PART I. FINANCIAL INFORMATION This section provides the unaudited financial information, including statements, notes, and management's discussion and analysis for the company Item 1. Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements of Ohio Valley Banc Corp., accompanied by comprehensive notes on accounting policies and financial instruments Consolidated Balance Sheets The consolidated balance sheets reflect the company's financial position, showing total assets of $1.51 billion and total shareholders' equity of $160.76 million at June 30, 2025, with slight asset growth and increased equity | Metric | June 30, 2025 (Unaudited, in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------------------------------ | :-------------------------------- | | Total assets | $1,510,358 | $1,503,412 | | Net loans | $1,090,411 | $1,051,737 | | Total deposits | $1,276,762 | $1,275,178 | | Total liabilities | $1,349,598 | $1,353,084 | | Total shareholders' equity | $160,760 | $150,328 | Consolidated Statements of Income The consolidated statements of income show net income of $4.21 million for Q2 2025 and $8.62 million for H1 2025, reflecting significant year-over-year growth driven by increased net interest and noninterest income | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net Interest Income | $14,535 | $11,963 | $27,675 | $23,153 | | Provision for credit losses | $1,148 | $181 | $1,564 | $932 | | Noninterest income | $2,848 | $2,701 | $6,494 | $6,397 | | Noninterest expense | $11,049 | $10,863 | $21,867 | $21,604 | | NET INCOME | $4,210 | $2,972 | $8,616 | $5,765 | | Earnings per share | $0.89 | $0.63 | $1.83 | $1.21 | Consolidated Statements of Comprehensive Income This statement details net income and other comprehensive income, with total comprehensive income reaching $6.13 million for Q2 2025 and $12.55 million for H1 2025, primarily due to unrealized gains on AFS securities | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net Income | $4,210 | $2,972 | $8,616 | $5,765 | | Change in unrealized gain (loss) on AFS securities | $2,462 | $(15) | $5,051 | $(615) | | Total comprehensive income (loss) | $6,129 | $2,961 | $12,553 | $5,286 | Consolidated Statements of Changes in Shareholders' Equity This statement outlines changes in shareholders' equity, with total equity at $160.76 million at June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by cash dividends | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :----------------------------------- | :--------------------------- | :--------------------------- | | Total Shareholders' Equity (Quarter-to-date) | $160,760 | $145,757 | | Total Shareholders' Equity (Year-to-date) | $160,760 | $145,757 | | Cash dividends per share (Year-to-date) | $0.45 | $0.44 | Condensed Consolidated Statements of Cash Flows This statement summarizes cash flows, showing net cash provided by operating activities of $4.97 million and net cash used in investing activities of $(30.35) million for H1 2025, resulting in a decrease in cash and cash equivalents | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | $4,974 | $5,108 | | Net cash (used in) investing activities | $(30,354) | $(70,275) | | Net cash provided by (used in) financing activities | $(3,100) | $44,720 | | Cash and cash equivalents at end of period | $54,627 | $107,679 | Notes to Unaudited Consolidated Financial Statements This section provides detailed disclosures and explanations for the unaudited consolidated financial statements, covering significant accounting policies, financial instruments, and key operational areas NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The Company conducts its operations through a single business segment: banking, deriving interest and noninterest income from banking products, services, and investment securities within the United States22 - New accounting pronouncements pending adoption include ASU No. 2023-09 (Income Tax Disclosures, effective after December 15, 2024) and ASU No. 2024-03 (Disaggregation of Income Statement Expenses, effective after December 15, 2026)2526 - The Allowance for Credit Losses (ACL) for Held-to-Maturity (HTM) debt securities was $1 thousand at June 30, 2025, unchanged from December 31, 2024, with no corresponding provision expense32 - The Company's loan portfolio segments are Commercial and Industrial, Commercial Real Estate, Residential Real Estate, and Consumer43 NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs), and Level 3 (significant unobservable inputs)5051 Fair Value of Financial Instruments at June 30, 2025 (in thousands) | Asset Type | Fair Value at June 30, 2025 (Level 1) | Fair