Ohio Valley Banc reported its second-quarter fiscal 2026 results on Monday, with net income falling to $2.93 million, or $0.62 per share, a 30.5% decline from $4.21 million in the same period last year. For the first half, net income was $7.22 million, or $1.53 per share, down 16.2% year-over-year.

Despite the profit decline, core business performance remained robust. Net interest income for the second quarter reached $15.4 million, an increase of $863,000 from a year ago; first-half net interest income totaled $30.29 million, up $2.611 million. Growth was mainly driven by a rise in average interest-earning assets, with average loan balances in the first half increasing by $152 million year-over-year, concentrated in targeted commercial lending areas.

The primary reason for the profit drop was a significant increase in credit loss provisions. Provision expense for the second quarter was $3.755 million, up $2.607 million from $1.148 million in the prior-year period. This was largely due to specific provisions of $4.53 million on two large commercial loans, along with additional provisions tied to loan portfolio expansion.

CEO Larry Miller stated, "First-half results benefited from solid growth in net interest income and a stable net interest margin. The increase in provisions is linked to a few large commercial credits, and we believe the risk is limited to these specific relationships and does not reflect a deterioration in overall credit quality."

The net interest margin for the second quarter was 3.93%, down from 4.17% a year ago, primarily due to funding costs rising faster than yields on interest-earning assets. Total assets stood at $1.661 billion, up 5.0% from the start of the year. The bank declared a second-quarter dividend of $0.25 per share, up from $0.23 in the same period last year.