Ohio Valley Banc Corp. (OVBC): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Ohio Valley Banc Corp.'s (OVBC) business model as of late 2025, and honestly, it's a classic community bank story playing out with sharp focus. As your analyst, I see a clear strategy centered on driving that Net Interest Income-their primary revenue stream, which hit $14.6 million in Q3 2025-while carefully managing their $1.13 billion loan book. They are balancing high-touch, local service across their 17 branches with modern tools, like the Greenlight partnership, all while keeping an eye on overhead, which is the right move in this rate environment. Dive below to see exactly how their Key Activities and Resources line up to deliver that consistent value proposition to their local customer segments.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Key Partnerships

You're looking at how Ohio Valley Banc Corp. (OVBC) structures its external relationships to deliver value, and honestly, these partnerships are where you see the immediate impact on their balance sheet and operational costs.

Ohio Treasurer's Office for the Ohio Homebuyer Plus program

This partnership is a clear driver for earning asset growth and deposit mix improvement. Ohio Valley Banc Corp. started participating in this program in the third quarter of 2024, offering the Sweet Home Ohio deposit account with a subsidized interest rate from the Treasurer. By the end of the first quarter of 2025, the balance of these Sweet Home Ohio accounts reached $7.7 million. This inflow was significant, as the growth in these lower-cost deposits aided the $136 million year-over-year increase in average earning assets reported for the first quarter of 2025. Management continued to highlight the benefits from this program through the third quarter of 2025, where the net interest margin stood at 4.05%.

Greenlight Financial Technology for family finance app access

Ohio Valley Banc Corp. began offering free access to Greenlight's family finance app starting in late 2024 to help customers build financial futures. While specific 2025 adoption metrics aren't public, the partnership is a key part of their value proposition to families. The bank noted that data processing expenses rose in Q2 2025 due to card volume and rewards platform conversion, which is directly related to the use of card-based services like the one provided through Greenlight.

Correspondent banks for various financial services and liquidity

These relationships manage specific asset classes and provide necessary liquidity support. A notable event involved a warehouse line of credit extended to another mortgage lender, which saw a significant reduction. In the first quarter of 2025, this line decreased by $31 million due to lower mortgage volume and the lead bank increasing its internal capacity. By September 30, 2025, the balance on this specific warehouse line of credit was reported at $0, though drawdowns on the line resumed after that quarter-end.

Third-party vendors for data processing and technology infrastructure

Technology and data processing are necessary costs that Ohio Valley Banc Corp. is actively managing against efficiency gains. The cost associated with these vendors has shown upward pressure, even as the bank realized savings from a 2024 early retirement program. Here's a look at the reported year-over-year increases in data processing expenses:

This expense growth reflects higher card activity and the conversion of the rewards platform, which you'd expect with increased digital engagement from partnerships like the one with Greenlight. It's defintely a trade-off between service quality and overhead control.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Key Activities

You're looking at the core engine room of Ohio Valley Banc Corp. (OVBC) right now, focusing on what they actually do day-to-day to make money and manage risk as of late 2025. It's all about the balance sheet mechanics, honestly.

Commercial and Real Estate (CRE) Loan Origination and Servicing

The origination focus clearly leans heavily on property. As of the third quarter of 2025, the loan book composition shows that Commercial Real Estate (CRE) loans make up about 30% of the total, and construction-related CRE loans add another 7%. Residential real estate is also significant at about 35%. Growth in the overall loan book year-to-date through Q3 2025 was $69M, though this growth occurred despite a $31M paydown in a warehouse line of credit earlier in the year due to lower mortgage volumes. Still, the bank's CEO noted that growth was concentrated in commercial real estate, commercial and industrial, and residential real estate lending in Q2 2025. You've got to watch the quality, though; at the end of Q3 2025, almost $21M of loans were past due, which is roughly 50% higher than where it stood at the end of 2024.

