SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

March 18, 2014 19:34 ET

Oak Valley Bancorp Amends 4th Quarter Results

OAKDALE, CA--(Marketwired - Mar 18, 2014) - Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently published a revision to their fourth quarter results, which were first published January 22, 2014. Changes to the financial results reduced reported common equity and total capital by $793,000 as a result of the common stock dividend that was declared in December 2013, but inadvertently was not transferred out of equity and into a liability account at that time. The effect of the error was that the book value per share should have been $8.14 instead of $8.24 and the price to book ratio should have been 1.03 instead of 1.02. Also, due to a reclassification of deferred tax assets, reported total assets decreased by $207,000, which was reported as $672.1 million and should have been $671.9 million. The original release is amended and restated as follows and the financial tables below have been adjusted accordingly to reflect these changes.

For the three months ended December 31, 2013, consolidated net income available to common shareholders was a record $1.7 million, or $0.22 per diluted share. This compared to consolidated net income available to common shareholders of $1.4 million, or $0.18 per diluted share for the three months ended December 31, 2012 and represented a 21.5% increase over the prior year.

Net income for 2013 totaled $5.9 million compared to $5.8 million for 2012. After adjustment for preferred stock dividends and accretion, consolidated net income available to common shareholders was $5.8 million, or $0.74 per diluted share, compared to consolidated net income of $5.3 million, or $0.69 per diluted common share, in 2012. This represents a 9.2% increase in consolidated net income available to common shareholders and marks a new annual earnings record for Oak Valley Bancorp.

Total assets grew to $671.9 million as of December 31, 2013, which was an increase of $11.3 million, or 1.7% over the prior year. Deposits increased to $602.6 million, which was an increase of $15.6 million, or 2.7% over the prior year. Gross loans at year end totaled $419.4 million, reflecting an increase of $28.5 million, or 7.3%, over December 31, 2012.

"We are pleased to report another year of solid earnings. Our commitment to customer care and relationship building is unwavering and the cornerstone of our success," stated Chris Courtney, President and CEO of the Company and the Bank. "Our results are a reflection of emerging consumer confidence and economic expansion in the communities we serve."

Non-performing assets were $3.3 million, or 0.48% of total assets at December 31, 2013. This is down from $6.9 million, or 1.05% at December 31, 2012. There are currently six properties remaining with the non-performing classification; five of which remain as loans, along with one property taken into OREO.

The allowance for loan losses totaled 1.83% of gross loans at December 31, 2013 compared to 2.04% at December 31, 2012. The annual provision for loan losses of $300,000 in 2013 was down from $1.2 million in 2012. Given the high quality of the loan portfolio, limited provisioning was required to support the growth of the portfolio.

Net interest income of $24.3 million for the year ended December 31, 2013, decreased by $570,000, or 2.3%, from the prior year. The year began with margin compression, corresponding to low loan pricing and high cash balances. The margin stabilized in the second half of the year, as cash was deployed into new loans. The Company's net interest margin was 4.13% for the year ended December 31, 2013, compared to 4.53% for the year ended December 31, 2012. Net interest margin for the three months ended December 31, 2013 was 4.19%, compared to 4.15% for the three months ended December 31, 2012.

Non-interest income was $3.3 million for the year ended December 31, 2013, compared to $3.1 million the prior year. The increase is partially attributable to additional fee income related to deposit growth and commissions corresponding to growth in Oak Valley Investments.

Non-interest expense was $18.7 million for the year ended December 31, 2013, compared to $18.2 million for the prior year, an increase of $411,000, or 2.3%. This increase consists primarily of costs associated with servicing deposit growth across all branches.

The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.

For more information, please call 1-866-844-7500 or visit www.ovcb.com.

This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the corporation's possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

   
Oak Valley Bancorp  
Financial Highlights (unaudited)  
                             
($ in thousands, except per share) 4th Quarter     3rd Quarter     2nd Quarter     1st Quarter     4th Quarter  
Selected Quarterly Operating Data: 2013     2013     2013     2013     2012  
                                       
  Net interest income $ 6,372     $ 6,030     $ 6,024     $ 5,849     $ 6,115  
  Provision for loan losses   -       100       100       100       250  
  Non-interest income   812       866       818       785       855  
  Non-interest expense   4,668       4,619       4,734       4,639       4,513  
  Income before income taxes   2,516       2,177       2,008       1,895       2,207  
  Provision for income taxes   809       672       634       595       718  
  Net income   1,707       1,505       1,374       1,300       1,489  
  Preferred stock dividends and accretion   -       -       -       (68 )     (84 )
  Net income available to common shareholders $ 1,707     $ 1,505     $ 1,374     $ 1,232     $ 1,405  
                                         
