Ohio Valley Banc Corp. Reports 2nd Quarter Earnings

(Neutral)

Rhea-AI Summary

Ohio Valley Banc Corp (Nasdaq: OVBC) reported second quarter 2026 net income of $2.93 million, down 30.5% year over year, with EPS of $0.62 versus $0.89. For the first half of 2026, net income was $7.22 million, down 16.2%, and EPS was $1.53 versus $1.83. Return on average assets fell to 0.89% and return on average equity to 8.48% for the six months.

Net interest income rose $0.86 million in the quarter and $2.61 million year to date, driven by a $149 million increase in average earning assets, mainly loans, despite a lower net interest margin of 3.93% for the quarter. Provision for credit losses increased sharply to $3.76 million for the quarter, largely tied to two collateral-dependent commercial loans, lifting the allowance to 1.33% of total loans and nonperforming loans to 1.44% of total loans.

Total assets reached $1.66 billion at June 30, 2026, up 5.0% from year-end, with loans up $50 million and deposits up $79 million, primarily in time deposits and money market accounts. Shareholders’ equity rose to $173.4 million, supported by $7.2 million in year-to-date net income and partly offset by $2.3 million in cash dividends and lower accumulated other comprehensive income.

Positive

Net interest income growth up $863,000 in Q2 and $2,611,000 year to date
Average earning assets increased $178 million in Q2 and $149 million year to date
Total loans up $50 million and deposits up $79 million since year-end 2025
Total assets grew 5.0% to $1.661 billion at June 30, 2026
Allowance for credit losses strengthened to 1.33% of total loans from 0.96% at year-end
Efficiency ratio improved to 60.08% in Q2 2026 from 63.09% a year earlier

Negative

Q2 2026 net income declined 30.5% to $2.927 million; EPS fell to $0.62
First-half 2026 net income decreased 16.2% to $7.224 million; EPS fell to $1.53
Net interest margin compressed to 3.93% in Q2 2026 from 4.17% in Q2 2025
Provision for credit losses rose $2.607 million in Q2 and $3.813 million year to date
Nonperforming loans ratio increased to 1.44% of total loans from 0.45% a year earlier
Interest expense on deposits increased to $7.533 million in Q2 from $5.988 million a year ago

News Explained

During the second quarter, Ohio Valley Banc Corp. tendered 954 Visa Class B-1 shares for a mix of Visa Class B-3 and Class C common stock, then recorded a $377,000 gain after marking the Class C shares to fair value.

Market Context

Director Michael Seth Isaac bought 65 shares in a May Form 4 transaction, while insider activity was...

Analysis

Director Michael Seth Isaac bought 65 shares in a May Form 4 transaction, while insider activity was classified as Net Buying. That context offsets neither the earnings decline nor the specific-loan credit risk investors may monitor.

Key Figures

Q2 net income: $2,927,000 Q2 EPS: $0.62 Six-month net income: $7,224,000 +5 more

8 metrics

Q2 net income $2,927,000 Quarter ended June 30, 2026; down 30.5% year over year

Q2 EPS $0.62 Second quarter 2026 versus $0.89 in the prior-year quarter

Six-month net income $7,224,000 Six months ended June 30, 2026; down 16.2% year over year

Net interest income increase $2,611,000 Six months ended June 30, 2026 versus the same period in 2025

Q2 net interest margin 3.93% Second quarter 2026 versus 4.17% in the prior-year quarter

Q2 credit-loss provision $3,755,000 Three months ended June 30, 2026; increased $2,607,000 year over year

Nonperforming loans 1.44% Of total loans at June 30, 2026, versus 0.45% at June 30, 2025

Total assets $1.661 billion At June 30, 2026; increased 5.0% from December 31, 2025

Historical Context

5 past events · Latest: Jul 14 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 14	Cash dividend	Positive	+0.4%	Board declared a $0.25 per-share dividend payable to shareholders in August.
May 15	Leadership changes	Neutral	-1.3%	Chairman retired, new independent chairman appointed, and loan-office expansion was announced.
Apr 28	1Q earnings report	Negative	+0.2%	Earnings declined while credit-loss provisions and nonperforming loans increased.
Apr 14	Cash dividend	Positive	+0.2%	Board declared a $0.25 per-share dividend payable to shareholders in May.
Jan 27	4Q earnings report	Positive	+1.8%	Record fiscal-year earnings included higher net income, EPS, loan growth, and net interest margin.

