#United States #earnings report #Ohio Valley Bank #OVBC #Gallipolis

Ohio Valley Banc Corp. Reports Impressive 2nd Quarter Earnings

Ohio Valley Banc Corp. (Nasdaq: OVBC), headquartered in Gallipolis, Ohio, has announced robust earnings for the second quarter of 2025, revealing a compelling performance amidst a challenging financial landscape. The company reported a consolidated net income of $4,210,000 for the quarter ending June 30, 2025. This figure marks a41.7% increase, or $1,238,000 more than the net income recorded for the same period last year. The earnings per share surged to $0.89 compared to $0.63 for Q2 of 2024.

For the first half of 2025, Ohio Valley Banc's total net income soared to $8,616,000, a 49.5% uptick from the preceding year, reflecting continuous growth in profitability and strategic enhancements in their lending operations. The earnings per share for this period are now set at $1.83, up from $1.21 in the first half of 2024.

Larry Miller, President and CEO of Ohio Valley Banc Corp., attributes this financial success to the company’s proactive participation in the Ohio Homebuyer Plus Program along with its ongoing commitment to expanding commercial and real estate lending. He highlighted, “The strong growth in net income, combined with stable asset quality, is essential as we strive to deliver increased value to our shareholders.”

Key Performance Indicators

The financial report displays an increase in net interest income of $2,572,000 for Q2 2025, while the first half of the year saw an increase of $4,522,000 compared to the same periods in the previous year. The growth in income can be attributed to a rise in both average earning assets and improved net interest margins. In particular, average earning assets increased by $122 million, with a notable growth of $99 million in average securities and $60 million in average loans.

The Sweet Home Ohio deposit account, developed as part of the Ohio Homebuyer Plus program, attracted significant deposits totaling $8.4 million, with the Ohio Treasurer contributing $77 million in subsidized deposits. This initiative has played a crucial role in improving the asset quality and enhancing the balance sheet strength.

Conversely, the consumer lending segment saw a decline as the company strategically shifted its focus towards more profitable lending sections, such as commercial real estate and industrial loans.

Financial Ratios and Returns

The financial stability of Ohio Valley Banc is underscored by key ratios, with a return on average assets of 1.16% and a return on average equity of 11.30% during the first half of 2025. Compared to the previous year's figures of 0.84% and 8.01% respectively, these improvements illustrate the company’s enhancements in operational efficacy and financial management.

The net interest margin for Q2 2025 increased to 4.17%, compared to 3.74% in the same quarter of 2024. This growth in margin results from both improved yields on earning assets and decreasing costs associated with funding sources. The company’s strategic placement in low-cost deposit sources, such as NOW and money market accounts, facilitated this margin expansion.

Provision for Credit Losses and Noninterest Income

On the downside, the provision for credit loss expenses amounted to $1,148,000 in Q2 2025, a rise of $967,000 from the previous year. This increase aligns with the rise in loan balances and adjustment in modeled loss rates based on the current economic forecasts. Nonetheless, the ratio of nonperforming loans to total loans functioned favorably at 0.45% as of June 30, 2025.

On a positive note, noninterest income improved by $147,000 year-over-year for Q2, primarily driven by increases in debit and credit card interchange revenues. Total noninterest expense saw moderate growth, up by just 1.2% for the first half of 2025, reflecting careful management of operational costs.

Conclusion

Ohio Valley Banc Corp. is forging ahead with an optimistic outlook and robust financial health as it focuses on strategic growth opportunities. The company's active involvement in community initiatives and its commitment to shareholder value creation positions it favorably for future success. As these trends continue, OVBC remains dedicated to enhancing its financial services and expanding its market presence across Ohio and West Virginia.

For further details, stakeholders can visit Ohio Valley Banc Corp.'s official website for comprehensive financial reports and updates.