Ohio Valley Banc Corp reports dip in annual earnings

GALLIPOLIS, Ohio - Ohio Valley Banc Corp. [NASDAQ:OVBC], a financial institution headquartered in Ohio with a market capitalization of $107 million, has reported a decrease in net income for both the fourth quarter and the full year ended December 31, 2024. The company, which according to InvestingPro analysis is currently trading below its Fair Value, disclosed a quarterly net income of $2,515,000, down from the previous year’s $3,223,000. Annual net income also fell to $10,999,000, a 12.9% decline from the prior year.

The earnings per share (EPS) for the fourth quarter stood at $.53 compared to $.68 in the same quarter of the previous year. The full-year EPS was $2.32, down from $2.65 in 2023. Despite the decline, the stock maintains attractive valuations with a P/E ratio of 9.25 and a price-to-book ratio of 0.7. The return on average assets and return on average equity for the year were .77% and 7.50%, respectively, marking a decrease from the previous year’s .99% and 9.24%. InvestingPro subscribers can access additional financial health metrics and valuation insights.

According to Larry Miller, President and CEO of Ohio Valley Banc Corp., the decline in net income was primarily due to two significant one-time expenses: $3.3 million related to a voluntary early retirement program and $496,000 in account bonuses to new Sweet Home Ohio depositors. These were strategic decisions aimed at positioning the company for future success.

Net interest income saw an increase for both the quarter and the year, attributed to a $187 million rise in average earning assets. The growth in earning assets was mainly driven by loan growth, particularly in commercial lending and residential real estate lending.

The provision for credit losses for the fourth quarter was $617,000, a decrease from the previous year, while the year-end provision increased by $379,000. Nonperforming loans to total loans ratio also rose to .46% from .26% year-over-year.

Noninterest income increased due to higher service charges on deposit accounts and interchange income from debit and credit card transactions. Noninterest expense went up primarily due to the early retirement program and higher salaries and employee benefits.

Total (EPA:TTEF) assets of the company reached $1.503 billion, a $151 million increase from the previous year, with significant growth in deposits and loans. The company’s participation in the Ohio Treasurer’s Ohio Homebuyer Plus program contributed to this increase.

This financial summary is based on the recent 8-K filing by Ohio Valley Banc Corp. with the Securities and Exchange Commission.

In other recent news, Ohio Valley Banc Corp. announced a 20.8% increase in its third-quarter earnings, totaling $2,719,000. This rise is attributed to strong loan growth and the successful launch of the Sweet Home Ohio deposit account.

However, the company’s nine-month net income saw a decrease, falling to $8,484,000 from the previous year’s $9,408,000. Additionally, Ohio Valley Banc Corp. declared a cash dividend of $0.22 per common share, reflecting its ongoing commitment to its shareholders. The company also extended its stock buyback program until August 31, 2025, allowing for the repurchase of up to $5 million in shares of the company’s outstanding common stock.

On a different note, Thomas E. Wiseman, an executive officer, will retire effective January 1, 2025, but will continue to serve as the non-executive Chairman of the Board of Directors. Lastly, the company’s total assets reached $1.494 billion as of September 30, 2024, a significant increase from the previous year.

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