Ohio Valley Banc Q1 Net Interest Income Climbs 13.3% Despite 2.5% Profit Slip
Ohio Valley Banc Corp. posted Q1 net income of $4.297M, down 2.5% year-over-year, and EPS of $0.91, with ROA and ROE slipping to 1.08% and 10.17% respectively. Net interest income rose 13.3% ($1.748M) on a 4.01% margin and $146M loan growth, while nonperforming loans ratio climbed to 1.64%.
1. Q1 Earnings Performance
Ohio Valley Banc Corp. reported consolidated net income of $4.297 million for the quarter ended March 31, 2026, down 2.5% year-over-year, and EPS of $0.91 compared to $0.94 in Q1 2025. Return on average assets declined to 1.08% and return on average equity fell to 10.17%, reflecting modest compression in profitability.
2. Net Interest Income and Loan Expansion
Net interest income increased by $1.748 million, or 13.3%, driven by a net interest margin expansion to 4.01% and a $146 million increase in average loans. Growth in targeted commercial lending segments fueled a $121 million rise in average earning assets, offsetting declines in securities and Federal Reserve balances.
3. Asset Quality and Credit Provisioning
The provision for credit loss expense rose to $1.622 million in Q1 2026, up $1.206 million from a year ago, primarily due to specific allocations on two collateral-dependent loans and increased net charge-offs. Nonperforming loans ratio increased to 1.64%, up from 1.40% at year-end, while the allowance for credit losses reached 1.07% of total loans.
4. Noninterest Income, Expenses and Balance Sheet Growth
Noninterest income fell $358,000 to $3.288 million, driven by expiration of a tax processing agreement, partially offset by higher debit/credit card interchange and life insurance proceeds. Noninterest expenses rose $483,000 to $11.301 million due to higher salaries, software investments and FDIC assessments. Total assets grew to $1.678 billion, deposits rose $94 million, and shareholders’ equity edged up $1.0 million.