#United States #OVBC #Gallipolis #Ohio Valley Banc #Q3 Earnings

Ohio Valley Banc Corp. Reports Impressive Q3 Earnings

Ohio Valley Banc Corp. [Nasdaq: OVBC] has released its earnings report for the third quarter of 2025, revealing a consolidated net income of $3,030,000. This marks an impressive 11.4% increase, which is up $311,000 from the same quarter last year. The earnings per share for Q3 also rose to $0.64, compared to $0.58 in Q3 2024.

In the nine months preceding September 30, 2025, the bank achieved a net income of $11,646,000, a substantial jump of 37.3% or $3,162,000 from the same timeframe in 2024. Earnings per share for these nine months increased to $2.47 versus $1.79 last year. This strong performance is reflected in the company's return on average assets (ROA) of 1.03% and return on average equity (ROE) of 9.95% for the nine-month period, up from .81% and 7.80% respectively.

Larry Miller, the President and CEO of Ohio Valley Banc Corp., expressed optimism regarding these results, attributing success to the dedicated efforts of the employees. Miller stated, "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."

Interest Income and Asset Growth

The driving force behind this growth has been a notable increase in net interest income, which surged by $2,016,000 in the third quarter alone. For the first nine months of 2025, net interest income rose by $6,538,000 compared to the previous year. This positive trend is connected to a rise in both average earning assets and an improved net interest margin.

During this period, average earning assets jumped by $114 million, primarily due to a $75 million increase in average securities and a $65 million uptick in average loans. A significant development contributing to the increase in average securities was the Ohio Homebuyer Plus program, in which the bank participates. As of the end of Q3 2025, the Sweet Home Ohio deposit account balance reached $9.0 million, compared to $5.3 million last year.

The program, launched in collaboration with the Ohio Treasurer, enables the bank to offer a competitive interest rate on the savings, boosting participation and customer engagement. The executive noted that "The Sweet Home Ohio accounts have proven to be tremendously beneficial in attracting deposits and fostering community support."

Loan Growth and Strategic Adjustments

The growth seen in loans primarily stemmed from commercial real estate, commercial and industrial loans, and residential real estate segments. Notably, consumer loans have been consciously reduced as part of a strategic shift begun in 2024 to favor more profitable segments. A decrease was also noted in the average cash reserves at the Federal Reserve, which dropped by $26 million, facilitating increased loan issuance and better returns.

The quarterly net interest margin improved to 4.05%, reflecting an increase from 3.76% in Q3 2024. The year-to-date margin stands at 4.03%, compared to last year's 3.71%. Enhanced yields on earning assets and a decrease in funding costs are critical factors in this improvement.

Credit Losses and Noninterest Income

The provision for credit loss expense observed a rise to $1,112,000 for the third quarter, up $192,000 from the previous year’s quarter. This increase directly correlates with the $29 million rise in loan balances and specific qualitative risk factors identified. Overall, the ratio of nonperforming loans remains stable at 0.42% compared to 0.46% end of 2024.

Despite these gains, noninterest income experienced a decline of $1,106,000 for the quarter due to a higher loss on security sales. The company reported a loss of $1,219,000 on the sale of $11 million in lower-yielding securities, which were reinvested in higher-yielding options.

Future Outlook

The financial position of Ohio Valley Banc Corp. is growing stronger. Their total assets reached $1.570 billion, representing a $67 million increase from the previous year. Shareholder equity rose to $164 million, boosted by accumulated net income and an increase in comprehensive income related to market appreciation on securities.

Ohio Valley Banc Corp. trades under the symbol OVBC on the Nasdaq Global Market and operates 18 offices in Ohio and West Virginia, along with six consumer finance offices under Loan Central, Inc. For more detailed financial insights, please visit their website at www.ovbc.com.