Oak Hill Financial Reports First Quarter 2001 Results

Apr 18, 2001, 01:00 ET from Oak Hill Financial, Inc.

    JACKSON, Ohio, April 18 /PRNewswire/ -- Oak Hill Financial, Inc.
 (Nasdaq: OAKF) today reported net earnings for the three months ended
 March 31, 2001 of $1,767,000, or $.35 per diluted share, which exceeded
 analysts' consensus estimate of $.32 per share (source: I/B/E/S as reported by
 nasdaq.com). The first quarter 2001 earnings compare to the $1,765,000, or
 $.33 per diluted share, in earnings that the company recorded for the quarter
 ended March 31, 2000.
     Oak Hill Financial's total assets increased 18.0% over the prior year,
 ending the first quarter of 2001 at $723.3 million as compared to $612.8
 million at March 31, 2000. Net loans at March 31, 2001 were $614.4 million, up
 17.0% from March 31, 2000.
     In reviewing the first quarter, Oak Hill Financial President and CEO John
 D. Kidd said, "We expected an upturn in earnings this year, and we are very
 pleased to report that we beat our own expectations for the first quarter.
 Last year, higher funding costs put a lot of pressure on the net interest
 margin and that hit earnings, particularly in the second half. With the steps
 we have taken internally and the lower interest rate environment, we saw a
 strong rebound in earnings in the first quarter. We are especially pleased
 that all of our affiliates -- Oak Hill Banks, Towne Bank, and Action Finance
 -- met or exceeded their earnings goals for the quarter."
     Looking forward, Kidd added, "We expect the upward trend in earnings to
 continue. Due to timing differences in the repricing of our assets and
 liabilities, we have not yet realized the full benefit of the decline in
 interest rates. The net interest margin should continue to improve in the
 second quarter as more of our higher-cost liabilities reprice downward.
 Combined, the stronger margin and our continued growth should drive earnings
 higher."
 
