Ohio Valley Banc Corp. Reports 3rd Quarter Earnings

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]