Managing a $1.13 billion Loan Portfolio as of Q3 2025

The primary asset management activity centers on that loan book. As of September 30, 2025, the total size of the loan portfolio stood at $1.13B, netting down to $1.12B after accounting for accumulated loan loss provisions. The bank is actively managing the risk associated with this asset base. Here's a quick look at the asset quality metrics at that same point in time:

Maintaining that allowance for credit losses at 1.01% of total loans is a key operational focus.

Strategic Management of the Securities Portfolio for Yield Enhancement

A major activity in Q3 2025 was actively repositioning the securities portfolio to lift future earnings. Management made a deliberate move to 'harvest' losses on lower-yielding assets. Specifically, the bank sold $11.0 million in securities that were yielding only 1.32%. This sale immediately resulted in a reported loss of $1.22M in noninterest income for the quarter. The proceeds were then reinvested into securities yielding a much healthier 4.37%. This strategic trade is designed to plant the seeds for future Net Interest Income (NII) and Net Interest Margin (NIM) improvement. The average earning assets for the first nine months of 2025 reflected this, showing a $75 million growth in average securities year-over-year.

Core Deposit Gathering, Including Specialized Programs like Sweet Home Ohio

Gathering stable, low-cost funding is defintely a core activity, evidenced by a year-to-date deposit increase of $57M through Q3 2025. A significant part of this strategy involves the specialized Sweet Home Ohio deposit account, which offers an above-market rate and a bonus to savers. The activity level in this program fluctuates based on state funding. At the end of Q3 2025, the balance of Sweet Home Ohio customer accounts was not explicitly stated, but the amount deposited by the Ohio Treasurer totaled $72.5 million. This compares to $77 million in Treasurer deposits at the end of Q2 2025 and $82 million at the end of Q1 2025. These Treasurer deposits are crucial because they are classified as public funds that must be collateralized, meaning the bank must use them to purchase securities, which directly impacts the asset side of the balance sheet.

The impact of deposit management on funding costs is clear:

• Net interest margin for Q3 2025 was 4.05%, up from 3.76% a year ago.
• The improvement was supported by lower funding costs as higher-cost certificates of deposit repriced at lower market rates.
• For the first half of 2025, the growth in these lower-cost deposits limited the average growth in higher-cost Certificates of Deposit to only $6 million year-over-year for Q2.

Maintaining Regulatory Compliance and Capital Adequacy (Basel III)

Operating as a financial holding company requires constant adherence to banking regulations. The most immediate evidence of this activity is the regular filing schedule; the 10-Q for the quarter ending September 30, 2025, was filed on November 14, 2025. While specific Basel III capital ratios aren't detailed in the summaries, the bank's focus on asset quality, as shown by the 1.01% ACL to loans ratio and the $1.1M provision taken in Q3 2025, speaks directly to managing regulatory capital buffers against potential credit risk. Furthermore, the company is subject to the Bank Holding Company Act of 1956.

Key compliance and governance actions include:

• Filing of the 10-Q for the period ending September 30, 2025, on November 14, 2025.
• The bank operates through its banking subsidiary, The Ohio Valley Bank Company, a Member FDIC institution.
• The stock buyback program was extended to August 31, 2026, showing capital management activity.

The bank is definitely keeping its regulatory house in order.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Ohio Valley Banc Corp. (OVBC) right now, the tangible and intangible things the company absolutely needs to make its business model work in late 2025. These aren't just line items; they are the operational backbone.

The primary physical resources center around its two main operating subsidiaries, which provide the necessary geographic reach and service diversity.

The sheer scale of the balance sheet is a critical resource. As of September 30, 2025, the consolidated Total Assets stood at approximately $1.57 billion, up $67 million from the end of 2024. This asset base supports the lending and investment activities that drive revenue.

The human element is definitely a key resource; you need experienced people to manage risk and build relationships in community banking. The employee base at the banking subsidiary, The Ohio Valley Bank Company, is reported at 271 total employees. The leadership team, including President and CEO Larry Miller, is noted for driving strategic decisions that resulted in strong performance through the first nine months of 2025.

