Executive Summary

Q1 2025 EPS rose to $0.94, up 57.8% YoY on net income of $4.41M, driven by stronger net interest income, an improved net interest margin (3.85% vs. 3.61% YoY), and tighter overhead control; efficiency ratio improved sharply to 63.95% (vs. 71.47% YoY; 77.83% in Q4) .
Net interest income increased on higher average earning assets (+$136M YoY) and mix shift, aided by Ohio Homebuyer Plus “Sweet Home Ohio” program flows; noninterest expense was well contained (+$0.08M YoY), reflecting early-retirement savings and disciplined cost management .
Credit costs moderated (provision $0.42M; down $0.34M YoY), though NPL ratio inched up to 0.48% (0.46% in Q4; 0.37% YoY), while ACL coverage rose to 0.97% of loans (0.95% in Q4) .
No formal quantitative guidance was provided; the board increased the quarterly dividend after quarter-end to $0.23 (from $0.22) payable May 10, 2025, signaling confidence in earnings trajectory .
Potential stock catalysts: sustained NIM recovery, realization of expense run-rate benefits from 2024 restructuring, and normalization of the warehouse line (loans -$19M QoQ due to paydown; underlying core CRE/Residential grew ~$12M) .

What Went Well and What Went Wrong

What Went Well
- Margin and revenue mix: Net interest margin improved to 3.85% (3.61% YoY; 3.70% in Q4), supported by higher-yielding securities/loans and a shift to lower-cost deposit mix (NOW/MM/savings) .
- Cost discipline: Efficiency ratio improved to 63.95% (71.47% YoY; 77.83% in Q4) amid lower salaries/benefits YoY (-$0.16M) from the 2024 early retirement program, despite higher data processing and marketing .
- Management execution: “Our strong start in 2025 was driven by strategic decisions… resulting in strong earning asset growth, an improving net interest margin and a laser focus on controlling overhead expenses.” – CEO Larry Miller .
What Went Wrong
- Loan balances contracted QoQ (-$19M) from a $31M paydown of a warehouse line to a mortgage lender (lower mortgage volume and lead bank capacity increase), partially offset by ~$12M organic CRE/Residential growth .
- Credit quality mixed: NPLs/loans rose to 0.48% (0.46% Q4; 0.37% YoY) and quarterly net charge-offs were $0.43M, though ACL/loans increased to 0.97% .
- Some operating lines faced inflationary pressure: data processing (+$0.12M YoY) on higher card activity and rewards platform conversion; occupancy and marketing also higher YoY .

Financial Results

Note: “Operating Revenue” = Net Interest Income + Noninterest Income – Provision for Credit Losses.

Metric	Q3 2024	Q4 2024	Q1 2025
Operating Revenue ($MM)	$14.52 = $12.58 + $2.85 – $0.92	$16.37 = $13.07 + $3.92 – $0.62	$16.37 = $13.14 + $3.65 – $0.42
Net Interest Income ($MM)	$12.58	$13.07	$13.14
Noninterest Income ($MM)	$2.85	$3.92	$3.65
Provision for Credit Losses ($MM)	$0.92	$0.62	$0.42
Noninterest Expense ($MM)	$11.22	$13.31	$10.82
Pretax Income ($MM)	$3.30	$3.07	$5.55
Net Income ($MM)	$2.72	$2.52	$4.41
Diluted EPS ($)	$0.58	$0.53	$0.94
Net Interest Margin (%)	3.76%	3.70%	3.85%
Efficiency Ratio (%)	72.01%	77.83%	63.95%
ROA (%)	0.75%	0.66%	1.20%
ROE (%)	7.39%	6.62%	11.82%
Average Earning Assets ($B)	$1.345B	$1.415B	$1.397B

Balance Sheet and Credit KPIs

Metric	Sep 30, 2024	Dec 31, 2024	Mar 31, 2025
Total Assets ($B)	$1.494B	$1.503B	$1.513B
Total Loans ($B)	$1.049B	$1.062B	$1.043B
Total Deposits ($B)	$1.261B	$1.275B	$1.284B
Shareholders’ Equity ($MM)	$152.15M	$150.33M	$155.72M
ACL / Loans (%)	0.95%	0.95%	0.97%
NPLs / Loans (%)	0.44%	0.46%	0.48%
Ohio Homebuyer Plus – Treasurer Deposits ($MM)	$100M	$97M	$82M

Segment breakdown: Not applicable; the company does not disclose operating segments in these materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share (quarterly)	Q2 2025 (payable May 10, 2025)	$0.22 (Q1 payout level)	$0.23 (declared Apr 15, 2025)	Raised