     Key Issue Review and Outlook
     Net Interest Margin -- Net interest margin for the first quarter was
 3.99%, an increase from the 3.87% posted in the fourth quarter of 2000 and
 consistent with management's previously announced estimate that the margin
 would be at or above 3.95% for the first quarter. During the quarter,
 management made a concerted effort to restructure the company's funding as
 liabilities mature. Part of this effort has involved converting indexed
 deposit liabilities totaling approximately $70 million from quarterly to
 monthly repricing to more closely match the company's large portfolio of
 immediately adjustable loans. Also, the company has in excess of $220 million
 of time deposits maturing in the second and third quarters. With continued
 favorable repricing of both indexed and maturing time deposits expected
 through at least the third quarter, management believes that the margin will
 continue to improve. Prior to the change in interest rates announced by the
 Federal Reserve earlier today, management was anticipating that the net
 interest margin for the second quarter would be at or above 4.08%. However,
 the impact of today's rate change has not been fully evaluated and could
 materially impact this projection.
     Stock Repurchase -- On April 11, 2000, Oak Hill Financial announced its
 intention to repurchase approximately 320,000 of its outstanding shares. The
 program, which was originally authorized through December 31, 2000, was
 extended by the company until June 30, 2001 or until the entire amount of
 shares authorized was repurchased, whichever was earlier. The buyback was
 completed in the first quarter, with a total of 326,620 shares repurchased
 over the course of the program.
     Operating Expenses -- Non-interest expense was 2.53% of average assets for
 the first quarter of 2001, as compared to 2.51% for the first quarter of 2000.
 Management now anticipates that the non-interest expense ratio for the entire
 year 2001 will range from 2.35% to 2.45%.
     Non-Interest Income -- Non-interest income, excluding gain on sale of
 loans, was $736,000 in the first quarter, an increase of 31.4% over the first
 quarter of 2000. The growth in non-interest income continues to result from
 increases in certain fees and charges, aggressive collection of existing
 service charges, and cross-sales of additional fee-producing services. In the
 next quarter, the company will be introducing new and expanded fee-producing
 commercial banking products to meet market demands and generate additional fee
 income.
     Gain on Sale of Loans -- The company's gain on sale of loans from
 secondary market mortgage origination increased 124.6% in the first quarter of
 2001 as compared to the first quarter of 2000. Traditionally a strength for
 the company, the gain on sale of loans reached a nadir in 2000 as higher
 mortgage rates effectively quashed the demand for refinancings, and the
 company's mortgage origination efforts were redirected to adjustable-rate
 portfolio loans. The lower interest rate environment that emerged in the first
 quarter of 2001 has created the opportunity for the company to again focus its
 efforts on fixed-rate mortgage origination, with the result being a
 significant increase in secondary market lending. Demand for mortgages remains
 strong in the company's market areas, and management believes that it has the
 resources and experienced personnel in place to take advantage of increased
 demand for refinancings and other fixed-rate mortgage loans. As a result,
 management expects continued increases in the gain on sale of loans.
     Asset Quality -- The nonperforming loans/total loans and nonperforming
 assets/total assets ratios at the end of the first quarter were 0.82% and
 0.72%, respectively, which is an increase over the prior quarter. Of the
 nonperforming loan ratio, a borrower with three commercial real estate loans
 represents approximately 0.25% of the total. These loans are currently in
 foreclosure, and management believes that the potential loss, if any, on these
 loans will be less than $300,000. Of the remaining nonperforming loans, a
 single commercial real estate loan that is also in foreclosure accounts for
 another 0.23% of the nonperforming loan ratio. Management believes that the
 company is very well-secured on this loan, and no charge-off or write-down is
 expected. Net charge-offs (non-annualized) in the first quarter were 0.02% of
 total loans, as compared to 0.06% in the fourth quarter of 2000. To mitigate
 potential loan losses, including those on the first nonperforming loan
 mentioned above, the company took a loan loss provision in the first quarter
 of 2001 sufficient to increase the allowance for losses on loans from 1.19% at
 December 31, 2000 to 1.22% at March 31, 2001. In light of industry-wide
 concerns about credit quality in the current economic environment, management
 intends to maintain the allowance at or above 1.20% throughout the year, with
 appropriate adjustments to be made should any further changes in credit
 quality occur.
     Overall Strategy -- Oak Hill Financial will continue to pursue adjustable-
 rate commercial loans, commercial real estate loans and residential mortgage
 loans; fixed-rate residential mortgage loans for sale in the secondary market;
 and consumer loans. Consistent with earlier announcements, management still
 believes that commercial and commercial real estate loans hold the greatest
 potential for growth and margin improvement within its bank subsidiaries, and
 the company's emphasis will be on these products.
     Asset/Loan Growth -- As previously released, the company's objectives for
 2001 call for approximately 12% growth in loans and assets. Growth in loans
 and assets from December 31, 2000 to March 31, 2001 was 3.4% and 4.2% (non-
 annualized), respectively. As the company has traditionally achieved its
 highest loan growth in the second through fourth quarters, management believes
 that the 12% target can be met or exceeded while still improving credit
 quality and achieving the company's net interest margin and earnings
 objectives.
     Expansion -- During the first quarter, the company's Action Finance
 subsidiary opened new consumer finance offices in Circleville and Gallipolis,
 Ohio. No further Action Finance offices are planned in 2001. On April 2, the
 Oak Hill Banks subsidiary opened a full-service branch banking office in
 Logan, Ohio. The decision to pursue the Logan branch was driven by the success
 of the bank's loan production office in that community. In the second quarter,
 Oak Hill Banks expects to relocate its successful loan production office in
 Franklin County, Ohio from the suburban community of Groveport to a new
 facility currently under construction in downtown Columbus. Oak Hill Banks is
 also evaluating locations for a new loan production office to be opened later
 in 2001.
     Estimates -- Management has reiterated its previously released estimate
 that earnings per share for 2001 will be in the range of $1.40 to $1.50 per
 share. Earnings per share for the second quarter of 2001 are expected to be in
 the range of $0.36 to $0.38.
     Oak Hill Financial is a community bank holding company headquartered in
 Jackson, Ohio. Its subsidiaries, Oak Hill Banks, Towne Bank, and Action
 Finance Company, operate 24 full-service banking offices, two bank loan
 production offices, and six consumer finance offices in 15 counties across
 southern Ohio.
 
     Forward-Looking Statements Disclosure
     This release contains certain forward-looking statements related to the
 future performance and condition of Oak Hill Financial, Inc. These statements,
 which are subject to numerous risks and uncertainties, are presented in good
 faith based on the company's current condition and management's understanding,
 expectations, and assumptions regarding its future prospects as of the date of
 this release. Actual results could differ materially from those projected or
 implied by the statements contained herein. The factors that could affect the
 company's future results are set forth in the periodic reports and
 registration statements filed by the company with the Securities and Exchange
 Commission.
 