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

Pattern Detected

Historical earnings announcements produced positive reactions despite weaker first-quarter results, while dividend announcements also had positive reactions.

Key Terms

net interest margin, provision for credit loss expense, nonperforming loans, allowance for credit losses

4 terms

net interest margin financial

"For the second quarter of 2026, the net interest margin was 3.93%"

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 expense financial

"the provision for credit loss expense totaled $3,755,000"

An expense banks and lenders record to cover loans and other receivables they expect may not be repaid; think of it as a rainy-day fund set aside on the books for customers who might default. It matters to investors because larger provisions reduce reported profits and signal worsening credit quality or more conservative accounting, while smaller provisions can boost earnings but may understate future losses, affecting a lender’s true financial strength.

nonperforming loans financial

"The ratio of nonperforming loans to total loans was 1.44%"

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 1.33% of total loans"

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.

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

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07/27/2026 - 01:18 PM

GALLIPOLIS, Ohio, July 27, 2026 /PRNewswire/ -- Ohio Valley Banc Corp. (Nasdaq: OVBC) (the "Company") reported consolidated net income for the quarter ended June 30, 2026, of $2,927,000, a decrease of $1,283,000, or 30.5%, from the same period the prior year. Earnings per share for the second quarter of 2026 were $.62 compared to $.89 for the prior year second quarter. For the six months ended June 30, 2026, net income totaled $7,224,000, a decrease of $1,392,000, or 16.2%, from the same period the prior year. Earnings per share were $1.53 for the first six months of 2026 versus $1.83 for the first six months of 2025. Return on average assets and return on average equity were .89% and 8.48%, respectively, for the first half of 2026, compared to 1.16% and 11.30%, respectively, for the same period in the prior year.

Ohio Valley Banc Corp. CEO, Larry Miller said, "Our performance through the first half of 2026 was driven by solid growth in net interest income and a stable net interest margin. Results for the period reflected an increase in provision for credit losses, which are associated with a small number of large commercial credits. Based on our ongoing review, we believe the elevated risk is confined to these specific relationships and does not reflect a broader deterioration in portfolio credit quality. Overall, we remain confident in the strength of our balance sheet and our long-term outlook."

For the three months ended June 30, 2026, net interest income increased $863,000, and for the six months ended June 30, 2026, net interest income increased $2,611,000 from the same respective periods last year. These increases were related to the increase in average earning assets. For the three and six months ended June 30, 2026, average earning assets increased $178 million and $149 million from the same periods last year, respectively, which was primarily related to growth in average loan balances. For the six months ended June 30, 2026, average loans increased $152 million from the same period last year, which occurred mostly within the targeted commercial lending segments. The growth in average earning assets was funded primarily from promotional offerings for certificates of deposit and new money market accounts for individual and business customers. For the six months ended June 30, 2026, the average balance of certificates of deposit and money market accounts increased $135 million and $25 million, respectively, from the same period last year.

For the second quarter of 2026, the net interest margin was 3.93%, a decrease from 4.17% for the second quarter of 2025. For the six months ended June 30, 2026, the net interest margin was 3.97%, a decrease from 4.01% for the same period last year. The decrease in the net interest margin was related to the cost of funding sources increasing at a greater pace than the yield on earning assets. Comparing the first half of 2026 to the first half of 2025, the yield on earning assets improved in relation to the growth in higher yielding loans that now comprise a larger percentage of earning assets, along with the improvement in the yield on securities. During the second half of 2025, the Company sold $36.9 million in securities where the yield on securities sold went from 1.35% to 4.52% on the securities purchased, which has benefited interest income in 2026. Included in the yield on earning assets for the second quarter and first half of 2025 was the recognition of a market discount on purchased loans totaling $817,000, which was not replicated during the same periods in 2026. For the first half of 2026 versus the first half of 2025, the cost of funding sources increased as the composition of funding sources shifted to higher cost deposit sources, such as, certificates of deposit and money market accounts that were offered pursuant to certain promotional offerings mentioned above. These promotional deposit offerings were utilized to fund loan growth and to maintain an appropriate liquidity position. Although the net interest margin contracted, the additional growth in earning assets more than offset the decrease.

