Ohio Valley Banc Corp. Reports 2nd Quarter Earnings

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]