Ohio Valley Banc Corp. Reports 1st Quarter Earnings

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Ohio Valley Banc Corp. (NASDAQ: OVBC) reported strong Q1 2025 financial results with consolidated net income of $4,406,000, marking a 57.8% increase from the previous year. Earnings per share rose to $0.94 from $0.58 in Q1 2024.

The company's performance was driven by strategic initiatives including:

• Net interest income increase of $1,950,000
• Average earning assets growth of $136 million
• Improved net interest margin of 3.85% (up from 3.61%)
• $96 million growth in average securities
• $68 million growth in average loans

Notable developments include participation in the Ohio Homebuyer Plus program, with Sweet Home Ohio accounts totaling $7.7 million and Treasurer deposits of $82 million. The company's total assets reached $1.513 billion, with deposits increasing by $9 million and shareholders' equity growing by $5.4 million from year-end 2024.

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GALLIPOLIS, Ohio, April 25, 2025 /PRNewswire/ -- Ohio Valley Banc Corp. [Nasdaq: OVBC] (the "Company") reported consolidated net income for the quarter ended March 31, 2025, of $4,406,000, an increase of $1,613,000, or 57.8%, from the same period the prior year. Earnings per share for the first quarter of 2025 were $.94, compared to $.58 for the first quarter of 2024. Return on average assets and return on average equity were 1.20% and 11.82%, respectively, for the first quarter of 2025, versus .83% and 7.77%, respectively, for the same period the prior year.

Ohio Valley Banc Corp. President and CEO, Larry Miller stated, "Our strong start in 2025 was driven by strategic decisions executed by our management team that resulted in strong earning asset growth, an improving net interest margin and a laser focus on controlling overhead expenses. It is satisfying to see the improvement in shareholder value resulting from those decisions."

For the first quarter of 2025, net interest income increased $1,950,000 from the first quarter of 2024. The increase was related to the increase in both average earning assets and the net interest margin. For the first quarter of 2025, average earning assets increased $136 million from the same period last year, led by the $96 million growth in average securities and $68 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 Ohio Homebuyer 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. For each Sweet Home Ohio account that was opened, the Company received a deposit from the Ohio Treasurer at a subsidized interest rate. At March 31, 2025, the balance of Sweet Home Ohio accounts totaled $7.7 million and the amount deposited by the Treasurer totaled $82 million. 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 quarter of 2024. The growth in average loans was related to the commercial 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 $28 million to assist with funding loan growth and to generate a higher rate of return. As far as other funding sources, most of the growth occurred in NOW, money market, checking and savings accounts, which increased $127 million from the first quarter of 2024. A large portion of this growth was related to the Ohio Treasurer's matching funds received for the Ohio Homebuyer Plus program. Based on the growth in these lower-cost deposits, the average growth in higher-cost certificates of deposit was limited to $8 million for the first quarter of 2025 versus the same period last year.

For the first quarter of 2025, the net interest margin was 3.85%, an increase from 3.61% for the first quarter of 2024. 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, while the cost of funding sources decreased as the composition of funding sources shifted to lower cost deposit sources, such as, NOW, money market, checking and savings accounts.

For the three months ended March 31, 2025, the provision for credit loss expense was $416,000, a decrease of $335,000 from the first quarter of 2024. The provision for credit loss expense for the first quarter of 2025 was primarily related to quarterly net charge-offs of $425,000 and additional reserves for certain qualitative risk factors, which was partially offset by lower general reserves associated with the $19 million decrease in total loans since December 31, 2024. The decrease in total loans was primarily related to a $31 million decrease in a warehouse line of credit extended to another mortgage lender. The ratio of nonperforming loans to total loans was .48% at March 31, 2025, compared to .46% at December 31, 2024 and .37% at March 31, 2024. The allowance for credit losses was .97% of total loans at March 31, 2025, compared to .95% at December 31, 2024 and .93% at March 31, 2024.

Noninterest income totaled $3,646,000 for the first quarter of 2025, a nominal decrease of $50,000 from the same period last year. Noninterest expense totaled $10,818,000 for the first quarter of 2025, an increase of $77,000 from the same period last year. The Company's largest noninterest expense, salaries and employee benefits, decreased $155,000, or 2.5%, from the first quarter of 2024. The decrease was primarily related to the savings realized from the voluntary early retirement program implemented in 2024, which was partially offset by annual merit increases. For the three months ended March 31, 2025, data processing expense increased $118,000 from the same period last year. The increase was primarily related to debit and credit card processing due to higher transaction volume and conversion costs for the Company's new rewards platform. Also contributing to higher noninterest expense for the first quarter of 2025 was a $54,000 increase in marketing expense and a $52,000 increase in occupancy expense, as compared to the same period last year.

The Company's total assets at March 31, 2025 were $1.513 billion, an increase of $10 million from December 31, 2024. The increase in assets was primarily the result of a $35 million increase in balances maintained at the Federal Reserve, as total loans decreased $19 million and total securities decreased $9 million. As previously mentioned, the decrease in loans was related to a $31 million decrease in a warehouse line of credit extended to another mortgage lender. The paydown 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. The balance of this line of credit is expected to increase in future periods if mortgage volume increases and the funding needs of the lead bank changes. Absent this decrease, management was pleased with the $12 million in first quarter organic loan growth in the targeted areas of commercial real estate and residential real estate. The decrease in securities was related to the lower need for securities to pledge to the Ohio Treasurer due to a $15 million balance decrease. At March 31, 2025, total deposits increased $9 million from year end 2024, which occurred primarily within time deposits. Total shareholders' equity increased $5.4 million from year end 2024. This was primarily from year-to-date net income of $4.4 million and an increase in accumulated other comprehensive income of $2.0 million, partially offset by cash dividends paid of $1.0 million.

