Ohio Valley Banc Corp. Reports Q1 2026 Financial Results with $4.3M Net Income

Ohio Valley Banc Corp. reported its financial results for the first quarter of 2026, revealing a net income of $4.3 million, a slight decrease from $4.4 million in the same period of 2025. Earnings per share for the quarter were $0.91, down from $0.94 year-over-year. The company's return on assets decreased to 1.08% from 1.20%, while return on equity fell to 10.17% from 11.82%. The decline in earnings was attributed to a $1.2 million increase in provision for credit losses, primarily due to impairments on two commercial loan relationships, alongside a decrease in noninterest income and an increase in noninterest expenses.

Total assets increased to $1.68 billion as of March 31, 2026, up from $1.58 billion at the end of 2025. This growth was driven by a $78 million rise in interest-bearing deposits with banks and an $18.8 million increase in loans, which reached $1.21 billion. The loan portfolio's growth was primarily in commercial and residential real estate segments. Total liabilities also rose to $1.51 billion, reflecting a $94 million increase in total deposits, which were bolstered by higher interest-bearing balances.

In terms of operational metrics, the company reported a 13.3% increase in net interest income, totaling $14.9 million for the quarter, compared to $13.1 million in the prior year. This growth was supported by an 8.6% increase in average earning assets and a 16 basis point improvement in the net interest margin, which reached 4.01%. The increase in net interest income was partially offset by a decrease in noninterest income, which fell by 9.8% to $3.3 million, primarily due to lower electronic refund check and deposit fees following the expiration of a tax processing agreement.

Ohio Valley Banc Corp. continues to focus on enhancing its loan portfolio while managing credit risk. The allowance for credit losses increased to $12.9 million, or 1.07% of total loans, compared to $11.5 million, or 0.96%, at the end of 2025. The company experienced a rise in nonperforming loans to 1.64% of total loans, up from 1.40% at year-end 2025, primarily due to one commercial loan placed on nonaccrual status.

Looking ahead, Ohio Valley Banc Corp. remains committed to maintaining its capital ratios above regulatory minimums, with a Community Bank Leverage Ratio of 10.06% as of March 31, 2026. The company anticipates continued competition for deposits and plans to focus on growing its core deposit relationships while managing liquidity effectively. The management's outlook reflects a cautious optimism, emphasizing the importance of asset quality and strategic growth in higher-yielding loan segments.