Ohio Valley Banc Corp. Reports 3rd Quarter Earnings

Ohio Valley Banc Corp. [Nasdaq: OVBC] (the “Company”) reported consolidated net income for the quarter ended September 30, 2025, of $3,030,000, an increase of $311,000, or 11.4%, from the same period the prior year. Earnings per share for the third quarter of 2025 were $.64 compared to $.58 for the prior year third quarter. For the nine months ended September 30, 2025, net income totaled $11,646,000, an increase of $3,162,000, or 37.3%, from the same period the prior year. Earnings per share were $2.47 for the first nine months of 2025 versus $1.79 for the first nine months of 2024. Return on average assets and return on average equity were 1.03% and 9.95%, respectively, for the first nine months of 2025, compared to .81% and 7.80%, respectively, for the same period in the prior year.

Ohio Valley Banc Corp. President and CEO, Larry Miller said, “The strong growth in net income afforded us the opportunity to harvest some losses in our securities portfolio, allowing us to plant the seeds for future interest income and net interest margin improvement. These robust results are a credit to the hard work and relationship building efforts of all our employees as we seek to enhance shareholder value.”

For the three months ended September 30, 2025, net interest income increased $2,016,000, and for the nine months ended September 30, 2025, net interest income increased $6,538,000 from the same respective periods last year. These increases were related to the increase in both average earning assets and the net interest margin for the respective periods. For the nine months ended September 30, 2025, average earning assets increased $114 million from the same period last year, led by the $75 million growth in average securities and the $65 million growth in average loans. The growth in average securities was related to the Company participating in a program offered by the Ohio Treasurer called OhioHomebuyer Plus starting in the third quarter of 2024. As a participant in the program, the Company developed the Sweet Home Ohio deposit account to offer participants an above-market interest rate along with a deposit bonus to assist customers in achieving their home savings goals. At September 30, 2025, the balance of Sweet Home Ohio accounts totaled $9.0 million, as compared to $5.3 million at September 30, 2024. For each Sweet Home Ohio account that was opened, the Company received a deposit from the Ohio Treasurer at a subsidized interest rate. At September 30, 2025, the amount deposited by the Treasurer totaled $72.5 million, a decrease from $99.6 million at September 30, 2024. Since the Treasurer deposits are classified as public funds, which are required to be collateralized, the Company invested the funds in securities to be pledged as collateral to the Treasurer. The investment of these funds was the primary contributor to the increase in securities from the first nine months of 2024. The growth in average loans was related to the commercial real estate, commercial and industrial, and residential real estate lending segments. The growth in these segments was partially offset by a decrease in consumer loans, as this segment was deemphasized by the Company starting in 2024 to focus on more profitable portfolio segments. For the same period, the average balance of cash maintained at the Federal Reserve decreased $26 million to assist with funding loan growth and to generate a higher rate of return. Most of the growth in other funding sources occurred in average NOW, money market accounts, and savings accounts which increased $85 million from the first nine months of 2024. A large portion of this growth was related to the Ohio Treasurer's matching funds received for the Ohio Homebuyer Plus program along with the deposits made to the Sweet Home Ohio account. Based on the growth in these lower-cost deposits, the average growth in higher-cost certificates of deposit was limited to $19 million for the first nine months of 2025 versus the same period last year.

For the third quarter of 2025, the net interest margin was 4.05%, an increase from 3.76% for the third quarter of 2024. For the nine months ended September 30, 2025, the net interest margin was 4.03%, an increase from 3.71% for the same period last year. The increase in the net interest margin was related to the yield on earning assets increasing, while the cost of funding sources decreased. The yield on earning assets improved in relation to the growth in higher yielding securities and loans, along with the recognition of a market discount on purchased loans totaling $817,000 during the second quarter. The cost of funding sources decreased as the composition of funding sources shifted to lower cost deposit sources, such as, NOW, money market, and savings accounts. Furthermore, the average cost of certificates of deposit decreased as higher costing certificates repriced to lower current market rates.

For the three months ended September 30, 2025, the provision for credit loss expense totaled $1,112,000, an increase of $192,000 from the same period last year. The quarterly provision for credit loss expense was primarily associated with the $29 million quarterly increase in loan balances, the quarter-to-date net charge-offs of $369,000, and the increase in a certain qualitative risk factor. For the nine months ended September 30, 2025, the provision for credit losses was $2,676,000, an increase of $824,000 from the same period last year. The year-to-date provision for credit loss expense was primarily associated with net charge-offs of $1,109,000, loan growth of $69 million, an increase in modeled loss rates due to the regression in GDP and unemployment projections, and the qualitative risk factor mentioned above. The ratio of nonperforming loans to total loans was .42% at September 30, 2025, compared to .46% at December 31, 2024, and .44% at September 30, 2024. The allowance for credit losses was 1.01% of total loans at September 30, 2025, compared to .95% at December 31, 2024, and .95% at September 30, 2024.