Value at June 30, 2025 (Level 2) | Fair Value at June 30, 2025 (Level 3) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | | U.S. Government securities | $104,804 | — | — | | U.S. Government sponsored entity securities | — | $6,041 | — | | Agency mortgage-backed securities, residential | — | $154,497 | — | | Interest rate swap derivatives | — | $822 | — | - Individually evaluated collateral dependent loans measured for impairment using fair value of collateral totaled $424 thousand at June 30, 2025, with a $42 thousand valuation allowance, resulting in a $42 thousand increase in provision expense61 NOTE 3 – SECURITIES Securities Available for Sale at June 30, 2025 (in thousands) | Security Type | Amortized Cost (June 30, 2025) | Estimated Fair Value (June 30, 2025) | Gross Unrealized Losses (June 30, 2025) | | :----------------------------------- | :------------------------------- | :----------------------------------- | :------------------------------------ | | U.S. Government securities | $104,946 | $104,804 | $(632) | | U.S. Government sponsored entity securities | $6,386 | $6,041 | $(345) | | Agency mortgage-backed securities, residential | $162,409 | $154,497 | $(8,434) | | Total Securities Available for Sale | $273,741 | $265,342 | $(9,411) | - At June 30, 2025, the Company had 89 AFS debt securities in an unrealized loss position, but no ACL was recorded as management believes these losses are due to noncredit-related factors and does not intend to sell them before recovery of cost68 - The ACL for HTM debt securities remained at $1 thousand at June 30, 2025, with no change to provision expense, as there were no past due principal and interest payments and the cumulative loss rate remained at 0.02%69 NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES Loan Portfolio (in thousands) | Loan Type | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Residential real estate | $360,726 | $373,534 | | Commercial real estate: Owner-occupied | $100,487 | $86,471 | | Commercial real estate: Nonowner-occupied | $247,907 | $206,847 | | Commercial real estate: Construction | $70,942 | $79,669 | | Commercial and industrial | $176,208 | $158,440 | | Consumer: Automobile | $42,345 | $50,246 | | Consumer: Home equity | $45,527 | $42,473 | | Consumer: Other | $57,125 | $64,145 | | Total loans | $1,101,267 | $1,061,825 | | Less: Allowance for credit losses | $(10,856) | $(10,088) | | Loans, net | $1,090,411 | $1,051,737 | Nonaccrual and Past Due Loan Status (in thousands) | Nonaccrual/Past Due Status | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Loans Past Due 90 Days And Still Accruing | $243 | $116 | | Total Nonaccrual Loans | $4,687 | $4,817 | - The Company categorizes loans into risk categories (Special Mention, Substandard, Doubtful, Loss) based on borrower's ability to service debt and other factors, with reviews conducted at least annually for loans exceeding $1 million7576777879 Allowance for Credit Losses Activity (Six months ended June 30, in thousands) | ACL Activity (Six months ended June 30) | 2025 | 2024 | | :----------------------------------- | :--- | :--- | | Beginning balance | $10,088 | $8,767 | | Provision for credit losses | $1,509 | $995 | | Loans charged-off | $(1,313) | $(1,149) | | Recoveries | $572 | $818 | | Total ending allowance balance | $10,856 | $9,431 | NOTE 5 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - The contractual amounts of off-balance sheet instruments (commitments to extend credit, standby letters of credit, financial guarantees) totaled approximately $249.09 million at June 30, 2025, an increase from $203.02 million at December 31, 202491 - The estimated Allowance for Credit Losses (ACL) related to off-balance sheet commitments was $637 thousand at June 30, 2025, with a provision of $115 thousand during the three months ended June 30, 2025, and $55 thousand during the six months ended June 30, 202591 NOTE 6 – OTHER BORROWED FUNDS Other Borrowed Funds (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | FHLB Borrowings | $34,615 | $37,239 | | Promissory Notes | $2,562 | $2,501 | | Totals | $37,177 | $39,740 | - At June 30, 2025, the Company had $111.44 million available for additional borrowings from the FHLB and a $25 million federal funds line of credit with two correspondent banks9596 Contractual Maturities of Other Borrowed Funds (in thousands) | Maturity Year | FHLB Borrowings | Promissory Notes | Totals | | :----------------------------------- | :-------------- | :--------------- | :----- | | 2025 (remaining) | $2,811 | $1,240 | $4,051 | | 2026 | $12,908 | $1,322 | $14,230 | | 2027 | $11,397 | — | $11,397 | | 