What changed in this filing

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Item 1. Financial Statements

2024-08-14 compared with 2024-05-15 · 309 added, 259 removed, 737 unchanged (44% of the section changed)

36 unchanged sentences

Treasury stock, at cost (2024 - 779,994 shares;

2023 - 697,321 shares)

Total shareholders’ equity

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Three months ended

Six months ended

Interest and dividend income:

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Three months ended

Six months ended

Other comprehensive income (loss):

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Shareholders’

Balance at April 1, 2024

Other comprehensive loss, net

Cash dividends, $ 0.22 per share

Shares acquired for treasury, 82,673 shares

Balance at June 30 , 2024

Balance at April 1, 2023

Other comprehensive loss, net

Cash dividends, $ 0.37 per share

Balance at June 30 , 2023

Comprehensive

Income (Loss)

Shareholders’

Balance at January 1, 2024

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Common Stock issued to ESOP, 20,542 shares

Balance at March 31, 2024

Shares acquired for treasury, 82,673 shares

Balance at June 30 , 2024

Balance at January 1, 2023

Other comprehensive loss, net

Other comprehensive income, net

Cash dividends, $ 0.58 per share

Common stock issued to ESOP, 4,746 shares

Balance at March 31 , 2023

Balance at June 30 , 2023

See accompanying notes to consolidated financial statements

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(dollars in thousands)

Three months ended

Six months ended

Net cash provided by operating activities:

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Proceeds from calls and maturities of securities held to maturity

Purchases of securities held to maturity

Proceeds from maturities of certificates of deposit in financial institutions

Purchases of certificates of deposit in financial institutions

Purchases of restricted investments in bank stocks

Redemptions of restricted investments in bank stocks

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Cash dividends

Purchases of treasury stock

Proceeds from Federal Home Loan Bank borrowings

Repayment of Federal Home Loan Bank borrowings

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Cash paid for interest

Cash paid for income taxes

Operating lease liability arising from obtaining right-of-use asset

See accompanying notes to consolidated financial statements

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BASIS OF PRESENTATION:

The accompanying

consolidated financial statements include the accounts of Ohio Valley Banc Corp.

(“Ohio Valley”) and its wholly-owned subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc., a consumer finance company, and Ohio Valley Financial

Services Agency, LLC, an insurance agency.

The Bank has one wholly-owned subsidiary, Ohio Valley REO, LLC (“Ohio Valley REO”), an Ohio limited liability company, to which the Bank transfers certain real estate acquired by the Bank through foreclosure for sale by Ohio Valley REO.

December 2023, Ohio Valley ceased operating Race Day Mortgage, Inc.

The accompanying consolidated financial

statements include the accounts of Ohio Valley Banc Corp.

(“Ohio Valley”) and its wholly-owned subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc., a consumer finance company, and Ohio Valley Financial Services Agency, LLC, an

insurance agency.

The Bank has one

wholly-owned subsidiary, Ohio Valley REO, LLC (“Ohio Valley REO”), an Ohio limited liability company, to which the Bank transfers certain real estate acquired by the Bank through foreclosure for sale by Ohio Valley REO.

In December 2023, Ohio

Valley ceased operating Race Day Mortgage, Inc.

(“Race Day”), which had been a wholly-owned subsidiary of the Bank since April 2021.

The decision to cease operating Race Day was made due to low loan demand, poor employee retention,

and lack of profitability.

The decision to cease operating Race Day was made due to low loan demand, poor employee retention, and lack of

profitability.

In December 2023, Ohio Valley also ceased operating OVBC Captive, Inc.

(the “Captive”), which had been a subsidiary of Ohio Valley since July 2014.

The decision to cease operating the Captive was the result of proposed IRS

regulations that adversely impacted the taxation of small captives and severely limited the Captive’s ability to operate.

The decision to cease operating the Captive was the result of proposed IRS regulations

that adversely impacted the taxation of small captives and severely limited the Captive’s ability to operate.

Ohio Valley and its subsidiaries are

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These interim financial statements are prepared by the Company without audit and reflect all adjustments of a normal recurring nature which, in the opinion

of management, are necessary to present fairly the consolidated financial position of the Company at March 31, 2024, and its results of operations and cash flows for the periods presented.

The results of operations for the three months ended March 31,

2024, are not necessarily indicative of the operating results to be anticipated for the full fiscal year ending December 31, 2024.

The accompanying consolidated financial statements do not purport to contain all the necessary financial disclosures

required by U.S.

of management, are necessary to present fairly the consolidated financial position of the Company at June 30, 2024, and its results of operations and cash flows for the periods presented.

