Core Insights - Ohio Valley Banc Corp. reported a consolidated net income of $2,719,000 for Q3 2024, a 20.8% increase from the same period last year, with earnings per share rising to $0.58 from $0.47 [1][10] - For the first nine months of 2024, net income totaled $8,484,000, a decrease of $924,000 compared to the same period in 2023, with earnings per share dropping to $1.79 from $1.97 [1][10] Financial Performance - Net interest income for Q3 2024 increased by $1,205,000, and for the nine months ended September 30, 2024, it rose by $1,022,000 compared to the previous year [2] - The increase in quarterly net interest income was driven by a $159 million rise in average earning assets, despite a 9 basis point decrease in net interest margin [2] - The provision for credit loss expense for Q3 2024 was $920,000, up $32,000 from the same period last year, with a year-to-date provision of $1,852,000, an increase of $451,000 [3] Asset and Loan Growth - Total assets reached $1.494 billion as of September 30, 2024, an increase of $142 million from December 31, 2023 [7] - Total loans increased by $77 million, primarily in the commercial and residential real estate segments, while consumer loans were deemphasized [7] - The Sweet Home Ohio deposit account contributed significantly to asset growth, with a total balance of $5.3 million and $100 million deposited by the Treasurer [7] Noninterest Income and Expenses - Noninterest income for Q3 2024 rose by $286,000, largely due to service charges on deposit accounts and trust fees [4] - Noninterest expenses increased by $841,000 for Q3 2024, with salaries and employee benefits being the largest contributor, rising by $687,000 [5][6] - The company established a voluntary early retirement program, incurring $295,000 in severance expenses as of September 30, 2024, with an anticipated additional expense of $3,043,000 in Q4 2024 [6] Shareholder Metrics - The book value per share was $32.30 as of September 30, 2024, compared to $28.66 in the same period last year [11] - The dividend payout ratio was 38.12% for Q3 2024, down from 46.68% in the previous year [11]

Core Viewpoint - Ohio Valley Banc Corp. has extended its stock buyback program to August 31, 2025, allowing for continued repurchase of shares up to $5 million [1][2]. Group 1: Stock Buyback Program - The stock buyback program was initially approved in 2021 and was set to expire on August 31, 2024, but has now been extended for an additional year [2][3]. - As of August 21, 2024, the company has repurchased approximately $2,967,000 in common stock under this program [2]. - No changes were made to the terms of the stock buyback program other than the extension, and the Board retains the right to terminate or amend the program at any time before the new expiration date [3]. Group 2: Company Overview - Ohio Valley Banc Corp. is traded on the NASDAQ Global Market under the symbol OVBC and is based in Gallipolis, Ohio [4]. - The company owns The Ohio Valley Bank Company, which operates 17 offices in Ohio and West Virginia, and Loan Central, Inc., which has six consumer finance offices in Ohio [4].