2028 | $1,349 | — | $1,349 | | 2029 | $1,733 | — | $1,733 | | Thereafter | $4,417 | — | $4,417 | | Total | $34,615 | $2,562 | $37,177 | NOTE 7 – LEASES Lease Metrics (in thousands, except for years and rates) | Lease Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Operating lease right-of-use assets | $935 | $1,024 | | Operating lease liabilities | $935 | $1,024 | | Weighted-average remaining lease term | 11.5 years | 12.0 years | | Weighted-average discount rate | 2.81% | 2.84% | Lease Cost Components (in thousands) | Lease Cost Component | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $49 | $49 | $98 | $98 | | Short-term lease expense | — | $2 | — | $9 | NOTE 8 – RISKS AND UNCERTAINTIES - The Company faces increased risks related to liquidity and rising deposit costs due to the elevated interest rate environment and heightened deposit competition102 - Liquidity is supported by liquid assets, core deposits, brokered deposits, and FHLB advances, with management believing it has sufficient resources to meet liquidity needs102 NOTE 9 – DEPOSITS Deposit Composition (in thousands) | Deposit Type | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Noninterest-bearing deposits | $331,373 | $322,383 | | Interest-bearing deposits: NOW accounts | $257,530 | $272,941 | | Interest-bearing deposits: Savings and money market | $302,653 | $285,966 | | Interest-bearing deposits: Time deposits of $250 or less | $304,967 | $311,972 | | Interest-bearing deposits: Time deposits of more than $250 | $80,239 | $81,916 | | Total interest-bearing deposits | $945,389 | $952,795 | | Total deposits | $1,276,762 | $1,275,178 | | Brokered deposits (included in time deposits) | $34,260 | $48,395 | NOTE 10 – REVENUE FROM CONTRACTS WITH CUSTOMERS - Revenue from contracts with customers is recognized across several noninterest income categories, including service charges on deposit accounts, trust fees, electronic refund check/deposit fees, debit/credit card interchange income, tax preparation fees, and float income from tax product processors104105106107108109 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section offers management's perspective on the company's financial condition and operational results for the periods ended June 30, 2025, including balance sheet and income statement comparisons, capital, and liquidity Cautionary Note Regarding Forward-Looking Statements - The report contains forward-looking statements, identified by words such as 'believes,' 'anticipates,' 'expects,' and 'intends,' which are subject to various risks and uncertainties112 - Important factors that could cause actual results to differ include fluctuating interest rates, economic conditions (inflation, recession), competitive pressures, loan defaults, litigation, funding costs, and regulatory changes112 BUSINESS OVERVIEW - Ohio Valley Banc Corp. and its subsidiaries are primarily engaged in commercial and retail banking, offering a range of services including deposits, personal and commercial loans, real estate loans, credit card services, and Tax Refund Advance Loans (TALs) in southeastern Ohio and western West Virginia113114 IMPACT OF PARTICIPATING IN THE OHIO HOMEBUYER PLUS PROGRAM - The Company participates in the Ohio Homebuyer Plus program, offering 'Sweet Home Ohio' deposit accounts with an above-market interest rate of 5.83% to encourage home savings115 - For each Sweet Home Ohio account, the Company receives a subsidized deposit from the Ohio Treasurer at an interest rate of 0.86%115 Ohio Homebuyer Plus Program Balances (in thousands) | Account Type | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Sweet Home Ohio accounts | $8,419 | $6,775 | | Treasurer deposits | $77,265 | $97,366 | | Securities pledged to collateralize Treasurer deposits | $81,123 | $102,871 | FINANCIAL RESULTS OVERVIEW Financial Performance Highlights (in thousands, except per share and percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Net Income | $4,210 | $2,972 | $8,616 | $5,765 | | Earnings per share | $0.89 | $0.63 | $1.83 | $1.21 | | Net interest income growth | 21.5% | - | 19.5% | - | | Noninterest income growth | 5.4% | - | 1.5% | - | | Provision expense increase | $967 | - | $632 | - | | Noninterest expense increase | 1.7% | - | 1.2% | - | | Return on assets (annualized) | - | - | 1.16% | 0.84% | | Return on equity (annualized) | - | - | 11.30% | 8.01% | - Earnings were positively impacted by 8.3% (Q2) and 9.5% (H1) growth in average earning assets, primarily from loans and securities, contributing to significant increases in net interest income116 - Higher net earnings also led to a 32 basis point increase