2023
- Return on average assets and equity for H1 2024 declined compared to H1 2023
- H1 2024 net interest income decreased by $183,000 year-over-year
- Noninterest expenses increased by $917,000 for H1 2024 compared to H1 2023
- Ratio of nonperforming loans to total loans increased to 0.50% from 0.26% at year-end 2023
Ohio Valley Banc Corp.'s Q2 2024 results reveal a mixed financial picture. The company reported consolidated net income of
The bank's performance metrics have weakened, with return on average assets dropping to
On a positive note, the bank saw a
Loan growth has been strong, with a
Overall, while OVBC is growing its loan portfolio and maintaining deposit growth, it's facing profitability pressures from the current interest rate environment and increased operating costs. The bank's ability to manage these challenges will be important for its performance in the coming quarters.
Ohio Valley Banc Corp.'s latest earnings report offers insights into broader trends affecting regional banks. The introduction of the SWEET HOME OHIO account, a high-interest savings product aimed at encouraging home ownership, reflects the bank's strategic response to the challenging housing market. This initiative aligns with growing concerns about home affordability and could potentially attract new customers in a competitive banking landscape.
The bank's
The closure of Race Day Mortgage at the end of 2023 has impacted noninterest income, with no mortgage application referral income in 2024 compared to
The
OVBC's ongoing stock buyback program, with
Ohio Valley Banc Corp. President and CEO, Larry Miller said, "Your company continues to face the dual headwinds of a difficult interest rate environment and rising costs due to inflation. These same headwinds affect many, if not everyone, especially when it comes to home ownership and affordability. This is why we were pleased to recently partner with the
For the three months ended June 30, 2024, net interest income increased
For the three months ended June 30, 2024, the provision for credit loss expense totaled
For the three and six months ended June 30, 2024, noninterest income decreased
For the three months ended June 30, 2024, noninterest expense totaled
The Company's total assets at June 30, 2024 were
Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns The Ohio Valley Bank Company with 17 offices in
Caution Regarding Forward-Looking Information
Certain statements contained in this earnings release that 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 federal legislation with respect to taxes and government spending 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; (vii) regulatory changes; and (viii) other factors that may be described in the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. 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.
OHIO VALLEY BANC CORP - Financial Highlights (Unaudited) | |||||||||
Three months ended | Six months ended | ||||||||
June 30, | June 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
PER SHARE DATA | |||||||||
Earnings per share | $ 0.63 | $ 0.68 | $ 1.21 | $ 1.50 | |||||
Dividends per share | $ 0.22 | $ 0.37 | $ 0.44 | $ 0.58 | |||||
Book value per share | $ 30.94 | $ 28.91 | $ 30.94 | $ 28.91 | |||||
Dividend payout ratio (a) | 35.48 % | 54.39 % | 36.51 % | 38.69 % | |||||
Weighted average shares outstanding | 4,740,073 | 4,776,520 | 4,762,923 | 4,774,999 | |||||
DIVIDEND REINVESTMENT (in 000's) | |||||||||
Dividends reinvested under | |||||||||
employee stock ownership plan (b) | $ - | $ - | $ 202 | $ 193 | |||||
Dividends reinvested under | |||||||||
dividend reinvestment plan (c) | $ 391 | $ 637 | $ 782 | $ 1,147 | |||||
PERFORMANCE RATIOS | |||||||||
Return on average equity | 8.25 % | 9.46 % | 8.01 % | 10.63 % | |||||
Return on average assets | 0.86 % | 1.03 % | 0.84 % | 1.16 % | |||||
Net interest margin (d) | 3.74 % | 4.03 % | 3.68 % | 4.12 % | |||||
Efficiency ratio (e) | 73.37 % | 71.93 % | 72.41 % | 68.70 % | |||||
Average earning assets (in 000's) | $ 1,300,720 | $ 1,171,792 | $ 1,280,968 | $ 1,156,896 | |||||
(a) Total dividends paid as a percentage of net income. | |||||||||
(b) Shares may be purchased from OVBC and on secondary market. | |||||||||
(c) Shares may be purchased from OVBC and on secondary market. | |||||||||
(d) Fully tax-equivalent net interest income as a percentage of average earning assets. | |||||||||
(e) 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 | Six months ended | ||||||||
(in | June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | ||||||
Interest income: | |||||||||
Interest and fees on loans | $ 16,130 | $ 13,293 | $ 31,380 | $ 25,569 | |||||
Interest and dividends on securities | 1,076 | 1,053 | 2,093 | 2,145 | |||||
