Executive Summary

Q4 2024 EPS was $0.53 and net income $2.515M, down year over year due to one-time costs (early retirement severance $3.338M and $496k Sweet Home Ohio account bonuses), while core net interest income rose on higher average earning assets .
Net interest income increased to $13.070M (+15.5% YoY), with average earning assets up $187M; net interest margin was 3.70% (down 1 bp YoY, down 6 bps sequentially) amid continued funding cost pressure and mix shift toward CDs/wholesale .
Credit metrics were stable-to-mixed: ACL 0.95% of loans (vs 0.90% YE23), NPLs/loans rose to 0.46% (vs 0.26% YE23); provision was $617k in Q4 (down $72k YoY), aided by release of a $427k specific reserve and improved macro forecasts .
Strategic actions (Sweet Home Ohio deposits from Ohio Treasurer, exit of indirect auto/RV lending, early retirement program) position for lower run-rate expenses and funding flexibility; investors should watch margin trajectory and OpEx normalization as potential stock catalysts .

What Went Well and What Went Wrong

What Went Well

Strong earning asset growth and net interest income: quarterly NII up $1.755M YoY on $187M higher average earning assets, driven by commercial and residential loan growth and securities balances funded by Treasurer deposits .
Noninterest income growth: Q4 noninterest income increased $339k YoY, led by higher service charges and debit/credit card interchange volume .
Cost actions set up future OpEx relief: management executed a voluntary early retirement program ($3.338M severance) expected to reduce salary and benefit expense going forward; CEO highlighted positioning for future success despite lower net income .
- Quote: “Net income was down primarily due to two one-time expenses... Both of these expenses are part of a broader strategy to improve shareholder value and further our Community First Mission.” — Larry Miller, President & CEO .

What Went Wrong

Margin and funding pressure: net interest margin decreased as deposit costs rose faster than asset yields, and funding mix shifted to higher-cost CDs and wholesale sources .
Elevated noninterest expense: Q4 noninterest expense rose $3.004M YoY, primarily salaries/benefits tied to severance, plus $496k account bonuses for Sweet Home Ohio; data processing and professional fees also increased .
Credit metrics uptick: NPLs/loans increased to 0.46% vs 0.26% YE23; year-to-date provision rose $379k YoY, reflecting net charge-offs and loan growth, though Q4 provision fell YoY and benefited from a specific reserve release .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Operating revenue ($000) = Total interest income + Noninterest income	$20,703	$22,259	$23,942
Total interest income ($000)	$17,122	$19,405	$20,022
Net interest income ($000)	$11,315	$12,581	$13,070
Provision for credit losses ($000)	$689	$920	$617
Noninterest income ($000)	$3,581	$2,854	$3,920
Noninterest expense ($000)	$10,302	$11,220	$13,306
Net income ($000)	$3,223	$2,719	$2,515
Diluted EPS ($)	$0.68	$0.58	$0.53

Margin & Ratios	Q4 2023	Q3 2024	Q4 2024
Net interest margin (%)	3.71%	3.76%	3.70%
Efficiency ratio (%)	68.47%	72.01%	77.83%
ROA (%)	0.97%	0.75%	0.66%
ROE (%)	9.32%	7.39%	6.62%

Balance & Credit KPIs	Q4 2023	Q3 2024	Q4 2024
Average earning assets ($000)	$1,227,454	$1,345,481	$1,414,863
Total loans ($000)	$971,900	$1,048,912	$1,061,825
Total deposits ($000)	$1,127,136	$1,261,420	$1,275,178
Securities AFS ($000)	$162,258	$271,187	$268,120
ACL / Loans (%)	0.90%	0.95%	0.95%
NPLs / Loans (%)	0.26%	0.44%	0.46%
Sweet Home Ohio Treasurer deposits ($000)	N/A	$100,000	$97,000
Sweet Home Ohio account bonuses ($000)	N/A	N/A	$496

Note: Operating revenue calculated as total interest income plus noninterest income, based on disclosed line items .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Salaries & employee benefits (run-rate)	Go-forward (FY 2025 and beyond)	Not previously quantified	Early retirement program expected to reduce salary and benefit expense; $3.338M severance recorded in Q4 2024	Lowered (qualitative)
Deposit strategy	Ongoing	Not previously quantified	Continued participation in Ohio Homebuyer Plus; Sweet Home Ohio accounts funded by Treasurer deposits ($97M at 12/31)	Maintained/expanded (strategic)
Lending focus	Ongoing	Consumer indirect lending previously active	Exit indirect auto/RV lending effective Oct 11, 2024; focus on commercial and residential segments	Strategic shift
Dividend per share	Q4 2024	$0.22 in prior quarter	$0.22 declared payable Nov 10, 2024	Maintained
Dividend per share	Q1 2025	Prior: $0.22	$0.22 declared payable Feb 10, 2025	Maintained

