Ohio Valley Banc Corp. Reports 1st Quarter Earnings

Ohio Valley Banc Corp (NASDAQ: OVBC) reported consolidated net income of $4.297M for Q1 2026, down 2.5% year-over-year; EPS was $0.91.

Rhea-AI Summary

Ohio Valley Banc Corp (NASDAQ: OVBC) reported consolidated net income of $4.297M for Q1 2026, down 2.5% year-over-year; EPS was $0.91. Net interest income rose 13.3% to $14.888M, driven by $146M average loan growth and a 4.01% net interest margin. Provision for credit losses increased to $1.622M mainly for two collateral-dependent commercial loans; nonperforming loans rose to 1.64%. Total assets reached $1.677B and deposits were $1.424B. Efficiency ratio improved to 61.72% and book value per share was $36.36.

Positive

• Net interest income +13.3% to $14.888M
• Average loans up $146M driving earning-asset growth
• Efficiency ratio improved from 63.95% to 61.72% (≈223 bps)

Negative

• Provision for credit losses increased to $1.622M (+$1.206M)
• Nonperforming loans ratio rose to 1.64% from 0.48%
• Noninterest income declined $358K, including $540K loss of tax-processing fees

Argus Apr 28 session

+0.22% close to close Open Argus

Details

News Market Reaction – OVBC

On Apr 28, the day this news came out, OVBC closed 0.22% above the previous close.

Data tracked by StockTitan Argus for the Apr 28 session.

Key Figures

Net income: $4,297,000 Earnings per share: $0.91 Return on average assets: 1.08% +5 more

Net income

$4,297,000

Quarter ended March 31, 2026; down 2.5% year over year

Earnings per share

$0.91

Q1 2026 EPS vs $0.94 in Q1 2025

Return on average assets

1.08%

Q1 2026 vs 1.20% in prior-year quarter

Return on average equity

10.17%

Q1 2026 vs 11.82% in prior-year quarter

Net interest income

$14,888,000

Three months ended March 31, 2026; up from $13,140,000

Provision for credit losses

$1,622,000

Q1 2026 provision vs $416,000 in Q1 2025

Nonperforming loans ratio

1.64%

Nonperforming loans as % of total loans at March 31, 2026

Total assets

$1,677,502,000

Total assets at March 31, 2026 vs $1,582,654,000 at year-end 2025

Historical Context

3 past events · Latest: Apr 14

3 events

1. Apr 14

   Cash dividend

   24h Move

   +0.2%

   Announced $0.25 per share cash dividend tied to 154th anniversary.

2. Jan 27

   Earnings report

   24h Move

   +1.8%

   Reported record 2025 earnings and stronger net interest margin with loan growth.

3. Jan 13

   Cash dividend

   24h Move

   +1.2%

   Declared $0.23 per share cash dividend for early 2026 shareholders.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest income, net interest margin, provision for credit loss, nonperforming loans, +4 more

8 terms

net interest income financial

"For the first quarter of 2026, net interest income increased $1,748,000, or 13.3%"

Net interest income is the difference between the interest a financial institution earns on loans and investments and the interest it pays on deposits and borrowings. It matters to investors because it is a primary source of profit for banks and similar firms — like the gross margin on a store’s trade — and changes with loan growth, deposit costs and interest rates, so it signals core earning power and sensitivity to rate moves.

net interest margin financial

"For the first quarter of 2026, the net interest margin was 4.01%, an increase from 3.85%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

provision for credit loss financial

"For the three months ended March 31, 2026, the provision for credit loss expense was $1,622,000"

An amount a lender records as an expense to cover loans and other receivables it expects will not be repaid; think of it as a rainy-day fund set aside when some customers might default. It matters to investors because bigger provisions reduce current profit and signal worsening borrower quality or tighter lending standards, while smaller provisions can boost reported earnings but may hide rising credit risk that could hurt future cash flows.

nonperforming loans financial

"The ratio of nonperforming loans to total loans was 1.64% at March 31, 2026"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

allowance for credit losses financial

"The allowance for credit losses was 1.07% of total loans at March 31, 2026"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

dividend payout ratio financial

"Dividend payout ratio (a) | | 25.22 % | | 23.52 %"

The dividend payout ratio is the share of a company’s net profit that is returned to shareholders as cash dividends rather than kept for reinvestment. Investors use it to judge whether dividend payments are likely sustainable and how the company balances rewarding owners with funding growth; a high ratio is like handing most of your paycheck to friends now, while a low ratio is like saving more for future expenses and opportunities.

efficiency ratio financial

"Efficiency ratio (e) | | 61.72 % | | 63.95 %"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

bank owned life insurance financial

"This decrease was partially offset by a $138,000 increase in income from bank owned life insurance"

