OHIO VALLEY BANC CORP
For the period ended Dec 31, 2023. Filed Mar 15, 2024.
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FY2023 · Filed Mar 15, 2024
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EX-13 · Modifications to Borrowers Experiencing Financial Difficulty:
Modifications to Borrowers Experiencing Financial Difficulty:
Occasionally, the Company modifies loans to borrowers experiencing financial difficulty. These modifications may include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. All modifications to borrowers experiencing financial difficulty are considered to be impaired.
During the year ended December 31, 2023, the Company experienced no new modifications to borrowers experiencing financial difficulty.
Note C – Loans and Allowance for Credit Losses (continued)
The following table presents the activity in the ACL by portfolio segment for the years ended December 31, 2023 and 2022:
| December 31, 2023 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total |
|---|---|---|---|---|---|
| Allowance for credit losses: | |||||
| Beginning balance | $681 | $2,038 | $1,293 | $1,257 | $5,269 |
| Impact of adopting ASC 326 | 1,345 | 162 | (116) | 771 | 2,162 |
| Provision for credit losses | 251 | 824 | (85) | 1,040 | 2,030 |
| Loans charged off | (121) | (132) | (29) | (1,410) | (1,692) |
| Recoveries | 57 | 155 | 212 | 574 | 998 |
| Total ending allowance balance | $2,213 | $3,047 | $1,275 | $2,232 | $8,767 |
| December 31, 2022 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total |
|---|---|---|---|---|---|
| Allowance for credit losses: | |||||
| Beginning balance | $980 | $2,548 | $1,571 | $1,384 | $6,483 |
| Provision for credit losses | (318) | (556) | 283 | 559 | (32) |
| Loans charged off | (135) | (36) | (618) | (1,399) | (2,188) |
| Recoveries | 154 | 82 | 57 | 713 | 1,006 |
| Total ending allowance balance | $681 | $2,038 | $1,293 | $1,257 | $5,269 |
The following table presents the balance in the ACL and the recorded investment of loans by portfolio segment and based on impairment method as of December 31, 2022:
| December 31, 2022 | Residential Real Estate | Commercial Real Estate | Commercial & Industrial | Consumer | Total |
|---|---|---|---|---|---|
| Allowance for credit losses: | |||||
| Ending allowance balance attributable to loans: | |||||
| Individually evaluated for impairment | $— | $— | $— | $— | $— |
| Collectively evaluated for impairment | 681 | 2,038 | 1,293 | 1,257 | 5,269 |
| Total ending allowance balance | $681 | $2,038 | $1,293 | $1,257 | $5,269 |
| Loans: | |||||
| Loans individually evaluated for impairment | $— | $1,986 | $— | $28 | $2,014 |
| Loans collectively evaluated for impairment | 297,036 | 286,769 | 151,232 | 147,998 | 883,035 |
| Total ending loans balance | $297,036 | $288,755 | $151,232 | $148,026 | $885,049 |
The following table presents the amortized cost basis of collateral dependent loans by class of loans as of December 31, 2023:
| Collateral Type | |||
|---|---|---|---|
| December 31, 2023 | Real Estate | Business Assets | Total |
| Residential real estate | $1,663 | $— | $1,663 |
| Commercial real estate: | |||
| Owner-occupied | 700 | 258 | 958 |
| Consumer: | |||
| Home equity | 27 | — | 27 |
| Total collateral dependent loans | $2,390 | $258 | $2,648 |
The following table presents information related to loans individually evaluated for impairment by class of loans as of the years ended December 31, 2022:
| December 31, 2022 | Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Impaired Loans | Interest Income Recognized | Cash Basis Interest Recognized |
|---|---|---|---|---|---|---|
| With an allowance recorded: | $— | $— | $— | $— | $— | $— |
| With no related allowance recorded: | ||||||
| Commercial real estate: | ||||||
| Owner-occupied | 1,692 | 1,607 | — | 1,662 | 97 | 97 |
| Nonowner-occupied | 379 | 379 | — | 382 | 29 | 29 |
| Consumer: | ||||||
| Home equity | 28 | 28 | — | 23 | 2 | 2 |
| Total | $2,099 | $2,014 | $— | $2,067 | $128 | $128 |
The recorded investment of a loan excludes accrued interest and net deferred origination fees and costs due to immateriality.
Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans.
The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of December 31, 2023, the Company had $68 in other real estate owned for residential real estate properties compared tonone at December 31, 2022. In addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $348 and $370 as of December 31, 2023 and 2022, respectively.
Note D - Premises and Equipment
Following is a summary of premises and equipment at December 31:
| 2023 | 2022 | |
|---|---|---|
| Land | $2,568 | $2,486 |
| Buildings | 23,867 | 22,526 |
| Leasehold improvements | 1,555 | 1,509 |
| Furniture and equipment | 11,137 | 10,410 |
| 39,127 | 36,931 | |
| Less accumulated depreciation | 17,677 | 16,495 |
| Total premises and equipment | $21,450 | $20,436 |
Following is a summary of premises and equipment held for sale at December 31:
| 2023 | 2022 | |
|---|---|---|
| Land | $84 | $84 |
| Buildings | 594 | 594 |
| 678 | 678 | |
| Less accumulated depreciation | 105 | 85 |
| Total premises and equipment held for sale | $573 | $593 |
Note E – Leases
Balance sheet information related to leases at December 31 was as follows:
| 2023 | 2022 | |
|---|---|---|
| Operating leases: | ||
| Operating lease right-of-use assets | $1,205 | $1,294 |
| Operating lease liabilities | 1,205 | 1,294 |
The components of lease cost were as follows for the year ending December 31:
| 2023 | 2022 | |
|---|---|---|
| Operating lease cost | $204 | $185 |
| Short-term lease expense | 17 | 35 |
Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2023 are as follows:
| Operating Leases | |
|---|---|
| 2024 | $195 |
| 2025 | 195 |
| 2026 | 140 |
| 2027 | 109 |
| 2028 | 111 |
| Thereafter | 764 |
| Total lease payments | 1,514 |
| Less: Imputed Interest | (309) |
| Total operating leases | $1,205 |
Other information at December 31 was as follows:
| 2023 | 2022 | |
|---|---|---|
| Weighted-average remaining lease term for operating leases | 13.0 years | 12.1 years |
| Weighted-average discount rate for operating leases | 2.91% | 2.70% |
Note F – Goodwill and Intangible Assets
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