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OVBC Stock Up Post Q4 Earnings on Strong Loan Growth, Margin Expansion

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Shares of Ohio Valley Banc Corp. (OVBC - Free Report) have gained 2.1% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 Index’s 0.3% gain over the same time frame. Over the past month, the stock gained 2.9% compared with the S&P 500’s 2.1% growth.

OVBC’s Earnings Snapshot

For the quarter ended Dec. 31, 2025, Ohio Valley Banc reported net income of $3.9 million, up 57.3% from $2.5 million in the year-ago period. Earnings per share (EPS) rose 58.5% to $0.84 from $0.53 a year earlier, reflecting the stronger bottom-line performance. For full-year 2025, net income increased 41.8% to $15.6 million from $10.9 million, while EPS climbed 42.7% to $3.31 from $2.32 in 2024. The improvement was supported by higher net interest income, which rose 18.4% year over year in the fourth quarter and 18.3% for the full year, driven by growth in average earning assets and an expansion in net interest margin.

While Ohio Valley Banc does not report revenue in a traditional sense, total interest income for the fourth quarter increased 14.1% to $22.9 million from $20 million a year earlier, supported by growth across loan and securities portfolios.

Ohio Valley Banc’s Other Key Business Metrics

The quarterly net interest margin expanded to 4.18% from 3.70% a year ago, while the full-year margin improved to 4.07% from 3.71%. Average earning assets in fourth-quarter 2025 increased to $1.48 billion from $1.41 billion year over year, led by $75 million growth in average loans and $53 million growth in average securities. Loan growth was concentrated in commercial real estate, commercial and industrial, and residential real estate lending, partially offset by a deliberate reduction in consumer loans.

Return on average assets rose to 1.00% for the quarter from 0.66% year over year and 1.02% for the full year from 0.77% in 2024. Return on average equity also improved, reaching 9.49% for the quarter from 6.62% year over year and 9.83% for the year from 7.50% in 2024. Total assets increased to $1.58 billion as of Dec. 31, 2025, from $1.50 billion in the prior year, reflecting loan growth and changes in the securities portfolio. Shareholders’ equity rose to $170.3 million as of Dec. 31, 2025, from $150.3 million as of Dec. 31, 2024, supported by retained earnings growth and improved accumulated other comprehensive income.

Asset quality metrics showed some mixed trends. The ratio of non-performing loans to total loans rose to 1.40% as of Dec. 31, 2025, from 0.46% a year earlier, driven by two commercial loans placed on nonaccrual status. Management noted these loans are secured by commercial real estate and are considered adequately collateralized. The allowance for credit losses remained relatively stable at 0.96% of total loans compared with 0.95% at year-end 2024.

Ohio Valley Banc Corp. Price, Consensus and EPS Surprise

Ohio Valley Banc Corp. Price, Consensus and EPS Surprise

Ohio Valley Banc Corp. price-consensus-eps-surprise-chart | Ohio Valley Banc Corp. Quote

OVBC’s Management Commentary

Management highlighted the results as record earnings in Ohio Valley Banc’s 153rd year of operations. President and CEO Larry Miller attributed performance to disciplined execution, employee commitment and a focus on community-oriented banking while enhancing shareholder value. Miller emphasized balance sheet growth, improved margins and cost controls as central contributors to the year’s performance, while reiterating OVBC’s long-standing “Community First” mission.

Factors Influencing Ohio Valley Banc’s Headline Numbers

A key factor behind earnings growth was margin expansion, driven by higher yields on earning assets and a decline in funding costs. The yield improvement reflected growth in higher-yielding loans and securities, as well as the recognition of market discounts on purchased loans during the year. Funding costs benefited from a shift toward lower-cost deposit categories such as NOW, money market and savings accounts, while higher-cost certificates of deposit repriced downward.

Noninterest income declined sharply, falling 81.4% year over year in the fourth quarter, largely due to losses on securities sales. During the quarter, Ohio Valley Banc sold $25.9 million in securities at a loss of $2.5 million and reinvested the proceeds into higher-yielding instruments. Management indicated this repositioning is expected to support future net interest income despite the near-term impact on noninterest revenue.

On the expense side, noninterest expense decreased 18.4% year over year, aided by lower salary and benefit costs following a voluntary early retirement program implemented in late 2024.

OVBC’s Guidance

Ohio Valley Banc did not include explicit forward-looking financial guidance. Management commentary focused on explaining current-period results, balance sheet strategy and margin dynamics rather than providing quantitative outlook metrics.

Ohio Valley Banc’s Other Developments

No acquisitions, divestitures or major business restructurings were announced during the quarter. However, OVBC continued its participation in the Ohio Homebuyer Plus program, which influenced deposit and securities balances.


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