Ohio Valley Banc Corp. (OVBC) | Investment Case

1. Company Snapshot

1.a. Company Description

Ohio Valley Banc Corp.operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services.The company operates in two segments, Banking and Consumer Finance.

It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit.The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans.In addition, it offers safe deposit boxes, wire transfers, credit card services, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news.

Further, the company provides automatic teller machine (ATM) services, consumer finance, seasonal tax preparation services, and commercial property and various liability insurance services, as well as trust and online-only consumer direct mortgage services.It operates sixteen offices in Ohio and West Virginia; and six consumer finance offices in Ohio.The company owns and operates thirty- six ATMs, including twenty off-site ATMs. Ohio Valley Banc Corp.

was founded in 1872 and is headquartered in Gallipolis, Ohio.

Show Full description

1.b. Last Insights on OVBC

Ohio Valley Banc Corp.'s recent performance was driven by strong Q3 earnings, marked by an 11.4% year-over-year increase in consolidated net income to $3,030,000. Net interest income growth was a highlight, despite a non-recurring $1.22M loss on securities sales. The company's dividend remains well-covered, with a payout ratio of approximately 40%. Loan growth and margin expansion also contributed to the positive results, with past due loans rising mainly in construction but backed by real estate collateral.

1.c. Company Highlights

Last Price	40.9
Change Percentage	-0.09%
Open	41.25
Previous Close	40.94
Market Cap ( Millions)	193
Volume	8092
Year High	41.44
Year Low	21.86
M A 50	36.47
M A 200	34.17

FCF Yield	6.27%
Dividend Yield	2.22%
ROE	12.13%
Debt / Equity	27670.50%
Net Debt / EBIDTA	235.92%
Price To Book	1171.9
Price Earnings Ratio	13.61
Price To FCF	15.95
Price To sales	2.7
EV / EBITDA	12.35

2. Transcript Summary

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3. NewsRoom

Ohio Valley Banc (NASDAQ:OVBC) versus Central Plains Bancshares (NASDAQ:CPBI) Head to Head Contrast

Dec -01

Source: defenseworld.net

Ohio Valley Banc Corp: Strong Despite Non-Recurring Items

Nov -19

Source: seekingalpha.com

Ohio Valley Banc Stock Dips Despite Q3 Earnings Showing Solid Growth

Oct -31

Source: zacks.com

Ohio Valley Banc Corp. Reports 3rd Quarter Earnings

Oct -27

Source: prnewswire.com

OVBC ANNOUNCES CASH DIVIDEND

Oct -21

Source: prnewswire.com

OVBC announces extension of Stock Buyback Program

Aug -20

Source: prnewswire.com

OVBC Stock Dips Despite Q2 Earnings Uptick, Net Interest Margin Expands

Aug -01

Source: zacks.com

Ohio Valley Banc Corp. Reports 2nd Quarter Earnings

Jul -25

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Banking

Expected Growth: 4.5%

Ohio Valley Banc Corp.'s growth is driven by increasing demand for personal and business banking services, loans, and investments in Ohio, West Virginia, and Kentucky. The bank's expansion into new markets and strategic partnerships will further boost growth.

Consumer Finance

Expected Growth: 5.5%

Growing demand for personal loans and credit products, increasing financial inclusion, and rising consumer spending in the Ohio Valley region drive the growth of Consumer Finance from Ohio Valley Banc Corp.

7. Detailed Products

Personal Banking

Ohio Valley Banc Corp. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

Ohio Valley Banc Corp. provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

Ohio Valley Banc Corp. offers a range of mortgage loan options, including fixed-rate and adjustable-rate mortgages, refinancing, and construction loans.

Investment Services

Ohio Valley Banc Corp. provides investment services, including brokerage services, retirement planning, and wealth management.

Insurance Services

Ohio Valley Banc Corp. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

Online Banking

Ohio Valley Banc Corp. provides online banking services, including bill pay, fund transfers, and account management.

Mobile Banking

Ohio Valley Banc Corp. offers mobile banking services, including mobile deposit, bill pay, and account management.

8. Ohio Valley Banc Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ohio Valley Banc Corp. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate this threat.

Bargaining Power Of Customers

Ohio Valley Banc Corp.'s customers have some bargaining power due to the availability of alternative banking services. However, the company's strong relationships with its customers and its ability to offer personalized services help to reduce this power.

Bargaining Power Of Suppliers

Ohio Valley Banc Corp. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. This makes it difficult for new entrants to compete with established players like Ohio Valley Banc Corp.

Intensity Of Rivalry

The banking industry is highly competitive, with many players competing for market share. Ohio Valley Banc Corp. faces intense competition from larger banks and fintech companies, which puts pressure on its market share and profitability.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	27.01%
Debt Cost	3.95%
Equity Weight	72.99%
Equity Cost	4.43%
WACC	4.30%
Leverage	37.00%

11. Quality Control: Ohio Valley Banc Corp. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Home Bancorp

A-Score: 6.5/10

Value: 7.3

Growth: 5.9

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

Ohio Valley Banc

A-Score: 6.3/10

Value: 4.4

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

ChoiceOne Financial Services

A-Score: 6.1/10

Value: 5.5

Growth: 7.7

Quality: 5.4

Yield: 8.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

First Mid Bancshares

A-Score: 6.0/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Orange County Bancorp

A-Score: 5.3/10

Value: 6.5

Growth: 6.3

Quality: 7.1

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.61%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.30%

Ohio Valley Banc Corp. - US6777191064

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OVBC

1.c. Company Highlights

Weak Momentum

Average Yield

Fairly Valued

Cheaper

Average Quality

Average Growth

Stable Momentum

Strong Momentum

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Banking

Expected Growth: 4.5%

Consumer Finance

Expected Growth: 5.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Investment Services

Insurance Services

Online Banking

Mobile Banking

8. Ohio Valley Banc Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ohio Valley Banc Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.9$

Current Price

40.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA