GALLIPOLIS, Ohio and ZANESVILLE, Ohio, April 18, 2019 /PRNewswire/ -- Ohio Valley Banc Corp. ("Ohio Valley") [Nasdaq: OVBC] and North Valley Bancshares, Inc. ("North Valley") today announced that The Ohio Valley Bank Company ("Ohio Valley Bank"), a wholly-owned subsidiary of Ohio Valley, has entered into a purchase and assumption agreement to sell branches in Mount Sterling and New Holland, Ohio, to North Valley Bank, a wholly-owned subsidiary of North Valley.
The purchase and assumption agreement provides for the transfer by Ohio Valley Bank to North Valley Bank of approximately $26.4 million in deposits, the land and buildings associated with both Ohio Valley Bank branches and other assets in exchange for the net book value of such other assets and a deposit premium equal to 5.00% of the average daily deposits for the 30 days preceding closing.
The purchase of the branches by North Valley Bank is subject to regulatory approval and satisfaction of certain conditions. North Valley Bank expects to close on its acquisition of the two Ohio Valley Bank branches in the second half of 2019, at which point they will be converted to operate under the North Valley Bank name. Jim Nicholson, President and CEO of North Valley remarked, "This transaction fits our strategic focus of enhancing our presence in central Ohio and is the continuation of our expansion around our current small business lending team in Columbus. We are excited to bring our personalized and relationship based banking model to these communities."
Boenning & Scattergood, Inc. and Vorys, Sater, Seymour and Pease LLP are acting as financial advisor and legal advisor to Ohio Valley, respectively. North Valley is being represented by the law firm of Dinsmore & Shohl LLP.
About Ohio Valley Banc Corp.
Ohio Valley is the parent company of Ohio Valley Bank, which currently operates 18 offices throughout Ohio and West Virginia. Headquartered in Gallipolis, Ohio, Ohio Valley Bank has served its communities for 146 years, making it one of the oldest banks in the state. Ohio Valley also owns Loan Central, a finance company specializing in tax preparation and loans with six offices in southern Ohio. Ohio Valley Bank provides checking and savings accounts, CD's, IRA's, trust services and home, business, mortgage, personal, auto, and education loans to retail and commercial customers in its communities. Ohio Valley Bank is a member of the Federal Deposit Insurance Corporation ("FDIC"). For more information about Ohio Valley, Ohio Valley Bank and Loan Central, please visit www.ovbc.com and www.myloancentral.com.
About North Valley Bancshares, Inc.
North Valley is the parent company of North Valley Bank, a local community bank committed to serving Muskingum, Perry, Morgan and Licking Counties. Originally established as The Bank of Corning Company during the oil boom in the Village of Corning, Ohio by local area business leaders, North Valley Bank has operated as a locally-owned community-oriented commercial bank since 1904. North Valley Bank provides its local businesses with checking and savings accounts, commercial real estate, term and agricultural loans, lines of credit, treasury management and investment services. North Valley Bank retail products and services include checking, savings and investment accounts, mortgage, home equity, auto and consumer loans, credit cards and online banking. North Valley Bank is a member of the Federal Deposit Insurance Corporation ("FDIC"). For more information about North Valley and North Valley Bank, please visit www.nvboh.com.
Cautionary Statement Regarding Forward-Looking Information
This release contains forward-looking statements with respect to the expected closing of the transaction and North Valley Bank's intention for the branches made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: the ability of North Valley Bank to obtain regulatory approval of the transaction; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to banks; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; and changes in market, economic, operational, liquidity, credit and interest rate risks associated with the businesses of Ohio Valley and North Valley. Neither Ohio Valley nor North Valley undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release.
Ohio Valley Banc Corp. Investor Relations Contact:
Scott Shockey, Senior Vice President and CFO, (740) 446-2631, [email protected]
North Valley Bancshares, Inc. Investor Relations Contact:
Jim Nicholson, President and CEO, (740) 450-2265, [email protected],
SOURCE Ohio Valley Banc Corp.