No formal quantitative guidance (revenue, margins, OpEx, OI&E, tax rate, segment) was provided in the Q1 2025 press release or 8-K .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in the company’s filings/press materials; themes below reflect management commentary from Q3–Q1 disclosures.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Net interest margin and funding mix	NIM improved sequentially in 2024 on loan growth and moderating deposit pricing; mix shifted toward higher-cost CDs/wholesale historically but easing pressures noted .	NIM 3.85% (3.70% in Q4; 3.61% YoY) as yields on earning assets rose and funding costs fell with greater NOW/MM/checking/savings mix .	Improving sequential margin; favorable mix shift.
Ohio Homebuyer Plus (Sweet Home Ohio)	Treasurer deposits of ~$100M by Q3; funds invested in securities as collateral; program bolstered deposits and securities .	Treasurer deposits $82M; Sweet Home Ohio accounts $7.7M; continued contribution to low-cost deposit growth and securities .	Program remains material; balances moderated from year-end.
Loan growth strategy	2024 loan growth exceeded expectations (CRE/residential); deemphasis of consumer; exit of indirect auto/RV (effective Oct 11, 2024) .	Loans -$19M QoQ due to $31M warehouse line paydown; underlying organic CRE/residential growth ~$12M in Q1 .	Near-term normalization; core loan growth intact.
Credit quality	ACL/loans rose to 0.95%; NPLs increased to 0.44% (specific reserve added) .	Provision $0.42M (down YoY); ACL/loans 0.97%; NPLs/loans 0.48% .	Adequate reserves; NPLs modestly higher.
Expense management	Early retirement program established Q3; significant one-time charges in Q4 to reset run-rate -.	Efficiency ratio improved to 63.95%; salaries/benefits -2.5% YoY; data processing higher on card volume and rewards conversion .	Run-rate benefits visible; selective cost inflation.

Management Commentary

“Our strong start in 2025 was driven by strategic decisions… strong earning asset growth, an improving net interest margin and a laser focus on controlling overhead expenses.” – Larry Miller, President & CEO .
Margin drivers: “The yield on earning assets improved… growth in higher yielding securities and loans, while the cost of funding sources decreased as the composition… shifted to lower cost deposit sources” .
Balance sheet dynamics: Loans decreased $19M QoQ due to a $31M warehouse line paydown tied to lower mortgage volumes and the lead bank’s increased internal capacity; core CRE/residential loans grew ~$12M .
Program impact: Sweet Home Ohio accounts totaled $7.7M with $82M in Treasurer deposits, which the company invested in securities to pledge as collateral, supporting earning asset growth and margin .
Cost focus: Salaries/benefits -$0.16M YoY from the 2024 voluntary early retirement program; higher data processing tied to card activity and rewards platform conversion .

Q&A Highlights

No earnings call transcript was available in the company’s Q1 2025 materials; Q&A highlights are therefore not available .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was not available; no consensus figures to benchmark a beat/miss. Values retrieved from S&P Global*.
S&P Global recorded Q1 2025 revenue actual of ~$16.37M*, which reconciles to company-reported net interest income + noninterest income – provision for credit losses ($13.14M + $3.65M – $0.42M ≈ $16.37M) . Values retrieved from S&P Global*.

Key Takeaways for Investors

Margin momentum is real: NIM at 3.85% (from 3.70% in Q4; 3.61% YoY) with a more favorable deposit mix should support net interest income if rate pressures remain benign .
Expense run-rate is structurally lower post-2024 actions; efficiency ratio at 63.95% demonstrates improved operating leverage even as certain tech/processing costs rise with usage .
Credit remains manageable with rising ACL coverage (0.97% of loans) despite modestly higher NPLs (0.48%); quarterly provision of $0.42M indicates stable credit costs in the near term .
Balance sheet flexibility: participation in Ohio Homebuyer Plus provides low-cost deposit funding and securities collateral, enhancing earning asset deployment and margin resilience .
Watch the warehouse line: temporary paydown masked ~$12M of core loan growth; a recovery in mortgage activity or funding needs at the lead bank could re-expand balances and revenues .
Capital returns: dividend increased to $0.23 post-quarter, signaling confidence; continued earnings traction could support ongoing buyback/dividend flexibility longer term .
Near-term trading setup: continued NIM expansion and visible cost savings are positive, while investors should monitor credit normalization and loan growth cadence post-warehouse paydown .

Footnotes:

“Operating Revenue” defined as Net Interest Income + Noninterest Income – Provision for Credit Losses; components are cited in the table for each period .
- Values retrieved from S&P Global.

OHIO VALLEY BANC CORP (OVBC)·Q1 2025 Earnings Summary