Ohio Valley Banc Corp. Reports 2nd Quarter Earnings

, /PRNewswire/ -- 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. Contact: Scott Shockey, CFO (740) 446-2631 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 SOURCE Ohio Valley Banc Corp. 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Ohio Valley Banc Corp. Reports 2nd Quarter Earnings

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