Ohio Valley Banc Corporation (OVBC) has reported a 78.20 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.36 million, or $0.08 a share in the quarter, compared with $1.64 million, or $0.40 a share for the same period last year.
Revenue during the quarter dropped 9.21 percent to $8.97 million from $9.88 million in the previous year period. Net interest income for the quarter rose 8.45 percent over the prior year period to $8.98 million. Non-interest income for the quarter rose 6.88 percent over the last year period to $1.69 million.
Ohio Valley Banc Corp has made provision of $1.71 million for loan losses during the quarter, compared with a negative provision of $0.01 million in the same period last year.
Net interest margin contracted 17 basis points to 4.29 percent in the quarter from 4.46 percent in the last year period. Efficiency ratio for the quarter deteriorated to 81.47 percent from 77 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"The challenges and expense associated with the merger of two community banks are, for the most part, behind us," stated Thomas E. Wiseman, President and CEO. "While net income and earnings per share numbers carry the burden of the merger expense, we had positive growth in revenue and assets due to the event. The new combined OVBC has the tools and positioning in the market to focus our efforts on successfully pursuing our Community First mission. There is much opportunity as we bring desired, competitive products, such as our holiday credit card introductory special, cash-back Rewards Checking, and Apple Pay to these expanded and new markets."
Liabilities outpace assets growth
Total assets stood at $970.23 million as on Sep. 30, 2016, up 20.01 percent compared with $808.47 million on Sep. 30, 2015. On the other hand, total liabilities stood at $864.44 million as on Sep. 30, 2016, up 20.31 percent from $718.51 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $714.05 million as on Sep. 30, 2016, up 23.48 percent compared with $578.27 million on Sep. 30, 2015. Deposits stood at $805.78 million as on Sep. 30, 2016, up 20 percent compared with $671.46 million on Sep. 30, 2015.
Investments stood at $124.51 million as on Sep. 30, 2016, up 13.89 percent or $15.19 million from year-ago. Shareholders equity stood at $105.79 million as on Sep. 30, 2016, up 17.60 percent or $15.83 million from year-ago.
Return on average assets moved down 65 basis points to 0.16 percent in the quarter from 0.81 percent in the last year period. At the same time, return on average equity decreased 593 basis points to 1.40 percent in the quarter from 7.33 percent in the last year period.
Book value per share was $22.67 for the quarter, up 3.75 percent or $0.82 compared to $21.85 for the same period last year.
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