Ohio Valley Banc Corp. reported its financial results for the third quarter of 2026, revealing a mixed performance that highlights both growth and challenges within the company. The bank experienced an increase in net income for the quarter but faced a decline in year-to-date earnings due to significant losses tied to a few commercial credits.

For the quarter ended September 30, 2026, Ohio Valley Banc Corp. reported consolidated net income of $3,295,000, marking an increase of $265,000, or 8.7%, from the same period in the previous year. Earnings per share for the third quarter were $0.70, compared to $0.64 in the prior year. However, for the nine months ending September 30, 2026, net income totaled $10,519,000, a decrease of $1,127,000, or 9.7%, from the same period last year, with earnings per share dropping from $2.47 to $2.23.

Ohio Valley Banc Corp. operates as a state commercial bank, primarily serving customers in Ohio and West Virginia. The company trades on the Nasdaq under the ticker symbol OVBC and is classified under the SIC code 6022. Its recent filings include an 8-K on October 27, 2026, detailing the results of operations and financial condition.

According to the filing, the bank's return on average assets and return on average equity for the first nine months of 2026 were 0.85% and 8.14%, respectively, down from 1.03% and 9.95% in the previous year. CEO Larry Miller attributed the decline in year-to-date performance to losses linked to a limited number of commercial credits. He expressed optimism about the bank's core business, noting continued loan growth and stable margins despite elevated funding costs.

In terms of net interest income, the bank reported an increase of $1,271,000 for the three months ended September 30, 2026, and $3,882,000 for the nine months, driven by growth in average earning assets. Average loans increased by $140 million compared to the same period last year, primarily in targeted commercial lending segments. However, the net interest margin decreased slightly, from 4.05% in Q3 2025 to 4.03% in Q3 2026, indicating that the cost of funding sources is rising faster than the yield on earning assets.

For the third quarter, the provision for credit loss expense totaled $2,825,000, an increase of $1,713,000 from the same period last year, primarily due to net charge-offs. The company recorded $6,357,000 in charge-offs, which included significant amounts related to a specific collateral-dependent loan and a foreclosed commercial real estate asset.

Despite the challenges, noninterest income for the three and nine months ended September 30, 2026, increased by $1,339,000 and $1,319,000, respectively, compared to the same periods last year. This growth was attributed to a decrease in losses on the sale of debt securities and gains from equity securities.

Ohio Valley Banc Corp.'s total assets increased by $73 million, or 4.6%, from December 31, 2025, reaching $1.655 billion by September 30, 2026. The increase was primarily due to a rise in total loans and balances maintained at the Federal Reserve. However, shareholders' equity saw a slight decrease due to cash dividends paid and a decline in accumulated other comprehensive income.

Looking ahead, the bank remains focused on disciplined execution and is optimistic about overcoming current challenges to create long-term value for shareholders. The filing does not indicate what specific actions will be taken next.

Ohio Valley Banc Corp. operates The Ohio Valley Bank Company with 19 offices in Ohio and West Virginia, and Loan Central, Inc., which has six consumer finance offices in Ohio. More information about the company can be found on their website at www.ovbc.com.