The results of operations for the three and six months ended

June 30, 2024, are not necessarily indicative of the operating results to be anticipated for the full fiscal year ending December 31, 2024.

The accompanying consolidated financial statements do not purport to contain all the necessary financial

disclosures required by U.S.

generally accepted accounting principles (“US GAAP”) that might otherwise be necessary in the circumstances.

The Annual Report of the Company for the year ended December 31, 2023, contains consolidated financial statements and related

notes which should be read in conjunction with the accompanying consolidated financial statements.

The Annual Report of the Company for the year ended December 31, 2023, contains consolidated financial statements

and related notes which should be read in conjunction with the accompanying consolidated financial statements.

The consolidated financial statements for 2023 have been reclassified to conform to the presentation for 2024.

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income or shareholders’ equity.

USE OF ESTIMATES

IN THE PREPARATION OF FINANCIAL STATEMENTS:

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL

The accounting and reporting policies followed by the Company conform to US GAAP established by the Financial Accounting Standards Board (“FASB”).

The preparation of financial statements in

conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The preparation of financial statements in conformity with US GAAP requires

management to make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

INDUSTRY SEGMENT INFORMATION:

Internal financial information is primarily reported and aggregated in two lines of business:

Internal financial

information is primarily reported and aggregated in two lines of business:

banking and consumer finance.

RECENTLY ISSUED ACCOUNTING

PRONOUNCEMENTS:

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:

In November 2023 , the FASB issued ASU No .

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Improvements to Reportable Segment Disclosures .

The updated accounting

guidance requires expanded reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the company's chief operating decision maker.

The guidance is effective for fiscal years beginning

after December 15, 2023 , and interim periods within annual periods beginning after December 15, 2024 .

Retrospective application is required.

The updated accounting guidance requires expanded reportable segment

disclosures, primarily related to significant segment expenses which are regularly provided to the company's chief operating decision maker.

The guidance is effective for fiscal years beginning after December 15, 2023 , and interim periods within annual periods beginning after December 15, 2024 .

Retrospective

application is required.

The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements and related disclosures.

In December 2023 , the FASB issued ASU No .

In December 2023 , the FASB issued

2023-09 , Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

The updated accounting guidance requires enhanced income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income

The updated accounting guidance requires enhanced income tax disclosures, including the disaggregation

of existing disclosures related to the tax rate reconciliation and income taxes paid.

This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements and related

The Company is currently evaluating the effect the updated

guidance will have on its consolidated financial statements and related disclosures.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

DEBT SECURITIES:

The Company classifies

securities into held to maturity (“HTM”) and available for sale (“AFS”) categories.

The Company classifies securities into held to

maturity (“HTM”) and available for sale (“AFS”) categories.

HTM securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost.

Securities classified as AFS

include securities that could be sold for liquidity, investment management or similar reasons even if there is not a present intention of such a sale.

AFS securities are reported at fair value, with unrealized gains or losses included in other

comprehensive income, net of tax.

Securities classified as AFS include securities that

could be sold for liquidity, investment management or similar reasons even if there is not a present intention of such a sale.

AFS securities are reported at fair value, with unrealized gains or losses included in other comprehensive income, net of

Premium amortization is deducted from, and discount accretion is added to, interest income on securities using the level yield method without

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Gains and losses are recognized upon the sale of specific identified securities on the completed trade date.

ALLOWANCE FOR CREDIT LOSSES (“ACL”) - AFS SECURITIES:

For AFS debt securities in an unrealized position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the

security before recovery of its amortized cost basis.

FOR CREDIT LOSSES (“ACL”) - AFS SECURITIES:

For AFS debt securities in an unrealized position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before

recovery of its amortized cost basis.

If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

For debt securities AFS that do not meet

the aforementioned criteria, the Company evaluates whether the decline in fair values has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any

changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected

from the security are compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by

the amount that the fair value is less than the amortized cost basis.

For debt securities AFS that do not meet the

aforementioned criteria, the Company evaluates whether the decline in fair values has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes

to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from

the security are compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the

amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

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uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities totaled $ 435 at March 31, 2024 and $ 394 at December 31, 2023, and are excluded from the estimate

of credit losses.

Accrued interest receivable on AFS debt securities totaled $ 517 at June 30, 2024 and $ 394 at December 31, 2023, and are excluded from the estimate of credit losses.

Management classifies the AFS portfolio into the following major security types:

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securities, and Agency mortgage-backed residential securities.

