Ohio Valley Banc Corp. Reports 1st Quarter Financial Results for 2026

On April 28, 2026, Ohio Valley Banc Corp. (Nasdaq: OVBC) announced its financial performance for the first quarter, concluding March 31, 2026. The consolidated net income for the quarter was recorded at $4,297,000, which marks a decrease of $109,000 or 2.5% compared to the same period of the previous year. The earnings per share fell to $0.91, down from $0.94 in the first quarter of 2025.

Despite the decrease in earnings, Ohio Valley Banc Corp. expressed confidence in its underlying operations. President and CEO Larry Miller remarked that the company’s fundamental performance remained robust, driven by significant growth in net interest income and continued expansion in commercial lending.

Financial Highlights

In detail, net interest income for Q1 2026 surged by $1,748,000, showcasing a 13.3% increase from Q1 2025. This upturn is attributed to an increase in average earning assets and a substantial rise in net interest margins. Average earning assets rose by $121 million, largely fueled by an increase of $146 million in average loans; this was somewhat countered by drops in average securities and reserves held at the Federal Reserve.

The net interest margin saw a meaningful improvement, rising to 4.01% from 3.85% in the same quarter last year. This improvement was largely due to the yield on earning assets escalating more significantly compared to funding costs, with higher-yield loans becoming a more considerable proportion of the company’s earning assets.

However, the provision for credit loss expense steeply rose to $1,622,000, an increase of $1,206,000 from the previous year, primarily stemming from specific allocations on collateral-dependent loans. The rise in nonperforming loans, which reached 1.64% of total loans by March 31, 2026, compares unfavorably to 0.48% in Q1 2025, signaling increased caution regarding credit risk.

Noninterest Revenue and Expenses

In terms of noninterest income, Ohio Valley Banc reported a total of $3,288,000, down $358,000 from a year earlier. This decline was largely caused by a $540,000 drop in electronic refund check and deposit fees following the end of a tax processing partnership. Conversely, there were positive contributions from life insurance income and card interchange revenues.

On the expense side, noninterest expenses increased by $483,000, amounting to $11,301,000 for Q1 2026. The largest component of this increase was attributed to salaries and employee benefits, which grew by 5.6% amidst annual merit raises and rising health insurance costs.

Total assets stood at $1.678 billion, marking an increase of $95 million since December 31, 2025. The asset growth was driven by an increase in balances held at the Federal Reserve and a rise in total loans. Total deposits also expanded by $94 million, primarily in time deposits, enhancing the company’s liquidity profile.

Conclusion

Overall, Ohio Valley Banc Corp.'s first-quarter results reflect a mix of challenges and positive indicators. Despite a decline in earnings, the company has shown resilience in growing its core banking operations, investing in technology, and optimizing its financial performance for future sustainability. For more insights on Ohio Valley Banc Corp, please visit www.ovbc.com.