in return on assets to 1.16% and a 329 basis point increase in return on equity to 11.30% during the first six months of 2025 compared to 2024116 Comparison of Financial Condition at June 30, 2025 and December 31, 2024 Cash and Cash Equivalents Cash and Cash Equivalents (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | Cash and cash equivalents | $54,627 | $83,107 | | Change | $(28,480) | - | | Percentage Change | (34.3%) | - | - The decrease in cash and cash equivalents was primarily due to a $29.58 million (43.9%) decrease in interest-bearing deposits with banks, as funds were used to support a $39.44 million increase in loans128 Securities - Total securities decreased by $3.33 million (1.2%) from year-end 2024, primarily due to a lower need for pledged securities related to the Ohio Homebuyer Plus program130 - The U.S. Government securities portfolio decreased by $63.23 million, while Agency mortgage-backed securities increased by $60.30 million (64.0%) due to new purchases130 - A decrease in long-term market rates during the first half of 2025 led to a $5.05 million increase in the fair value of AFS securities, reducing unrealized losses131 Loans Loan Portfolio Comparison (in thousands, except percentages) | Loan Portfolio | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------------ | :--------- | :--------- | | Total loans | $1,101,267 | $1,061,825 | $39,442 | 3.7% | | Commercial loan portfolio | - | - | $64,117 | 12.1% | | Commercial real estate loans | $419,336 | $372,987 | $46,349 | 12.4% | | Commercial and industrial loans | $176,208 | $158,440 | $17,768 | 11.2% | | Residential real estate loans | $360,726 | $373,534 | $(12,808) | (3.4%) | | Consumer loan portfolio | $145,000 | $156,864 | $(11,867) | (7.6%) | - The decrease in residential real estate loans was largely due to a $31.47 million paydown in a warehouse line of credit, while the consumer loan portfolio decreased due to exiting the indirect automobile and recreational vehicle lending business141142 Allowance for Credit Losses Allowance for Credit Losses Metrics (in thousands, except percentages) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------------ | | ACL for loans | $10,856 | $10,088 | | ACL for loans as % of total loans | 0.99% | 0.95% | | Nonperforming loans to total loans | 0.45% | 0.46% | | Nonperforming assets to total assets | 0.33% | 0.33% | - The $768 thousand (7.6%) increase in the ACL for loans was primarily due to a higher historical loss rate within the commercial real estate and commercial and industrial portfolios, partially offset by a lower historical loss rate in the consumer loan portfolio147 - No ACL was recorded for AFS debt securities as management determined that all declines in fair value were due to non-credit related factors and the Company does not intend to sell them before recovery of cost144 Deposits Deposit Comparison (in thousands, except percentages) | Deposit Type | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------------ | :--------- | :--------- | | Total deposits | $1,276,762 | $1,275,178 | $1,584 | 0.1% | | Noninterest-bearing deposits | $331,373 | $322,383 | $8,990 | 2.8% | | Interest-bearing deposits | $945,389 | $952,795 | $(7,406) | (0.8%) | | NOW account balances | $257,530 | $272,941 | $(15,411) | (5.6%) | | Time deposit balances | $385,206 | $393,888 | $(8,682) | (2.2%) | | Savings and money market account balances | $302,653 | $285,966 | $16,687 | 5.8% | - The decrease in NOW account balances was largely due to a $20.10 million decrease in the municipal NOW account with the Treasurer related to the Homebuyer Plus program154 Other Borrowed Funds Other Borrowed Funds Comparison (in thousands, except percentages) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------------ | :--------- | :--------- | | Other borrowed funds | $37,177 | $39,740 | $(2,563) | (6.4%) | - The decrease in other borrowed funds was related to the scheduled principal amortization for Federal Home Loan Bank (FHLB) advances158 Shareholders' Equity Shareholders' Equity Comparison (in thousands, except percentages) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :------------------ | :--------- | :--------- | | Total shareholders' equity | $160,760 | $150,328 | $10,432 | 6.9% | - The increase in shareholders' equity was primarily driven by year-to-date net income and an after-tax increase of $3.94 million in the fair value of AFS securities, partially offset by cash dividends paid159 Comparison of Results of Operations For the Three and Six Months Ended June 30, 2025 and 2024 Net Interest Income Net Interest Income Performance (in thousands, except