                                                        At or for the
                                                 three months ended March 31,
                                                     2001              2000
                                                          (unaudited)
 
     SUMMARY OF FINANCIAL CONDITION
 
     Total assets                                  $723,289          $612,751
     Interest-bearing deposits
         and federal funds sold                       5,880             2,412
     Investment securities                           69,627            54,686
     Loans receivable -- net                        614,414           524,897
     Deposits                                       581,938           497,055
     Federal Home Loan Bank
         advances and other borrowings               86,200            63,581
     Stockholders' equity                            50,597            48,984
 
 
     SUMMARY OF OPERATIONS
 
     Interest income                                 15,135            12,402
     Interest expense                                 8,423             6,242
         Net interest income                          6,712             6,160
 
     Provision for losses on loans                      567               360
 
         Net interest income after
         provision for losses on loans                6,145             5,800
 
     Gain on sale of loans                              137                61
     Other non-interest income                          736               560
     General, administrative and other                4,383             3,771
 
         Earnings before federal income
          taxes                                       2,635             2,650
 
     Federal income taxes                               868               885
 
     Net earnings                                    $1,767            $1,765
 
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                       2001              2000
                                                             (unaudited)
 
     PER SHARE INFORMATION
 
     Basic earnings per share (a)                     $0.35              $0.33
     Diluted earnings per share (a)                   $0.35              $0.33
     Dividends per share (a)                          $0.11              $0.10
     Book value per share                            $10.03              $9.18
 
 
     OTHER STATISTICAL AND OPERATING DATA (b)
 
     Return on average assets                          1.02%              1.18%
     Return on average equity                         14.15%             14.67%
     Net interest margin                               3.99%              4.24%
     General, administrative and other
      expense to average assets                        2.53%              2.51%
     Total allowance for losses on loans
      to nonperforming loans                         149.80%            159.59%
     Total allowance for losses on loans
      to total loans                                   1.22%              1.17%
     Nonperforming loans to total loans                0.82%              0.73%
     Nonperforming assets to total assets              0.72%              0.67%
     Net charge-offs to average loans
      (actual for period)                              0.02%              0.07%
     Net charge-offs to average loans
      (annualized)                                     0.10%              0.27%
     Equity to assets at period end                    7.00%              7.99%
     Dividend payout ratio                            31.43%             30.24%
 
 
     (a) Based on 5,090,761 and 5,331,888 weighted-average shares outstanding
         for the three month period ended March 31, 2001 and 2000,
         respectively.
 
     (b) Annualized where appropriate.
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                     2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL
 
     BALANCE SHEET - ASSETS
 
     Cash and cash equivalents                       18,351             12,408
     Trading account securities                         -                  -
     Securities available for sale                   64,680             54,686
     Held to maturity securities                      4,947                -
     Other securities                                 5,070              4,423
     Total securities                                74,697             59,109
     Total cash and securities                       93,048             71,517
     Loans and leases held for investment (a)       619,572            530,063
     Loans and leases held for sale (a)               1,489                  -
     Total loans and leases (a)                     621,061            530,063
     Reserve for losses on loans                      7,618              6,196
     Goodwill                                           241                275
     Other intangibles                                    -                  -
     Total intangible assets                            241                275
     Mortgage servicing rights                          971              1,030
     Purchased credit card relationships                  -                  -
     Other real estate owned                            102                249
     Other assets                                    15,484             15,813
     Total assets                                   723,289            612,751
 
     BALANCE SHEET - LIABILITIES
 
     Deposits                                       581,938            497,055
     Borrowings                                      81,200             58,581
     Other liabilities                                4,554              3,131
     Total liabilities                              667,692            558,767
     Redeemable preferred stock                           -                  -
     Trust preferred securities                       5,000              5,000
     Minority interest                                    -                  -
     Other mezzanine level items                          -                  -
     Total mezzanine level items                      5,000              5,000
     Total liabilities and mezzanine                672,692            563,767
 
     (a) Data is net of discount, gross of reserve.
 