Financial Performance - Net income for Q2 2024 was $2,972, a decrease of $277 from Q2 2023, with earnings per share at $0.63 compared to $0.68 in the prior year[103] - For the first six months of 2024, net income totaled $5,765, down $1,392 from the same period in 2023, with earnings per share decreasing from $1.50 to $1.21[103] - The return on assets decreased to 0.84% for the first half of 2024, down from 1.16% in the same period of 2023, while return on equity decreased to 8.01% from 10.63%[103] Income and Expenses - Noninterest income decreased by $12, or 0.4%, in Q2 2024 and $83, or 1.3%, for the first half of 2024, largely due to the closure of Race Day Mortgage[106] - Noninterest expense increased by $448, or 4.3%, in Q2 2024 and $917, or 4.4%, for the first half of 2024, primarily due to higher salaries and employee benefits[107] - The net interest income for Q2 2024 increased by $349, or 3.0%, but decreased by $183, or 0.8%, for the first half of 2024 compared to the same periods in 2023[104] - Total interest and fee income rose by $3,635 million, or 24.2%, in Q2 2024, and $7,525 million, or 26.1%, in the first half of 2024 compared to the same periods in 2023, driven by a 22.6% increase in loan interest[142] - Total interest expense on interest-bearing liabilities increased by $3,286 million, or 25.5%, in Q2 2024, and $7,708 million, or 25.5%, in the first half of 2024 compared to the same periods in 2023[145] Asset and Liability Management - Total assets as of June 30, 2024, were $1,403,317, an increase of $51,182 from year-end 2023, driven by a $68,384 increase in loans[108] - Total liabilities increased to $1,257,560, up $49,432 from year-end 2023, primarily due to a $51,292 increase in deposit balances[108] - Cash and cash equivalents decreased by $20,447, or 16.0%, to $107,679 from year-end 2023, mainly due to a reduction in interest-bearing deposits[111] - Total deposits increased by $51,292, or 4.6%, with interest-bearing deposits up by $30,305, or 3.8%[133] - Noninterest-bearing deposits increased by $20,987, or 6.5%[133] Loan Portfolio - Total loan balances increased to $1,040,284, representing a 7.0% increase from $971,900 at December 31, 2023[120] - Residential real estate loans increased by $39,844, or 12.5%, making up 34.5% of the total loan portfolio[122] - Commercial real estate loans increased by $28,890, or 8.9%, contributing to a total commercial loan portfolio increase of $34,476, or 7.2%[123] - The Company experienced a $5,936, or 3.4% decrease in the consumer loan portfolio from year-end 2023[124] Credit Quality - The provision for credit loss expense increased by $157 in Q2 2024 and $419 for the first half of 2024 compared to the same periods in 2023[105] - Allowance for Credit Losses (ACL) for loans totaled $9,431, or 0.91% of total loans, up from $8,767, or 0.90% at year-end 2023[130] - Nonperforming loans to total loans increased to 0.50% at June 30, 2024, compared to 0.26% at December 31, 2023[131] - Provision for credit losses increased to $181 million in Q2 2024, up from $24 million in Q2 2023, and totaled $932 million for the first half of 2024, compared to $513 million in the same period in 2023[148] Shareholder Returns - Cash dividends paid totaled $2,105 during the first half of 2024, equating to $0.44 per share[163] - The Company repurchased approximately $2,967 in common stock under its treasury repurchase program[139] Efficiency and Ratios - The Company's efficiency ratio increased to 73.4% for Q2 2024, up from 71.9% in Q2 2023, and year-to-date efficiency rose to 72.4% from 68.7%[156] - The net interest margin decreased to 3.74% in Q2 2024 from 4.03% in Q2 2023, and year-to-date net interest margin decreased to 3.68% from 4.12%[147] Funding and Liquidity - The Bank's Community Bank Leverage Ratio (CBLR) was 10.48% as of June 30, 2024, following the adoption of the CBLR framework[162] - The Company maintains a contingency funding plan to manage liquidity risks and has established multiple sources of funding to meet liquidity demands[164] - Uninsured deposits accounted for 35.9% of total deposits, amounting to $422,598, as of June 30, 2024[168] - The Bank's total wholesale funding sources represented 12.53% of total assets, with a capacity to borrow an additional $381 million[167] Other Observations - Average loan balances increased from $928,418 million in Q2 2023 to $1,013,845 million in Q2 2024, reflecting a 9.2% growth in higher-yielding loans[142] - Overhead expenses increased by 4.3% in Q2 2024, attributed to higher merit adjustments and health insurance premiums[156] - Total cash and cash equivalents represented 19.3% of total assets at June 30, 2024, down from 21.5% at December 31, 2023[166] - The Company experienced a 7.0% growth in loans, funded primarily by increases in NOW, savings, and money market deposits, which rose by 5.8%[166]