A strong capital base is non-negotiable for a bank. While the exact Shareholders' Equity figure for September 30, 2025, isn't explicitly stated in the latest releases, the performance metrics clearly show capital generation strength. For the first nine months of 2025, consolidated net income totaled $11,646,000, leading to a Return on Average Equity of 9.95% for that nine-month period. This robust profitability directly bolsters the capital base and shareholder value.

You can see the operational strength reflected in the subsidiary counts:

• The Ohio Valley Bank Company: 17 offices serving commercial and retail needs.
• Loan Central, Inc.: Six offices focused on consumer finance and tax preparation services.

Also, consider the impact of specific programs on the asset base, which is a resource in itself. The participation in the Ohio Treasurer's Ohio Homebuyer Plus program contributed to growth in average earning assets, showing the ability to deploy capital into specific, supported initiatives.

Finance: draft 13-week cash view by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Value Propositions

You're looking at the core value Ohio Valley Banc Corp. (OVBC) delivers to its customers and investors as of late 2025. It's all about being local, specialized, and reliable. Let's break down the numbers behind those promises.

Local, Community-Focused Banking with Personalized Service

Ohio Valley Banc Corp. (OVBC) anchors its value proposition in deep local ties, operating through The Ohio Valley Bank Company, which maintains a physical presence across its service area. This local footprint supports the personalized service model you expect from a community bank.

• Ohio Valley Bank operates a network of 17 offices across southern Ohio and western West Virginia.
• The bank emphasizes a Community First mission, which translates into local decision-making for its client base.

Here's a snapshot of the operational metrics that underpin this local focus, showing the scale of the banking segment:

Specialized Lending for Commercial Real Estate and Residential Mortgages

A key differentiator for Ohio Valley Banc Corp. (OVBC) is its focus on specific lending niches within its Banking segment, moving beyond generic consumer loans. They concentrate on property-backed lending, which requires local expertise.

While the exact 2025 year-end breakdown isn't immediately public, the bank historically provides various residential real estate loans, including one-to-four-family residential mortgages, alongside commercial loans secured by commercial real estate and rental property. This specialization is a core offering alongside consumer loans secured by automobiles.

Competitive Deposit Products, Like the Sweet Home Ohio Account

Ohio Valley Banc Corp. (OVBC) offers a range of deposit products, but the Sweet Home Ohio account stands out as a specific, time-sensitive value add tied to a state initiative. This account is designed to encourage local savings for home purchases.

• The Sweet Home Ohio account is part of the Ohio State Treasurer Robert Sprague's Ohio Homebuyers Plus program.
• Minimum initial deposit requirement is $100.
• Maximum deposit allowed is $100,000.
• The state limits each participating bank, including Ohio Valley Bank, to opening only one thousand of these accounts.

The bank also offers standard competitive products like checking, savings, money market accounts, and Certificates of Deposit (CDs) with terms ranging from 30 days to 5 years.

Financial Literacy Tools for Families via the Greenlight Partnership

To serve the next generation, Ohio Valley Banc Corp. (OVBC) partnered with Greenlight, providing a digital toolset for family finance management and education. This is a direct value-add for existing customers.

• OVB customers receive free access to the Greenlight SELECT plan when they connect their OVB account as the funding source.
• The offering includes a debit card and app that teaches kids and teens how to earn, save, give, and spend wisely under parental supervision.
• The program features Greenlight Level Up™, an in-app financial literacy game.
• The free access promotion is scheduled to run until November 23, 2026.

Stability and Consistent Dividend Payments for 32 Consecutive Years

For the investor segment of the Business Model Canvas, Ohio Valley Banc Corp. (OVBC) emphasizes a long history of returning capital, signaling stability. You can see this commitment reflected in the recent dividend actions for 2025.

The company has a stated track record of 32 consecutive years of consistent dividend payments. The recent quarterly dividend rate reflects an increase announced in April 2025.

