Ohio Valley Banc Posts Quarterly Profit of $3,295,000 Despite Year-to-Date Decline
Key Facts
Ohio Valley Banc reported consolidated net income of $3,295,000 in the third quarter of 2026, up 8.7% from the same period a year earlier. Earnings per share rose to $0.70, compared with $0.64 in the third quarter of 2025. But the quarterly improvement did not erase the year-to-date decline: net income for the nine months ended September 30 was $10,519,000, down 9.7% year over year. Earnings per share for the same period fell to $2.23 from $2.47 in 2025. Chief Executive Larry Miller said year-to-date performance “did not meet expectations” because of losses tied to a limited number of commercial loans.
Credit was a key factor in explaining the contrast between quarterly profit growth and the decline over nine months. The provision for credit losses was $2,825,000 in the third quarter, an increase of $1,713,000 from the same period a year earlier. The company attributed the expense mainly to net charge-offs of $6,357,000 during the quarter. The charge-offs included $3,284,000 related to the conversion of a specific reserve on a loan secured by an automobile dealership’s inventory into a charge-off. Another $2,818,000 was associated with recording an acquired commercial property at fair value.
By contrast, net interest income increased by $1,271,000 in the third quarter and by $3,882,000 in the nine months ended September 30. The company attributed the increase to growth in average interest-earning assets and loans. Average interest-earning assets rose by $131 million in the third quarter from the same period a year earlier, and by $143 million over the nine months from the corresponding period. The company said loan growth was the main reason for the increase in the average. Net interest margin was 4.03% for the quarter, compared with 4.05% a year earlier, as funding costs rose faster than yields on interest-earning assets.
Total assets were $1.655 billion at September 30, 2026, up $73 million from the end of 2025. Deposits increased by $84 million over the same period, placing balance-sheet expansion alongside growth in interest-earning assets among the company’s performance factors. Miller said the company continued to see strength in its core business, citing “continued loan growth and stable margins.” He also noted that funding costs remained elevated, consistent with a slight decline in net interest margin from a year earlier. These indicators show improvement in interest income sources alongside the continued effect of credit losses on year-to-date results.
The company’s shares, trading under the ticker OVBC, closed at $47.02 on October 26, 2026. On October 20, the board declared a quarterly cash dividend of $0.25 per share. The dividend is payable on November 10 to shareholders of record on October 30. Those dates follow third-quarter results that combined year-over-year growth in net income and earnings per share with a decline in year-to-date results. The record and payment dates are the next near-term milestones for shareholders.