OVBC announces extension of Stock Buyback Program

Rhea-AI Summary

Ohio Valley Banc Corp. (OVBC) has extended its stock buyback program to August 31, 2025. The program, initially approved in 2021, allows for the repurchase of up to $5 million in outstanding common stock. As of August 21, 2024, OVBC had already repurchased approximately $2,967,000 in common stock. The Board of Directors authorized this extension, maintaining the original terms of the program. The buyback initiative can be terminated or amended by the Board at any time before the new expiration date.

Positive

• Extension of stock buyback program until August 31, 2025
• $2,967,000 worth of common stock already repurchased
• Continued commitment to returning value to shareholders

Negative

• None.

Financial Analyst

The extension of OVBC's stock buyback program is a positive signal for investors. With $2,967,000 already repurchased out of the $5 million authorized, the company demonstrates confidence in its financial position and commitment to shareholder value. This move could potentially boost earnings per share and support stock price stability. However, investors should note that $2 million remains available for repurchases over the next year, which is relatively modest. The program's flexibility, allowing for termination or amendment, suggests a cautious approach. While not groundbreaking, this extension indicates OVBC's ongoing focus on capital management and shareholder returns in a challenging banking environment.

Market Research Analyst

OVBC's decision to extend its buyback program aligns with broader market trends among regional banks. In the current economic climate, characterized by interest rate uncertainties and potential regulatory changes, many banks are opting for cautious capital deployment strategies. The moderate size of the remaining buyback authorization ($2 million) suggests a balanced approach between returning capital to shareholders and maintaining financial flexibility. This move may help OVBC maintain investor confidence without overcommitting resources. However, the real test will be how effectively the company utilizes this program in response to market conditions and whether it translates into tangible benefits for shareholders in terms of stock performance and dividend sustainability.

GALLIPOLIS, Ohio, Aug. 21, 2024 /PRNewswire/ -- Ohio Valley Banc Corp. [Nasdaq: OVBC] (the "Company") announced the Board of Directors has authorized the extension date of its existing stock buyback program to August 31, 2025.

The program was originally approved by the board in 2021 and was set to expire August 31 of this year. With the extension, the share repurchase program will continue to authorize the repurchase of up to $5 million in shares of the Company's outstanding common stock. As of August 21, 2024, the Company had repurchased approximately $2,967,000 in common stock.

Other than the extension of the program for an additional year, no changes were made to the stock buyback program. The program may be terminated or amended by the Board at any time prior to the expiration date.

About Ohio Valley Banc Corp.
Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. Ohio Valley Banc Corp. is based in Gallipolis, Ohio. The company owns The Ohio Valley Bank Company, with 17 offices in Ohio and West Virginia, and Loan Central, Inc., with six consumer finance offices in Ohio. Learn more about Ohio Valley Banc Corp. at www.ovbc.com.

Contact: Scott Shockey, CFO 740-446-2631

View original content:https://www.prnewswire.com/news-releases/ovbc-announces-extension-of-stock-buyback-program-302227922.html

SOURCE Ohio Valley Banc Corp.

FAQ

What is the new expiration date for OVBC's stock buyback program?

The new expiration date for Ohio Valley Banc Corp's (OVBC) stock buyback program is August 31, 2025.

How much has OVBC repurchased in common stock as of August 21, 2024?

As of August 21, 2024, Ohio Valley Banc Corp (OVBC) had repurchased approximately $2,967,000 in common stock.

What is the total amount authorized for OVBC's stock buyback program?

Ohio Valley Banc Corp (OVBC) has authorized the repurchase of up to $5 million in shares of the company's outstanding common stock.

When was OVBC's stock buyback program originally approved?

Ohio Valley Banc Corp's (OVBC) stock buyback program was originally approved by the board in 2021.