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Ohio Valley Banc Corp. Reports Q1 2025 Earnings

Ohio Valley Banc Corp. [Nasdaq: OVBC] has reported an impressive financial performance for the first quarter of 2025. The consolidated net income for the quarter ending March 31, 2025, reached $4,406,000. This figure represents a 57.8% increase, or $1,613,000, compared to the same period the previous year. With earnings per share rising to $0.94, up from $0.58 in Q1 2024, the bank underscores its successful strategies.

Larry Miller, President and CEO of Ohio Valley Banc Corp., characterized the company's strong start to 2025 as a result of astute organisational decisions. He emphasized the combination of growth in earning assets, improvements in net interest margins, and a focused approach to controlling expenses as key contributors to enhanced shareholder value.

Between January and March 2025, net interest income saw a notable increase of $1,950,000, driven by the growth in average earning assets and the net interest margin expansion. Specifically, average earning assets rose by $136 million, largely attributed to a $96 million growth in average securities and a $68 million hike in average loans, facilitating improved profitability.

The notable increase in average securities was linked to Ohio Valley Banc's participation in the state-sponsored Ohio Homebuyer Plus program, launched in the third quarter of 2024. This initiative introduced the Sweet Home Ohio deposit account, offering competitive interest rates to help potential homeowners achieve savings goals. By the end of Q1 2025, balances in these accounts totaled $7.7 million, supplemented by $82 million deposited by the Ohio Treasurer.

In addition to growing revenue from securities, the bank’s focus on commercial and residential real estate lending played a pivotal role in driving loan growth. Although this expansion was somewhat balanced by a drop in consumer loan volumes—largely downsized to focus on more lucrative segments—the strategic shifts made since 2024 have yielded returns.

The bank has managed a 3.85% net interest margin, up from 3.61% the previous year, showcasing the successful transition to lower-cost funding sources, thus enhancing profitability. All aspects of the operational strategy, from the growth of loans to managing the costs associated with funding, bolstered results significantly.

On the expense side, noninterest income totaled $3,646,000, slightly down from the prior year's figure, and noninterest expenses increased marginally to $10,818,000. Notably, salaries and employee benefits decreased, reflecting cost savings from a voluntary retirement initiative implemented earlier. However, there were increases in processing costs due to a rise in transaction volumes and costs associated with a new rewards program.

As of March 31, 2025, total assets amounted to $1.513 billion, reflecting steady growth. This increase mainly stemmed from raised balances at the Federal Reserve while total loans and securities saw minor retreats. Noteworthy is a $12 million organic growth in the targeted areas of commercial and residential real estate, showing stakeholder confidence in the bank’s strategic direction.

Ohio Valley Banc Corp. concludes this quarter with positive outlooks on net income, further bolstered by significant equity increases and available resources for continued growth. These results validate the effective strategic initiatives undertaken by the bank’s management team, reiterating their commitment to enhancing shareholder value and operational performance.

To learn more about Ohio Valley Banc Corp. and their ongoing initiatives, visit www.ovbc.com.