Ohio Valley Bank's Q 2 net profit fell 30.5%, loan growth was strong but provisions increased significantly
Ohio Valley Bank announced its second quarter 2026 financial report on Monday, with net profit of US$2.93 million, or US$0.62 per share, a 30.5% decrease from US$4.21 million in the same period last year. Net profit in the first half of the year was US$7.22 million, or US$1.53 per share, a year-on-year decrease of 16.2%. Despite the decline in net profit, core business performance was solid. Net interest income in the second quarter was US$15.4 million, a year-on-year increase of US$863,000; net interest income in the first half of the year reached US$30.29 million, a year-on-year increase of US$2.611 million. The growth was mainly due to the increase in average interest-earning assets. The average loan balance in the first half of the year increased by US$152 million year-on-year, mainly in the target commercial loan area. The main reason for the profit decline was a sharp increase in provisions for credit losses. Provision expenses in the second quarter were US$3.755 million, an increase of US$2.607 million from US$1.148 million in the same period last year. This was primarily due to an increase of US$4.53 million in specific provisions for two large commercial loans, as well as additional provisions resulting from the expansion of the loan size. Chief Executive Officer Larry Miller said: “The first half results benefited from solid growth in net interest income. Stable net interest margin. The increase in provisions is associated with a small number of large commercial credits, and we believe the risk is limited to these specific relationships and does not reflect a deterioration in overall credit quality. " In terms of net interest margin, it was 3.93% in the second quarter, lower than 4.17% in the same period last year, mainly because financing costs rose faster than the yield on interest-earning assets. Total assets reached US$1.661 billion, an increase of 5.0% from the beginning of the year. Dividends per share in the second quarter were US$0.25, an increase from US$0.23 in the same period last year.