Ohio Valley Banc Corp. Reports Decrease in Net Income for Q4 2024, Outlines Strategic Moves for Future Success

Ohio Valley Banc Corp. (NASDAQ: OVBC) recently disclosed its consolidated net income figures for the fourth quarter of 2024, showing a decrease compared to the same period in the prior year. The company reported a net income of $2,515,000 for the quarter ending on December 31, 2024, representing a decline of $708,000 from the previous year. Earnings per share for Q4 2024 were recorded at $.53, down from $.68 reported for the same quarter in 2023. Additionally, the annual net income for 2024 totaled $10,999,000, reflecting a 12.9% decrease of $1,632,000 from the prior year.

Ohio Valley Banc Corp.’s President and CEO, Larry Miller, noted that despite the decrease in net income, the company is strategically positioned for future success. He highlighted that the decline in net income was primarily due to two one-time expenses that were incurred intentionally to enhance the company’s future prospects. The major expense included a voluntary early retirement program costing $3.3 million, along with $496,000 in account bonuses paid to new Sweet Home Ohio depositors. Miller emphasized that these strategic expenses align with the firm’s mission of improving shareholder value and promoting their Community First Mission.

Looking at the financial performance in detail, net interest income showcased growth in both the quarterly and annual periods ending on December 31, 2024. The increase in quarterly net interest income was attributed to a rise in average earning assets, while the annual growth was mainly due to an increase in average loans and securities. However, the net interest margin experienced a slight decrease due to rising funding costs, including the decision to boost deposit rates amidst stiff market competition.

Moreover, the provision for credit losses for the fourth quarter of 2024 decreased by $72,000 from the same period in the previous year. For the entire year of 2024, the provision for credit losses grew by $379,000 from 2023. The company highlighted an increase in noninterest income primarily driven by service charges on deposit accounts and interchange income from debit and credit card transactions.

On the expense side, noninterest expenses witnessed an increase for both the quarterly and annual periods ending on December 31, 2024. The growth was mainly linked to higher salaries and employee benefits, professional fees, customer rewards for new accounts, data processing, among others. Despite the rising expenses, Ohio Valley Banc Corp. aims to leverage these strategic moves to enhance its operational efficiency and drive sustained growth.

Ohio Valley Banc Corp.’s total assets as of December 31, 2024, reached $1.503 billion, indicating a notable increase of $151 million compared to the previous year. The company’s strategic endeavors, including participation in Ohio Treasurer’s Ohio Homebuyer Plus program, have contributed significantly to the overall growth and positioning of the firm for future opportunities.

This news comes amidst a cautious reminder from the company regarding forward-looking information, emphasizing the possible risks and uncertainties that may impact actual results. Ohio Valley Banc Corp. intends to stay diligent in navigating these challenges to maintain its financial strength and deliver long-term value to its shareholders.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ohio Valley Banc’s 8K filing here.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit.