[8-K] Ohio Valley Banc Corp Reports Material Event

Rhea-AI Filing Summary

Ohio Valley Banc Corp. (OVBC) posted strong Q2-25 results. Net income rose 42% YoY to $4.2 m, lifting EPS to $0.89 from $0.63. Six-month net income climbed 50% to $8.6 m ($1.83 EPS). Return on average assets improved to 1.16% and ROE to 11.30% for the half, reflecting a 33 bp expansion in net-interest margin to 4.01%.

Margin & balance-sheet drivers. Net-interest income expanded $2.6 m in Q2 and $4.5 m YTD, aided by a $122 m increase in average earning assets and richer asset mix. Participation in Ohio’s Homebuyer Plus program generated $77 m of low-cost public deposits, allowing deployment into higher-yielding securities and loans. Loans grew $39 m YTD (+$58 m in Q2) in commercial real estate, C&I and residential segments; consumer loans continued to run off. Noninterest expense was contained (+1.2% YTD) despite higher data-processing and marketing spend, benefiting from 2024’s early-retirement program.

Credit & capital. Provision for credit losses rose to $1.6 m YTD on loan growth and softer macro forecasts, but asset quality remained stable: NPL ratio 0.45% and ACL 0.99% of loans. Book value per share advanced to $34.12, while tangible equity gained $10.4 m after dividends of $0.45 per share.

Positive

• EPS up 41.7% YoY to $0.89 and YTD EPS up 51% to $1.83.
• Net-interest margin expanded to 4.17% in Q2, driving +$2.6 m NII.
• Efficiency ratio improved to 63.1% from 73.4%, indicating stronger operating leverage.
• Book value per share climbed 10% YoY to $34.12, bolstering capital.
• Asset quality stable: NPLs 0.45% of loans; ACL coverage 0.99%.

Negative

• Provision for credit losses rose to $1.6 m YTD, reflecting higher modeled loss rates.
• Funding concentration: $77 m low-cost deposits tied to state program could reverse.
• Data processing costs up $299 k YTD due to card volume and rewards conversion.

Insights

Banking Equity Analyst

TL;DR: Earnings surge on wider margin and low-cost deposits; credit risk manageable.

OVBC’s 42% YoY profit jump stems from balance-sheet remixing into higher-yield assets and a 43 bp fall in funding cost thanks to Homebuyer Plus deposits. Incremental margin drove >400 bp efficiency improvement. Operating leverage is positive: net-interest income +19%, expenses +2%. Despite higher provisioning, reserve coverage and NPL ratios remain healthy. Capital generation exceeds dividend outflow, fortifying book value. I view the update as materially positive for valuation and dividend sustainability.

Bank Risk Analyst

TL;DR: Credit build prudent; reliance on state program concentration bears monitoring.

Loan growth is concentrated in CRE and C&I, segments sensitive to economic cycles; management offset with higher reserves and maintains sub-1% NPLs. The $77 m Ohio Treasurer deposit is cheap but introduces single-counterparty funding risk and collateral requirements; a reversal could pressure margin. That said, liquidity remains solid with Fed balances and stable core deposits. Overall impact is favorable, yet credit and funding concentration warrant continued vigilance.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 25, 2025

OHIO VALLEY BANC CORP.

(Exact Name of Registrant as Specified in Its Charter)

000-20914

(Commission File Number)

Ohio	31-1359191
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

420 THIRD AVENUE, PO BOX 240

GALLIPOLIS, Ohio 45631

(Address of principal executive offices, including zip code)

(740) 446-2631

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, without par value		OVBC		NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition

GALLIPOLIS, Ohio - Ohio Valley Banc Corp. [Nasdaq: OVBC] (the “Company”) reported consolidated net income for the quarter ended June 30, 2025, of $4,210,000, an increase of $1,238,000, or 41.7%, from the same period the prior year. Earnings per share for the second quarter of 2025 were $.89 compared to $.63 for the prior year second quarter. For the six months ended June 30, 2025, net income totaled $8,616,000, an increase of $2,851,000, or 49.5%, from the same period the prior year. Earnings per share were $1.83 for the first six months of 2025 versus $1.21 for the first six months of 2024. Return on average assets and return on average equity were 1.16% and 11.30%, respectively, for the first half of 2025, compared to .84% and 8.01%, respectively, for the same period in the prior year.

Ohio Valley Banc Corp. President and CEO, Larry Miller said, “We continue to reap the benefits of last year’s decision to participate in the Ohio Homebuyer Plus Program as well as our continued focus on commercial and real estate lending. The strong growth in net income coupled with stable asset quality are essential pillars of our strategy to increase shareholder value.”

