OHIO VALLEY BANC CORP 8-K

What Happened
Ohio Valley Banc Corp (Nasdaq: OVBC) filed an 8-K on January 27, 2026 reporting fourth-quarter and full-year 2025 results. The company reported consolidated net income of $3.955 million for the quarter ended December 31, 2025 (up 57.3% year-over-year) and record full-year 2025 net income of $15.601 million (up 41.8% year-over-year). Earnings per share were $0.84 for Q4 2025 and $3.31 for the year. CEO Larry Miller noted these were record earnings for the company’s 153rd year.

Key Details

• Net interest income rose to $15.473M in Q4 and $57.745M for 2025, driven by higher average earning assets (+$103M year over year) and an improved net interest margin (Q4 NIM 4.18%, FY NIM 4.07%).
• Loans grew $134M (12.6%) since year-end 2024 to $1.196B, led by commercial real estate, commercial & industrial, and residential real estate; consumer loans were reduced.
• Deposits increased $54M year over year to $1.330B; cash at the Federal Reserve declined $36M as funds were used to fund loan growth and higher-yielding investments.
• Provision for credit losses was $3.054M for 2025 (vs. $2.469M in 2024); nonperforming loans rose to 1.40% of loans (from 0.46%), primarily due to two commercial loans placed on nonaccrual; allowance for credit losses was 0.96% of loans.
• Noninterest income fell (loss on sale of securities totaled $3.747M for 2025) as the bank sold lower-yielding securities at a loss and reinvested proceeds into higher-yielding, longer-duration securities to boost future interest income.
• Key metrics: ROA 1.02% (FY 2025), ROE 9.83%, total assets $1.583B (up $79M), book value per share $36.14, dividends per share $0.91 for 2025.

Why It Matters
The results show OVBC achieved stronger core banking performance: loan and earning-asset growth plus an improved net interest margin drove materially higher net interest income and record annual earnings. Investors should note the trade-offs: the bank accepted near-term realized losses on securities to lift future yields, and credit metrics weakened (higher nonperforming loans and increased provisions) mainly from two commercial problem loans. Overall capital and earnings improved (higher retained earnings and accumulated other comprehensive income), supporting dividends while funding growth.