  Earnings per common share - basic $ 0.22     $ 0.19     $ 0.18     $ 0.16     $ 0.18  
  Earnings per common share - diluted $ 0.22     $ 0.19     $ 0.18     $ 0.16     $ 0.18  
  Return on average common equity   10.47 %     9.45 %     8.48 %     7.82 %     8.87 %
  Return on average assets   1.01 %     0.92 %     0.86 %     0.81 %     0.91 %
  Net interest margin (1)   4.19 %     4.12 %     4.18 %     4.05 %     4.15 %
  Efficiency ratio (1)   63.05 %     64.65 %     67.17 %     67.95 %     63.23 %
                                       
Capital - Period End                                      
  Book value per share $ 8.14     $ 7.99     $ 8.01     $ 8.10     $ 7.99  
                                       
Credit Quality - Period End                                      
  Nonperforming assets/ total assets   0.48 %     0.68 %     0.65 %     0.99 %     1.05 %
  Loan loss reserve/ gross loans   1.83 %     1.85 %     1.94 %     1.99 %     2.04 %
                                       
Period End Balance Sheet                                      
($ in thousands)                                      
  Total assets $ 671,853     $ 659,192     $ 644,230     $ 648,418     $ 660,581  
  Gross loans   419,438       413,856       390,647       389,992       390,986  
  Nonperforming assets   3,256       4,495       4,189       6,439       6,923  
  Allowance for loan losses   7,659       7,669       7,570       7,743       7,975  
  Deposits   602,633       591,642       577,129       580,215       586,993  
  Common equity   64,517       63,379       63,457       64,098       63,219  
  Total capital (2)   64,517       63,379       63,457       64,098       69,969  
                                       
Non-Financial Data                                      
  Full-time equivalent staff   136       135       134       134       130  
  Number of banking offices   14       14       14       14       14  
                                       
Common Shares outstanding                                      
  Period end   7,929,730       7,929,730       7,924,730       7,914,730       7,907,780  
  Period average - basic   7,803,247       7,802,705       7,802,012       7,778,333       7,762,261  
  Period average - diluted   7,859,380       7,851,157       7,842,964       7,830,439       7,793,523  
                                       
Market Ratios                                      
  Stock Price $ 8.37     $ 7.96     $ 7.67     $ 8.14     $ 7.45  
  Price/Earnings   9.64       10.40       10.86       12.67       10.38  
  Price/Book   1.03       1.00       0.96       1.01       0.93  
                                       
                                       
                                       
  YEAR ENDED DECEMBER 31,                    
  2013     2012                    
                                       
($ in thousands, except per share)                                      
Selected Quarterly Operating Data:                                      
                                       
  Net interest income $ 24,275     $ 24,845                          
  Provision for loan losses   300       1,150                          
  Non-interest income   3,281       3,148                          
  Non-interest expense   18,660       18,249                          
  Income before income taxes   8,596       8,594                          
  Provision for income taxes   2,710       2,813                          
  Net income   5,886       5,781                          
  Preferred stock dividends and accretion   (68 )     (452 )                        
  Net income available to common shareholders $ 5,818     $ 5,329                          
                                         
  Earnings per common share - basic $ 0.75     $ 0.69                          
  Earnings per common share - diluted $ 0.74     $ 0.69                          
  Return on average common equity   9.07 %     8.80 %                        
  Return on average assets   0.90 %     0.95 %                        
  Net interest margin (1)   4.13 %     4.53 %                        
  Efficiency ratio (1)   65.65 %     63.83 %                        
                                       
Capital - Period End                                      
  Book value per share $ 8.14     $ 7.99                          
                                       
Credit Quality - Period End                                      
  Nonperforming assets/ total assets   0.48 %     1.05 %                        
  Loan loss reserve/ gross loans   1.83 %     2.04 %                        
                                       
Period End Balance Sheet                                      
($ in thousands)                                      
  Total assets $ 671,853     $ 660,581                          
  Gross loans   419,438       390,986                          
  Nonperforming assets   3,256       6,923                          
  Allowance for loan losses   7,659       7,975                          
  Deposits   602,633       586,993                          
  Common equity   64,517       63,219                          
  Common equity   64,517       69,969                          
                                       
Non-Financial Data                                      
  Full-time equivalent staff   136       130                          
  Number of banking offices   14       14                          
                                       
Common Shares outstanding                                      
  Period end   7,929,730       7,907,780                          
  Period average - basic   7,796,659       7,740,990                          
  Period average - diluted   7,846,078       7,766,745                          
                                       
Market Ratios                                      
  Stock Price $ 8.37     $ 7.45                          
  Price/Earnings   11.22       10.85                          
  Price/Book   1.03       0.93                          
                                       
 
  (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
  (2) Includes preferred stock issued to the U.S. Treasury under the SBLF Program of $6.75 million for the quarter ended December 31, 2012. There was no preferred stock outstanding as of March 31, June 30, September 30, and December 31, 2013.
   
   

Contact Information

  • Contact:
    Chris Courtney/Rick McCarty
    Phone: (209) 848-2265
    www.ovcb.com