At March 31, 2024 and December 31, 2023, there was no ACL related to AFS debt

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

At June 30, 2024 and December 31, 2023, there was no ACL related to AFS debt

ACL - HTM SECURITIES:

Management measures expected credit losses on HTM debt securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current

conditions and reasonable and supportable forecasts.

Management measures expected credit losses

on HTM debt securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of HTM securities to present the net amount expected to be collected.

HTM securities are

charged off against the ACL when deemed uncollectible.

HTM securities are charged off against the ACL when deemed uncollectible.

Adjustments to the ACL are reported in the Company’s consolidated statements of income in the provision for credit losses.

Accrued interest receivable on HTM securities is excluded from the

estimate of credit losses.

Management classifies the HTM portfolio into two major security types:

Accrued interest receivable on HTM securities is excluded from the estimate of credit losses.

Management classifies the HTM

portfolio into two major security types:

Obligations of states and political subdivisions and Agency mortgage-backed residential securities.

Agency mortgage-backed residential securities

consist of only two securities with balances that are not significant.

With regard to obligations of states and political subdivisions, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial

condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities.

At March 31, 2024, the ACL related to HTM debt securities was $ 2 , unchanged from December 31, 2023.

Furthermore, there was no corresponding provision expense during the three months

ended March 31, 2024 and 2023.

Loans that management has the intent and ability to hold

for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an ACL.

Interest income is reported on an accrual basis using the interest method and

includes amortization of net deferred loan fees and costs over the loan term using the level yield method without anticipating prepayments.

The amount of the Company’s recorded investment is not materially different than the amount of unpaid principal

balance for loans.

Interest income is discontinued and the loan moved to nonaccrual status when full loan repayment is in doubt, typically when the loan

payments are past due 90 days or over unless the loan is well-secured or in process of collection.

Agency mortgage-backed residential securities consist of only two securities with balances that are not

With regard to obligations of states and political subdivisions, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue

to make timely principal and interest payments under the contractual terms of the securities.

At June 30, 2024, the ACL related to HTM debt securities was $ 2 , unchanged from December 31, 2023.

Furthermore, there was no corresponding provision expense during the three and six months ended June 30,

2024 and 2023.

Loans that management has the intent and ability to hold for the foreseeable

future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an ACL.

Interest income is reported on an accrual basis using the interest method and includes

amortization of net deferred loan fees and costs over the loan term using the level yield method without anticipating prepayments.

The amount of the Company’s recorded investment is not materially different than the amount of unpaid principal balance

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Interest income is discontinued and the loan moved to nonaccrual status when full

loan repayment is in doubt, typically when the loan payments are past due 90 days or over unless the loan is well-secured or in process of collection.

Past due status is based on the contractual terms of the loan.

In all cases, loans are placed on nonaccrual or charged-off at an earlier date if

collection of principal or interest is considered doubtful.

In all cases, loans are placed on

nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income.

Interest received on such loans is

accounted for on the cash-basis method until qualifying for return to accrual.

Interest received on such loans is accounted for on the

cash-basis method until qualifying for return to accrual.

Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

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Loans sold to the secondary market are carried at the lower of aggregate cost or fair value.

As of March 31, 2024 and December 31, 2023, there were no

loans held for sale by the Bank.

The ACL for loans is a

contra asset valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.

As of June 30, 2024, there was a $ 200 loan held for

sale by the Bank, as compared to none at December 31, 2023.

The ACL for loans is a contra asset valuation account that is

deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.

Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible.

Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off.

The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans.

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similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The ACL is measured on a collective (pool) basis when similar risk characteristics exist.

The Company has identified the

following portfolio segments and measures the ACL using the following methods:

The Company has identified the following portfolio

segments and measures the ACL using the following methods:

Portfolio Segment

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and are not unconditionally cancellable by the Company.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company has elected to exclude accrued interest receivable from the measurement of its ACL.

When a loan is placed on nonaccrual status,

any outstanding accrued interest is reversed against interest income.

When a loan is placed on nonaccrual status, any outstanding accrued

interest is reversed against interest income.

Loans that do not share risk characteristics are evaluated on an individual basis.

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less than the loan balance.

At March 31, 2024, there was $ 9,229

At June 30, 2024, there was $ 9,431

in the ACL related to loans, compared to $ 8,767 at December 31, 2023.

This resulted in corresponding provision expense of $ 857 during the three months ended March 31, 2024, compared to $ 465

in provision expense during the three months ended March 31, 2023.