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 17 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
								March 31,
								2025		2024
	PER SHARE DATA
	Earnings per share							$               0.94		$           0.58
	Dividends per share							$               0.22		$           0.22
	Book value per share							$             33.05		$         30.41
	Dividend payout ratio (a)							23.52 %		37.60 %
	Weighted average shares outstanding							4,711,001		4,785,773
	DIVIDEND REINVESTMENT (in 000's)
	Dividends reinvested under
	employee stock ownership plan (b)							$                195		$            202
	Dividends reinvested under
	dividend reinvestment plan (c)							$                382		$            391
	PERFORMANCE RATIOS
	Return on average equity							11.82 %		7.77 %
	Return on average assets							1.20 %		0.83 %
	Net interest margin (d)							3.85 %		3.61 %
	Efficiency ratio (e)							63.95 %		71.47 %
	Average earning assets (in 000's)							$       1,397,458		$  1,261,217
	(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
	(in $000's)							March 31,
								2025		2024
	Interest income:
	Interest and fees on loans							$            16,695		$       15,250
	Interest and dividends on securities							2,279		1,017
	Interest on interest-bearing deposits with banks							826		1,417
	Total interest income							19,800		17,684
	Interest expense:
	Deposits							6,133		5,899
	Borrowings							527		595
	Total interest expense							6,660		6,494
	Net interest income							13,140		11,190
	Provision for credit losses							416		751
	Noninterest income:
	Service charges on deposit accounts							720		725
	Trust fees							103		104
	Income from bank owned life insurance and
	annuity assets							240		225
	Mortgage banking income							37		39
	Electronic refund check/deposit fees							540		540
	Debit / credit card interchange income							1,149		1,145
	Tax preparation fees							596		607
	Other							261		311
	Total noninterest income							3,646		3,696
	Noninterest expense:
	Salaries and employee benefits							6,012		6,167
	Occupancy							521		469
	Furniture and equipment							350		334
	Professional fees							500		486
	Marketing expense							279		225
	FDIC insurance							183		148
	Data processing							925		807
	Software							541		621
	Other							1,507		1,484
	Total noninterest expense							10,818		10,741
	Income before income taxes							5,552		3,394
	Income taxes							1,146		601
	NET INCOME							$             4,406		$         2,793
	OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
	(in $000's, except share data)							March 31,		December 31,
								2025		2024
	ASSETS
	Cash and noninterest-bearing deposits with banks							$            18,571		$       15,704
	Interest-bearing deposits with banks							102,037		67,403
	Total cash and cash equivalents							120,608		83,107
	Securities available for sale							259,260		268,120
	Securities held to maturity, net of allowance for credit losses of $1 in 2025 and 2024							6,531		7,049
	Restricted investments in bank stocks							5,007		5,007
	Total loans							1,043,296		1,061,825
	Less:  Allowance for credit losses							(10,139)		(10,088)
	Net loans							1,033,157		1,051,737
	Premises and equipment, net							21,155		21,229
	Premises and equipment held for sale, net							502		507
	Accrued interest receivable							4,792		4,805
	Goodwill							7,319		7,319
	Bank owned life insurance and annuity assets							42,231		42,048
	Operating lease right-of-use asset, net							980		1,024
	Deferred tax assets							6,647		7,218
	Other assets							4,916		4,242
	Total assets							$       1,513,105		$  1,503,412
	LIABILITIES
	Noninterest-bearing deposits							$          320,864		$     322,383
	Interest-bearing deposits							963,305		952,795
	Total deposits							1,284,169		1,275,178
	Other borrowed funds							38,440		39,740
	Subordinated debentures							8,500		8,500
	Operating lease liability							980		1,024
	Allowance for credit losses on off-balance sheet commitments							522		582
	Other liabilities							24,779		28,060
	Total liabilities							1,357,390		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							125,062		121,693
	Accumulated other comprehensive income (loss)							(8,466)		(10,484)
	Treasury stock, at cost (779,994 shares)							(18,693)		(18,693)
	Total shareholders' equity							155,715		150,328
	Total liabilities and shareholders' equity							$       1,513,105		$  1,503,412

 

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

View original content:https://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-1st-quarter-earnings-302438661.html

SOURCE Ohio Valley Banc Corp.

FAQ

What was OVBC's earnings per share in Q1 2025 compared to Q1 2024?

OVBC reported earnings of $0.94 per share in Q1 2025, compared to $0.58 per share in Q1 2024, representing a significant increase in profitability.

How much did Ohio Valley Banc Corp's net income increase in Q1 2025?

OVBC's net income increased by $1,613,000 or 57.8%, reaching $4,406,000 in Q1 2025 compared to the same period in 2024.

What is the impact of the Ohio Homebuyer Plus program on OVBC's operations?

The program resulted in $7.7 million in Sweet Home Ohio accounts and $82 million in Ohio Treasurer deposits, contributing significantly to the company's securities growth and deposit base.

What were OVBC's key performance metrics for Q1 2025?

OVBC achieved a return on average assets of 1.20% and return on average equity of 11.82%, with a net interest margin of 3.85% for Q1 2025.

How did OVBC's loan portfolio perform in Q1 2025?

While total loans decreased by $19 million due to a warehouse line reduction, the company achieved $12 million in organic loan growth in commercial and residential real estate sectors.