Second-quarter earnings at Ohio Valley Banc Corp. in Gallipolis, Ohio, rose 5.4% from a year earlier to $1.47 million.

The $823.7 million-asset company said Thursday the quarterly earnings were driven by an increase in average-earning assets and net interest margin. For the first half, Ohio Valley's net income dropped 2% year over year to $3.3 million.

Its loan-loss provision rose 69% in the second quarter, to $721,000 from $425,000 a year earlier, stemming in part from an increase in net chargeoffs. The ratio of net chargeoffs to average loans jumped 31 basis points to 0.61% in the first six months, compared with a year earlier.

The ratio of nonperforming assets to total assets increased slightly, to 1.06% at June 30, compared with 0.97% in June 2009.

Ohio Valley maintains that the allowance for loan losses at June 30 — 1.2% of total loans — was adequate and reflects probable incurred losses in the portfolio.

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