For the three months ended June 30, 2026, the provision for credit loss expense totaled $3,755,000, an increase of $2,607,000 from the same period last year. The increase in the quarterly provision for credit loss expense was primarily the result of the $4,531,000 increase in specific allocations on two collateral dependent loans, additional reserves required for the $31 million quarterly increase in loan balances, and quarter-to-date net charge-offs of $148,000. These increases in reserves were partially offset by a net decrease in modeled loss rates, primarily in relation to the improvement in unemployment projections, and by a decrease in certain qualitative risk factors related to improved trends surrounding delinquency and net charge-offs for select portfolios, along with the reduced exposure of borrowers servicing debt as their loans adjust to a market rate. For the six months ended June 30, 2026, the provision for credit losses was $5,377,000, an increase of $3,813,000 from the same period last year. The year-to-date provision for credit loss expense was primarily the result of the $6,561,000 increase in specific allocations on two collateral dependent loans, additional reserves required for the $50 million year-to-date increase in loan balances, and year-to-date net charge-offs of $426,000. Partially offsetting these increases were lower reserves due to a decrease in certain qualitative risk factors, as mentioned above, and lower modeled loss rates in relation to improved economic indicators. The ratio of nonperforming loans to total loans was 1.44% at June 30, 2026, compared to 1.40% at December 31, 2025, and .45% at June 30, 2025. The allowance for credit losses was 1.33% of total loans at June 30, 2026, compared to .96% at December 31, 2025, and .99% at June 30, 2025. In general, the increase in the allowance for credit losses was related to the exposure on a select group of loan relationships and was not reflective of the loan portfolio as a whole. Of the stressed loan relationships, one is a commercial loan to an automobile dealership and the other is a commercial real estate loan for the construction of a hotel.

For the three and six months ended June 30, 2026, noninterest income increased $338,000 and decreased $20,000, respectively, from the same periods last year. During the second quarter of 2026, the Company participated in an exchange offer initiated by Visa Inc., where 954 Visa Class B-1 shares were tendered by the Company in exchange for a mix of Visa Class B-3 and Class C common stock. The Company then marked its Visa Class C common stock to fair value and recorded a $377,000 gain based on the conversion privilege of the Visa Class C common stock and the price of Visa Class A common stock. Also contributing to higher noninterest income was interchange income earned on debit and credit cards, which increased $70,000 and $156,000 during the three and six months ended June 30, 2026, compared to the same periods from 2025, respectively. Lastly, during the six months ended June 30, 2026, income from bank owned life insurance increased $137,000 due to the receipt of life insurance proceeds. For the three and six months ended June 30, 2026, electronic refund check and deposit fees decreased $135,000 and $675,000, respectively, from the same periods in 2025 due to the expiration of a tax processing agreement with a third party.

For the three months ended June 30, 2026, noninterest expense totaled $11,245,000, an increase of $196,000 from the same period last year. For the six months ended June 30, 2026, noninterest expense totaled $22,546,000, an increase of $679,000, or 3.1%, from the same period last year. The Company's largest noninterest expense, salaries and employee benefits, increased $359,000 as compared to the second quarter of 2025, and increased $694,000 as compared to the first half of 2025. The increases were primarily related to annual merit increases and to health insurance premiums. Further contributing to higher noninterest expense was software expense, which for the three and six months ended June 30, 2026, increased $74,000 and $206,000, respectively, from the same periods last year. The increase was primarily related to an investment in software to enhance internal processes. In addition, FDIC insurance expense increased $77,000 and $135,000, respectively, for the three and six months ended June 30, 2026, compared to the same periods 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. Partially offsetting these increases was a decrease in data processing expense which decreased $605,000 during the second quarter of 2026, and $619,000 during the first half of 2026, compared to the same periods from 2025. The decrease was primarily related to the recovery of $544,000 from a vendor for a billing error for services provided over a specific time period.

