Ohio Valley Banc (OVBC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $2,719, up 20.8% year-over-year; EPS rose to $0.58 from $0.47.

• Net income for the nine months ended September 30, 2024, was $8,484, down $924 from the same period in 2023; EPS was $1.79 vs. $1.97.

• Total assets reached $1,494,023 at September 30, 2024, up $141,888 from year-end 2023, driven by increases in securities and loans.

• Participation in the Ohio Homebuyer Plus program and Sweet Home Ohio deposit account rollout led to significant deposit and securities growth.

• Strong loan growth, especially in commercial and residential real estate, exceeded expectations.

Financial highlights

• Net interest income increased 10.6% to $12,581 for Q3 2024 and 2.9% to $35,734 for the nine months, year-over-year.

• Noninterest income rose 11.1% in Q3 and 2.2% year-to-date, mainly from service charges, trust fees, and BOLI income.

• Noninterest expense increased 8.1% in Q3 and 5.7% year-to-date, driven by higher salaries, benefits, and severance costs from a voluntary early retirement program.

• Provision for credit losses rose to $920 in Q3 and $1,852 year-to-date, mainly due to a specific reserve on a commercial loan.

• Total deposits grew $134,284 (11.9%) from year-end 2023, with interest-bearing deposits up 17.5%.

Outlook and guidance

• Early retirement program expected to reduce future salary and benefit expenses, with $3,043 in additional severance to be expensed in Q4 2024.

• Management will continue to emphasize core deposit growth, higher-yielding loan origination, and cost management.

• Net interest margin faces ongoing pressure from deposit competition and funding costs, but recent quarters show sequential improvement.