Ohio Valley Banc Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number 0-20914

OHIO VALLEY BANC CORP.

(Exact name of registrant as specified in its charter)

Ohio	31-1359191
(State of Incorporation)	(I.R.S. Employer Identification No.)

420 Third Avenue, Gallipolis, Ohio	45631
(Address of principal executive offices)	(ZIP Code)

(740) 446-2631

(Registrant’s telephone number, including area code)

_____________________

Securities registered pursuant to Section 12(b) of the Act:

Common shares, without par value	OVBC	The NASDAQ Stock Market LLC (The NASDAQ Global Market)
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of common shares of the registrant outstanding as of August 7, 2020 was 4,787,446.

OHIO VALLEY BANC CORP.

Index

		Page Number
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Shareholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to the Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44

Signatures		45

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OHIO VALLEY BANC CORP.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands, except share and per share data)

	June 30, 2020			December 31, 2019

ASSETS
Cash and noninterest-bearing deposits with banks	$	13,388		$	12,812
Interest-bearing deposits with banks		54,863			39,544
Total cash and cash equivalents		68,251			52,356

Certificates of deposit in financial institutions		2,323			2,360
Securities available for sale		114,987			105,318
Securities held to maturity (estimated fair value: 2020 - $12,134; 2019 - $12,404)		11,769			12,033
Restricted investments in bank stocks		7,506			7,506

Total loans		830,832			772,774
Less: Allowance for loan losses		(7,981	)		(6,272	)
Net loans		822,851			766,502

Premises and equipment, net		21,436			19,217
Premises and equipment held for sale, net		645			653
Other real estate owned, net		226			540
Accrued interest receivable		3,537			2,564
Goodwill		7,319			7,319
Other intangible assets, net		140			174
Bank owned life insurance and annuity assets		35,588			30,596
Operating lease right-of-use asset, net		955			1,053
Other assets		5,462			5,081
Total assets	$	1,102,995		$	1,013,272

LIABILITIES
Noninterest-bearing deposits	$	266,840		$	222,607
Interest-bearing deposits		645,007			598,864
Total deposits		911,847			821,471

Other borrowed funds		30,110			33,991
Subordinated debentures		8,500			8,500
Operating lease liability		955			1,053
Accrued liabilities		19,762			20,078
Total liabilities		971,174			885,093

COMMITMENTS AND CONTINGENT LIABILITIES (See Note 5)

SHAREHOLDERS’ EQUITY
Common stock ($1.00 stated value per share, 10,000,000 shares authorized; 2020 - 5,447,185 shares issued; 2019 - 5,447,185 shares issued)		5,447			5,447
Additional paid-in capital		51,165			51,165
Retained earnings		88,006			86,751
Accumulated other comprehensive income		2,915			528
Treasury stock, at cost (659,739 shares)		(15,712	)		(15,712	)
Total shareholders’ equity		131,821			128,179
Total liabilities and shareholders’ equity	$	1,102,995		$	1,013,272

See accompanying notes to consolidated financial statements

OHIO VALLEY BANC CORP.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share data)

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019

Interest and dividend income:
Loans, including fees	$	10,639		$	11,302		$	21,512		$	23,214
Securities
Taxable		591			656			1,188			1,274
Tax exempt		74			84			147			168
Dividends		64			104			130			217
Interest-bearing deposits with banks		18			325			180			644
Other Interest		13			12			27			24
		11,399			12,483			23,184			25,541

Interest expense:
Deposits		1,367			1,512			2,876			2,854
Other borrowed funds		187			226			387			461
Subordinated debentures		50			92			122			186
		1,604			1,830			3,385			3,501
Net interest income		9,795			10,653			19,799			22,040
Provision for (recovery of) loan losses		(393	)		(806	)		3,453			1,571
Net interest income after provision for loan losses		10,188			11,459			16,346			20,469

Noninterest income:
Service charges on deposit accounts		333			517			826			1,020
Trust fees		61			72			129			136
Income from bank owned life insurance and annuity assets		192			177			409			355
Mortgage banking income		431			78			521			147
Debit / credit card interchange income		930			972			1,873			1,886
Gain (loss) on other real estate owned		18			14			(83	)		14
Tax preparation fees		19			—			634			—
Litigation settlement		—			—			2,000			—
Other		265			173			382			291
		2,249			2,003			6,691			3,849
Noninterest expense:
Salaries and employee benefits		5,426			5,527			10,881			11,063
Occupancy		449			438			881			891
Furniture and equipment		278			270			540			533
Professional fees		473			689			1,071			1,361
Marketing expense		293			270			561			540
FDIC insurance		24			110			24			113
Data processing		704			554			1,303			1,089
Software		412			427			793			838
Foreclosed assets		36			19			79			125
Amortization of intangibles		17			31			34			62
Other		1,490			1,456			2,954			2,744
		9,602			9,791			19,121			19,359

