OHIO VALLEY BANC CORP

IMPACT OF PARTICIPATING IN THE OHIO HOMEBUYER PLUS PROGRAM:

During the third quarter of 2024, the Company began participating in a program offered by the Ohio Treasurer (the “Treasurer”) called the Ohio Homebuyer Plus. The program is designed to encourage Ohio residents to save for the purchase of a home. As a participant in the program, the Company developed the “Sweet Home Ohio” deposit account to offer participants an above-market interest rate of 5.83%, along with a deposit bonus to assist customers in achieving their home savings goals. For each account that was opened, the Company received a deposit from the Treasurer at a subsidized interest rate of 0.86%. Accounts connected with Ohio Homebuyer Plus must be used within five years and the corresponding balance of Treasurer deposits will fluctuate based upon active customer accounts. At December 31, 2024, the balance of Sweet Home Ohio accounts totaled $6,775 and the amount deposited by the Treasurer totaled $100,000. This contributed to a $148,042 increase in total deposits from year-end 2023. Since the Treasurer deposits are classified as public funds, which are required to be collateralized, the Company invested the funds in securities to be pledged as collateral to the Treasurer. A total of $100,497 in U.S. Government securities were purchased at a weighted average yield of 4.7% with maturity terms ranging from 6 months to 18 months. This contributed to a $104,925 increase in securities from year-end 2023. The Company is expected to generate a net interest spread of 3.52% from its participation in the Ohio Homebuyer Plus Program when considering the $100,497 investment in 4.7% yielding securities, which will be partially offset by $106,775 in deposits at a weighted average cost of 1.18%.