Core Viewpoint - Ohio Valley Banc Corp. reported a strong earnings performance for the third quarter of 2025, with net income increasing by 11.4% year-over-year, despite facing challenges such as increased credit loss provisions and lower noninterest income [2][3][11]. Financial Performance - The company reported a net income of $3 million for Q3 2025, translating to earnings per share (EPS) of $0.64, up from $0.58 a year earlier [2]. - For the nine months ended Sept. 30, 2025, net income surged 37.3% to $11.6 million, or $2.47 per share, compared to $8.5 million, or $1.79 per share, in the prior-year period [3]. - Noninterest income fell 38.8% to $1.7 million, primarily due to $1.2 million in losses from securities sales [5]. Revenue Drivers - Net interest income rose 16% year-over-year to $14.6 million, benefiting from higher average earning assets and a wider net interest margin of 4.05%, up from 3.76% a year earlier [2]. - Average earning assets grew 8.8% year-to-date, driven by increases of $75 million in securities and $65 million in average loans [4]. - The commercial real estate, commercial and industrial, and residential real estate lending segments contributed to the growth, while the consumer loan segment contracted [4]. Credit Quality and Provisions - The provision for credit losses increased to $1.1 million in Q3 2025 from $0.9 million a year earlier, reflecting loan growth and updated economic forecasts [5]. - Nonperforming loans were at 0.42% of total loans, a slight improvement from 0.44% a year earlier [9]. Cost Management - Noninterest expense rose 2.4% to $11.5 million, primarily due to higher data processing and marketing costs, partially offset by reduced personnel expenses [6]. - The efficiency ratio improved to 69.70% from 72.01%, indicating effective cost control amid rising revenues [7]. Key Business Metrics - Return on average assets improved to 0.78% from 0.75%, while return on average equity remained stable at 7.44% compared to 7.39% a year earlier [7]. - Book value per share increased by 8% to $34.90 from $32.30 in the prior year [7]. Balance Sheet Growth - Total assets reached $1.57 billion as of Sept. 30, 2025, up from $1.50 billion at year-end 2024 [13]. - Total deposits increased to $1.33 billion from $1.28 billion, led by time deposits [13]. - Shareholders' equity rose to $164.4 million from $150.3 million, driven by retained earnings and market appreciation of securities [13]. Management Commentary - Management emphasized that strong earnings reflected disciplined execution in core banking operations and prudent balance sheet management [11]. - The company repositioned its securities portfolio to higher-yielding assets, aiming to improve future interest income [11]. Future Outlook - While no formal financial guidance was provided, management expressed optimism for continued net interest margin expansion and a focus on strengthening commercial lending relationships [14]. Other Developments - No acquisitions, divestitures, or major restructuring initiatives were reported during the quarter [15].