Executive Summary

Q2 2025 was strong: net income rose 41.7% year over year to $4.21M and EPS increased to $0.89, driven by higher net interest income and an expanded NIM to 4.17% from 3.74% YoY .
Efficiency ratio improved to 63.09% vs 73.37% last year, while ROA/ROE were 1.12%/10.79% for the quarter, reflecting better operating leverage and margin expansion .
Asset quality remained stable: NPLs/loans at 0.45% and ACL/loans at 0.99%; credit provisioning increased due to loan growth (+$58M QoQ), net charge-offs ($315k), and weaker GDP/unemployment projections .
Catalysts: dividend raised to $0.23/share (declared July 15), Russell 3000 inclusion (July 1), and subsequent buyback program extension to Aug 31, 2026 with $5M authorization—supporting capital return and investor visibility .

What Went Well and What Went Wrong

What Went Well
- Net interest income rose $2.57M YoY; NIM expanded to 4.17% on higher-yielding securities/loans and lower funding costs; management highlighted benefits from Ohio Homebuyer Plus and lending focus: “We continue to reap the benefits…” — Larry Miller, CEO .
- Operating efficiency improved: efficiency ratio fell to 63.09% (vs 73.37% YoY) as margins expanded and overhead stayed contained; salaries/benefits nearly flat YoY in Q2 (+$8k) with YTD savings from 2024 early retirement program .
- Loan growth accelerated: total loans +$58M QoQ (offsetting Q1 decline), concentrated in commercial real estate, C&I, and residential real estate segments .
What Went Wrong
- Provision expense rose to $1.148M (vs $0.181M YoY) due to loan growth, net charge-offs ($315k), and higher modeled loss rates tied to macro regression in GDP and unemployment projections .
- Data processing and marketing costs increased: data processing +$181k YoY in Q2 (and +$299k YTD), marketing +$58k YoY in Q2, reflecting card volume and rewards platform conversion, and higher advertising/community support .
- Consumer loans contracted as the Company deemphasized the segment on profitability grounds; mortgage warehouse line utilization fell to $0 at quarter-end amid lower mortgage volume earlier in the year .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$11.963	$13.140	$14.535
Noninterest Income ($USD Millions)	$2.701	$3.646	$2.848
Provision for Credit Losses ($USD Millions)	$0.181	$0.416	$1.148
Net Income ($USD Millions)	$2.972	$4.406	$4.210
EPS ($USD)	$0.63	$0.94	$0.89
Net Interest Margin (%)	3.74%	3.85%	4.17%
Efficiency Ratio (%)	73.37%	63.95%	63.09%

KPIs

Metric	Q2 2024	Q1 2025	Q2 2025
Return on Average Assets (%)	0.86%	1.20%	1.12%
Return on Average Equity (%)	8.25%	11.82%	10.79%
Average Earning Assets ($USD Millions)	$1,300.720	$1,397.458	$1,408.945
Nonperforming Loans / Total Loans (%)	0.50%	0.48%	0.45%
ACL / Total Loans (%)	0.91%	0.97%	0.99%
Net Charge-offs ($USD Thousands)	—	425	315
Loan Growth QoQ ($USD Millions)	—	(19) since 12/31/24	+58

Balance Sheet (Selected)

Metric	Q4 2024	Q1 2025	Q2 2025
Total Assets ($USD Billions)	$1.503	$1.513	$1.510
Total Deposits ($USD Billions)	$1.275	$1.284	$1.277
Book Value per Share ($USD)	$31.91	$33.05	$34.12

Estimate Comparison (S&P Global)

Metric	Q2 2025 Consensus (S&P)	Q2 2025 Actual	Surprise
EPS ($USD)	N/A*	$0.89	N/A*
Revenue ($USD Millions)	N/A*	16.235*	N/A*

Values retrieved from S&P Global*.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($)	Q3 2025 payable Aug 10, 2025	$0.22 (Q1 2025 dividend)	$0.23	Raised
Share Repurchase Authorization	Through Aug 31, 2026	Program set to expire Aug 31, 2025; $5M total authorization	Extended to Aug 31, 2026; $5M total authorization	Extended

No formal revenue, margin, OpEx, OI&E, or tax-rate guidance was provided in Q2 materials .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document catalog .