This resulted in corresponding provision expense of $ 138 and $ 995 during the three and six months

ended June 30, 2024, compared to $ 114 and $ 579

in provision expense during the three and six months ended June 30, 2023, respectively.

The Company’s loan portfolio segments have been identified as follows:

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Estate, and Consumer.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Commercial and industrial:

Portfolio segment consists of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises.

Commercial and industrial loans are generally secured by business assets such as

equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations.

The Company’s risk exposure is related to deterioration in the value of collateral securing the loan

should foreclosure become necessary.

Portfolio segment

consists of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises.

Commercial and industrial loans are generally secured by business assets such as equipment, accounts

receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations.

The Company’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure

become necessary.

Generally, business assets used or produced in operations do not maintain their value upon foreclosure, which may require the Company to write down the value significantly to sell.

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segments due to the larger dollar balances associated with such portfolios.

ACL – OFF-BALANCE SHEET CREDIT

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by

The ACL on off-balance sheet credit exposures is adjusted through credit loss expense.

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be

funded over its estimated life.

At March 31, 2024, there was $ 586 in the ACL related to off-balance sheet credit exposures, compared to $ 692 at December 31, 2023.

This resulted in a corresponding recovery of $ 106 in provision expense during the three months ended March 31, 2024, compared to $ 24

in provision expense during the three months ended March 31, 2023.

EARNINGS PER SHARE:

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

ACL – OFF-BALANCE SHEET CREDIT EXPOSURES:

off-balance sheet credit exposures is adjusted through credit loss expense.

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated

At June 30, 2024, there was $ 629 in the ACL related to off-balance sheet credit exposures, compared to $ 692 at December 31, 2023.

This resulted in a corresponding provision expense of $ 43 and a recovery of $ 63 in provision expense during the three and six

months ended June 30, 2024, respectively.

This is compared to a $ 90 and $ 66 recovery of provision expense during the three and six months ended June 30, 2023, respectively.

EARNINGS PER SHARE:

is based on net income divided by the weighted average number of common shares outstanding during the quarter.

The weighted average common shares outstanding were 4,785,773 and 4,773,461 for the three months ended March 31, 2024 and 2023, respectively.

Ohio Valley had

no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented.

Earnings per share is based on net income

divided by the weighted average number of common shares outstanding during the quarter.

The weighted average common shares outstanding were 4,740,073

and 4,776,520 for the three months ended June 30, 2024 and 2023, respectively.

The weighted average common shares outstanding were 4,762,923 and 4,774,999 for the six months ended

June 30, 2024 and 2023,

respectively.

Ohio Valley had no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

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On an as-needed basis, the Company reviews the fair value of collateral, taking into consideration current market data, as well as all

selling costs that typically approximate 10 %.

selling costs, which typically amount to approximately 10 %.

Interest Rate Swap Agreements:

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Assets and liabilities measured at fair value on a recurring basis are summarized below:

Fair Value Measurements at March 31,

Fair Value Measurements at June 30,

Quoted Prices in Active

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Interest rate swap derivatives

Fair Value Measurements at December 31,

Fair Value Measurements at December 31, 2023 Using

Quoted Prices in Active

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Interest rate swap derivatives

Liabilities :

Interest rate swap derivatives

There were no transfers between Level 1 and Level 2 during 2024 or 2023.

Assets and Liabilities Measured on a Nonrecurring Basis

There were no assets or

liabilities measured at fair value on a nonrecurring basis at March 31, 2024 and December 31, 2023.

There was no other real

estate owned that was measured at fair value less costs to sell at March 31, 2024 and December 31, 2023.

Furthermore, there were no corresponding write downs during

the three months ended March 31, 2024 and 2023.

There was no quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a

non-recurring basis at March 31, 2024 and December 31, 2023.

liabilities measured at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

The carrying amounts and estimated fair values of financial instruments at March 31, 2024 and December 31, 2023 are as follows:

Fair Value Measurements at March 31,

The carrying amounts and estimated fair values of financial instruments at June 30, 2024 and December 31, 2023 are as follows:

Fair Value Measurements at June 30,

Financial Assets:

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Accrued interest payable

Fair Value Measurements at December 31,

Fair Value Measurements at December 31, 2023 Using

Financial Assets:

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NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of securities available for sale and securities held to

maturity at March 31, 2024 and December 31, 2023 and the corresponding

amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses, and allowance for credit losses:

The following table summarizes the amortized cost and fair value of securities AFS and securities HTM at June 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) and gross unrecognized gains

Securities Available for Sale

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Gross Unrealized

March 31 , 2024

June 30 , 2024

Government securities

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Allowance for Credit Losses

March 31 , 2024

June 30 , 2024

Obligations of states and political subdivisions

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Total securities

The amortized cost and estimated fair value of debt securities at March 31, 2024, by contractual maturity, are shown below.