For the three months ended June 30, 2025, net interest income increased $2,572,000, and for the six months ended June 30, 2025, net interest income increased $4,522,000 from the same respective periods last year. These increases were related to the increase in both average earning assets and the net interest margin for the respective periods. For the six months ended June 30, 2025, average earning assets increased $122 million from the same period last year, led by the $99 million growth in average securities and the $60 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 June 30, 2025, the balance of Sweet Home Ohio accounts totaled $8.4 million and the amount deposited by the Treasurer totaled $77 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 half of 2024. The growth in average loans was related to the commercial real estate, commercial and industrial, 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 $37 million to assist with funding loan growth and to generate a higher rate of return. Most of the growth in other funding sources occurred in NOW and money market accounts, which increased $103 million from the first half 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 $6 million for the first half of 2025 versus the same period last year.

For the second quarter of 2025, the net interest margin was 4.17%, an increase from 3.74% for the second quarter of 2024. For the six months ended June 30, 2025, the net interest margin was 4.01%, an increase from 3.68% for the same period last year. 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, along with the recognition of a market discount on purchased loans totaling $817,000. The cost of funding sources decreased as the composition of funding sources shifted to lower cost deposit sources, such as, NOW and money market accounts. Furthermore, the average cost of certificates of deposit, the largest funding segment, decreased as higher costing certificates repriced to lower current market rates.

For the three months ended June 30, 2025, the provision for credit loss expense totaled $1,148,000, an increase of $967,000 from the same period last year. The quarterly provision for credit loss expense was primarily associated with the $58 million quarterly increase in loan balances, the quarter-to-date net charge-offs of $315,000, and the increase in modeled loss rates in relation to the regression in GDP and unemployment projections. For the six months ended June 30, 2025, the provision for credit losses was $1,564,000, an increase of $632,000 from the same period last year. The year-to-date provision for credit loss expense was primarily associated with net charge-offs of $740,000, an increase in modeled loss rates due to the regression in the economic indicators mentioned above, and $39 million in loan growth. The ratio of nonperforming loans to total loans was .45% at June 30, 2025, compared to .46% at December 31, 2024, and .50% at June 30, 2024. The allowance for credit losses was .99% of total loans at June 30, 2025, compared to .95% at December 31, 2024, and .91% at June 30, 2024.

For the three and six months ended June 30, 2025, noninterest income increased $147,000 and $97,000, respectively, from the same periods last year. The increases were largely due to the interchange income earned on debit and credit cards, which increased $56,000 and $60,000 during the three and six months ended June 30, 2025, compared to the same periods from 2024, respectively.

For the three months ended June 30, 2025, noninterest expense totaled $11,049,000, an increase of $186,000 from the same period last year. For the six months ended June 30, 2025, noninterest expense totaled $21,867,000, an increase of $263,000, or only 1.2%, from the same period last year. The Company’s largest noninterest expense, salaries and employee benefits, increased $8,000 as compared to the second quarter of 2024, and decreased $147,000 as compared to the first half of 2024. The year-to-date 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. Higher noninterest expense came primarily from data processing expense, which increased $181,000 during the second quarter of 2025, and $299,000 during the first half of 2025, compared to the same periods from 2024. Higher costs in this category were related to debit and credit card processing due to higher transaction volume and conversion costs for the Company’s new rewards platform. Further contributing to higher noninterest expense was marketing expense. For the three and six months ended June 30, 2025, marketing expense increased $58,000 and $112,000, respectively, from the same periods last year. The increase was primarily related to advertising and costs associated with supporting the communities we serve.

The Company’s total assets at June 30, 2025 were $1.510 billion, an increase of $7 million from December 31, 2024. Since December 31, 2024, loan balances increased $39 million, which was driven by strong second quarter loan growth of $58 million. The second quarter loan growth more than offset the $19 million decrease in loans that occurred in the first quarter that was primarily the result of a $31 million decrease in a warehouse line of credit extended to another mortgage lender. The paydown in the first quarter 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. At June 30, 2025, the balance of this line of credit was $0, but may increase in future periods if mortgage volume increases and the funding needs of the lead bank changes. The growth in loans occurred mostly in the targeted areas of commercial real estate, commercial and industrial, and residential real estate. The growth in these segments was partially offset by a decrease in consumer loans, as this segment has been deemphasized by the Company due to profitability relative to other loan portfolio segments. The increase in loans was primarily funded by a $29 million decrease in funds maintained at the Federal Reserve. At June 30, 2025, shareholders’ equity increased $10.4 million from year end 2024. This was primarily from year-to-date net income of $8.6 million and an increase in accumulated other comprehensive income of $3.9 million, partially offset by cash dividends paid of $2.1 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 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								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
PER SHARE DATA
Earnings per share		$	0.89			$	0.63			$	1.83			$	1.21
Dividends per share		$	0.23			$	0.22			$	0.45			$	0.44
Book value per share		$	34.12			$	30.94			$	34.12			$	30.94
Dividend payout ratio (a)			25.74	%			35.48	%			24.61	%			36.51	%
Weighted average shares outstanding			4,711,001				4,740,073				4,711,001				4,762,923
DIVIDEND REINVESTMENT (in 000's)
Dividends reinvested under
employee stock ownership plan (b)		$	-			$	-			$	195			$	202
Dividends reinvested under
dividend reinvestment plan (c)		$	330			$	391			$	712			$	782
PERFORMANCE RATIOS
Return on average equity			10.79	%			8.25	%			11.30	%			8.01	%
Return on average assets			1.12	%			0.86	%			1.16	%			0.84	%
Net interest margin (d)			4.17	%			3.74	%			4.01	%			3.68	%
Efficiency ratio (e)			63.09	%			73.37	%			63.51	%			72.41	%
Average earning assets (in 000's)		$	1,408,945			$	1,300,720			$	1,403,233			$	1,280,968
(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,
			2025				2024				2025				2024
Interest income:
Interest and fees on loans		$	17,984			$	16,130			$	34,679			$	31,380
Interest and dividends on securities			2,416				1,076				4,695				2,093
Interest on interest-bearing deposits with banks			639				1,446				1,465				2,863
Total interest income			21,039				18,652				40,839				36,336
Interest expense:
Deposits			5,988				6,102				12,121				12,001
Borrowings			516				587				1,043				1,182
Total interest expense			6,504				6,689				13,164				13,183
Net interest income			14,535				11,963				27,675				23,153
Provision for (recovery of) credit losses			1,148				181				1,564				932
Noninterest income:
Service charges on deposit accounts			723				731				1,443				1,456
Trust fees			100				101				203				205
Income from bank owned life insurance and
annuity assets			243				226				483				451
Mortgage banking income			40				40				77				79
Electronic refund check/deposit fees			135				135				675				675
Debit / credit card interchange income			1,279				1,223				2,428				2,368
Tax preparation fees			38				26				634				633
Other			290				219				551				530
Total noninterest income			2,848				2,701				6,494				6,397
Noninterest expense:
Salaries and employee benefits			6,194				6,186				12,206				12,353
Occupancy			493				537				1,014				1,006
Furniture and equipment			338				326				688				660
Professional fees			500				507				1,000				993
Marketing expense			279				221				558				446
FDIC insurance			164				161				347				309
Data processing			969				788				1,894				1,595
Software			587				541				1,128				1,162
Other			1,525				1,596				3,032				3,080
Total noninterest expense			11,049				10,863				21,867				21,604
Income before income taxes			5,186				3,620				10,738				7,014
Income taxes			976				648				2,122				1,249
NET INCOME		$	4,210			$	2,972			$	8,616			$	5,765

OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share data)		June 30,				December 31,
		2025				2024
ASSETS
Cash and noninterest-bearing deposits with banks		$	16,805			$	15,704
Interest-bearing deposits with banks			37,822				67,403
Total cash and cash equivalents			54,627				83,107
Securities available for sale			265,342				268,120
Securities held to maturity, net of allowance for credit losses of $1 in 2025 and 2024			6,493				7,049
Restricted investments in bank stocks			5,007				5,007
Total loans			1,101,267				1,061,825
Less:  Allowance for credit losses			(10,856	)			(10,088	)
Net loans			1,090,411				1,051,737
Premises and equipment, net			20,842				21,229
Premises and equipment held for sale, net			497				507
Accrued interest receivable			4,941				4,805
Goodwill			7,319				7,319
Bank owned life insurance and annuity assets			42,416				42,048
Operating lease right-of-use asset, net			935				1,024
Deferred tax assets			6,065				7,218
Other assets			5,463				4,242
Total assets		$	1,510,358			$	1,503,412
LIABILITIES
Noninterest-bearing deposits		$	331,373			$	322,383
Interest-bearing deposits			945,389				952,795
Total deposits			1,276,762				1,275,178
Other borrowed funds			37,177				39,740
Subordinated debentures			8,500				8,500
Operating lease liability			935				1,024
Allowance for credit losses on off-balance sheet commitments			637				582
Other liabilities			25,587				28,060
Total liabilities			1,349,598				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			128,188				121,693
Accumulated other comprehensive income (loss)			(6,547	)			(10,484	)
Treasury stock, at cost (779,994 shares)			(18,693	)			(18,693	)
Total shareholders' equity			160,760				150,328
Total liabilities and shareholders' equity		$	1,510,358			$	1,503,412

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			OHIO VALLEY BANC CORP.
Date:	July 25, 2025	By:	/s/Larry E. Miller,II
			Larry E. Miller, II President and Chief Executive Officer

FAQ

How much did OVBC's Q2 2025 earnings grow?

Net income increased 41.7% YoY to $4.2 million, with EPS at $0.89.

What drove Ohio Valley Banc’s net-interest margin expansion?

Higher-yield loans & securities plus low-cost deposits from the Ohio Homebuyer Plus program lifted NIM to 4.17%.

How did credit quality trend for OVBC?

Non-performing loans were 0.45% of total loans and allowance coverage rose to 0.99%.

What is OVBC's dividend payout ratio after the results?

Q2 payout ratio was 25.7%, based on a $0.23 dividend and $0.89 EPS.

How has OVBC's book value per share changed?

Book value per share increased to $34.12 from $30.94 YoY.

Which loan segments drove growth in H1 2025?

Growth was concentrated in commercial real estate, C&I, and residential real estate loans.