The Trailing Twelve Months (TTM) dividend payout as of December 04, 2025, stands at $0.92 per share, with a forward dividend yield noted around 2.38% to 2.39%. Finance: draft 13-week cash view by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Customer Relationships

You're looking at how Ohio Valley Banc Corp. (OVBC) keeps its customers close, which is key for a community bank. Their approach blends old-school, personal service with the digital tools people expect today. It's definitely about making sure local businesses and individuals feel seen.

Dedicated relationship management for commercial and business clients

For your commercial and business clients, OVBC doesn't just offer accounts; they offer specific financing tools that require a back-and-forth relationship. This isn't just about processing transactions; it's about structuring deals. Commercial customers get access to services like treasury management, equipment financing, and Small Business Administration (SBA) loan programs. This level of service requires dedicated relationship managers who understand the local business landscape.

• Business checking is available.
• Commercial real estate lending is a core offering.
• SBA loan programs support local enterprise.

High-touch, in-person service at 17 branch locations

The physical footprint is central to their high-touch model. Ohio Valley Banc Corp. maintains a network of 17 offices across Ohio and West Virginia. That number represents the physical touchpoints where local staff can make quick, local decisions on loans, which is a major differentiator from larger, centralized banks. Honestly, having that local presence is what builds the deep, long-term trust that keeps deposits stable.

Here's a quick look at some financial context as of late 2025, which underpins the stability customers rely on:

Automated self-service via mobile and online banking platforms

To be fair, even a community bank needs to keep up with technology. OVBC supports its relationship model with digital tools that handle the routine stuff so staff can focus on complex needs. Their digital banking platforms allow for features like mobile deposits and real-time account monitoring. This blend means you get convenience when you need speed, and a person when you need advice.

• Mobile deposits are supported.
• Online account opening is an available feature.
• Real-time account monitoring is offered.

Community-First mission fostering long-term local trust

The entire relationship strategy is anchored by their stated mission: Community First! This isn't just a slogan; it drives their engagement. They support this commitment through initiatives like financial literacy programs and local involvement, which fosters a level of local trust that is hard to quantify but essential for retention. If onboarding takes 14+ days, churn risk rises, but local decisions help mitigate that.

The commitment to the community is reflected in their performance metrics, showing the bank is healthy enough to support local economic goals. For example, their Q1 2025 net income was $4,406,000, showing profitability that supports local investment.

Finance: draft 13-week cash view by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Channels

You're looking at how Ohio Valley Banc Corp. (OVBC) reaches its customers, which is a mix of traditional physical presence and modern digital tools. For a regional bank, the physical footprint is still key for trust and complex transactions.

The core physical channel is the network of bank branches, supported by specialized finance offices. This structure allows Ohio Valley Banc Corp. (OVBC) to serve both general banking needs and specific consumer finance requirements across its operating area.

The digital channels are essential for convenience and efficiency, handling routine transactions and account management. Ohio Valley Banc Corp. (OVBC) has invested here, as evidenced by reported costs associated with platform enhancements.

• Digital Offerings: OVB Line, Mobile Banking, and Online Banking.
• Digital Capabilities: Support for online account opening and mobile deposits.
• Financial Context: Software expense decreased by $389,000 for the year ended December 31, 2024, compared to the prior year, though Q4 2024 saw higher costs related to digital banking platform enhancements.

Direct engagement for business clients is managed through dedicated commercial loan officers. This personal touch is critical for complex lending products, which are a significant driver of the balance sheet. You see this focus reflected in the loan growth figures reported for 2025.

Here's the quick math on the scale of the business these channels support as of late 2025:

The commercial lending focus, supported by these officers, drove loan portfolio increases in commercial real estate, commercial and industrial (C&I), and residential real estate segments. Still, consumer loans contracted as the company emphasized profitability elsewhere.