Actual maturities may

differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities.

The amortized cost and estimated fair value of debt securities at June 30, 2024, by contractual maturity, are shown below.

maturities may differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities.

Securities not due at a single maturity are shown separately.

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There were no sales of securities during the

three months ended March 31, 2024 and 2023.

Debt securities with a carrying value of approximately $ 140,195 at March 31, 2024 and $ 126,994 at December 31, 2023, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law.

three and six months ended June 30, 2024

and 2023, respectively.

Debt securities with a carrying value of approximately $ 132,552 at June 30, 2024 and $ 126,994 at December 31, 2023 , were pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law.

NOTE 3 – SECURITIES (Continued)

The following table summarizes debt securities available for sale in an unrealized loss position for which

an ACL losses has not been recorded at March 31, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:

March 31 , 2024

The following table summarizes debt securities AFS in an unrealized loss position for which an ACL has not been recorded at June 30, 2024 and December 31, 2023,

aggregated by major security type and length of time in a continuous unrealized loss position:

June 30 , 2024

Less Than 12 Months

12 Months or More

Unrealized Loss

Securities Available for Sale

Government securities

Government sponsored entity

Agency mortgage-backed

securities, residential

Government sponsored entity securities

Agency mortgage-backed securities,

Total available for sale

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12 Months or More

Unrealized Loss

Securities Available for Sale

Government securities

Government sponsored entity

Agency mortgage-backed securities, residential

U.S Government sponsored entity securities

Agency mortgage-backed securities,

Total available for sale

Management evaluates available for sale debt securities in unrealized positions to determine whether impairment is due to credit-related factors.

Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period

of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2024, the Company had 97 available

for sale debt securities in an unrealized position without an ACL, of which 14 were from U.S.

Management evaluates AFS debt securities in unrealized positions to determine whether impairment is due to credit-related factors.

Consideration is given to

(1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow

for any anticipated recovery in fair value.

At June 30, 2024 , the Company had 94 AFS debt securities in an unrealized position without an ACL, of which 13 were from U.S.

Government securities, 3 were from U.S.

Government sponsored entity securities, and 78 were from Agency mortgage-backed residential securities.

Comparatively at December 31, 2023, the Company had 99 available for sale debt securities in an unrealized position without an ACL, of which 15 were from U.S.

Comparatively

at December 31, 2023, the Company had 99 AFS debt securities in an unrealized position without an ACL, of which 15 were from U.S.

Government securities, 3 were from U.S.

Government sponsored entity securities, and 81 were from Agency mortgage-backed residential securities.

Management does not have the intent to sell any of these securities and believes that it is more

likely than not that the Company will not have to sell any such securities before a recovery of cost.

The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments

Accordingly, as of March 31, 2024 and December 31, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions.

result, the Company carried no ACL on available for sale debt securities at March 31, 2024 and December 31, 2023.

The following table presents the activity in the ACL for held to maturity debt securities:

Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not

have to sell any such securities before a recovery of cost.

The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of June 30, 2024 , management believes that the unrealized losses

detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions and, therefore, the Company carried no ACL on AFS debt securities at June 30, 2024 .

NOTE 3 – SECURITIES (Continued)

The following table presents the activity in the ACL for HTM debt securities:

Held to Maturity Debt Securities

Three months ended

March 31, 2024

Three months ended

March 31, 2023

Six months ended

June 30, 2024

Six months ended

June 30, 2023

Allowance for credit losses:

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Impact of adopting ASC 326

Credit loss expense

Provision for (recovery of) credit loss expense

Allowance for credit losses ending balance

The Company’s held to maturity securities primarily consist of obligations

The Company’s HTM securities primarily consist of obligations

of states and political subdivisions.

The ACL on held to maturity securities is estimated at each measurement date on a collective basis by major security type.

Risk factors such as issuer bond ratings, historical loss rates, financial

condition of issuer, and timely principal and interest payments of issuer were evaluated to determine if a credit reserve was required within the portfolio.

At March 31, 2024 and 2023, there were no past due principal and interest payments related to

held to maturity securities.

During the first quarter of 2024, the cumulative loss rate remained at .02 %, resulting in no change to provision

expense during the three months ended March 31, 2024.

During the first quarter of 2023, the Company identified a cumulative loss rate of .03 %

upon adoption of ASC326 on January 1.

