Ohio Valley Banc Lifts Third-Quarter Profit on Loan Growth
Net income rose 8.7% to $3.295 million, or $.70 a share, as net interest income increased $1.271 million.
Ohio Valley Banc Corp. (OVBC), a community bank holding company with 19 Ohio Valley Bank Company offices in Ohio and West Virginia and six Loan Central consumer finance offices, reported third-quarter net income of $3.295 million, up $265,000, or 8.7%, from the year-earlier quarter, or $.70 a share versus $.64.
Net interest income for the three months ended September 30, 2026, was $15.868 million, up $1.271 million from a year earlier. The company said the increase related to higher average earning assets. Average earning assets were $1.574 billion in the quarter, up $131 million from the same period last year, primarily from growth in average loan balances. Total loans were $1.248 billion at September 30, 2026.
The company’s narrative said the net interest margin was 4.03% in the third quarter of 2026, down from 4.05% a year earlier, and that funding costs rose faster than the yield on earning assets. Its Financial Highlights table listed the third-quarter margin at 4.30%. The additional growth in earning assets more than offset the margin contraction, the company said. Deposits totaled $1.414 billion at quarter-end, up $84 million from year-end 2025, primarily in time deposits and money market accounts. Total assets were $1.655 billion, up $73 million, or 4.6%, from December 31, 2025.
The provision for credit losses was $2.825 million in the quarter, up $1.713 million from the year-earlier period. The company said the quarterly provision was primarily the result of quarter-to-date net charge-offs of $6.357 million, including $3.284 million from converting a specific allocation on a collateral-dependent loan to an automobile dealership to charge-off status and $2.818 million from recording a foreclosed commercial real estate asset at fair value. Modeled loss rates declined, the company said, on improved unemployment and GDP projections.
Nonperforming loans were 1.09% of total loans at September 30, 2026, compared with.42% at September 30, 2025. The allowance for credit losses was 1.05% of total loans. Chief Executive Officer Larry Miller said year-to-date performance had not met expectations and that the primary driver had been losses tied to a limited number of commercial credits. He said the company remained encouraged by loan growth and stable margins.
Noninterest income was $3.087 million in the quarter, up $1.339 million from a year earlier, largely because 2025 included a $1.219 million loss on the sale of $11.0 million of securities yielding 1.32%. Interchange income rose $29,000. Noninterest expense was $12.093 million, up $604,000. Salaries and employee benefits increased $292,000 on merit raises and health insurance premiums; software expense rose $133,000; FDIC insurance expense rose $87,000 on a higher assessment base and a higher rate tied to nonperforming loans. Data processing expense fell $61,000.
The efficiency ratio was 63.35% in the third quarter, compared with 69.70% a year earlier. Return on average equity was 7.50% and return on average assets was.79%. The company paid a quarterly dividend of $.25 a share. Shareholders’ equity was $169.8 million at September 30, 2026. Accumulated other comprehensive income declined as the fair value of available-for-sale securities fell with higher market interest rates.
Miller said funding costs remain elevated and that the company is focused on disciplined execution.
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