percentages and basis points) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Net interest income | $14,535 | $11,963 | $27,675 | $23,153 | | Change in net interest income | $2,572 | - | $4,522 | - | | Percentage change | 21.5% | - | 19.5% | - | | Net interest margin | 4.17% | 3.74% | 4.01% | 3.68% | | Average earning asset growth | 8.3% | - | 9.5% | - | | Average loan yields increase | 37 bps | - | 28 bps | - | | Average security yields increase | 115 bps | - | 117 bps | - | | Total weighted average costs on interest-bearing liabilities | 1.98% | 2.15% | - | - | - Net interest income growth was driven by increased average earning assets, particularly higher-yielding loans and securities, and an improved net interest margin due to lower funding costs and a shift to lower-cost deposit sources161168 - Interest on securities increased significantly due to the purchase of $100.50 million in U.S. Government securities as part of the Ohio Homebuyer Plus program, yielding 4.7%163 Provision for Credit Losses Provision for Credit Losses (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Provision for credit losses expense | $1,148 | $181 | $1,564 | $932 | | Increase in provision expense | $967 | - | $632 | - | | Increase from loans | $895 | - | $514 | - | | Increase in net charge-offs | $385 | - | $410 | - | | Increase from unfunded commitments | $72 | - | $118 | - | - The increase in provision expense was primarily due to higher net charge-offs, an increased historical loan loss rate (influenced by GDP and unemployment projections), and higher general reserves from strong loan growth171172173 Noninterest Income Noninterest Income Performance (in thousands, except percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Noninterest income | $2,848 | $2,701 | $6,494 | $6,397 | | Increase in noninterest income | $147 | - | $97 | - | | Percentage change | 5.4% | - | 1.5% | - | | Interchange income increase | $56 | - | $60 | - | | Other noninterest income increase | $71 | - | $21 | - | - The increase in noninterest income was mainly driven by higher debit and credit card interchange income due to increased transaction volume, and improved other noninterest income from lower OREO losses and increased card merchant/mortgage referral fees176 Noninterest Expense Noninterest Expense Performance (in thousands, except percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Noninterest expense | $11,049 | $10,863 | $21,867 | $21,604 | | Increase in noninterest expense | $186 | - | $263 | - | | Percentage change | 1.7% | - | 1.2% | - | | Data processing expenses increase | $181 | - | $299 | - | | Marketing expense increase | $58 | - | $112 | - | | Salaries and employee benefits change | $8 (increase) | - | $(147) (decrease) | - | - The year-to-date decrease in salaries and employee benefits was primarily due to a voluntary early retirement program implemented in 2024, which reduced the full-time equivalent employee base by ten179 Efficiency Efficiency Ratio | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Efficiency ratio | 63.09% | 73.37% | 63.51% | 72.41% | - The efficiency ratio improved significantly due to strong net interest income growth and minimal overhead expense increases, partly from cost savings in salaries and employee benefits181 Provision for income taxes Provision for Income Taxes (in thousands, except percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Provision for income taxes | $976 | $648 | $2,122 | $1,249 | | Increase in tax expense | $328 | - | $873 | - | | Effective tax rate | 18.8% | 17.9% | 19.8% | 17.8% | - The increase in tax expense and effective tax rate was primarily due to higher operating income and lower tax-exempt earnings182 Capital Resources - The Bank opted into the Community Bank Leverage Ratio (CBLR) framework and maintained a CBLR of 10.27% as of June 30, 2025, exceeding the 9.0% minimum184186 - The CBLR calculation benefited from the 3-year CECL transition provision, adding $569 thousand to both Tier 1 capital and average assets for June 30, 2025186 - Cash dividends paid during the first half of 2025 totaled $2.12 million, or $0.45 per share187 Liquidity - Total liquid assets (cash, HTM securities maturing within one year, and AFS securities) were $320.80 million, representing 21.2% of total assets at June 30, 2025, a decrease from 23.5% at December 31, 2024, primarily due to funding loan growth189 - The Bank has significant available borrowing capacity: $111.44 million from the FHLB and $46.99 million from the FRB190 - Uninsured deposits totaled $496.16 million (38.9% of total deposits) at June 30, 2025, which is exceeded by the sum of