This resulted in a $ 3 credit loss reserve for held to maturity debt securities, with no provision expense during the three months ended March 31, 2023.

The ACL on HTM securities is estimated at each measurement date on a collective basis by major security type.

Risk factors such as issuer bond ratings, historical loss rates, financial condition of

issuer, and timely principal and interest payments of issuer were evaluated to determine if a credit reserve was required within the portfolio.

At June 30, 2024 and 2023, there were no past due principal and interest payments related to HTM securities.

During the second quarter of 2024, the cumulative loss rate remained at 0.02 %, resulting in no change to provision expense during the three and

six months ended June 30, 2024.

During the first quarter of 2023, the Company identified a cumulative loss rate of 0.03 % upon adoption of ASC326

on January 1.

This resulted in a $ 3 credit loss reserve for HTM debt securities, with no provision expense during the three and six months ended June 30, 2023.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

6 unchanged sentences

Allowance for credit losses

At March 31, 2024 and December 31, 2023, net deferred loan

origination costs were $ 777 and $ 794 , respectively.

At March 31, 2024 and December 31, 2023, net unamortized

loan purchase premiums were $ 631 and $ 687 , respectively.

The following table presents the recorded investment of

nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of March 31, 2024 and December 31, 2023:

March 31 , 2024

At June 30, 2024 and December 31, 2023 , net deferred loan origination costs were $ 635 and $ 794 , respectively.

At June 30, 2024 and December 31, 2023 , net unamortized loan purchase premiums were $ 572 and $ 687 , respectively.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The following table presents the recorded investment of nonaccrual loans and

loans past due 90 days or more and still accruing by class of loans as of June 30, 2024 and December 31, 2023:

June 30 , 2024

Loans Past Due

17 unchanged sentences

Commercial and industrial

The Company recognized $ 4 and $ 20 of interest income in nonaccrual loans during the three months ended March 31, 2024 and 2023, respectively.

The Company recognized $ 15 and $ 19 of interest income in nonaccrual loans during the three and six months ended June 30, 2024, respectively.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The following table presents the aging of the recorded investment of past due loans by class

of loans as of March 31, 2024

and December 31, 2023:

March 31 , 2024

The following table presents the aging of the recorded investment of past due loans by class of loans as of June 30, 2024 and December 31, 2023:

June 30 , 2024

Residential real estate

54 unchanged sentences

Amounts classified as loss should be promptly charged off.

As of March 31,

2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

As of June 30, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

June 30 , 2024

Commercial real estate:

2 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

June 30 , 2024

Commercial real estate:

2 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

June 30 , 2024

Commercial real estate:

2 unchanged sentences

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

June 30 , 2024

Commercial and Industrial:

1 unchanged sentence

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

4 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

9 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

3 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses.

For residential and consumer

loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

The following table presents the recorded investment of residential and consumer loans by class of loans

based on repayment activity as of March 31, 2024

The Company considers the performance of the loan portfolio and its impact on the ACL.

For residential and consumer loan

classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

The following table presents the recorded investment of residential and consumer loans by class of loans based

on repayment activity as of June 30, 2024

and December 31, 2023:

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

June 30 , 2024

Residential Real Estate:

3 unchanged sentences

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

Consumer - Automobile:

June 30 , 2024

Payment Performance

1 unchanged sentence

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

Consumer - Home Equity:

June 30 , 2024

Payment Performance

1 unchanged sentence

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2024

Consumer - Other:

June 30 , 2024

Payment Performance

7 unchanged sentences

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

December 31, 2023

Consumer - Automobile:

Payment Performance

3 unchanged sentences

December 31, 2023

Consumer - Home Equity:

Payment Performance

1 unchanged sentence

Current Period gross charge-offs

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

December 31, 2023

Consumer - Other:

Payment Performance

3 unchanged sentences

as the western counties of West Virginia.

Approximately 4.46 % of total loans were unsecured at March 31, 2024, up from 4.37 % at December 31, 2023.

Approximately 4.13 % of total loans were unsecured at June 30, 2024, down from 4.37 % at December 31, 2023.

N OTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Modifications to Borrowers Experiencing Financial Difficulty:

8 unchanged sentences

All modifications to borrowers experiencing financial difficulty are considered to be impaired.

During the three months ended March 31, 2024 and 2023, the Company experienced no new modifications to borrowers experiencing financial

The following table presents the activity in the allowance for credit losses by portfolio segment

for the three months ended March 31, 2024

March 31 , 2024

During the three and six months ended June 30, 2024, the Company

experienced no new modifications to borrowers experiencing financial difficulty.

