Ohio Valley Banc Corp. Reports 57.8% Increase in Net Income to $4.4 Million for Q1 2025

Ohio Valley Banc Corp. reported a net income of $4.4 million for the first quarter of 2025, reflecting a significant increase of 57.8% compared to $2.8 million in the same period of 2024. This translates to earnings per share of $0.94, up from $0.58 a year earlier. The growth in profitability was driven by a 17.4% rise in net interest income, which reached $13.1 million, attributed to a 10.8% increase in average earning assets, primarily from loans and securities. The company’s net interest margin also improved, rising to 3.85% from 3.61% in the prior year, benefiting from a shift towards higher-yielding assets and a decrease in funding costs.

Total assets for Ohio Valley Banc Corp. increased to $1.51 billion as of March 31, 2025, up from $1.50 billion at the end of 2024. This growth was primarily due to a $34.6 million increase in cash and cash equivalents, which reached $120.6 million. However, total loans decreased by $18.5 million to $1.04 billion, largely due to a significant paydown in a warehouse line of credit extended to a mortgage lender. The company experienced a decrease in residential real estate loans, which fell by 6.6%, while commercial real estate loans increased by 2.1%.

In terms of operational developments, Ohio Valley Banc Corp. has continued to focus on its strategic initiatives, including participation in the Ohio Homebuyer Plus program, which encourages savings for home purchases. The program has led to the introduction of the "Sweet Home Ohio" deposit account, which offers competitive interest rates. As of March 31, 2025, the balance of these accounts totaled $7.7 million, up from $6.8 million at the end of 2024. The company also reported a slight decrease in its employee headcount, down to 252 from 271 a year earlier, following a voluntary early retirement program implemented in 2024.

The company’s total deposits increased to $1.28 billion, up $8.99 million from the previous quarter, driven by a rise in interest-bearing deposits. However, noninterest-bearing deposits saw a decline, reflecting competitive pressures in the market. The allowance for credit losses on loans increased slightly to $10.1 million, or 0.97% of total loans, compared to $10.1 million, or 0.95%, at the end of 2024. This increase was attributed to higher historical loss rates in certain loan segments, although overall credit quality remained stable.

Looking ahead, Ohio Valley Banc Corp. anticipates continued focus on enhancing its loan portfolio, particularly in commercial lending, which generally yields higher returns. The company remains cautious about the economic environment, particularly regarding interest rates and market conditions, which could impact future performance. Management is committed to maintaining a strong liquidity position and capital ratios, ensuring the company is well-positioned to navigate potential challenges in the financial landscape.