Ohio Valley Banc Corp. (OVBC) reported first‑quarter 2026 results that showed a 2.5% year‑over‑year decline in net income to $4.297 million and earnings per share of $0.91, down from $0.94 in Q1 2025. Net interest income rose $1.748 million to $14.888 million, a 13.3% increase, while the net interest margin expanded to 4.01% from 3.85% in the prior year, reflecting a higher mix of higher‑yielding loans.
The quarter’s earning assets grew $121 million, driven by $146 million in loan growth that was concentrated in commercial lending segments. Noninterest income fell $358 k to $3.288 million, largely because a tax‑processing agreement that generated electronic refund check and deposit fees expired, removing that revenue stream. Operating expenses increased $483 k to $11.301 million, with salaries and benefits up $335 k as the bank continued to invest in talent to support its growth strategy.
Provision for credit losses climbed $1.206 million to $1.622 million, mainly due to specific allocations on two collateral‑dependent loans that the bank had identified as higher risk. The rise in credit loss provisions offset some of the gains from higher net interest income, contributing to the modest decline in net income and EPS. Operating expenses rose in line with the bank’s focus on maintaining a strong workforce while expanding its loan book.
Total assets reached $1.678 billion, up $95 million from year‑end 2025, and deposits grew $94 million to $1.424 billion, reflecting continued customer confidence and the bank’s ability to attract new deposits to fund its lending program.
Overall, the results demonstrate a solid core banking performance with expanding net interest income and margin, but also highlight headwinds from higher credit loss provisions and a decline in noninterest income. The bank’s loan growth, particularly in commercial lending, signals ongoing demand for its credit products, while the increase in credit loss provisions suggests a cautious approach to credit risk. The mixed picture indicates that while the bank’s core operations remain robust, it must manage credit quality and diversify its income sources to sustain profitability moving forward.
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