Bank owned life insurance is a type of life insurance a bank buys on the lives of its employees so the bank, rather than the employee’s family, receives the payout when a covered person dies. It acts like a long-term asset that pays income and can help cover costs such as employee benefits or unexpected losses; investors watch it because the holding affects a bank’s reported earnings, cash flow stability, and capital position much like a conservative investment portfolio would.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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GALLIPOLIS, Ohio, April 28, 2026 /PRNewswire/ -- Ohio Valley Banc Corp. [Nasdaq: OVBC] (the "Company") reported consolidated net income for the quarter ended March 31, 2026, of $4,297,000, a decrease of $109,000, or 2.5%, from the same period during the prior year. Earnings per share for the first quarter of 2026 were $.91, compared to $.94 for the first quarter of 2025. Return on average assets and return on average equity were 1.08% and 10.17%, respectively, for the first quarter of 2026, versus 1.20% and 11.82%, respectively, for the same period the prior year.

Ohio Valley Banc Corp. President and CEO, Larry Miller stated, "Our core performance remained strong, highlighted by double-digit growth in net interest income, margin expansion, and continued loan growth in our targeted commercial markets. While earnings were modestly lower, we continue to invest in our people, technology, and franchise for long-term, sustainable performance."

For the first quarter of 2026, net interest income increased $1,748,000, or 13.3%, from the first quarter of 2025. The increase was related to the increase in both average earning assets and the net interest margin. For the first quarter of 2026, average earning assets increased $121 million from the same period last year, led by the $146 million growth in average loans, which was partially offset by the decreases in average securities of $15 million and average balances maintained at the Federal Reserve of $11 million. The growth in average loans occurred primarily within the targeted commercial lending segments.

For the first quarter of 2026, the net interest margin was 4.01%, an increase from 3.85% for the first quarter of 2025. The increase in the net interest margin was related to the yield on earning assets increasing more than the cost of funding sources. The yield on earning assets improved primarily in relation to the strong growth in higher yielding loans, which now comprise a larger percentage of earning assets.

For the three months ended March 31, 2026, the provision for credit loss expense was $1,622,000, an increase of $1,206,000 from the first quarter of 2025. The provision for credit loss expense for the first quarter of 2026 was primarily related to the specific allocation of $2,031,000 on two collateral dependent loans. Additional reserves were required for net charge-offs of $278,000 and the $19 million increase in loans since December 31, 2025. These increases in reserves were partially offset by a decrease in certain qualitative risk factors. The ratio of nonperforming loans to total loans was 1.64% at March 31, 2026, compared to 1.40% at December 31, 2025 and .48% at March 31, 2025. The increase in nonperforming loans was primarily related to three commercial loans being placed on nonaccrual status since March 31, 2025. Two of the loans required the specific allocation that was previously mentioned and one of the loans was deemed adequately collateralized. The allowance for credit losses was 1.07% of total loans at March 31, 2026, compared to .96% at December 31, 2025 and .97% at March 31, 2025.

Noninterest income totaled $3,288,000 for the first quarter of 2026, a decrease of $358,000 from the same period last year. The decrease was primarily related to the $540,000 decrease in electronic refund check and deposit fees due to the expiration of a tax processing agreement with a third party. This decrease was partially offset by a $138,000 increase in income from bank owned life insurance due to the receipt of life insurance proceeds and to the $86,000 increase in debit and credit card interchange income.

 Noninterest expense totaled $11,301,000 for the first quarter of 2026, an increase of $483,000 from the same period last year. The Company's largest noninterest expense, salaries and employee benefits, increased $335,000, or 5.6%, from the first quarter of 2025. The increase was primarily related to annual merit increases and to health insurance premiums. For the three months ended March 31, 2026, software expense increased $132,000 from the same period last year. The increase was primarily related to an investment in software to enhance internal processes. Also contributing to higher noninterest expense for the first quarter of 2026 was a $58,000 increase in FDIC insurance expense, as compared to the same period last year. The increase was related to a higher assessment base due to growth in assets and to an increase in the assessment rate in relation to higher nonperforming loans.

The Company's total assets at March 31, 2026 were $1.678 billion, an increase of $95 million from December 31, 2025. The increase in assets was primarily the result of a $78 million increase in balances maintained at the Federal Reserve and a $19 million increase in total loans. At March 31, 2026, total deposits increased $94 million from year end 2025, which occurred primarily within time deposits. Total shareholders' equity increased $1.0 million from year end 2025. This was primarily from year-to-date net income of $4.3 million, partially offset by a decrease in accumulated other comprehensive income of $2.2 million and cash dividends paid of $1.1 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 18 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.