The following table presents the activity in the ACL by portfolio segment for the three months ended June 30, 2024 and 2023:

June 30 , 2024

and Industrial

4 unchanged sentences

Total ending allowance balance

March 31 , 2023

June 30 , 2023

and Industrial

4 unchanged sentences

Total ending allowance balance

The following table presents the activity in the ACL by portfolio segment for the six months ended June 30, 2024 and 2023:

June 30 , 2024

and Industrial

Allowance for credit losses:

Beginning balance

Provision for credit losses

Loans charged-off

Total ending allowance balance

June 30 , 2023

and Industrial

Allowance for credit losses:

Beginning balance

Provision for credit losses

Loans charged-off

Total ending allowance balance

N OTE 4 – LOANS AND ALLOWANCE FOR CREDIT

LOSSES (Continued)

The following table presents the amortized cost basis of collateral dependent

loans by class of loans as of March 31, 2024 and December 31, 2023:

The following table presents the amortized cost basis of collateral dependent loans by class of loans as of June 30, 2024 and December 31, 2023:

Collateral Type

March 31, 2024

June 30, 2024

Business Assets

15 unchanged sentences

possession of the property (through legal title or through a deed in lieu).

The Company had no other real estate owned for residential real

estate properties at March 31, 2024 compared to $ 68 at December 31, 2023.

In addition, nonaccrual residential mortgage loans that are in the

process of foreclosure had a recorded investment of $ 196 and $ 348 as of March 31, 2024 and December 31, 2023, respectively.

As of June 30, 2024, the Company had $ 60 in other real estate owned for residential real estate properties compared to $ 68 at December 31, 2023.

In addition, nonaccrual residential mortgage

loans that are in the process of foreclosure had a recorded investment of $ 136 and $ 348 as of June 30, 2024 and December 31, 2023, respectively.

NOTE 5 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

4 unchanged sentences

The contract amounts of these instruments are not included in the consolidated financial

At March 31, 2024,

At June 30, 2024,

the contract amounts of these instruments totaled approximately $ 202,732 , compared to $ 206,128 at December 31, 2023.

The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit.

At March 31, 2024, the

estimated ACL related to off-balance sheet commitments was $ 586 , which included a $ 106 recovery of provision during the three months ended March 31, 2024 and $ 24 in

provision during the three months ended March 31, 2023.

The Bank uses the same credit policies in making commitments and conditional obligations as it does for instruments recorded on the balance sheet.

Since many of these instruments are expected to

expire without being drawn upon, the total contract amounts do not necessarily represent future cash requirements.

At June 30, 2024, the estimated ACL related to off-balance sheet commitments was $ 629 , which included $ 43 in provision during the three months ended June 30, 2024 and a $ 63 recovery of provision

during the six months ended June 30, 2024.

This is compared to a $ 90 recovery of provision during the three months ended June 30, 2023 and a $ 66 recovery of provision during the six months ended June 30, 2023.

The Bank uses the same credit policies in making commitments and conditional obligations as it does for

instruments recorded on the balance sheet.

Since many of these instruments are expected to expire without being drawn upon, the total contract amounts do not necessarily represent future cash requirements.

NOTE 6 – OTHER BORROWED FUNDS

Other borrowed funds at March 31, 2024 and December 31, 2023 are comprised of advances from the Federal Home Loan Bank (“FHLB”)

of Cincinnati and promissory notes.

March 31 , 2024

Other borrowed funds at June 30,

2024 and December 31, 2023 are

comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

June 30 , 2024

December 31, 2023

Pursuant to collateral agreements with the FHLB, advances are secured by $ 317,484 in qualifying mortgage loans, $ 32,623 in commercial loans and $ 2,843 in FHLB stock at March 31, 2024.

Pursuant to collateral agreements with the FHLB, advances are secured by $ 345,679 in qualifying mortgage loans, $ 34,015 in commercial loans and $ 2,876 in FHLB stock at June 30, 2024.

Fixed-rate FHLB advances of $ 39,596

mature through 2042 and have interest rates ranging from 1.53 % to 4.91 % and a year-to-date weighted average cost of 4.03 % at March 31, 2024 and 3.50 % at December 31, 2023.

mature through 2042 and have interest rates ranging from 1.53 % to 4.91 % and a year-to-date weighted average cost of 4.03 % at June 30, 2024 and 3.50 % at December 31, 2023.

There were no

variable-rate FHLB borrowings at March 31, 2024.