Income before income taxes		2,835			3,671			3,916			4,959
Provision for income taxes		572			592			651			687

NET INCOME	$	2,263		$	3,079		$	3,265		$	4,272

Earnings per share	$	0.47		$	0.65		$	0.68		$	0.90

See accompanying notes to consolidated financial statements

OHIO VALLEY BANC CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollars in thousands)

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019

Net Income	$	2,263		$	3,079		$	3,265		$	4,272

Other comprehensive income:
Change in unrealized gain on available for sale securities		85			1,455			3,022			3,451
Related tax expense		(18	)		(305	)		(635	)		(724	)
Total other comprehensive income, net of tax		67			1,150			2,387			2,727

Total comprehensive income	$	2,330		$	4,229		$	5,652		$	6,999

See accompanying notes to consolidated financial statements

OHIO VALLEY BANC CORP.

CONSOLIDATED STATEMENTS OF CHANGES

IN SHAREHOLDERS’ EQUITY (UNAUDITED)

(dollars in thousands, except share and per share data)

Quarter-to-date	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholders' Equity
Balance at April 1, 2020	$	5,447	$	51,165	$	86,748		$	2,848		$	(15,712	)	$	130,496
Net income		—		—		2,263			—			—			2,263
Other comprehensive income, net		—		—		—			67			—			67
Cash dividends, $0.21 per share		—		—		(1,005	)		—			—			(1,005	)
Balance at June 30, 2020	$	5,447	$	51,165	$	88,006		$	2,915		$	(15,712	)	$	131,821

Balance at April 1, 2019	$	5,418	$	50,162	$	81,042		$	(558	)	$	(15,712	)	$	120,352
Net income		—		—		3,079			—			—			3,079
Other comprehensive income, net		—		—		—			1,150			—			1,150
Common stock issued through dividend reinvestment, 9,099 shares		9		330		—			—			—			339
Cash dividends, $0.21 per share		—		—		(1,000	)		—			—			(1,000	)
Balance at June 30, 2019	$	5,427	$	50,492	$	83,121		$	592		$	(15,712	)	$	123,920

Year-to-date	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholders' Equity
Balance at January 1, 2020	$	5,447	$	51,165	$	86,751		$	528		$	(15,712	)	$	128,179
Net income		—		—		3,265			—			—			3,265
Other comprehensive income, net		—		—		—			2,387			—			2,387
Cash dividends, $0.42 per share		—		—		(2,010	)		—			—			(2,010	)
Balance at June 30, 2020	$	5,447	$	51,165	$	88,006		$	2,915		$	(15,712	)	$	131,821

Balance at January 1, 2019	$	5,400	$	49,477	$	80,844		$	(2,135	)	$	(15,712	)	$	117,874
Net income		—		—		4,272			—			—			4,272
Other comprehensive income, net		—		—		—			2,727			—			2,727
Common stock issued to ESOP, 8,333 shares		8		320		—			—			—			328
Common stock issued through dividend reinvestment, 19,099 shares		19		695		—			—			—			714
Cash dividends, $0.42 per share		—		—		(1,995	)		—			—			(1,995	)
Balance at June 30, 2019	$	5,427	$	50,492	$	83,121		$	592		$	(15,712	)	$	123,920

See accompanying notes to consolidated financial statements

OHIO VALLEY BANC CORP.

CONDENSED CONSOLIDATED STATEMENTS OF

CASH FLOWS (UNAUDITED)

(dollars in thousands)

	Six months ended June 30,
	2020			2019

Net cash provided by operating activities:	$	4,881		$	5,022

Investing activities:
Proceeds from maturities of securities available for sale		13,980			8,532
Purchases of securities available for sale		(20,772	)		(10,035	)
Proceeds from maturities of securities held to maturity		244			2,218
Proceeds from maturities of certificates of deposit in financial institutions		490			—
Purchase of certificates of deposit in financial institutions		(453	)		(50	)
Net change in loans		(59,830	)		(35	)
Proceeds from sale of other real estate owned		264			322
Purchases of premises and equipment		(2,828	)		(3,417	)
Purchases of bank owned life insurance and annuity assets		(4,583	)		—
Net cash used in investing activities		(73,488	)		(2,465	)

