Ohio Valley Banc Corp. Reports 30.5% Decrease in Q2 Net Income, Total Assets Rise to $1.66 Billion

Ohio Valley Banc Corp. reported its financial results for the second quarter and first half of 2026, revealing a net income of $2.93 million for the quarter, a decrease of 30.5% from $4.21 million in the same period last year. Earnings per share fell to $0.62 from $0.89. For the first six months of 2026, net income totaled $7.22 million, down from $8.62 million in 2025, with earnings per share decreasing from $1.83 to $1.53. The decline in profitability was attributed primarily to increased provisions for credit losses, which rose significantly due to collateral impairments in two commercial loan relationships.

Total assets increased to $1.66 billion as of June 30, 2026, up from $1.58 billion at the end of 2025. This growth was driven by a $50.1 million increase in loans, which reached $1.25 billion, reflecting a 4.2% rise. The loan portfolio's growth was led by commercial and residential real estate segments, while consumer loans saw a decline. The allowance for credit losses on loans also increased to $16.61 million, or 1.33% of total loans, compared to $11.52 million, or 0.96%, at the end of 2025.

In terms of deposits, Ohio Valley Banc Corp. reported a total of $1.41 billion, an increase of 5.9% from $1.33 billion at year-end 2025. This growth was primarily in interest-bearing deposits, which rose by $73.6 million, driven by higher balances in time deposits and savings accounts. The company also noted a strategic focus on enhancing its deposit base through competitive offerings, particularly in retail time deposits.

Operationally, the bank's net interest income increased by 5.9% for the quarter and 9.4% for the first half of 2026, largely due to a rise in average earning assets. However, the net interest margin contracted, reflecting higher funding costs that outpaced the yield on earning assets. Noninterest income saw a quarterly increase of 11.9%, primarily due to unrealized gains from equity securities related to a Visa exchange offer, while year-to-date noninterest income remained stable compared to the previous year.

Looking ahead, Ohio Valley Banc Corp. anticipates continued challenges in the current economic environment, particularly regarding liquidity and rising deposit costs. The company remains focused on maintaining a strong capital position, with total shareholders' equity increasing to $173.39 million, up from $170.26 million at the end of 2025. The bank's capital ratios remain above the "well capitalized" minimums, positioning it to navigate potential market fluctuations effectively.