 
                                                           At or for the
                                                  three months ended March 31,
                                                      2001              2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     BALANCE SHEET - EQUITY
 
     Preferred equity                                     -                 -
     Common equity                                   50,597            48,984
     MEMO ITEM: Net unrealized gain (loss)
      on securities held for sale (FASB
      115 adjustment)                                   379            (1,721)
     EOP shares outstanding (a)                   5,043,044         5,337,101
     Options outstanding                            703,063           606,876
     Treasury shares held by company                377,520            50,900
 
     Repurchase plan announced?               Completed during
                                                    quarter                No
     # of shares repurchased in plan                326,620               N/A
     # of shares repurchased during period           73,050               N/A
     Average price of repurchased shares             $14.11               N/A
 
     INCOME STATEMENT
 
     Interest income                                 15,135            12,402
     Interest expense                                 8,423             6,242
     Net interest income                              6,712             6,160
     Net interest income (FTE)                        6,770             6,189
     Provision for loan losses                          567               360
     Nonrecurring income                                  -                 -
     Nonrecurring expense                                 -                 -
 
     Trading account income                               -                 -
     Foreign exchange income                              -                 -
     Trust revenue                                        -                 -
     Service charges on deposits                        461               300
     Gain on sale of loans                              137                61
     Gain (loss) on investment securities
      transactions                                       (4)              -
     Other noninterest income                           279               260
     Total noninterest income                           873               621
 
     (a) Excludes treasury shares.
 
 
                                                            At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                             (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     INCOME STATEMENT (CONTINUED)
 
     Employee compensation and benefits
      expense                                         2,726              2,196
     Occupancy and equipment expense                    512                465
     Foreclosed property expense                          -                  -
     Amortization of intangibles                          8                  8
     Other general, administrative and
      other expense                                   1,137              1,102
     Total noninterest expense                        4,383              3,771
     Net income before taxes                          2,635              2,650
     Tax provision                                      868                885
     Net income before extraordinary
      items                                           1,767              1,765
     Extraordinary and after-tax items                    -                  -
     Net income                                       1,767              1,765
 
     CHARGEOFFS
 
     Loan chargeoffs                                    243                396
     Recoveries on loans                                 98                 46
     Net loan chargeoffs                                145                350
 
     AVERAGE BALANCE SHEET
 
     Average loans and leases                       613,365            521,676
     Average other earning assets                    69,626             62,750
     Average total earning assets                   682,991            584,426
     Average total assets                           702,778            603,945
     Average total time deposits                    375,135            318,099
     Average other interest-bearing
      deposits                                      148,073            129,526
     Average total interest-bearing
      deposits                                      523,208            447,625
     Average borrowings                              80,804             58,997
     Average interest-bearing liabilities           604,012            506,622
     Average preferred equity                             -                  -
     Average common equity                           50,672             48,380
 
 
                                                         At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     ASSET QUALITY AND OTHER DATA
 
     Nonaccrual loans                                 4,751              3,221
     Renegotiated loans                                   -                  -
     Other real estate owned                            102                249
     Total nonperforming assets                       4,853              3,470
     Loans 90+ days past due and still
      accruing                                          334                651
     NPAs plus loans over 90 days
      delinquent                                      5,187              4,121
 
     ADDITIONAL DATA
 
     1-4 Family mortgage loans serviced
      for others                                    119,206            116,614
     Proprietary mutual fund balances                     -                  -
     Held to maturity securities (fair
      value)                                          4,912                -
     EOP employees (FTE)                                292                261
     Total number of full-service banking
      offices                                            24                 22
     Total number of bank and thrift
      subsidiaries                                        2                  2
     Total number of ATMs                                25                 19
 
     LOANS RECEIVABLE
 
     Real estate                                    233,373            226,099
     Commercial real estate                         216,104            158,746
     Commercial and other                            83,155             67,322
     Consumer                                        89,184             78,986
     Credit cards                                     1,429              1,356
          Loans - gross                             623,245            532,509
     Unearned interest                               (2,184)            (2,446)
          Loans - net of unearned
           interest                                 621,061            530,063
     Reserve for loan losses                         (7,618)            (6,196)
          Loans - net(a)                            613,443            523,867
 
     (a) Does not include mortgage
      servicing assets.
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     DEPOSITS
 
     Non-interest bearing                            44,179             51,975
     Core interest bearing                          416,492            356,420
     Non-core interest bearing                      121,287             88,660
          Total deposits                            581,958            497,055
 
 
     Yield/average earning assets                      8.99%              8.54%
     Cost/average earning assets                       5.00%              4.30%
 
          Net interest margin                          3.99%              4.24%
 
 