Financing activities:
Change in deposits		90,393			823
Proceeds from common stock through dividend reinvestment		—			713
Cash dividends		(2,010	)		(1,995	)
Repayment of Federal Home Loan Bank borrowings		(3,312	)		(2,269	)
Change in other long-term borrowings		(300	)		(763	)
Change in other short-term borrowings		(269	)		—
Net cash provided by (used in) financing activities		84,502			(3,491	)

Change in cash and cash equivalents		15,895			(934	)
Cash and cash equivalents at beginning of period		52,356			71,180
Cash and cash equivalents at end of period	$	68,251		$	70,246

Supplemental disclosure:
Cash paid for interest	$	3,533		$	3,044
Cash paid for income taxes		—			890
Transfers from loans to other real estate owned		33			82
Initial recognition of operating lease right-of-use asset		—			1,280
Operating lease liability arising from obtaining right-of-use asset		—			1,280

See accompanying notes to consolidated financial statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION: The accompanying consolidated financial statements include the accounts of Ohio Valley Banc Corp. (“Ohio Valley”) and its wholly-owned subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc. (“Loan Central”), a consumer finance company, Ohio Valley Financial Services Agency, LLC, an insurance agency, and OVBC Captive, Inc. (the “Captive”), a limited purpose property and casualty insurance company. The Bank has one wholly-owned subsidiary, Ohio Valley REO, LLC (“Ohio Valley REO”), an Ohio limited liability company, to which the Bank transfers certain real estate acquired by the Bank through foreclosure for sale by Ohio Valley REO. Ohio Valley and its subsidiaries are collectively referred to as the “Company.” All material intercompany accounts and transactions have been eliminated in consolidation.

These interim financial statements are prepared by the Company without audit and reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company at June 30, 2020, and its results of operations and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the operating results to be anticipated for the full fiscal year ending December 31, 2020. The accompanying consolidated financial statements do not purport to contain all the necessary financial disclosures required by U.S. generally accepted accounting principles (“US GAAP”) that might otherwise be necessary in the circumstances. The Annual Report of the Company for the year ended December 31, 2019 contains consolidated financial statements and related notes which should be read in conjunction with the accompanying consolidated financial statements.

The consolidated financial statements for 2019 have been reclassified to conform to the presentation for 2020. These reclassifications had no effect on net income or shareholders’ equity.

CURRENT EVENTS: In March 2020, the World Health Organization declared the outbreak of the coronavirus (“COVID-19”) as a global pandemic. COVID-19 has negatively impacted the global economy, disrupted global supply chains, created significant volatility and disruption in financial markets, and increased unemployment levels. The resulting temporary closure of many businesses and the implementation of social distancing and sheltering-in-place policies has, and may continue to impact, many of the Company’s customers.

The potential financial impact of COVID-19 is unknown at this time and depends largely on the actions taken by governmental authorities and other third parties. In addition, COVID-19 may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could result in a material adverse effect on our business operations, asset valuations, liquidity, financial condition, and results of operations. Effects may include:

●

The provision for loan losses could increase. Continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects will continue to affect the accounting for loan losses. It also is possible that asset quality could worsen, and that loan charge-offs could increase. The Company is actively participating in the Paycheck Protection Program (“PPP”) by providing loans to small businesses negatively impacted by the COVID-19 pandemic. PPP loans are fully guaranteed by the U.S. government, and if that should change, the Company could be required to increase its allowance for loan losses through an additional provision for loan losses charged to earnings.

●	Valuation and fair value measurement challenges may occur. Material adverse impacts may include all or a combination of valuation impairments on the Company’s securities, impaired loans, goodwill, other real estate owned, and interest rate swap agreements.

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS: The accounting and reporting policies followed by the Company conform to US GAAP established by the Financial Accounting Standards Board (“FASB”). The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

INDUSTRY SEGMENT INFORMATION: Internal financial information is primarily reported and aggregated in two lines of business: banking and consumer finance.

EARNINGS PER SHARE: Earnings per share are computed based on net income divided by the weighted average number of common shares outstanding during the period. The weighted average common shares outstanding were 4,787,446 and 4,763,858 for the three months ended June 30, 2020 and 2019, respectively. The weighted average common shares outstanding were 4,787,446 and 4,756,209 for the six months ended June 30, 2020 and 2019, respectively. Ohio Valley had no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented.

ADOPTION OF NEW ACCOUNTING STANDARD UPDATES (“ASU”): In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this ASU did not have a material impact on the Company’s consolidated financial position or results of operations.

