OHIO VALLEY BANC CORP

DEPOSITS

Deposits are used as part of the Company’s liquidity management strategy to meet obligations for depositor withdrawals, to fund the borrowing needs of loan customers, and to fund ongoing operations. Deposits, both interest- and noninterest-bearing, continue to be the most significant source of funds used by the Company to support earning assets. Deposits are attractive sources of funding because of their stability and general low cost as compared to other funding sources. The Company seeks to maintain a proper balance of core deposit relationships on hand while also utilizing various wholesale deposit sources, such as brokered and internet CD balances, as an alternative funding source to manage efficiently the net interest margin. Deposits are influenced by changes in interest rates, economic conditions, and competition from other banks.

Total deposits consist mostly of “core” deposits, which include noninterest-bearing deposits, as well as interest-bearing demand, savings, and money market deposits. The Bank focuses on core deposit relationships with consumers from local markets who can maintain multiple accounts and services at the Bank. The Company believes such core deposits are more stable and less sensitive to changing interest rates and other economic factors. Total deposits increased $54,489, or 4.3%, from year-end 2024 to $1,329,667 at December 31, 2025. The increase was related to higher interest-bearing deposit balances, which were up $62,741, or 6.6%, from year-end 2024, while noninterest-bearing deposits decreased $8,252, or 2.6%, from year-end 2024.

The increase in interest-bearing deposits came primarily from time deposits, which include CDs and individual retirement accounts, money market and savings deposits. Time deposit balances increased $95,848, or 24.3%, from year-end 2024. The increase came primarily from retail time deposits, which increased $80,809 from year-end 2024. The Company targeted growth in retail CDs by promoting special CD rate offerings during 2025 to assist in funding loan growth. The growth in retail CDs was supplemented by growth in wholesale CDs, which increased $15,039 from year-end 2024.

Further increases in interest-bearing deposits came from savings and money market balances, which increased $21,402, or 7.5%, from year-end 2024. The increase came primarily from money market accounts, which increased $17,425 from year-end 2024, impacted mostly by increases in the Company’s tiered money market product (Money Fund) that was introduced in 2023 and offers a higher rate on tiered deposit balances. Savings account balances increased $3,977, impacted mostly by the Company’s Sweet Home Ohio account that is part of the Ohio Homebuyer Plus program. The balance of the customers’ accounts participating in the Ohio Homebuyer program totaled $9,478 at December 31, 2025 compared to $6,775 at December 31, 2024.