Ohio Valley Banc (NASDAQ: OVBC) Q1 profit edges lower on credit costs

Rhea-AI Filing Summary

Ohio Valley Banc Corp. reported first-quarter 2026 net income of $4.3 million, down 2.5% from the prior year, with earnings per share of $0.91 versus $0.94 a year earlier. Return on average assets was 1.08% and return on average equity was 10.17%.

Core banking performance was solid, as net interest income rose 13.3% to $14.9 million, driven by $121 million growth in average earning assets, led by higher commercial loans, and a wider net interest margin of 4.01% versus 3.85%. However, provision for credit losses increased to $1.6 million, primarily from specific allocations on two collateral-dependent loans, and the nonperforming loan ratio climbed to 1.64%. Total assets reached $1.68 billion, with deposits rising $94 million and shareholders’ equity at $171.3 million.

8-K Event Classification

Item 2.02 — Results of Operations and Financial Condition

1 item

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Key Figures

Net income: $4,297,000 Earnings per share: $0.91 Net interest income: $14,888,000 +5 more

8 metrics

Net income $4,297,000 Quarter ended March 31, 2026; down 2.5% year over year

Earnings per share $0.91 Q1 2026 EPS vs $0.94 in Q1 2025

Net interest income $14,888,000 Q1 2026; up $1,748,000 or 13.3% from Q1 2025

Provision for credit losses $1,622,000 Q1 2026; up from $416,000 in Q1 2025

Net interest margin 4.01% Q1 2026; increased from 3.85% in Q1 2025

Nonperforming loans ratio 1.64% Nonperforming loans to total loans at March 31, 2026

Total assets $1,677,502,000 Balance at March 31, 2026; up $95 million from year end 2025

Book value per share $36.36 At March 31, 2026; up from $33.05 at March 31, 2025

Key Terms

net interest margin, provision for credit losses, nonperforming loans, efficiency ratio, +2 more

6 terms

net interest margin financial

"For the first quarter of 2026, the net interest margin was 4.01%, an increase from 3.85% for the first quarter of 2025."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

provision for credit losses financial

"For the three months ended March 31, 2026, the provision for credit loss expense was $1,622,000, an increase of $1,206,000 from the first quarter of 2025."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

nonperforming loans financial

"The ratio of nonperforming loans to total loans was 1.64% at March 31, 2026, compared to 1.40% at December 31, 2025 and .48% at March 31, 2025."

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

efficiency ratio financial

"Efficiency ratio (e) ... 61.72 % ... 63.95 %"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

allowance for credit losses financial

"The allowance for credit losses was 1.07% of total loans at March 31, 2026, compared to .96% at December 31, 2025 and .97% at March 31, 2025."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

bank owned life insurance financial

"This decrease was partially offset by a $138,000 increase in income from bank owned life insurance due to the receipt of life insurance proceeds"

Bank owned life insurance is a type of life insurance a bank buys on the lives of its employees so the bank, rather than the employee’s family, receives the payout when a covered person dies. It acts like a long-term asset that pays income and can help cover costs such as employee benefits or unexpected losses; investors watch it because the holding affects a bank’s reported earnings, cash flow stability, and capital position much like a conservative investment portfolio would.

Offering Details

earnings_snapshot

Offering

Offering Type earnings_snapshot

Understanding 8-K Material Events →

false000089467100008946712026-04-282026-04-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): April 28, 2026

OHIO VALLEY BANC CORP.

(Exact Name of Registrant as Specified in Its Charter)

000-20914

(Commission File Number)

Ohio	31-1359191
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

420 THIRD AVENUE, PO BOX 240

GALLIPOLIS, Ohio 45631

(Address of principal executive offices, including zip code)

(740) 446-2631

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, without par value		OVBC		NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 – Financial Information

Item 2.02.  Results of Operations and Financial Condition

GALLIPOLIS, Ohio - Ohio Valley Banc Corp. [Nasdaq: OVBC] (the “Company”) reported consolidated net income for the quarter ended March 31, 2026, of $4,297,000, a decrease of $109,000, or 2.5%, from the same period during the prior year. Earnings per share for the first quarter of 2026 were $.91, compared to $.94 for the first quarter of 2025. Return on average assets and return on average equity were 1.08% and 10.17%, respectively, for the first quarter of 2026, versus 1.20% and 11.82%, respectively, for the same period the prior year.

Ohio Valley Banc Corp. President and CEO, Larry Miller stated, “Our core performance remained strong, highlighted by double-digit growth in net interest income, margin expansion, and continued loan growth in our targeted commercial markets. While earnings were modestly lower, we continue to invest in our people, technology, and franchise for long-term, sustainable performance.”

