Earnings per share for the third quarter of 2009 were $.43, down 8.5 percent from the prior year's third quarter. For the nine months ended September 30, 2009, net income totaled $5,147,000, a 7.8 percent decrease from net income of $5,581,000 for the nine months ended September 30, 2008.
Earnings per share were $1.29 for the first nine months of 2009 versus $1.38 for the first nine months of 2008, a decrease of 6.5 percent. Return on average assets and return on average equity decreased to .84 percent and 10.66 percent, respectively, for the nine months ended September 30, 2009, as compared to .95 percent and 12.20 percent, respectively, for the same period in the prior year.
According to a company statement, earnings declined primarily due to the increase in FDIC insurance premiums that are being assessed on all FDIC insured financial institutions. For the nine months ended September 30, 2009, premiums increased $1,148,000 over the same period last year. FDIC premiums for the third quarter of 2009 were up $201,000 from the third quarter of 2008. The higher insurance premiums had a dramatic impact on the financial results of the company. For the nine months ended September 30, 2009, the net of tax increase in premiums reduced earnings per share by $.19, return on average assets by 9 basis points (1 basis point equals .01%) and return on average equity by 117 basis points. Based on the FDIC's restoration plan, management expects the heightened assessment levels to continue for up to eight years.
Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns three subsidiaries: Ohio Valley Bank, with 16 offices in Ohio and West Virginia; Loan Central, with six consumer finance offices in Ohio, and Ohio Valley Financial Services, an insurance agency based in Jackson, Ohio. Learn more about Ohio Valley Banc Corp. at www.ovbc.com .
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