For the three and nine months ended September 30, 2025, noninterest income decreased $1,106,000 and $1,009,000, respectively, from the same periods last year. The decreases were largely due to the loss on the sale of securities, which increased $1,219,000 from the same periods the prior year. During the third quarter of 2025, the Company sold $11.0 million in securities that were yielding 1.32%. The proceeds were reinvested into securities yielding 4.37%, which will increase future interest income and the net interest margin. Partially offsetting the security losses was interchange income earned on debit and credit cards, which increased $91,000 and $151,000 during the three and nine months ended September 30, 2025, compared to the same periods from 2024, respectively.

For the three months ended September 30, 2025, noninterest expense totaled $11,489,000, an increase of $269,000 from the same period last year. For the nine months ended September 30, 2025, noninterest expense totaled $33,356,000, an increase of $532,000, or only 1.6%, from the same period last year. The Company's largest noninterest expense, salaries and employee benefits, decreased $229,000 as compared to the third quarter of 2024, and decreased $376,000 as compared to the first nine months of 2024. The decreases were primarily related to the savings realized from the voluntary early retirement program implemented in 2024, which was partially offset by annual merit increases. Higher noninterest expense came primarily from data processing expense, which increased $114,000 during the third quarter of 2025, and $413,000 during the first nine months of 2025, compared to the same periods from 2024. Higher costs in this category were related to debit and credit card processing due to higher transaction volume and conversion costs for the Company's new rewards platform. Further contributing to higher noninterest expense was marketing expense. For the three and nine months ended September 30, 2025, marketing expense increased $52,000 and $164,000, respectively, from the same periods last year. The increase was primarily related to advertising and costs associated with supporting the communities we serve.

The Company's total assets at September 30, 2025 were $1.570 billion, an increase of $67 million from December 31, 2024. Since December 31, 2024, loan balances increased $69 million despite a $31 million decrease in a warehouse line of credit extended to another mortgage lender. The paydown occurred in the first quarter of 2025 and was a result of lower mortgage volume due to higher mortgage rates and the increase in the lead bank's internal capacity in relation to a capital infusion. At September 30, 2025, the balance of this line of credit was $0, but draw downs on the line of credit began again post quarter end. The future balance of the line of credit will depend on mortgage volume and the funding needs of the lead bank, but it is expected to increase. The growth in loans occurred mostly in the targeted areas of commercial real estate, commercial and industrial, and residential real estate. The growth in these segments was partially offset by a decrease in consumer loans, as this segment has been deemphasized by the Company due to profitability relative to other loan portfolio segments. The increase in loans was primarily funded by a $57 million increase in total deposits, led by time deposits. At September 30, 2025, shareholders' equity increased $14.1 million from year end 2024. This was primarily from year-to-date net income of $11.6 million and an increase in accumulated other comprehensive income of $5.6 million, partially offset by cash dividends paid of $3.2 million. The increase in accumulated other comprehensive income was related to the $4.7 million, net of tax, market appreciation of securities due to a decrease in market interest rates and the recognition of a $950,000, net of tax, realized loss on the sale of securities that was previously unrealized.

Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns The Ohio Valley Bank Company with 18 offices in Ohio and West Virginia, and Loan Central, Inc. with six consumer finance offices in Ohio. Learn more about Ohio Valley Banc Corp. at www.ovbc.com.

Caution Regarding Forward-Looking Information

Certain statements contained in this earnings release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “expects,” “appears,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including: (i) changes in political, economic or other factors, such as inflation rates, recessionary or expansive trends, taxes, the effects of implementation of federal legislation with respect to taxes, tariffs and government spending and the continuing economic uncertainty in various parts of the world; (ii) competitive pressures; (iii) fluctuations in interest rates; (iv) the level of defaults and prepayment on loans made by the Company; (v) unanticipated litigation, claims, or assessments; (vi) fluctuations in the cost of obtaining funds to make loans; (vii) regulatory changes; and (viii) other factors that may be described in the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events.