Financial Performance - For the quarter ended June 30, 2024, the company reported a net income of $2,972,000, a decrease of $277,000 from the same period last year, with earnings per share of $0.63 compared to $0.68 in the prior year [11] - For the six months ended June 30, 2024, net income totaled $5,765,000, a decrease of $1,392,000 or 19.4% from the same period last year, with earnings per share of $1.21 versus $1.50 in the first half of 2023 [11] - The return on average assets and return on average equity for the first half of 2024 were 0.84% and 8.01%, respectively, compared to 1.16% and 10.63% for the same period in the prior year [11] Interest Income and Expenses - For the three months ended June 30, 2024, net interest income was $11,963,000, an increase from $11,614,000 in the same period last year, while for the six months, it totaled $23,153,000 compared to $23,336,000 in the prior year [17] - The increase in quarterly net interest income was driven by a $129 million increase in average earning assets, although this was partially offset by a decrease in the net interest margin of 29 basis points [1] - The company experienced a decrease in net interest margin for the six months ended June 30, 2024, attributed to a 44 basis point decrease, which outweighed the contribution from a $124 million increase in average earning assets [1] Noninterest Income and Expenses - Noninterest income for the three and six months ended June 30, 2024, decreased by $12,000 and $83,000, respectively, primarily due to the closure of Race Day Mortgage, which eliminated $247,000 in mortgage application referral income earned in the first half of 2023 [5] - Noninterest expense totaled $10,863,000 for the three months ended June 30, 2024, an increase of $448,000 from the same period last year, with salaries and employee benefits being the largest component, increasing by $345,000 [2] Asset and Loan Growth - The company's total assets at June 30, 2024, were $1.403 billion, an increase of $51 million from December 31, 2023, with loan balances increasing by $68 million [14] - The growth in loans was primarily in residential real estate, commercial real estate, and commercial segments, while consumer loans decreased due to a strategic deemphasis [14] Credit Loss Provision - The provision for credit loss expense for the three months ended June 30, 2024, was $181,000, an increase of $157,000 from the same period last year, primarily associated with a $50 million increase in loan balances [12] - For the six months ended June 30, 2024, the provision for credit losses was $932,000, an increase of $419,000 from the same period last year [12] Shareholder Information - The company repurchased $1,931,000 in shares during the second quarter of 2024, with a total of $2,967,000 repurchased out of the $5 million authorized under the current stock buyback plan [14] - The book value per share as of June 30, 2024, was $30.94, compared to $28.91 in the prior year [16]

Group 1 - Ohio Valley Banc Corp. declared a cash dividend of $0.22 per common share, payable on August 10, 2024, to shareholders of record as of July 26, 2024 [1] - The company operates The Ohio Valley Bank Company with 17 offices in Ohio and West Virginia, and Loan Central, Inc. with six consumer finance offices in Ohio [2] - The Chairman of the Board, Tom Wiseman, highlighted the successful first half of 2024 and expressed optimism for the future, emphasizing the company's commitment to its Community First mission [4]

