Oak Hill Financial Revises Earnings Estimate for 2005
20 Mai 2005 - 5:10AM
PR Newswire (US)
Oak Hill Financial Revises Earnings Estimate for 2005 JACKSON,
Ohio, May 19 /PRNewswire-FirstCall/ -- Oak Hill Financial, Inc.
(NASDAQ:OAKF) announced today that it was revising its earnings
estimate for the full year 2005 to a range of $1.80 to $2.00 per
share. The revision is due primarily to a $4.3 million increase in
the provision for loan losses. In addition, the company's loan
volume has been impacted by market conditions and a tightening of
its credit standards. In its April 14, 2005 release, Oak Hill
Financial noted that it had several large loans that had the
potential to move to nonperforming status and/or result in
charge-offs. In response to recent deterioration in some of these
loans, management completed a comprehensive re-evaluation of its
commercial, commercial real estate, and residential mortgage loan
portfolios. This review led the company to pursue an aggressive
course for resolving the issues that were identified, including the
losses reported here. The largest component of the increase in
provision expense, $2.0 million, resulted from losses on three
commercial real estate loans to the same borrower. The remainder
was due to losses on various commercial, commercial real estate
loans, and residential mortgage loans and increasing the company's
loan loss reserve from 1.29% at March 31, 2004 to 1.32% on May 19,
2005. "We continue to focus on improving our credit quality," said
R.E. Coffman, Jr., President and CEO of Oak Hill Financial. "With
these actions we believe that we have identified and addressed the
significant losses in the portfolio." "We have a solid plan to
improve our earnings that includes cost-saving and
revenue-enhancement initiatives," Coffman added. "Oak Hill
Financial has a strong history of earnings growth and increasing
shareholder value. While we are not pleased with the current
charge-offs, we are confident that the steps we are taking will
keep us on our positive long-term path." In addition to the loan
losses, several larger credits have recently moved to nonperforming
status. The largest of these is a group of commercial real estate
loans totaling $5.4 million that are part of the same relationship
as the $2.0 million loss referenced previously. Management believes
that further losses on this relationship will be minimal. Another
commercial real estate loan of $3.35 million has also become
nonperforming; however, no loss is anticipated on this loan. At May
19, 2005, Oak Hill Financial's non-performing assets/total assets
and nonperforming loans/total loans ratios stood at 1.59% and
1.43%, respectively. Coffman further noted that Oak Hill Financial
has 154,000 shares remaining on its current stock repurchase
program. "With our Ripley National Bank and Lawrence Financial
Holdings acquisitions behind us, you can expect us to again be
active in buying in our shares, which should have a positive impact
on our earnings per share and return on equity," he said. Oak Hill
Financial is a financial holding company headquartered in Jackson,
Ohio. Oak Hill Banks operates 33 full-service banking offices and
three bank loan production offices in 15 counties across southern
and central Ohio. A second subsidiary, Oak Hill Financial Insurance
Agency, provides group health plans and other insurance services to
private and public-sector organizations throughout the same region.
The company also holds 49% of Oak Hill Title Agency, LLC, which
provides title services for commercial and residential real estate
transactions. 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.
DATASOURCE: Oak Hill Financial, Inc. CONTACT: David G. Ratz,
Executive Vice President of Oak Hill Financial, Inc.,
+1-740-286-3283
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