GALLIPOLIS, Ohio - Ohio Valley Banc Corp (NASDAQ:OVBC) announced Wednesday that its Board of Directors has approved the extension of its stock buyback program. The program, initially set to expire on August 31, 2024, will now continue until August 31, 2025.
The repurchase program allows for the buyback of up to $5 million in shares of the company's outstanding common stock. To date, Ohio Valley Banc Corp has repurchased approximately $2.967 million worth of its common stock under this program.
The extension does not come with any changes to the terms of the stock buyback program, and the Board retains the right to terminate or amend the program at any time before the new expiration date.
Ohio Valley Banc Corp operates The Ohio Valley Bank Company, which has 17 offices across Ohio and West Virginia, as well as Loan Central, Inc., comprising six consumer finance offices in Ohio.
This financial move is part of the company's ongoing capital management strategy and reflects its commitment to enhancing shareholder value. The repurchase program's extension provides the company with continued flexibility to return capital to shareholders.
The decision to extend the buyback program is based on a press release statement from Ohio Valley Banc Corp and represents a strategic effort by the company to manage its capital effectively. Stock buybacks are a common way for companies to reinvest in themselves by reducing the number of shares outstanding, potentially increasing the value of remaining shares.
Investors and shareholders can track the progress of the buyback program through the company's regular financial reporting. As is customary with such announcements, the market's reaction to the extension of the buyback program will be closely watched.
Ohio Valley Banc Corp's stock is traded on the NASDAQ Global Market, and the company is headquartered in Gallipolis, Ohio.
In other recent news, Ohio Valley Banc Corp. reported a decrease in Q2 earnings for 2024 with a consolidated net income of $2,972,000, a reduction of $277,000 from the same period last year. The company's earnings per share for the second quarter stood at $0.63, compared to $0.68 in the prior year's second quarter. For the first half of 2024, the net income was $5,765,000, marking a 19.4% decrease from the first six months of 2023.
In other developments, Ohio Valley Banc Corp. declared a quarterly cash dividend with shareholders of record as of July 26, 2024, set to receive a dividend of $0.22 per share, scheduled for payment on August 10, 2024.
The company also noted an increase in net interest income for the quarter by $349,000, despite a six-month comparison showing a $183,000 decrease from the prior year. The provision for credit loss expense for the quarter was $181,000, up by $157,000 from the previous year, primarily due to a $50 million increase in loan balances.
Lastly, the company revealed a $51 million increase in total assets as of June 30, 2024, compared to December 31, 2023, and a slight decrease in noninterest income for both the three and six-month periods. These are the recent developments for Ohio Valley Banc Corp.
InvestingPro Insights
As Ohio Valley Banc Corp (NASDAQ:OVBC) extends its stock buyback program, a glimpse into the company's financials through InvestingPro data reveals a mixed picture that investors may want to consider. With a market capitalization of $109.77 million and a P/E ratio that stands at 9.87, the company appears to be valued reasonably in the market. Its adjusted P/E ratio over the last twelve months as of Q2 2024 is slightly lower at 9.79, suggesting a consistent earnings performance relative to its share price.
InvestingPro Tips highlight that Ohio Valley Banc Corp has maintained dividend payments for an impressive 31 consecutive years, which could be appealing for income-focused investors. This commitment to dividends is complemented by the company's profitability over the last twelve months, indicating financial stability.
However, one aspect that shareholders might want to pay attention to is the company's weak gross profit margins, as noted in the InvestingPro Tips. This could impact the company's ability to maintain its dividend payments or execute buybacks efficiently in the long term. For a deeper dive into the company's financials and additional InvestingPro Tips, investors can explore the dedicated page for Ohio Valley Banc Corp at: https://www.investing.com/pro/OVBC. There are more tips available on InvestingPro that can provide further insights into the company's financial health and investment potential.
With the stock buyback program extended, these metrics and insights can help investors better understand Ohio Valley Banc Corp's current position and future prospects as they consider the company's ability to enhance shareholder value.
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