SOURCE Oak Hill Financial, Inc.
    JACKSON, Ohio, April 18 /PRNewswire/ -- Oak Hill Financial, Inc.
 (Nasdaq: OAKF) today reported net earnings for the three months ended
 March 31, 2001 of $1,767,000, or $.35 per diluted share, which exceeded
 analysts' consensus estimate of $.32 per share (source: I/B/E/S as reported by
 nasdaq.com). The first quarter 2001 earnings compare to the $1,765,000, or
 $.33 per diluted share, in earnings that the company recorded for the quarter
 ended March 31, 2000.
     Oak Hill Financial's total assets increased 18.0% over the prior year,
 ending the first quarter of 2001 at $723.3 million as compared to $612.8
 million at March 31, 2000. Net loans at March 31, 2001 were $614.4 million, up
 17.0% from March 31, 2000.
     In reviewing the first quarter, Oak Hill Financial President and CEO John
 D. Kidd said, "We expected an upturn in earnings this year, and we are very
 pleased to report that we beat our own expectations for the first quarter.
 Last year, higher funding costs put a lot of pressure on the net interest
 margin and that hit earnings, particularly in the second half. With the steps
 we have taken internally and the lower interest rate environment, we saw a
 strong rebound in earnings in the first quarter. We are especially pleased
 that all of our affiliates -- Oak Hill Banks, Towne Bank, and Action Finance
 -- met or exceeded their earnings goals for the quarter."
     Looking forward, Kidd added, "We expect the upward trend in earnings to
 continue. Due to timing differences in the repricing of our assets and
 liabilities, we have not yet realized the full benefit of the decline in
 interest rates. The net interest margin should continue to improve in the
 second quarter as more of our higher-cost liabilities reprice downward.
 Combined, the stronger margin and our continued growth should drive earnings
 higher."
 