Finance: draft 13-week cash view by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Customer Segments

You're looking at the core groups Ohio Valley Banc Corp. (OVBC) serves, which directly shapes where they put their capital and how they attract funding. This isn't just about geography; it's about the type of financial relationship they cultivate.

Small to mid-sized businesses (Commercial Real Estate/C&I) form a critical lending base for Ohio Valley Banc Corp. (OVBC). This segment drives significant asset growth, though it also carries concentrated credit risk that management watches closely.

• Commercial Real Estate (CRE) lending remains the most important element in the loan book as of the end of the third quarter of 2025, accounting for about 30% of the total loan book.
• In Q2 2025, the CRE portfolio had grown by 18.6% year-to-date, representing 39.1% of total loans at that point.
• Construction-related CRE loans represented another 7% of the loan book at the end of Q3 2025.
• Commercial and Industrial (C&I) lending is another key growth area alongside real estate segments.

The loan portfolio composition as of the end of the third quarter of 2025 shows this focus:

Local retail customers and families in Ohio/West Virginia valleys are the source of the bank's core, lower-cost funding. The bank operates with about two dozen offices focusing on southeastern Ohio and western West Virginia.

• Total deposits increased by $57 million from December 31, 2024, to September 30, 2025.
• Growth in funding sources for the first nine months of 2025 was led by NOW, money market, checking, and savings accounts, which increased by $85 million from the first nine months of 2024.
• This shift to lower-cost deposits limited the average growth in higher-cost certificates of deposit to $19 million for the first nine months of 2025 versus the same period last year.

Residential real estate borrowers seeking home loans represent a significant portion of the lending activity, though this segment has seen some fluctuation based on market conditions and internal strategy.

• Residential Real Estate loans made up about 35% of the total loan book at the end of the third quarter of 2025.
• In Q2 2025, this segment saw a decline of $12.81 million, largely due to reduced lines of credit extended to mortgage lenders.

Public sector entities, specifically through state programs, represent a unique and important source of funding for Ohio Valley Banc Corp. (OVBC).

• The amount deposited by the Ohio Treasurer at September 30, 2025, totaled $72.5 million.
• This funding is tied to the Ohio Homebuyer Plus program, for which Ohio Valley Banc Corp. developed the Sweet Home Ohio deposit account.
• At September 30, 2025, the balance of Sweet Home Ohio accounts totaled $9.0 million.
• The Treasurer deposit balance was $77 million at June 30, 2025, and $82 million at March 31, 2025.

Finance: draft a comparison table of Treasurer deposits from Q4 2024 through Q3 2025 by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Cost Structure

The Cost Structure for Ohio Valley Banc Corp. (OVBC) is heavily influenced by funding costs, personnel, and technology investments necessary to support its lending and operational footprint across Ohio and West Virginia.

Interest Expense on Deposits and Borrowings represents a significant portion of the total expense base, though the cost of funding sources decreased in the first half of 2025 as the mix shifted toward lower-cost deposit sources like NOW and money market accounts. Higher-cost certificates of deposit repriced to lower current market rates, limiting their average growth to only $6 million for the first half of 2025 versus the same period last year. You can see the breakdown of the total interest expense below for the first half of the year.

Personnel costs, primarily Salaries and Employee Benefits, show structural efficiency gains. Salaries and benefits remained nearly flat year-over-year in the second quarter of 2025, reflecting realized savings from the voluntary early retirement program initiated in 2024. For context, in the first quarter of 2025, this line item had decreased by 2.5% year-over-year due to those same retirement program savings.

The Provision for Credit Losses has stepped up alongside loan growth and changes in economic modeling assumptions. For the second quarter ended June 30, 2025, the provision totaled $1,148,000. For the six months ended June 30, 2025 (YTD Q2 2025), the provision for credit losses was $1,564,000, which was driven by net charge-offs of $740,000 year-to-date and $39 million in loan growth.

