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].

Core Insights - Ohio Valley Banc Corp. reported a consolidated net income of $4,406,000 for Q1 2025, marking a 57.8% increase from the same period in the previous year [1] - Earnings per share rose to $0.94 in Q1 2025 from $0.58 in Q1 2024, with return on average assets at 1.20% and return on average equity at 11.82% [1][10] Financial Performance - Net interest income increased by $1,950,000 year-over-year, driven by growth in average earning assets and an improved net interest margin [2] - Average earning assets grew by $136 million, with $96 million in average securities and $68 million in average loans [2] - The net interest margin improved to 3.85% in Q1 2025 from 3.61% in Q1 2024, attributed to higher yields on earning assets and lower funding costs [3][10] Credit Quality - The provision for credit loss expense was $416,000, down $335,000 from the previous year, with nonperforming loans at 0.48% of total loans [4] - The allowance for credit losses was 0.97% of total loans as of March 31, 2025, compared to 0.93% a year earlier [4] Noninterest Income and Expenses - Noninterest income totaled $3,646,000, a slight decrease of $50,000 from the previous year, while noninterest expenses rose to $10,818,000, an increase of $77,000 [5] - Salaries and employee benefits decreased by 2.5% due to a voluntary early retirement program, offset by merit increases [5] Balance Sheet Highlights - Total assets increased to $1.513 billion, up $10 million from the end of 2024, primarily due to a $35 million rise in balances at the Federal Reserve [6][7] - Total deposits increased by $9 million, mainly in time deposits, while total shareholders' equity rose by $5.4 million [7][10]