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

 

OHIO VALLEY BANC CORP - Financial Highlights (Unaudited)
							Three months ended
							March 31,
							2026		2025
PER SHARE DATA
Earnings per share							$                   0.91		$             0.94
Dividends per share							$                   0.23		$             0.22
Book value per share							$                 36.36		$           33.05
Dividend payout ratio (a)							25.22 %		23.52 %
Weighted average shares outstanding							4,711,001		4,711,001
DIVIDEND REINVESTMENT (in 000's)
Dividends reinvested under
employee stock ownership plan (b)							$                    206		$              195
Dividends reinvested under
dividend reinvestment plan (c)							$                    314		$              382
PERFORMANCE RATIOS
Return on average equity							10.17 %		11.82 %
Return on average assets							1.08 %		1.20 %
Net interest margin (d)							4.01 %		3.85 %
Efficiency ratio (e)							61.72 %		63.95 %
Average earning assets (in 000's)							$         1,518,144		$   1,397,458
(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,
		2026		2025
Interest income:
Interest and fees on loans		$               19,404		$         16,695
Interest and dividends on securities		2,489		2,279
Interest on interest-bearing deposits with banks		582		826
Total interest income		22,475		19,800
Interest expense:
Deposits		7,031		6,133
Borrowings		556		527
Total interest expense		7,587		6,660
Net interest income		14,888		13,140
Provision for credit losses		1,622		416
Noninterest income:
Service charges on deposit accounts		745		720
Trust fees		92		103
Income from bank owned life insurance and
annuity assets		378		240
Mortgage banking income		37		37
Electronic refund check/deposit fees		0		540
Debit / credit card interchange income		1,235		1,149
Tax preparation fees		608		596
Other		193		261
Total noninterest income		3,288		3,646
Noninterest expense:
Salaries and employee benefits		6,347		6,012
Occupancy		524		521
Furniture and equipment		318		350
Professional fees		473		500
Marketing expense		280		279
FDIC insurance		241		183
Data processing		911		925
Software		673		541
Other		1,534		1,507
Total noninterest expense		11,301		10,818
Income before income taxes		5,253		5,552
Income taxes		956		1,146
NET INCOME		$                 4,297		$           4,406

 

OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share data)							March 31,		December 31,
							2026		2025
ASSETS
Cash and noninterest-bearing deposits with banks							$               16,255		$         14,845
Interest-bearing deposits with banks							109,072		31,052
Total cash and cash equivalents							125,327		45,897
Securities available for sale							251,439		253,906
Securities held to maturity, net of allowance for credit losses of $1 in 2026 and 2025							5,435		5,452
Restricted investments in bank stocks							5,258		5,258
Total loans							1,214,814		1,196,018
Less:  Allowance for credit losses							(12,943)		(11,519)
Net loans							1,201,871		1,184,499
Premises and equipment, net							20,501		20,509
Premises and equipment held for sale, net							395		400
Accrued interest receivable							5,535		5,476
Goodwill							7,319		7,319
Bank owned life insurance and annuity assets							42,606		43,305
Operating lease right-of-use asset, net							876		923
Deferred tax assets							6,252		5,621
Other assets							4,688		4,089
Total assets							$         1,677,502		$   1,582,654
LIABILITIES
Noninterest-bearing deposits							$            332,760		$       314,131
Interest-bearing deposits							1,090,914		1,015,536
Total deposits							1,423,674		1,329,667
Other borrowed funds							43,529		44,848
Subordinated debentures							8,500		8,500
Operating lease liability							876		923
Allowance for credit losses on off-balance sheet commitments							791		871
Other liabilities							28,852		27,588
Total liabilities							1,506,222		1,412,397
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							136,220		133,007
Accumulated other comprehensive income (loss)							(4,059)		(1,869)
Treasury stock, at cost (779,994 shares)							(18,693)		(18,693)
Total shareholders' equity							171,280		170,257
Total liabilities and shareholders' equity							$         1,677,502		$   1,582,654

 

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SOURCE Ohio Valley Banc Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were OVBC's Q1 2026 earnings per share and net income (OVBC)?

EPS for Q1 2026 was $0.91 and consolidated net income was $4.297 million. According to the company, net income fell 2.5% versus Q1 2025, partly due to higher credit provisions and lower noninterest income.

What drove Ohio Valley Banc Corp's net interest income growth in Q1 2026 (OVBC)?

Net interest income rose 13.3% to $14.888 million, led by loan growth and margin expansion. According to the company, average loans increased by $146 million and the net interest margin widened to 4.01%.

Why did OVBC's provision for credit losses increase in Q1 2026?

Provision for credit losses rose to $1.622 million, chiefly for specific allocations on two collateral-dependent commercial loans. According to the company, additional reserves covered net charge-offs and loan growth since year-end.

How did nonperforming loans change for OVBC in Q1 2026 and what caused it?

Nonperforming loans ratio increased to 1.64% from 0.48% a year earlier. According to the company, three commercial loans moved to nonaccrual status, two requiring specific reserves and one deemed adequately collateralized.

What happened to OVBC's deposits and total assets in Q1 2026 (OVBC)?

Total deposits grew to $1.424 billion and total assets to $1.677 billion. According to the company, deposits rose primarily in time deposits and assets increased from higher Federal Reserve balances and loan growth.