Financial Performance - Net income for Q1 2024 was $2,793, a decrease of $1,115 or 28.5% from Q1 2023, with earnings per share dropping to $0.58 from $0.82[110] - Noninterest income decreased by $71, or 1.9%, largely due to the closure of Race Day, which resulted in no mortgage application referral income in 2024 compared to $231 in Q1 2023[113] - Noninterest expense rose by $469, or 4.6%, in Q1 2024, with salaries and employee benefits increasing by $283 due to merit increases and higher health insurance premiums[168] - The efficiency ratio increased to 71.5% in Q1 2024 from 65.7% in Q1 2023, reflecting lower net interest and noninterest revenue alongside higher overhead costs[173] Income and Expenses - Net interest income decreased by $532, or 4.5%, primarily due to a reduction in net interest margin from 4.21% in Q1 2023 to 3.61% in Q1 2024[111] - Total interest and fee income from earning assets increased by $3,890 or 28.2%, with interest on loans rising by $2,912 or 25.2%[156] - Total interest expense on interest-bearing liabilities increased by $4,422 in Q1 2024 compared to Q1 2023, with the total weighted average cost rising from 1.07% to 2.94%[160] - The net interest margin decreased to 3.61% in Q1 2024 from 4.21% in Q1 2023, primarily due to higher costs associated with interest-bearing liabilities and a shift to higher-cost retail CDs[161] Credit Losses and Reserves - Provision for credit loss expense increased by $262, or 53.6%, in Q1 2024 compared to Q1 2023, driven by higher net charge-offs and increased reserves[112] - The allowance for credit losses (ACL) for loans totaled $9,229 or 0.93% of total loans, up from $8,767 or 0.90% at year-end 2023[143] - Provision for credit losses increased by $262, or 53.6%, totaling $751 in Q1 2024, driven by additional reserves related to residential and commercial real estate loans[162] - Nonperforming loans to total loans increased to 0.37% at March 31, 2024, compared to 0.26% at December 31, 2023[144] Assets and Liabilities - Total assets as of March 31, 2024, were $1,372,599, an increase of $20,464 or 1.5% from year-end 2023, primarily due to a $17,962 increase in loans[116] - Total liabilities increased to $1,226,817, up $18,689 from year-end 2023, with higher deposit balances contributing $21,648 to this increase[117] - Total shareholders' equity rose to $145,782, an increase of $1,775 from December 31, 2023, mainly from quarterly net income[118] - Total deposits increased by $21,648 or 1.9%, driven by a $37,296 or 4.6% rise in interest-bearing deposits[147] Loan Portfolio - The loan portfolio increased by $78,997, or 10.5%, year-over-year, with significant growth in commercial and residential real estate loans[111] - The Company's loan balances increased to $989,862, up $17,962 or 1.8% from $971,900 at December 31, 2023[133] - The commercial loan portfolio rose by $16,178 or 3.4%, with commercial real estate loans increasing by $13,003 or 4.0%[134] - Residential real estate loans increased by $5,234 or 1.6%, while long-term fixed rate loans decreased by $1,527[137] - The consumer loan portfolio decreased by $3,450 or 2.0%, primarily due to a $3,171 or 4.2% drop in other consumer loans[138] Liquidity and Capital - The Bank's CBLR was 10.65% as of March 31, 2024, following the adoption of the CBLR framework, which allows for simplified capital requirements[178] - The Company’s liquidity position includes on-balance sheet liquidity exceeding the balance of uninsured deposits, with AFS securities in an unrealized loss position[183] - Management does not rely on a single source of liquidity and monitors liquidity levels based on various financial condition factors[184] - The Company engages in off-balance sheet credit-related activities, including commitments to extend credit and standby letters of credit, which may require cash payments under certain conditions[186] Cash and Dividends - Cash and cash equivalents increased by $934, or 0.7%, to $129,060, primarily from higher cash on hand and noninterest-bearing deposits[122] - Cash dividends paid totaled $1,050 during the first three months of 2024, equating to $0.22 per share[179]