No quantitative revenue, margin, OpEx, OI&E or tax-rate guidance ranges were provided in Q4 materials .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in our document catalog (0 results) [ListDocuments: earnings-call-transcript]. Themes below reflect press releases and 8-K disclosures.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Interest rate environment & funding costs	Headwinds compressing NIM; deposit pricing pressure; NIM improved 13 bps sequentially Q2 vs Q1	Continued headwinds; margin improved 2 bps Q3 vs Q2	NIM 3.70%; funding costs up; mix shift to CDs/wholesale	Stabilizing-to-mixed (sequential softness)
Loan growth	+$68M YTD, Q2 loan growth $50M quarterly; focus on residential, commercial	+$77M YTD; strong commercial/residential growth	+$90M FY; growth exceeded expectations; commercial/residential drivers	Strong, accelerating through year
Sweet Home Ohio deposit program	Launched; strategic funding via Ohio Treasurer	$100M Treasurer deposits; $5.3M account balances	$97M Treasurer deposits; $6.8M account balances; $496k bonuses	Scaling; slight Treasurer balance down QoQ
Expense management	Rising OpEx (inflation, data processing); savings from Race Day Mortgage closure	Early retirement program announced; anticipated $3.043M in Q4; data processing up	$3.338M severance recorded; account bonuses; data processing & professional fees up; expected go-forward savings	Near-term elevated, medium-term decline expected
Credit quality	NPLs up to 0.50% (Q2) largely one relationship; ACL 0.91%	NPLs 0.44%; ACL 0.95%; specific reserve $427k	NPLs 0.46%; ACL 0.95%; provision $617k; specific reserve release $427k; improved macro forecasts	Mixed but managed

Management Commentary

“While it is never enjoyable to report lower net income… I am quite pleased with how the company is positioned for future success. Net income was down primarily due to two one-time expenses… Both of these expenses are part of a broader strategy to improve shareholder value and further our Community First Mission.” — Larry Miller, President & CEO (Q4 release) .
“All year, we have faced the challenging headwinds of an unfavorable interest rate environment and rising costs… loan growth… and the successful roll out of the Sweet Home Ohio deposit account were key contributors to our 3rd quarter results.” — Larry Miller (Q3 release) .
“We look forward to a strong finish to 2024 as we maintain a laser focus on our Community First Mission.” — Larry Miller (Q3 release) .

Q&A Highlights

No Q4 2024 earnings call transcript was found; therefore, no analyst Q&A highlights or clarifications are available for this quarter [ListDocuments: earnings-call-transcript].

Estimates Context

S&P Global Wall Street consensus estimates were unavailable for OVBC in our query window; as a result, we cannot assess beats/misses versus consensus for Q4 2024 or FY 2024. Values would normally be retrieved from S&P Global but were unavailable in this case.
Given limited small-cap regional bank coverage, investors should monitor future estimate publications; near-term estimate changes may consider higher NII from asset growth offset by normalized OpEx post-severance and deposit bonus timing.

Key Takeaways for Investors

Core engine intact: Net interest income growth (+$1.755M YoY in Q4) on broad loan and securities expansion suggests earnings power as funding normalizes .
Margin watch: NIM at 3.70% reflects ongoing funding cost pressure and mix shift; stabilization hinges on deposit pricing moderation and asset yield trajectory .
Expense normalization catalyst: One-time severance ($3.338M) and $496k account bonuses elevated Q4 OpEx; management expects go-forward salary/benefits to decline, a potential EPS tailwind in 2025 .
Credit steady but elevated: ACL at 0.95% and NPLs at 0.46% reflect prudent reserving amid loan growth; Q4 provision benefited from reserve release and improved macro expectations .
Strategic funding flexibility: Sweet Home Ohio program provided subsidized Treasurer deposits ($97M at YE), supporting securities pledging and balance sheet growth; monitor net cost/benefit and program scale .
Portfolio shift: Exit from indirect auto/RV lending focuses resources on higher-return commercial and residential segments, potentially enhancing portfolio profitability mix .
Dividend maintained: $0.22 per share declared in Q4 and again in Q1 2025, signaling capital return stability amidst investment in growth and operational changes .

OHIO VALLEY BANC CORP (OVBC)·Q4 2024 Earnings Summary