     Key Issue Review and Outlook
     Net Interest Margin -- Net interest margin for the first quarter was
 3.99%, an increase from the 3.87% posted in the fourth quarter of 2000 and
 consistent with management's previously announced estimate that the margin
 would be at or above 3.95% for the first quarter. During the quarter,
 management made a concerted effort to restructure the company's funding as
 liabilities mature. Part of this effort has involved converting indexed
 deposit liabilities totaling approximately $70 million from quarterly to
 monthly repricing to more closely match the company's large portfolio of
 immediately adjustable loans. Also, the company has in excess of $220 million
 of time deposits maturing in the second and third quarters. With continued
 favorable repricing of both indexed and maturing time deposits expected
 through at least the third quarter, management believes that the margin will
 continue to improve. Prior to the change in interest rates announced by the
 Federal Reserve earlier today, management was anticipating that the net
 interest margin for the second quarter would be at or above 4.08%. However,
 the impact of today's rate change has not been fully evaluated and could
 materially impact this projection.
     Stock Repurchase -- On April 11, 2000, Oak Hill Financial announced its
 intention to repurchase approximately 320,000 of its outstanding shares. The
 program, which was originally authorized through December 31, 2000, was
 extended by the company until June 30, 2001 or until the entire amount of
 shares authorized was repurchased, whichever was earlier. The buyback was
 completed in the first quarter, with a total of 326,620 shares repurchased
 over the course of the program.
     Operating Expenses -- Non-interest expense was 2.53% of average assets for
 the first quarter of 2001, as compared to 2.51% for the first quarter of 2000.
 Management now anticipates that the non-interest expense ratio for the entire
 year 2001 will range from 2.35% to 2.45%.
     Non-Interest Income -- Non-interest income, excluding gain on sale of
 loans, was $736,000 in the first quarter, an increase of 31.4% over the first
 quarter of 2000. The growth in non-interest income continues to result from
 increases in certain fees and charges, aggressive collection of existing
 service charges, and cross-sales of additional fee-producing services. In the
 next quarter, the company will be introducing new and expanded fee-producing
 commercial banking products to meet market demands and generate additional fee
 income.
     Gain on Sale of Loans -- The company's gain on sale of loans from
 secondary market mortgage origination increased 124.6% in the first quarter of
 2001 as compared to the first quarter of 2000. Traditionally a strength for
 the company, the gain on sale of loans reached a nadir in 2000 as higher
 mortgage rates effectively quashed the demand for refinancings, and the
 company's mortgage origination efforts were redirected to adjustable-rate
 portfolio loans. The lower interest rate environment that emerged in the first
 quarter of 2001 has created the opportunity for the company to again focus its
 efforts on fixed-rate mortgage origination, with the result being a
 significant increase in secondary market lending. Demand for mortgages remains
 strong in the company's market areas, and management believes that it has the
 resources and experienced personnel in place to take advantage of increased
 demand for refinancings and other fixed-rate mortgage loans. As a result,
 management expects continued increases in the gain on sale of loans.
     Asset Quality -- The nonperforming loans/total loans and nonperforming
 assets/total assets ratios at the end of the first quarter were 0.82% and
 0.72%, respectively, which is an increase over the prior quarter. Of the
 nonperforming loan ratio, a borrower with three commercial real estate loans
 represents approximately 0.25% of the total. These loans are currently in
 foreclosure, and management believes that the potential loss, if any, on these
 loans will be less than $300,000. Of the remaining nonperforming loans, a
 single commercial real estate loan that is also in foreclosure accounts for
 another 0.23% of the nonperforming loan ratio. Management believes that the
 company is very well-secured on this loan, and no charge-off or write-down is
 expected. Net charge-offs (non-annualized) in the first quarter were 0.02% of
 total loans, as compared to 0.06% in the fourth quarter of 2000. To mitigate
 potential loan losses, including those on the first nonperforming loan
 mentioned above, the company took a loan loss provision in the first quarter
 of 2001 sufficient to increase the allowance for losses on loans from 1.19% at
 December 31, 2000 to 1.22% at March 31, 2001. In light of industry-wide
 concerns about credit quality in the current economic environment, management
 intends to maintain the allowance at or above 1.20% throughout the year, with
 appropriate adjustments to be made should any further changes in credit
 quality occur.
     Overall Strategy -- Oak Hill Financial will continue to pursue adjustable-
 rate commercial loans, commercial real estate loans and residential mortgage
 loans; fixed-rate residential mortgage loans for sale in the secondary market;
 and consumer loans. Consistent with earlier announcements, management still
 believes that commercial and commercial real estate loans hold the greatest
 potential for growth and margin improvement within its bank subsidiaries, and
 the company's emphasis will be on these products.
     Asset/Loan Growth -- As previously released, the company's objectives for
 2001 call for approximately 12% growth in loans and assets. Growth in loans
 and assets from December 31, 2000 to March 31, 2001 was 3.4% and 4.2% (non-
 annualized), respectively. As the company has traditionally achieved its
 highest loan growth in the second through fourth quarters, management believes
 that the 12% target can be met or exceeded while still improving credit
 quality and achieving the company's net interest margin and earnings
 objectives.
     Expansion -- During the first quarter, the company's Action Finance
 subsidiary opened new consumer finance offices in Circleville and Gallipolis,
 Ohio. No further Action Finance offices are planned in 2001. On April 2, the
 Oak Hill Banks subsidiary opened a full-service branch banking office in
 Logan, Ohio. The decision to pursue the Logan branch was driven by the success
 of the bank's loan production office in that community. In the second quarter,
 Oak Hill Banks expects to relocate its successful loan production office in
 Franklin County, Ohio from the suburban community of Groveport to a new
 facility currently under construction in downtown Columbus. Oak Hill Banks is
 also evaluating locations for a new loan production office to be opened later
 in 2001.
     Estimates -- Management has reiterated its previously released estimate
 that earnings per share for 2001 will be in the range of $1.40 to $1.50 per
 share. Earnings per share for the second quarter of 2001 are expected to be in
 the range of $0.36 to $0.38.
     Oak Hill Financial is a community bank holding company headquartered in
 Jackson, Ohio. Its subsidiaries, Oak Hill Banks, Towne Bank, and Action
 Finance Company, operate 24 full-service banking offices, two bank loan
 production offices, and six consumer finance offices in 15 counties across
 southern Ohio.
 
     Forward-Looking Statements Disclosure
     This release contains certain forward-looking statements related to the
 future performance and condition of Oak Hill Financial, Inc. These statements,
 which are subject to numerous risks and uncertainties, are presented in good
 faith based on the company's current condition and management's understanding,
 expectations, and assumptions regarding its future prospects as of the date of
 this release. Actual results could differ materially from those projected or
 implied by the statements contained herein. The factors that could affect the
 company's future results are set forth in the periodic reports and
 registration statements filed by the company with the Securities and Exchange
 Commission.
 
