Core Viewpoint - Ohio Valley Banc Corp. (OVBC) reported strong earnings growth for Q1 2025, with a significant increase in net income and earnings per share, despite a slight decline in stock performance relative to the S&P 500 during the same period [1][2]. Financial Performance - Consolidated net income for Q1 2025 was $4.4 million, a 57.8% increase from $2.8 million in Q1 2024 [2]. - Earnings per share rose 62.1% to $0.94 from $0.58 year over year [2]. - Net interest income increased by 17.4% to $13.1 million, driven by a 10.8% rise in average earning assets and an improved net interest margin of 3.85%, up from 3.61% [2]. Revenue and Expenses - Non-interest income decreased by 1.4% to $3.6 million, while non-interest expenses increased by 0.7% to $10.8 million [3]. - The bank's efficiency ratio improved to 63.95% from 71.47%, indicating better cost management [4]. Asset and Loan Growth - Total assets grew to $1.51 billion as of March 31, 2025, from $1.50 billion at the end of 2024, primarily due to a $35 million increase in cash held at the Federal Reserve [6]. - Despite an overall decline in loan balances, the company achieved $12 million in organic loan growth in commercial and residential real estate segments [7]. Credit Quality - The provision for credit losses decreased by 44.6% year over year to $0.4 million [5]. - Non-performing loans slightly increased to 0.48% of total loans from 0.37% a year ago [5]. Management Insights - Management attributed the strong performance to strategic actions aimed at expanding earning assets and enhancing net interest margins [8]. - The bank's operational discipline was highlighted, with a focus on cost management reflected in the improved efficiency ratio [8]. Strategic Initiatives - The bank's participation in the Ohio Homebuyer Plus program contributed to earning asset growth, with the "Sweet Home Ohio" deposit account attracting $7.7 million in participant deposits [9][10]. - A favorable shift in deposit mix was noted, with lower-cost accounts growing significantly year over year [11]. Future Outlook - While no specific forward guidance was provided, management expressed optimism regarding future growth in the warehouse line of credit, contingent on increased mortgage volume [12].