The Company's total assets at June 30, 2026 were $1.661 billion, an increase of $79 million, or 5.0%, from December 31, 2025. The increase in assets was primarily the result of a $50 million increase in total loans and a $32 million increase in balances maintained at the Federal Reserve. At June 30, 2026, total deposits increased $79 million from year end 2025, which occurred primarily within time deposits and money market accounts. At June 30, 2026, shareholders' equity increased $3.1 million from year end 2025. This was primarily from year-to-date net income of $7.2 million, partially offset by cash dividends paid of $2.3 million and a decrease in accumulated other comprehensive income of $1.8 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 19 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		Six months ended
	June 30,		June 30,
	2026	2025	2026	2025
PER SHARE DATA
Earnings per share	$ 0.62	$ 0.89	$ 1.53	$ 1.83
Dividends per share	$ 0.25	$ 0.23	$ 0.48	$ 0.45
Book value per share	$ 36.80	$ 34.12	$ 36.80	$ 34.12
Dividend payout ratio (a)	40.24 %	25.74 %	31.30 %	24.61 %
Weighted average shares outstanding	4,711,001	4,711,001	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)	$ 330	$ 330	$ 644	$ 712

PERFORMANCE RATIOS
Return on average equity	6.82 %	10.79 %	8.48 %	11.30 %
Return on average assets	0.70 %	1.12 %	0.89 %	1.16 %
Net interest margin (d)	3.93 %	4.17 %	3.97 %	4.01 %
Efficiency ratio (e)	60.08 %	63.09 %	60.89 %	63.51 %
Average earning assets (in 000's)	$ 1,586,515	$ 1,408,945	$ 1,552,518	$ 1,403,233

(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		Six months ended
(in $000's)	June 30,		June 30,
	2026	2025	2026	2025
Interest income:
Interest and fees on loans	$ 19,998	$ 17,984	$ 39,402	$ 34,679
Interest and dividends on securities	2,514	2,416	5,003	4,695
Interest on interest-bearing deposits with banks	966	639	1,548	1,465
Total interest income	23,478	21,039	45,953	40,839
Interest expense:
Deposits	7,533	5,988	14,564	12,121
Borrowings	547	516	1,103	1,043
Total interest expense	8,080	6,504	15,667	13,164
Net interest income	15,398	14,535	30,286	27,675
Provision for (recovery of) credit losses	3,755	1,148	5,377	1,564
Noninterest income:
Service charges on deposit accounts	774	723	1,519	1,443
Trust fees	89	100	181	203
Income from bank owned life insurance and
annuity assets	242	243	620	483
Mortgage banking income	38	40	75	77
Electronic refund check/deposit fees	0	135	0	675
Debit / credit card interchange income	1,349	1,279	2,584	2,428
Unrealized gains on equity securities	377	0	377	0
Tax preparation fees	42	38	650	634
Other	275	290	468	551
Total noninterest income	3,186	2,848	6,474	6,494
Noninterest expense:
Salaries and employee benefits	6,553	6,194	12,900	12,206
Occupancy	541	493	1,065	1,014
Furniture and equipment	338	338	656	688
Professional fees	466	500	939	1,000
Marketing expense	305	279	585	558
FDIC insurance	241	164	482	347
Data processing	364	969	1,275	1,894
Software	661	587	1,334	1,128
Other	1,776	1,525	3,310	3,032
Total noninterest expense	11,245	11,049	22,546	21,867
Income before income taxes	3,584	5,186	8,837	10,738
Income taxes	657	976	1,613	2,122
NET INCOME	$ 2,927	$ 4,210	$ 7,224	$ 8,616


OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)