                                                        At or for the
                                                 three months ended March 31,
                                                     2001              2000
                                                          (unaudited)
 
     SUMMARY OF FINANCIAL CONDITION
 
     Total assets                                  $723,289          $612,751
     Interest-bearing deposits
         and federal funds sold                       5,880             2,412
     Investment securities                           69,627            54,686
     Loans receivable -- net                        614,414           524,897
     Deposits                                       581,938           497,055
     Federal Home Loan Bank
         advances and other borrowings               86,200            63,581
     Stockholders' equity                            50,597            48,984
 
 
     SUMMARY OF OPERATIONS
 
     Interest income                                 15,135            12,402
     Interest expense                                 8,423             6,242
         Net interest income                          6,712             6,160
 
     Provision for losses on loans                      567               360
 
         Net interest income after
         provision for losses on loans                6,145             5,800
 
     Gain on sale of loans                              137                61
     Other non-interest income                          736               560
     General, administrative and other                4,383             3,771
 
         Earnings before federal income
          taxes                                       2,635             2,650
 
     Federal income taxes                               868               885
 
     Net earnings                                    $1,767            $1,765
 
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                       2001              2000
                                                             (unaudited)
 
     PER SHARE INFORMATION
 
     Basic earnings per share (a)                     $0.35              $0.33
     Diluted earnings per share (a)                   $0.35              $0.33
     Dividends per share (a)                          $0.11              $0.10
     Book value per share                            $10.03              $9.18
 
 
     OTHER STATISTICAL AND OPERATING DATA (b)
 
     Return on average assets                          1.02%              1.18%
     Return on average equity                         14.15%             14.67%
     Net interest margin                               3.99%              4.24%
     General, administrative and other
      expense to average assets                        2.53%              2.51%
     Total allowance for losses on loans
      to nonperforming loans                         149.80%            159.59%
     Total allowance for losses on loans
      to total loans                                   1.22%              1.17%
     Nonperforming loans to total loans                0.82%              0.73%
     Nonperforming assets to total assets              0.72%              0.67%
     Net charge-offs to average loans
      (actual for period)                              0.02%              0.07%
     Net charge-offs to average loans
      (annualized)                                     0.10%              0.27%
     Equity to assets at period end                    7.00%              7.99%
     Dividend payout ratio                            31.43%             30.24%
 
 
     (a) Based on 5,090,761 and 5,331,888 weighted-average shares outstanding
         for the three month period ended March 31, 2001 and 2000,
         respectively.
 
     (b) Annualized where appropriate.
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                     2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL
 
     BALANCE SHEET - ASSETS
 
     Cash and cash equivalents                       18,351             12,408
     Trading account securities                         -                  -
     Securities available for sale                   64,680             54,686
     Held to maturity securities                      4,947                -
     Other securities                                 5,070              4,423
     Total securities                                74,697             59,109
     Total cash and securities                       93,048             71,517
     Loans and leases held for investment (a)       619,572            530,063
     Loans and leases held for sale (a)               1,489                  -
     Total loans and leases (a)                     621,061            530,063
     Reserve for losses on loans                      7,618              6,196
     Goodwill                                           241                275
     Other intangibles                                    -                  -
     Total intangible assets                            241                275
     Mortgage servicing rights                          971              1,030
     Purchased credit card relationships                  -                  -
     Other real estate owned                            102                249
     Other assets                                    15,484             15,813
     Total assets                                   723,289            612,751
 
     BALANCE SHEET - LIABILITIES
 
     Deposits                                       581,938            497,055
     Borrowings                                      81,200             58,581
     Other liabilities                                4,554              3,131
     Total liabilities                              667,692            558,767
     Redeemable preferred stock                           -                  -
     Trust preferred securities                       5,000              5,000
     Minority interest                                    -                  -
     Other mezzanine level items                          -                  -
     Total mezzanine level items                      5,000              5,000
     Total liabilities and mezzanine                672,692            563,767
 
     (a) Data is net of discount, gross of reserve.
 