For the first quarter of 2026, net interest income increased $1,748,000, or 13.3%, from the first quarter of 2025. The increase was related to the increase in both average earning assets and the net interest margin. For the first quarter of 2026, average earning assets increased $121 million from the same period last year, led by the $146 million growth in average loans, which was partially offset by the decreases in average securities of $15 million and average balances maintained at the Federal Reserve of $11 million. The growth in average loans occurred primarily within the targeted commercial lending segments.

For the first quarter of 2026, the net interest margin was 4.01%, an increase from 3.85% for the first quarter of 2025. The increase in the net interest margin was related to the yield on earning assets increasing more than the cost of funding sources. The yield on earning assets improved primarily in relation to the strong growth in higher yielding loans, which now comprise a larger percentage of earning assets.

For the three months ended March 31, 2026, the provision for credit loss expense was $1,622,000, an increase of $1,206,000 from the first quarter of 2025. The provision for credit loss expense for the first quarter of 2026 was primarily related to the specific allocation of $2,031,000 on two collateral dependent loans. Additional reserves were required for net charge-offs of $278,000 and the $19 million increase in loans since December 31, 2025. These increases in reserves were partially offset by a decrease in certain qualitative risk factors. The ratio of nonperforming loans to total loans was 1.64% at March 31, 2026, compared to 1.40% at December 31, 2025 and .48% at March 31, 2025. The increase in nonperforming loans was primarily related to three commercial loans being placed on nonaccrual status since March 31, 2025. Two of the loans required the specific allocation that was previously mentioned and one of the loans was deemed adequately collateralized. The allowance for credit losses was 1.07% of total loans at March 31, 2026, compared to .96% at December 31, 2025 and .97% at March 31, 2025.

Noninterest income totaled $3,288,000 for the first quarter of 2026, a decrease of $358,000 from the same period last year. The decrease was primarily related to the $540,000 decrease in electronic refund check and deposit fees due to the expiration of a tax processing agreement with a third party. This decrease was partially offset by a $138,000 increase in income from bank owned life insurance due to the receipt of life insurance proceeds and to the $86,000 increase in debit and credit card interchange income.

 Noninterest expense totaled $11,301,000 for the first quarter of 2026, an increase of $483,000 from the same period last year. The Company’s largest noninterest expense, salaries and employee benefits, increased $335,000, or 5.6%, from the first quarter of 2025. The increase was primarily related to annual merit increases and to health insurance premiums. For the three months ended March 31, 2026, software expense increased $132,000 from the same period last year. The increase was primarily related to an investment in software to enhance internal processes. Also contributing to higher noninterest expense for the first quarter of 2026 was a $58,000 increase in FDIC insurance expense, as compared to the same period 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.

The Company’s total assets at March 31, 2026 were $1.678 billion, an increase of $95 million from December 31, 2025. The increase in assets was primarily the result of a $78 million increase in balances maintained at the Federal Reserve and a $19 million increase in total loans. At March 31, 2026, total deposits increased $94 million from year end 2025, which occurred primarily within time deposits. Total shareholders’ equity increased $1.0 million from year end 2025. This was primarily from year-to-date net income of $4.3 million, partially offset by a decrease in accumulated other comprehensive income of $2.2 million and cash dividends paid of $1.1 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 18 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.

OHIO VALLEY BANC CORP - Financial Highlights (Unaudited)
		Three months ended
		March 31,
		2026				2025
PER SHARE DATA
Earnings per share		$	0.91			$	0.94
Dividends per share		$	0.23			$	0.22
Book value per share		$	36.36			$	33.05
Dividend payout ratio (a)			25.22	%			23.52	%
Weighted average shares outstanding			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)		$	314			$	382
PERFORMANCE RATIOS
Return on average equity			10.17	%			11.82	%
Return on average assets			1.08	%			1.20	%
Net interest margin (d)			4.01	%			3.85	%
Efficiency ratio (e)			61.72	%			63.95	%
Average earning assets (in 000's)		$	1,518,144			$	1,397,458
(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
(in $000's)		March 31,
			2026				2025
Interest income:
Interest and fees on loans		$	19,404			$	16,695
Interest and dividends on securities			2,489				2,279
Interest on interest-bearing deposits with banks			582				826
Total interest income			22,475				19,800
Interest expense:
Deposits			7,031				6,133
Borrowings			556				527
Total interest expense			7,587				6,660
Net interest income			14,888				13,140
Provision for credit losses			1,622				416
Noninterest income:
Service charges on deposit accounts			745				720
Trust fees			92				103
Income from bank owned life insurance and
annuity assets			378				240
Mortgage banking income			37				37
Electronic refund check/deposit fees			0				540
Debit / credit card interchange income			1,235				1,149
Tax preparation fees			608				596
Other			193				261
Total noninterest income			3,288				3,646
Noninterest expense:
Salaries and employee benefits			6,347				6,012
Occupancy			524				521
Furniture and equipment			318				350
Professional fees			473				500
Marketing expense			280				279
FDIC insurance			241				183
Data processing			911				925
Software			673				541
Other			1,534				1,507
Total noninterest expense			11,301				10,818
Income before income taxes			5,253				5,552
Income taxes			956				1,146
NET INCOME		$	4,297			$	4,406

