Ohio Valley Banc Corp reported its financial results for the three and nine months ended September 30, 2024, showcasing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, the company achieved a net income of $2,719,000, an increase from $2,251,000 in the same period of 2023. Earnings per share rose to $0.58 from $0.47. However, for the nine months ended September 30, 2024, net income decreased to $8,484,000 from $9,408,000 in 2023, with earnings per share declining from $1.97 to $1.79. The increase in quarterly net income was attributed to a 10.6% rise in net interest income, which reached $12,581,000, compared to $11,376,000 in Q3 2023. This growth was driven by an increase in average earning assets and a shift towards higher-yielding loans.

Total assets as of September 30, 2024, were $1,494,023,000, up from $1,352,135,000 at year-end 2023. Total loans increased by 7.9% to $1,048,912,000, with significant growth in commercial real estate loans (up 13.2%) and residential real estate loans (up 12.5%). Total deposits also rose by 11.9% to $1,261,420,000, primarily due to a $134,284,000 increase in interest-bearing deposits, influenced by the Ohio Homebuyer Plus program.

The company’s noninterest income for Q3 2024 increased by 11.1% to $2,855,000, driven by higher service charges and trust fee income. However, noninterest expenses rose by 8.1% to $11,174,000, largely due to increased salaries and benefits, reflecting annual merit increases and higher health insurance premiums. The efficiency ratio improved slightly to 72.0% from 73.6% in Q3 2023.

Strategically, Ohio Valley Banc Corp ceased operations of two subsidiaries, Race Day Mortgage, Inc. and OVBC Captive, Inc., in December 2023 due to low demand and regulatory issues. The company also initiated a voluntary early retirement program, incurring a severance expense of $295,000 in Q3 2024, with an anticipated additional expense of $3,043,000 in Q4 2024.

The Allowance for Credit Losses (ACL) for loans increased to $9,919,000 as of September 30, 2024, from $8,767,000 at year-end 2023, reflecting a rise in collectively evaluated loans. Nonperforming loans to total loans rose to 0.44%, up from 0.26% at year-end 2023, primarily due to a single commercial loan placed into nonaccrual status.

Overall, Ohio Valley Banc Corp's financial performance in Q3 2024 demonstrated resilience amid challenges, with strategic adjustments aimed at enhancing profitability and managing credit risk.