Interest on interest-bearing deposits with banks | 1,446 | 671 | 2,863 | 1,097 | |||||
Total interest income | 18,652 | 15,017 | 36,336 | 28,811 | |||||
Interest expense: | |||||||||
Deposits | 6,102 | 3,091 | 12,001 | 4,923 | |||||
Borrowings | 587 | 312 | 1,182 | 552 | |||||
Total interest expense | 6,689 | 3,403 | 13,183 | 5,475 | |||||
Net interest income | 11,963 | 11,614 | 23,153 | 23,336 | |||||
Provision for (recovery of) credit losses | 181 | 24 | 932 | 513 | |||||
Noninterest income: | |||||||||
Service charges on deposit accounts | 731 | 653 | 1,456 | 1,264 | |||||
Trust fees | 101 | 82 | 205 | 168 | |||||
Income from bank owned life insurance and | |||||||||
annuity assets | 226 | 211 | 451 | 418 | |||||
Mortgage banking income | 40 | 44 | 79 | 91 | |||||
Electronic refund check/deposit fees | 135 | 135 | 675 | 675 | |||||
Debit / credit card interchange income | 1,223 | 1,215 | 2,368 | 2,388 | |||||
Tax preparation fees | 26 | 33 | 633 | 664 | |||||
Other | 219 | 340 | 530 | 812 | |||||
Total noninterest income | 2,701 | 2,713 | 6,397 | 6,480 | |||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 6,186 | 5,841 | 12,353 | 11,725 | |||||
Occupancy | 537 | 485 | 1,006 | 947 | |||||
Furniture and equipment | 326 | 330 | 660 | 628 | |||||
Professional fees | 507 | 433 | 993 | 866 | |||||
Marketing expense | 221 | 241 | 446 | 482 | |||||
FDIC insurance | 161 | 142 | 309 | 280 | |||||
Data processing | 788 | 726 | 1,595 | 1,446 | |||||
Software | 541 | 588 | 1,162 | 1,150 | |||||
Foreclosed assets | 2 | 7 | 0 | 9 | |||||
Amortization of intangibles | 4 | 6 | 7 | 13 | |||||
Other | 1,590 | 1,616 | 3,073 | 3,141 | |||||
Total noninterest expense | 10,863 | 10,415 | 21,604 | 20,687 | |||||
Income before income taxes | 3,620 | 3,888 | 7,014 | 8,616 | |||||
Income taxes | $ 648 | 639 | 1,249 | 1,459 | |||||
NET INCOME | $ 2,972 | $ 3,249 | $ 5,765 | $ 7,157 |
OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited) | |||||||||
(in | June 30, | December 31, | |||||||
2024 | 2023 | ||||||||
ASSETS | |||||||||
Cash and noninterest-bearing deposits with banks | $ 14,862 | $ 14,252 | |||||||
Interest-bearing deposits with banks | 92,817 | 113,874 | |||||||
Total cash and cash equivalents | 107,679 | 128,126 | |||||||
Securities available for sale | 162,749 | 162,258 | |||||||
Securities held to maturity, net of allowance for credit losses of | 7,930 | 7,986 | |||||||
Restricted investments in bank stocks | 5,016 | 5,037 | |||||||
Total loans | 1,040,284 | 971,900 | |||||||
Less: Allowance for credit losses | (9,431) | (8,767) | |||||||
Net loans | 1,030,853 | 963,133 | |||||||
Premises and equipment, net | 21,466 | 21,450 | |||||||
Premises and equipment held for sale, net | 517 | 573 | |||||||
Accrued interest receivable | 4,300 | 3,606 | |||||||
Goodwill | 7,319 | 7,319 | |||||||
Other intangible assets, net | 1 | 8 | |||||||
Bank owned life insurance and annuity assets | 40,913 | 40,593 | |||||||
Operating lease right-of-use asset, net | 1,114 | 1,205 | |||||||
Deferred tax assets | 6,442 | 6,306 | |||||||
Other assets | 7,018 | 4,535 | |||||||
Total assets | $ 1,403,317 | $ 1,352,135 | |||||||
LIABILITIES | |||||||||
Noninterest-bearing deposits | $ 343,209 | $ 322,222 | |||||||
Interest-bearing deposits | 835,219 | 804,914 | |||||||
Total deposits | 1,178,428 | 1,127,136 | |||||||
Other borrowed funds | 42,056 | 44,593 | |||||||
Subordinated debentures | 8,500 | 8,500 | |||||||
Operating lease liability | 1,114 | 1,205 | |||||||
Allowance for credit losses on off-balance sheet commitments | 629 | 692 | |||||||
Other liabilities | 26,833 | 26,002 | |||||||
Total liabilities | 1,257,560 | 1,208,128 | |||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock ( | |||||||||
2024 - 5,490,995 shares issued; 2023 - 5,470,453 shares issued) | 5,491 | 5,470 | |||||||
Additional paid-in capital | 52,321 | 51,842 | |||||||
Retained earnings | 118,531 | 114,871 | |||||||
Accumulated other comprehensive income (loss) | (11,907) | (11,428) | |||||||
Treasury stock, at cost (2024 - 779,994 shares; 2023 - 697,321 shares) | (18,679) | (16,748) | |||||||
Total shareholders' equity | 145,757 | 144,007 | |||||||
Total liabilities and shareholders' equity | $ 1,403,317 | $ 1,352,135 | |||||||
Contact: Scott Shockey, CFO (740) 446-2631
View original content:https://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-2nd-quarter-earnings-302207862.html
SOURCE Ohio Valley Banc Corp.
FAQ
What was Ohio Valley Banc Corp's (OVBC) earnings per share for Q2 2024?
How much did OVBC's net income change in H1 2024 compared to H1 2023?
What was the total asset value of Ohio Valley Banc Corp as of June 30, 2024?
How did OVBC's loan balances change in the first half of 2024?