OHIO VALLEY BANC CORP - Consolidated Balance Sheets (Unaudited)
(in $000's, except share data)		March 31,				December 31,
		2026				2025
ASSETS
Cash and noninterest-bearing deposits with banks		$	16,255			$	14,845
Interest-bearing deposits with banks			109,072				31,052
Total cash and cash equivalents			125,327				45,897
Securities available for sale			251,439				253,906
Securities held to maturity, net of allowance for credit losses of $1 in 2026 and 2025			5,435				5,452
Restricted investments in bank stocks			5,258				5,258
Total loans			1,214,814				1,196,018
Less:  Allowance for credit losses			(12,943	)			(11,519	)
Net loans			1,201,871				1,184,499
Premises and equipment, net			20,501				20,509
Premises and equipment held for sale, net			395				400
Accrued interest receivable			5,535				5,476
Goodwill			7,319				7,319
Bank owned life insurance and annuity assets			42,606				43,305
Operating lease right-of-use asset, net			876				923
Deferred tax assets			6,252				5,621
Other assets			4,688				4,089
Total assets		$	1,677,502			$	1,582,654
LIABILITIES
Noninterest-bearing deposits		$	332,760			$	314,131
Interest-bearing deposits			1,090,914				1,015,536
Total deposits			1,423,674				1,329,667
Other borrowed funds			43,529				44,848
Subordinated debentures			8,500				8,500
Operating lease liability			876				923
Allowance for credit losses on off-balance sheet commitments			791				871
Other liabilities			28,852				27,588
Total liabilities			1,506,222				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			136,220				133,007
Accumulated other comprehensive income (loss)			(4,059	)			(1,869	)
Treasury stock, at cost (779,994 shares)			(18,693	)			(18,693	)
Total shareholders' equity			171,280				170,257
Total liabilities and shareholders' equity		$	1,677,502			$	1,582,654

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			OHIO VALLEY BANC CORP.
Date:	April 28, 2026	By:	/s/Larry E. Miller, II
			Larry E. Miller, II President and Chief Executive Officer

FAQ

How did Ohio Valley Banc Corp (OVBC) perform in Q1 2026?

Ohio Valley Banc Corp earned $4.3 million in net income in Q1 2026, down 2.5% from Q1 2025. Earnings per share were $0.91 versus $0.94 a year earlier, reflecting higher credit costs despite stronger core banking revenue.

What happened to Ohio Valley Banc Corp’s net interest income and margin?

Net interest income increased to $14.9 million in Q1 2026, up 13.3% from the prior year. The net interest margin improved to 4.01% from 3.85%, helped by growth in higher-yielding loans and earning assets outpacing the cost of funding sources.

How did credit quality and provisions change for OVBC in Q1 2026?

Provision for credit losses rose to $1.6 million in Q1 2026 from $0.4 million a year earlier, mainly due to a $2.0 million specific allocation on two collateral-dependent loans. The nonperforming loan ratio increased to 1.64% of total loans.

What were Ohio Valley Banc Corp’s key balance sheet trends in Q1 2026?

Total assets reached $1.68 billion at March 31, 2026, up $95 million from year-end 2025. Loans increased to $1.21 billion, deposits rose $94 million to $1.42 billion, and total shareholders’ equity was $171.3 million, modestly above year-end levels.

How much did OVBC return to shareholders through dividends in Q1 2026?

Ohio Valley Banc Corp paid dividends of $0.23 per share in Q1 2026, up from $0.22 a year earlier. The dividend payout ratio was 25.22% of net income, with dividend reinvestment occurring through both an employee stock ownership plan and a dividend reinvestment plan.

What were OVBC’s profitability ratios in Q1 2026?

Return on average equity was 10.17% and return on average assets was 1.08% in Q1 2026, both slightly lower than a year earlier. The efficiency ratio improved to 61.72%, indicating noninterest expenses consumed a smaller share of revenue than in Q1 2025.

Filing Exhibits & Attachments

3 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 21.5 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 15.7 KB