OHIO VALLEY BANC CORP – Financial Highlights (Unaudited) Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 PER SHARE DATA Earnings per share $ 0.64 $ 0.58 $ 2.47 $ 1.79 Dividends per share $ 0.23 $ 0.22 $ 0.68 $ 0.66 Book value per share $ 34.90 $ 32.30 $ 34.90 $ 32.30 Dividend payout ratio (a) 35.76% 38.12% 27.51% 37.03% Weighted average shares outstanding 4,711,001 4,711,001 4,711,001 4,745,489 DIVIDEND REINVESTMENT (in 000's) Dividends reinvested under employee stock ownership plan (b) $ – $ – $ 195 $ 202 Dividends reinvested under dividend reinvestment plan (c) $ 327 $ 374 $ 1,039 $ 1,156 PERFORMANCE RATIOS Return on average equity 7.44% 7.39% 9.95% 7.80% Return on average assets 0.78% 0.75% 1.03% 0.81% Net interest margin (d) 4.05% 3.76% 4.03% 3.71% Efficiency ratio (e) 69.70% 72.01% 65.52% 72.27% Average earning assets (in 000's) $ 1,443,534 $ 1,345,481 $ 1,416,815 $ 1,302,630 (a) Total dividends paid as a percentage of net income. (b) Shares may be purchased from OVBC and on secondary market. (c) Shares may be purchased from OVBC and on secondary market. (d) Fully tax-equivalent net interest income as a percentage of average earning assets. (e) Noninterest expense as a percentage of fully tax-equivalent net interest income plus noninterest income. OHIO VALLEY BANC CORP – Consolidated Statements of Income (Unaudited) Three months ended Nine months ended (in $000's) September 30, September 30, 2025 2024 2025 2024 Interest income: Interest and fees on loans $ 18,659 $ 16,694 $ 53,338 $ 48,074 Interest and dividends on securities 2,325 1,921 7,020 4,014 Interest on interest-bearing deposits with banks 563 790 2,028 3,653 Total interest income 21,547 19,405 62,386 55,741 Interest expense: Deposits 6,442 6,245 18,563 18,246 Borrowings 508 579 1,551 1,761 Total interest expense 6,950 6,824 20,114 20,007 Net interest income 14,597 12,581 42,272 35,734 Provision for (recovery of) credit losses 1,112 920 2,676 1,852 Noninterest income: Service charges on deposit accounts 823 810 2,266 2,266 Trust fees 84 99 287 304 Income from bank owned life insurance and annuity assets 236 237 719 688 Mortgage banking income 45 39 122 118 Electronic refund check/deposit fees 1 0 676 675 Debit / credit card interchange income 1,417 1,326 3,845 3,694 Loss on sale of securities (1,219) 0 (1,219) 0 Tax preparation fees 3 7 637 640 Other 358 336 909 866 Total noninterest income 1,748 2,854 8,242 9,251 Noninterest expense: Salaries and employee benefits 6,367 6,596 18,573 18,949 Occupancy 521 485 1,535 1,491 Furniture and equipment 346 327 1,034 987 Professional fees 515 510 1,515 1,503 Marketing expense 280 228 838 674 FDIC insurance 179 160 526 469 Data processing 934 820 2,828 2,415 Software 591 542 1,719 1,704 Other 1,756 1,552 4,788 4,632 Total noninterest expense 11,489 11,220 33,356 32,824 Income before income taxes 3,744 3,295 14,482 10,309 Income taxes 714 576 2,836 1,825 NET INCOME $ 3,030 $ 2,719 $ 11,646 $ 8,484 OHIO VALLEY BANC CORP – Consolidated Balance Sheets (Unaudited) (in $000's, except share data) September 30, December 31, 2025 2024 ASSETS Cash and noninterest-bearing deposits with banks $ 17,066 $ 15,704 Interest-bearing deposits with banks 72,250 67,403 Total cash and cash equivalents 89,316 83,107 Securities available for sale 260,765 268,120 Securities held to maturity, net of allowance for credit losses of $1 in 2025 and 2024 6,474 7,049 Restricted investments in bank stocks 5,007 5,007 Total loans 1,130,534 1,061,825 Less: Allowance for credit losses (11,420) (10,088) Net loans 1,119,114 1,051,737 Premises and equipment, net 20,774 21,229 Premises and equipment held for sale, net 492 507 Accrued interest receivable 5,509 4,805 Goodwill 7,319 7,319 Bank owned life insurance and annuity assets 42,595 42,048 Operating lease right-of-use asset, net 971 1,024 Deferred tax assets 6,056 7,218 Other assets 5,651 4,242 Total assets $ 1,570,043 $ 1,503,412 LIABILITIES Noninterest-bearing deposits $ 322,848 $ 322,383 Interest-bearing deposits 1,009,639 952,795 Total deposits 1,332,487 1,275,178 Other borrowed funds 36,024 39,740 Subordinated debentures 8,500 8,500 Operating lease liability 971 1,024 Allowance for credit losses on off-balance sheet commitments 817 582 Other liabilities 26,827 28,060 Total liabilities 1,405,626 1,353,084 SHAREHOLDERS' EQUITY Common stock ($1.00 stated value per share, 10,000,000 shares authorized; 5,490,995 shares issued) 5,491 5,491 Additional paid-in capital 52,321 52,321 Retained earnings 130,135 121,693 Accumulated other comprehensive income (loss) (4,837) (10,484) Treasury stock, at cost (779,994 shares) (18,693) (18,693) Total shareholders' equity 164,417 150,328 Total liabilities and shareholders' equity $ 1,570,043 $ 1,503,412

Contact: Scott Shockey, CFO (740) 446-2631

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