current on-balance sheet liquidity and available wholesale funding sources191 Off-Balance Sheet Arrangements - The Company engages in off-balance sheet credit-related activities, including commitments to extend credit and standby letters of credit, which could require cash payments if specified future events occur194 - Many of these commitments are expected to expire without being drawn upon, so the total contract amounts do not necessarily represent future cash requirements194 Critical Accounting Estimates - The determination of the Allowance for Credit Losses (ACL) is considered a critical accounting estimate, involving a high degree of judgment and subjectivity198 - ACL estimates are based on historical credit loss experience, current conditions, and reasonable and supportable forecasts, which are susceptible to significant change198 Concentration of Credit Risk - The Company maintains a diversified credit portfolio, with residential real estate loans comprising the most significant portion, and credit risk is primarily concentrated in southeastern Ohio and western West Virginia200 - Management believes there are no material concentrations of loans to any specific industry or consumer group, and the Company diversifies its loan portfolio to limit credit risk200 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section confirms the absence of quantitative and qualitative disclosures regarding market risk - This item is not applicable201 Item 4. Controls and Procedures This section details the evaluation of disclosure controls and procedures and reports on changes in internal control over financial reporting Evaluation of Disclosure Controls and Procedures - Ohio Valley's management, including the President and CEO and the Senior Vice President and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025202 Changes in Internal Control over Financial Reporting - There were no material changes in Ohio Valley's internal control over financial reporting during the fiscal quarter ended June 30, 2025203 PART II. OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and other disclosures Item 1. Legal Proceedings This section addresses the company's involvement in various legal proceedings arising in the ordinary course of business - The Company is involved in various claims and legal actions arising in the ordinary course of business204 - Management does not believe that any such proceedings, individually or in aggregate, will have a material adverse effect on its business, financial position, results of operations, or cash flows204 Item 1A. Risk Factors This section highlights the risk factors associated with an investment in the company's common shares, referencing prior disclosures - An investment in the Company's common shares involves risks, and readers should carefully consider the information in this report and the 'Risk Factors' section of the 2024 Annual Report205 - As of the date of this Quarterly Report, there have been no material changes to the risk factors previously disclosed in the 2024 Annual Report205 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports on any unregistered sales of equity securities and the use of proceeds, noting no such sales or purchases occurred - Ohio Valley did not sell any unregistered equity securities during the three months ended June 30, 2025206 - Ohio Valley did not purchase any of its shares during the three months ended June 30, 2025207 Item 3. Defaults Upon Senior Securities This section confirms no defaults upon senior securities to report - Not applicable208 Item 4. Mine Safety Disclosures This section confirms no mine safety disclosures to report - Not applicable209 Item 5. Other Information This section provides other information not covered elsewhere, including details on trading arrangements by directors and officers - No director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025210 Item 6. Exhibits This section lists all exhibits filed as part of the Form 10-Q, including corporate documents, certifications, and XBRL financial data - Exhibits include Amended Articles of Incorporation, Code of Regulations, various certifications (Rule 13a-14(a)/15d-14(a), Section 1350), and XBRL documents for the consolidated financial statements211212 Signatures This section contains the official signatures of the registrant's authorized officers, certifying the report's accuracy and completeness - The report was signed on August 14, 2025, by Larry E. Miller, II (President and Chief Executive Officer) and Scott W. Shockey (Senior Vice President and Chief Financial Officer)214
Ohio Valley Banc (OVBC) - 2025 Q2 - Quarterly Report