At March 31, 2024, the Company had a cash management line of credit enabling it to borrow up to $ 100,000 from the FHLB, subject to the stock ownership and collateral limitations described in the next paragraph.

variable-rate FHLB borrowings at June 30, 2024.

At June 30, 2024, the Company

had a cash management line of credit enabling it to borrow up to $ 100,000 from the FHLB, subject to the stock ownership and collateral

limitations described in the next paragraph.

All cash management advances have an original maturity of 90 days .

The line of credit must be renewed on an annual basis.

There was $ 100,000 available on this line of credit at March 31, 2024.

The line of credit must be

renewed on an annual basis.

There was $ 100,000 available on this line of credit at June 30, 2024.

Based on the Company’s current FHLB stock ownership, total assets and pledgeable loans, the Company had the ability to obtain borrowings from

the FHLB up to a maximum of $ 183,492 at March 31,

Of this maximum borrowing capacity, the Company had $ 81,930 available to use as additional borrowings, of which $ 81,930 could be used for

short term, cash management advances, as mentioned above.

the FHLB up to a maximum of $ 185,225 at June 30,

Of this maximum borrowing capacity, the Company had $ 86,730 available to use as additional borrowings, of which $ 86,730 could be used for short term, cash management

advances, as mentioned above.

Promissory notes, issued primarily by Ohio Valley, are due at various dates through a final maturity date of March 13, 2025 , and have fixed rates ranging from 3.25 %

to 5.25 % and a year-to-date weighted average cost of 4.13 % at March 31, 2024, as compared to 3.79 % at December 31, 2023.

At March 31, 2024 there were six promissory notes payable by Ohio Valley

to 5.25 % and a year-to-date weighted average cost of 4.79 % at June 30, 2024, as compared to 3.79 % at December 31, 2023.

At June 30, 2024, there were six promissory notes payable by Ohio Valley

to related parties totaling $ 2,460 .

There were no promissory notes payable to other banks at March 31, 2024 and December 31, 2023, respectively.

Letters of credit issued on the Bank’s behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $ 60,750 at March 31, 2024 and $ 52,350 at December 31, 2023.

Scheduled principal payments as of March 31, 2024:

There were no promissory notes payable to other banks at June 30, 2024 or December 31, 2023.

Letters of credit issued on the Bank’s behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $ 58,900 at June 30, 2024 and $ 52,350 at December 31, 2023.

Scheduled principal payments as of June 30, 2024:

NOTE 7 – SEGMENT INFORMATION

5 unchanged sentences

Total revenues from the banking segment, which accounted for the majority of the Company’s total revenues, totaled 95.4 % and 94.4 % of total consolidated revenues

for the quarters end March 31, 2024 and 2023,

for the quarters end June 30, 2024 and 2023,

respectively.

2 unchanged sentences

Income taxes are allocated based on income before tax expense.

All goodwill is in the banking segment.

Information for the Company’s reportable segments is as follows:

Three months ended March 31,

Three Months Ended June 30,

Net interest income

3 unchanged sentences

Provision for income taxes

Three months ended March 31,

Three Months Ended June 30,

Net interest income

3 unchanged sentences

Provision for income taxes

Six Months Ended June 30, 2024

Net interest income

Provision for (recovery of) credit losses

Noninterest income

Noninterest expense

Provision for income taxes

Six Months Ended June 30, 2023

Net interest income

Provision for (recovery of) credit losses

Noninterest income

Noninterest expense

Provision for income taxes

NOTE 8 – LEASES

5 unchanged sentences

The Company has no finance lease arrangements.

Operating leases have remaining lease terms ranging from 25 month to 17.3 years, some of which include

Operating leases have remaining lease terms ranging from 22 months to 17.2 years, some of which include

options to extend the leases for up to 15 years.

3 unchanged sentences

Balance sheet information related to leases is as follows:

June 30, 2024

December 31, 2023

Operating leases:

1 unchanged sentence

Operating lease liabilities

The components of lease cost were as follows:

The components of lease cost are as follows:

Three Months Ended

Six Months Ended

Operating lease cost

Short-term lease expense

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2024 are as follows:

Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2024 are as follows:

Operating Leases

Total lease payments

1 unchanged sentence

Total operating leases

Other information was as follows:

Other information is as follows:

June 30, 2024

December 31, 2023

Weighted-average remaining lease term for operating leases

18 unchanged sentences

Brokered deposits, included in time deposits, were $ 48,373

and $ 64,893 at March 31, 2024 and December 31, 2023, respectively.

and $ 64,893 at June 30, 2024 and December 31, 2023, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements