--- title: "Ohio Valley Banc Corp. Reports 2nd Quarter Earnings | OVBC Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/293961035.md" description: "Ohio Valley Banc Corp. reported a 30.5% drop in Q2 2026 net income to $2.93 million, with EPS falling to $0.62 from $0.89 year-over-year. Net interest income rose due to loan growth, but the net interest margin contracted to 3.93% as funding costs outpaced asset yields. The company increased its provision for credit losses by $2.6 million, primarily due to specific allocations on two large commercial loans and higher reserve requirements." datetime: "2026-07-27T09:18:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293961035.md) - [en](https://longbridge.com/en/news/293961035.md) - [zh-HK](https://longbridge.com/zh-HK/news/293961035.md) --- # Ohio Valley Banc Corp. Reports 2nd Quarter Earnings | OVBC Stock News , /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 SOURCE Ohio Valley Banc Corp. ### Related Stocks - [OVBC.US](https://longbridge.com/en/quote/OVBC.US.md) ## Related News & Research - [Ohio Valley Banc (NASDAQ:OVBC) Announces Quarterly Earnings Results](https://longbridge.com/en/news/293964540.md) - [OVBC ANNOUNCES CASH DIVIDEND | OVBC Stock News](https://longbridge.com/en/news/292667914.md) - [Midland States Bancorp Q2 net income rises, margin expands](https://longbridge.com/en/news/293665500.md) - [John Marshall Bancorp Q2 net income rises as interest margin expands](https://longbridge.com/en/news/293475261.md) - [First Bancorp Q2 net income rises on margin gains](https://longbridge.com/en/news/293518155.md)