ACCOUNTING GUIDANCE TO BE ADOPTED IN FUTURE PERIODS: In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses”. ASU 2016-13 requires entities to replace the current “incurred loss” model with an “expected loss” model, which is referred to as the current expected credit loss (“CECL”) model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. A CECL steering committee has developed a CECL model and is evaluating the source data, various credit loss methodologies and model results in relation to the new ASU guidance. Management expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective. Management expects the adoption will result in a material increase to the allowance for loan losses balance. At this time, the impact is being evaluated. On October 16, 2019, the FASB confirmed it would delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following is a description of the Company’s valuation methodologies used to measure and disclose the fair values of its financial assets and liabilities on a recurring or nonrecurring basis:

Securities: The fair values for securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. In some instances, fair value adjustments can be made based on a quoted price from an observable input, such as a purchase agreement. Such adjustments would be classified as a Level 2 classification.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with management’s own assumptions of fair value based on factors that include recent market data or industry-wide statistics.

On an as-needed basis, the Company reviews the fair value of collateral, taking into consideration current market data, as well as all selling costs that typically approximate 10%.

Interest Rate Swap Agreements: The fair value of interest rate swap agreements is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves (Level 2).

Assets and Liabilities Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements at June 30, 2020 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
U.S. Government sponsored entity securities		—	$	15,633			—
Agency mortgage-backed securities, residential		—		99,354			—
Interest rate swap derivatives		—		1,148			—

Liabilities:
Interest rate swap derivatives		—		(1,148	)		—

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
U.S. Government sponsored entity securities		—	$	16,736			—
Agency mortgage-backed securities, residential		—		88,582			—
Interest rate swap derivatives		—		465			—

Liabilities:
Interest rate swap derivatives		—		(465	)		—

There were no transfers between Level 1 and Level 2 during 2020 or 2019.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

Assets and Liabilities Measured on a Nonrecurring Basis

There were no assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2020. Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2019 are summarized below:

	Fair Value Measurements at December 31, 2019, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial real estate:
Owner-occupied		—		—	$	1,644
Commercial and Industrial		—		—		4,559

At June 30, 2020, the Company had no recorded investment of impaired loans measured for impairment using the fair value of collateral for collateral-dependent loans and, therefore, recorded no impact to provision expense during the three and six months ended June 30, 2020. This is compared to a decrease of $3 to provision expense during the three months ended June 30, 2019, and an increase of $1 to provision expense during the six months ended June 30, 2019, with $65 in additional charge-offs recognized during both periods. At December 31, 2019, the recorded investment of impaired loans measured for impairment using the fair value of collateral for collateral-dependent loans totaled $7,010, with a corresponding valuation allowance of $807, resulting in an increase of $807 in provision expense during the year ended December 31, 2019, with no corresponding charge-offs recognized.

There was no other real estate owned that was measured at fair value less costs to sell at June 30, 2020 and December 31, 2019. There were no corresponding write downs during the three and six months ended June 30, 2020 and 2019.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2019:

Price	37.31	EPS	2
Shares	5	P/E	17
MCap	178	P/FCF	19
Net Debt	-70	EBIT	18
TEV	108	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-16
10-Q	2019-09-30	Filed 2019-11-12
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-14
10-K	2018-12-31	Filed 2019-03-18
10-Q	2018-09-30	Filed 2018-11-09
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-16
10-Q	2017-09-30	Filed 2017-11-13
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-16
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-15
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-16
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-17
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-10
10-K	2012-12-31	Filed 2013-03-18
10-Q	2012-09-30	Filed 2012-11-09
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-15
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-03-16
10-Q	2010-09-30	Filed 2010-11-09
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-16

8-K	2020-07-27	Earnings, Exhibits
8-K	2020-07-21	Other Events
8-K	2020-05-20
8-K	2020-04-27
8-K	2020-04-14
8-K	2020-03-10
8-K	2020-02-25
8-K	2020-01-29
8-K	2020-01-14
8-K	2019-10-25
8-K	2019-10-15
8-K	2019-07-25
8-K	2019-07-16
8-K	2019-05-15
8-K	2019-04-25
8-K	2019-04-16
8-K	2019-02-26
8-K	2019-02-12
8-K	2019-01-29
8-K	2019-01-15
8-K	2018-10-25
8-K	2018-10-16
8-K	2018-07-26
8-K	2018-07-17
8-K	2018-05-16
8-K	2018-04-26
8-K	2018-04-17
8-K	2018-01-30
8-K	2018-01-16

EX-4	exhibit4_063020.htm
EX-31.1	exhibit311_063020.htm
EX-31.2	exhibit312_063020.htm
EX-32	exhibit32_063020.htm

OVBC 10Q Quarterly Report

Ohio Valley Banc Earnings 2020-06-30