Ohio Valley Banc Q2 net interest income rises on higher average earning assets

Overview

• US regional bank's Q2 net income fell 31% yr/yr, with EPS down to $0.62

• Net interest income rose as average earning assets increased, but net interest margin narrowed

• Higher provision for credit losses tied to a few large commercial loans, not broader portfolio

Outlook

• Company did not provide specific financial guidance or outlook for upcoming periods

Result Drivers

• CREDIT LOSS PROVISION - Higher provision for credit losses driven by increased reserves on two large commercial loans and loan growth

• FUNDING COSTS - Net interest margin narrowed as cost of funding sources rose faster than yield on earning assets

• LOAN AND ASSET GROWTH - Net interest income rose due to higher average earning assets, funded by promotional deposits

Company press release: ID:nPn3XXtnva

Key Details

Reuters Recommended Reads

• July 27 - Citizens Community Bancorp Q2 profit drops on higher credit losses

• July 27 - Sierra Bancorp Q2 net income falls on loan reserve, severance costs

• July 24 - NorthEast Community Bancorp Q2 profit and margin fall as yield on interest-earning assets lowers

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)