OVBC · Ohio Valley Banc Corp.

Ohio Valley Banc Corp. reported consolidated net income of $4.3 million for the first quarter ended March 31, 2026, reflecting a modest 2.5% decline from $4.4 million in the prior year quarter, primarily driven by a significantly higher provision for credit losses of $1.6 million compared to $416 thousand last year. This increase stemmed from a $2.0 million specific allocation on two collateral-dependent commercial loans, net charge-offs of $278 thousand, and loan growth, partially offset by improved qualitative factors. EPS dipped to $0.91 from $0.94, with ROA and ROE at 1.08% and 10.17%, respectively, versus 1.20% and 11.82% prior year.

Core performance showed strength as net interest income surged 13.3% to $14.9 million, fueled by $121 million growth in average earning assets—led by $146 million in average loans, particularly in targeted commercial segments—and net interest margin expansion to 4.01% from 3.85%, due to higher yields on loans comprising a larger asset mix. Noninterest income fell to $3.3 million from $3.6 million, hit by the elimination of $540 thousand in electronic refund fees post-tax processing agreement expiration, though offset by gains in bank-owned life insurance and card interchange. Noninterest expenses rose 4.5% to $11.3 million, driven by 5.6% higher salaries/benefits, software investments, and elevated FDIC insurance from asset growth and nonperformers.

Balance sheet expansion included total assets of $1.678 billion (up $95 million from year-end), deposits up $94 million (mainly time deposits), and loans up $19 million. Nonperforming loans ratio rose to 1.64% from 0.48% prior year due to three commercial loans on nonaccrual, with allowance at 1.07% of loans. President Larry Miller highlighted strong core metrics, loan growth, and investments in people/technology for long-term performance. Dividend increased to $0.23 per share from $0.22.