Data processing and technology costs are an area of planned increase, directly tied to platform modernization. Data processing costs rose by $181,000 year-over-year in Q2 2025, and were up $299,000 year-to-date, reflecting the ongoing card platform conversion. Similarly, marketing expenses increased by $58,000 year-over-year in Q2 2025, which management linked to advertising and community support efforts.

Overall non-interest expense, which bundles personnel, technology, occupancy, and marketing, edged up only 1.7% year-over-year in Q2 2025, reaching $11 million from $10.9 million the prior year. This modest rise, despite technology spending, helped the efficiency ratio improve meaningfully to 63.09% in Q2 2025 from 73.37% in the year-ago period. You should monitor these specific overhead categories:

• Data processing cost increase (YTD Q2 2025): +$299,000.
• Marketing expense increase (Q2 2025 YoY): +$58,000.
• Occupancy and marketing are part of the total non-interest expense of $11 million for Q2 2025.
• The Q3 2025 report indicated data processing and marketing spend rose $269,000 year-over-year.

Finance: draft the full 1H 2025 Non-Interest Expense schedule by Friday.

Ohio Valley Banc Corp. (OVBC) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Ohio Valley Banc Corp. (OVBC)'s financial performance, which, like most community banks, is heavily weighted toward the spread between what it earns on assets and what it pays on liabilities. This is the Net Interest Income, and it's the most important number here.

For the third quarter ending September 30, 2025, the Net Interest Income hit $14.6 million. That's a solid increase from the $12.58 million reported in the third quarter of 2024. For the first nine months of 2025, this core revenue stream totaled $42.27 million, up significantly from $35.73 million for the same period in 2024. The net interest margin (NIM) for Q3 2025 was 4.05%, showing improvement from 3.76% a year prior. Management is actively managing this, evidenced by selling $11.0 million in lower-yielding securities (1.32% yield) and reinvesting the proceeds into assets yielding 4.37%. That strategic repositioning is designed to boost future interest income.

The next major component is the revenue derived directly from the loan book. As of the 2024 fiscal year, Interest and Fee Revenue from Loans accounted for a massive 73.02% of Ohio Valley Banc Corp.'s total consolidated revenue. For context, the total consolidated revenue for 2024 was $61.97 Million USD. For the nine months ending September 30, 2024, interest and fees on loans brought in $48,074,000.

Beyond the core lending spread, Ohio Valley Banc Corp. generates Noninterest Income from service charges and fees, though this line item can be volatile due to one-time events. In Q3 2025, total noninterest income was $1.75 million, but this was depressed by a $1.22 million loss recognized on securities sales during the quarter. For the full year 2024, total noninterest income was $13,171,000. Service charges on deposit accounts and interchange income are consistent contributors here.

The Interest on securities portfolio is a key part of total interest income. For the first nine months of 2024, interest and dividends on securities contributed $4,014,000. The growth in earning assets for the first nine months of 2025 was led by a $75 million increase in average securities balances, which should translate to higher interest income in future reports.

Finally, while not a primary driver of the top line, shareholder returns are supported by Dividends from subsidiaries and other investments, though the specific breakdown is less transparent in the summary reports. You do see the commitment to shareholders through the dividend itself; the dividend declared for November 10, 2025, was $0.23 per share.

Here's a quick look at how the main income drivers stacked up:

The reliance on Net Interest Income is clear, but the strategic moves in the securities portfolio suggest management is focused on improving the yield component of that income stream going into year-end 2025. The percentage of revenue from loans, 73.02% in 2024, shows where the primary value capture happens.

You can also see the direct impact of the loan book on fee revenue through these associated streams:

• Interest and Fee Revenue from Loans as percentage of 2024 Total Consolidated Revenue: 73.02%
• Service charges on deposit accounts: Increased by $114,000 in Q1 2024 versus Q1 2023.
• Interchange income: Increased in Q4 2024 over Q4 2023 due to higher transaction volume.
• Mortgage application referral income: Was zero in 2024 due to the closure of Race Day Mortgage, Inc. in late 2023.

Finance: draft 13-week cash view by Friday.