Financial Performance - Ohio Valley's consolidated assets increased to approximately $1,352,135,000 in 2023, up from $1,210,787,000 in 2022, representing a growth of 11.7%[15] - Total shareholders' equity rose to approximately $144,007,000 in 2023, compared to $135,028,000 in 2022, marking an increase of 6.9%[15] - The loan portfolio increased by $86,851,000 to finish at $971,900,000 in 2023, with commercial loans growing by $40,205,000 (9.1%) and consumer loans by $24,178,000 (16.3%) compared to 2022[36] - Consolidated interest and fee revenue from loans accounted for 73.59% of total consolidated revenues in 2023, up from 73.16% in 2022[36] - Revenues from interest and dividends on securities accounted for 5.59% of total consolidated revenues in 2023, down from 6.64% in 2022[44] Regulatory Compliance - The Company is subject to the Economic Growth, Regulatory Relief and Consumer Protection Act, which eases regulations for banks with consolidated assets under $100 billion[65] - The Federal Reserve Board requires all depository institutions to maintain reserves at specified levels, with the current reserve requirement ratio at 0%[74] - Compliance with Basel III Capital Rules, effective from January 1, 2015, mandates new minimum capital requirements for smaller banking organizations[77] - As of December 31, 2023, the Bank met the capital ratio requirements to be deemed "well-capitalized" with a common equity tier 1 capital ratio of at least 6.5%, total risk-based capital ratio of at least 10.0%, tier 1 risk-based capital ratio of at least 8.0%, and a leverage ratio of at least 5.0%[87] - The FDIC projected that the Designated Reserve Ratio (DRR) remains on track to reach the statutory minimum of 1.35% ahead of the deadline of September 30, 2028, despite a decline from 1.25% to 1.10% as of June 30, 2023[96] Operational Changes - Ohio Valley discontinued operations of its nonbank subsidiary, OVBC Captive, Inc., in December 2023 due to adverse IRS regulations affecting small captives[16] - The Company raised $8,500,000 through a trust preferred securities offering to support growth[46] - The Bank's participation in a new agreement for processing electronic refund checks and deposits will span five tax seasons from 2021 to 2025[48] - The Company adopted the Current Expected Credit Loss (CECL) model effective January 1, 2023, allowing for a phased-in approach to address regulatory capital impacts[84] Competition and Market Position - The Company faces increasing competition from both traditional and non-traditional financial service providers, impacting interest rates and service fees[51] - Loan Central enhances the Company's competitive position by serving consumers who may not meet traditional credit standards[52] - The company operates in a highly competitive market with significant competition from various financial institutions, which may impact its ability to maintain strong financial performance[154] Risk Management - The allowance for credit losses may not be adequate to cover actual credit losses, which could adversely affect the company's operating results[166] - The company is exposed to risks related to credit quality, particularly in its commercial and commercial real estate loan portfolio, which could lead to significant increases in nonperforming loans[163] - Security breaches or failures in systems could materially affect the company's operations and customer trust, leading to potential financial losses[167] - The company is exposed to liquidity risk, as a decline in customer deposits could lead to increased interest expenses and negatively impact profitability and net interest margin[180] - The company faces risks from cyber-attacks, including potential theft of customer data and the need for significant resources to enhance protective measures[172] Employee Relations - As of December 31, 2023, Ohio Valley had approximately 284 employees and 270 full-time equivalent employees[115] - Ohio Valley's management considers its relationship with employees and officers to be good[115] Cybersecurity - The company is required to report material cybersecurity incidents within four business days of determination[111] - Ohio Valley expects the trend of state-level activity regarding cybersecurity regulations to continue and is monitoring developments[112] - The company has implemented a comprehensive Information Security Program to manage cybersecurity risks, including regular assessments and employee training[196] - Ohio Valley has implemented an Incident Response Plan to address cybersecurity threats, which is reviewed and updated at least annually[197] - The company has not detected significant data loss or material financial losses related to cybersecurity attacks to date, but risks remain high due to evolving threats[198] Shareholder Information - Ohio Valley's common shares are traded on The NASDAQ under the symbol "OVBC," with approximately 2,096 shareholders as of February 29, 2024[207] - The company plans to continue paying quarterly cash dividends comparable to historical levels, subject to various factors including financial condition and regulatory limitations[208] - The Board of Directors has discretion over future cash dividends, which are influenced by operational results and regulatory requirements[208] Legal and Regulatory Risks - The company may be subject to litigation that could adversely affect its financial condition and results of operations[191] - The company is subject to extensive regulatory oversight, and changes in laws and regulations could negatively impact its operations and financial condition[182]

United States Securities and Exchange Commission Commission file number 000-20914 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ OHIO VALLEY BANC CORP. Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR (Exact name of registrant as specified in its charter) Ohio 31-1359191 (State of ...

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 000-20914 OHIO VALLEY BANC CORP. (Exact name of registrant as specified in its charter) Ohio 31-1359191 (State of Inco ...

United States Securities and Exchange Commission For the transition period from ____________ to ____________ Commission file number 000-20914 OHIO VALLEY BANC CORP. (Exact name of registrant as specified in its charter) Ohio 31-1359191 (State of Incorporation) (I.R.S. Employer Identification No.) 420 Third Avenue, Gallipolis, Ohio 45631 (Address of principal executive offices) (ZIP Code) Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 ...