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Ohio Homebuyer Plus program & deposit strategy	Initiated in Q3 2024; $97M Treasurer deposits at 12/31/24; bonuses of $496k paid; drove securities growth	$77M Treasurer deposits; Sweet Home Ohio accounts $8.4M; funding mix shifted to lower-cost NOW/MM deposits	Ongoing benefit to funding costs and earning asset growth
Margin dynamics	2024 NIM pressure as funding costs rose; Q1 2025 NIM improved to 3.85% amid lower funding costs and higher-yield assets	NIM up to 4.17% on yields +$817k market discount and lower funding costs	Improving
Credit provisioning & asset quality	ACL 0.95% at 12/31/24; Q1 provision $416k, NPLs 0.48%	Provision $1.148M; NPLs 0.45%; ACL 0.99%	Higher provisioning, stable quality
Operating expenses & efficiency	Early retirement program in 2024 to reduce salaries/benefits; Q1 salaries/benefits down $155k YoY	Salaries/benefits +$8k YoY in Q2; efficiency ratio 63.09%; data processing/marketing higher due to cards and rewards conversion	Efficiency improving; targeted spend
Loan portfolio focus	Growth in commercial/residential segments; consumer deemphasized; warehouse line volatility	Strong Q2 loan growth +$58M; focus on CRE, C&I, residential; consumer down; warehouse line at $0 at 6/30	Mix shift to higher-return segments

Management Commentary

“We continue to reap the benefits of last year’s decision to participate in the Ohio Homebuyer Plus Program as well as our continued focus on commercial and real estate lending. The strong growth in net income coupled with stable asset quality are essential pillars of our strategy to increase shareholder value.” — Larry Miller, President & CEO (Q2 earnings release) .
“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 (Q1 release) .
“Thanks to your continued support as well as the hard work of our entire OVBC family, we’re pleased to announce that the board of directors have once again declared a quarterly dividend.” — Tom Wiseman, Chairman (dividend announcement) .

Q&A Highlights

No Q2 2025 earnings call transcript was published in the document set; therefore, no Q&A highlights or guidance clarifications are available from a call .

Estimates Context

S&P Global shows no active Wall Street consensus for Q2 2025 EPS or revenue, so a beat/miss determination cannot be made; actuals reported by OVBC were EPS $0.89 and net income $4.21M .
Where coverage resumes, estimates should adjust for stronger NIM, higher earning assets, and slightly higher provisioning tied to macro models; data processing and marketing tailwinds/headwinds should be factored into OpEx assumptions .
Values retrieved from S&P Global*.

Key Takeaways for Investors

Margin expansion and earning asset growth are the primary drivers of EPS strength; NIM rose to 4.17% and net interest income increased $2.57M YoY .
Credit provisioning stepped up with loan growth and macro model changes, but asset quality remains stable (NPLs 0.45%, ACL/loans 0.99%), mitigating risk perception .
Efficiency improved meaningfully (63.09% vs 73.37% YoY), with structural savings from 2024 early retirement offsetting targeted increases in data processing and marketing .
Dividend increased to $0.23/share and Russell 3000 inclusion broadened investor base; subsequent buyback program extension signals continued capital return optionality .
Near-term trading: positive setup from margin/efficiency momentum and capital return; watch for provisioning cadence and rewards-platform conversion costs .
Medium-term thesis: continued benefits from Ohio Homebuyer Plus deposits and focus on CRE/C&I/residential lending should support earning assets and NIM, while disciplined OpEx management sustains returns .
Monitor warehouse line utilization and macro indicators (GDP/unemployment) that influence modeled loss rates and provisioning trajectory .

OHIO VALLEY BANC CORP (OVBC)·Q2 2025 Earnings Summary