(in $000's, except share data)			June 30,	December 31,
			2026	2025
ASSETS
Cash and noninterest-bearing deposits with banks			$ 15,519	$ 14,845
Interest-bearing deposits with banks			62,565	31,052
Total cash and cash equivalents			78,084	45,897
Debt securities available for sale			250,236	253,906
Debt securities held to maturity, net of allowance for credit losses of $1 in 2025 and 2024			5,404	5,452
Equity securities			376	0
Restricted investments in bank stocks			5,258	5,258
Total loans			1,246,114	1,196,018
Less: Allowance for credit losses			(16,610)	(11,519)
Net loans			1,229,504	1,184,499
Premises and equipment, net			22,357	20,509
Premises and equipment held for sale, net			390	400
Accrued interest receivable			5,485	5,476
Goodwill			7,319	7,319
Bank owned life insurance and annuity assets			42,960	43,305
Operating lease right-of-use asset, net			1,408	923
Deferred tax assets			6,082	5,621
Other assets			6,573	4,089
Total assets			$ 1,661,436	$ 1,582,654

LIABILITIES
Noninterest-bearing deposits			$ 319,288	$ 314,131
Interest-bearing deposits			1,089,140	1,015,536
Total deposits			1,408,428	1,329,667
Other borrowed funds			41,822	44,848
Subordinated debentures			8,500	8,500
Operating lease liability			1,408	923
Allowance for credit losses on off-balance sheet commitments			731	871
Other liabilities			27,161	27,588
Total liabilities			1,488,050	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			137,969	133,007
Accumulated other comprehensive income (loss)			(3,702)	(1,869)
Treasury stock, at cost (779,994 shares)			(18,693)	(18,693)
Total shareholders' equity			173,386	170,257
Total liabilities and shareholders' equity			$ 1,661,436	$ 1,582,654

View original content:https://www.prnewswire.com/news-releases/ohio-valley-banc-corp-reports-2nd-quarter-earnings-302835481.html

SOURCE Ohio Valley Banc Corp.

FAQ

How did Ohio Valley Banc Corp (OVBC) perform financially in Q2 2026?

Ohio Valley Banc Corp reported Q2 2026 net income of $2.93 million and EPS of $0.62, both lower year over year. According to Ohio Valley Banc Corp, net income declined 30.5% from Q2 2025, mainly due to higher provision for credit losses despite growth in net interest income.

What were Ohio Valley Banc Corp’s first-half 2026 earnings and returns for OVBC shareholders?

For the six months ended June 30, 2026, Ohio Valley Banc Corp earned $7.22 million, or $1.53 per share. According to Ohio Valley Banc Corp, return on average assets was 0.89% and return on average equity was 8.48%, both below the prior-year first half.

How did net interest income and net interest margin trend for OVBC in Q2 2026?

Net interest income increased to $15.40 million in Q2 2026, up $863,000 from Q2 2025. According to Ohio Valley Banc Corp, this growth came despite net interest margin narrowing to 3.93% from 4.17%, as funding costs rose faster than yields on earning assets.

Why did Ohio Valley Banc Corp’s provision for credit losses rise in Q2 2026?

Provision for credit losses climbed to $3.76 million in Q2 2026, up $2.61 million year over year. According to Ohio Valley Banc Corp, the increase was mainly tied to higher specific allocations on two collateral-dependent commercial loans and additional reserves for loan growth.

What changes occurred in Ohio Valley Banc Corp’s loan quality and reserves by June 30, 2026?

Loan quality metrics weakened, with nonperforming loans reaching 1.44% of total loans at June 30, 2026. According to Ohio Valley Banc Corp, the allowance for credit losses increased to 1.33% of total loans, largely reflecting elevated risk on a select group of commercial relationships.

How did OVBC’s balance sheet, including loans and deposits, change in the first half of 2026?

Total assets grew to $1.661 billion at June 30, 2026, up $79 million from year-end. According to Ohio Valley Banc Corp, loans increased $50 million and deposits rose $79 million, primarily in certificates of deposit and money market accounts used to fund loan growth and liquidity.

What dividend did Ohio Valley Banc Corp pay in Q2 2026 and how does it compare year over year?

Ohio Valley Banc Corp paid a Q2 2026 dividend of $0.25 per share, up from $0.23 a year earlier. According to Ohio Valley Banc Corp, the dividend payout ratio for the quarter was 40.24%, compared with 25.74% in the prior-year second quarter.