 
                                                           At or for the
                                                  three months ended March 31,
                                                      2001              2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     BALANCE SHEET - EQUITY
 
     Preferred equity                                     -                 -
     Common equity                                   50,597            48,984
     MEMO ITEM: Net unrealized gain (loss)
      on securities held for sale (FASB
      115 adjustment)                                   379            (1,721)
     EOP shares outstanding (a)                   5,043,044         5,337,101
     Options outstanding                            703,063           606,876
     Treasury shares held by company                377,520            50,900
 
     Repurchase plan announced?               Completed during
                                                    quarter                No
     # of shares repurchased in plan                326,620               N/A
     # of shares repurchased during period           73,050               N/A
     Average price of repurchased shares             $14.11               N/A
 
     INCOME STATEMENT
 
     Interest income                                 15,135            12,402
     Interest expense                                 8,423             6,242
     Net interest income                              6,712             6,160
     Net interest income (FTE)                        6,770             6,189
     Provision for loan losses                          567               360
     Nonrecurring income                                  -                 -
     Nonrecurring expense                                 -                 -
 
     Trading account income                               -                 -
     Foreign exchange income                              -                 -
     Trust revenue                                        -                 -
     Service charges on deposits                        461               300
     Gain on sale of loans                              137                61
     Gain (loss) on investment securities
      transactions                                       (4)              -
     Other noninterest income                           279               260
     Total noninterest income                           873               621
 
     (a) Excludes treasury shares.
 
 
                                                            At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                             (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     INCOME STATEMENT (CONTINUED)
 
     Employee compensation and benefits
      expense                                         2,726              2,196
     Occupancy and equipment expense                    512                465
     Foreclosed property expense                          -                  -
     Amortization of intangibles                          8                  8
     Other general, administrative and
      other expense                                   1,137              1,102
     Total noninterest expense                        4,383              3,771
     Net income before taxes                          2,635              2,650
     Tax provision                                      868                885
     Net income before extraordinary
      items                                           1,767              1,765
     Extraordinary and after-tax items                    -                  -
     Net income                                       1,767              1,765
 
     CHARGEOFFS
 
     Loan chargeoffs                                    243                396
     Recoveries on loans                                 98                 46
     Net loan chargeoffs                                145                350
 
     AVERAGE BALANCE SHEET
 
     Average loans and leases                       613,365            521,676
     Average other earning assets                    69,626             62,750
     Average total earning assets                   682,991            584,426
     Average total assets                           702,778            603,945
     Average total time deposits                    375,135            318,099
     Average other interest-bearing
      deposits                                      148,073            129,526
     Average total interest-bearing
      deposits                                      523,208            447,625
     Average borrowings                              80,804             58,997
     Average interest-bearing liabilities           604,012            506,622
     Average preferred equity                             -                  -
     Average common equity                           50,672             48,380
 
 
                                                         At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     ASSET QUALITY AND OTHER DATA
 
     Nonaccrual loans                                 4,751              3,221
     Renegotiated loans                                   -                  -
     Other real estate owned                            102                249
     Total nonperforming assets                       4,853              3,470
     Loans 90+ days past due and still
      accruing                                          334                651
     NPAs plus loans over 90 days
      delinquent                                      5,187              4,121
 
     ADDITIONAL DATA
 
     1-4 Family mortgage loans serviced
      for others                                    119,206            116,614
     Proprietary mutual fund balances                     -                  -
     Held to maturity securities (fair
      value)                                          4,912                -
     EOP employees (FTE)                                292                261
     Total number of full-service banking
      offices                                            24                 22
     Total number of bank and thrift
      subsidiaries                                        2                  2
     Total number of ATMs                                25                 19
 
     LOANS RECEIVABLE
 
     Real estate                                    233,373            226,099
     Commercial real estate                         216,104            158,746
     Commercial and other                            83,155             67,322
     Consumer                                        89,184             78,986
     Credit cards                                     1,429              1,356
          Loans - gross                             623,245            532,509
     Unearned interest                               (2,184)            (2,446)
          Loans - net of unearned
           interest                                 621,061            530,063
     Reserve for loan losses                         (7,618)            (6,196)
          Loans - net(a)                            613,443            523,867
 
     (a) Does not include mortgage
      servicing assets.
 
 
                                                          At or for the
                                                   three months ended March 31,
                                                      2001               2000
                                                           (unaudited)
     SUPPLEMENTAL DETAIL (CONTINUED)
 
     DEPOSITS
 
     Non-interest bearing                            44,179             51,975
     Core interest bearing                          416,492            356,420
     Non-core interest bearing                      121,287             88,660
          Total deposits                            581,958            497,055
 
 
     Yield/average earning assets                      8.99%              8.54%
     Cost/average earning assets                       5.00%              4.30%
 
          Net interest margin                          3.99%              4.24%
 
 SOURCE  Oak Hill Financial, Inc.