OAKDALE, CA--(Marketwire - April 24, 2009) - Oak Valley Bancorp (
NASDAQ:
OVLY), the bank
holding company for Oak Valley Community Bank and Eastern Sierra Community
Bank, recently reported financial results. For the three months ended
March 31, 2009, net income was $430,000. For the same period, net income
available to common shareholders was $220,000, or $0.03 per diluted common
share compared to $776,000, or $0.10 per diluted common share, for the same
period last year.
An increase in net interest income was offset by a larger loan loss
provision. Net interest income grew by 17.6% or $847,000, compared to the
same period last year, but loan loss provisions for the first quarter 2009
were $1.9 million compared to the $145,000 provided in the same period in
2008. The Bank increased reserves corresponding to an increase of
non-performing loans and recognition of a decline in property value of some
assets securing non-performing loans. As of March 31, 2009, the allowance
for loan loss to gross loans was 1.53%, up from 1.30% last quarter, and
1.09% for the three months ended March 31, 2008.
Total assets grew to $523.7 million at March 31, 2009, an increase of $60.7
million, or 13.1%, over March 31, 2008. Gross loans increased by $42.8
million, to $430.4 million as of March 31, 2009, an increase of 11.0% over
March 31, 2008. The Bank's total deposits were $410.1 million on March 31,
2009, which is an increase of $47.3 million, or 13.0% over March 31, 2008.
"We experienced rather strong loan and deposit growth during the quarter
and we are pleased with the operating income generated by the company given
the state of the economy," stated Ron Martin, CEO. "Though we do not have
the loan loss exposure of many of our peers, we are taking the necessary
steps to ensure that we are adequately augmenting our reserves," he
concluded.
First quarter non-performing assets to total assets are 2.66%, or $13.9
million, up from 1.47%, or $7.5 million, at year end 2008. As of March 31,
2009, seven loan relationships were on non-accrual status totaling $10.6
million, or 2.03% of total assets. Other Real Estate Owned (OREO) held as
of March 31, 2009 was $3.3 million, or 0.63% of total assets and consists
of three properties. All OREO property has been written down to current
appraised values less sales cost and non-accrual loans have been reviewed
to ensure adequate reserves have been established in light of current
market values.
As of March 31, 2009, the Bank's common equity has grown to $45.3 million
and the bank remains well capitalized by regulatory standards. However,
taking into consideration the increased reserves and corresponding impact
on net income, the Bank's Board of Directors elected to suspend dividends
for the first quarter of 2009.
"While loan provisions continue to affect the Bank's earnings, we remain
below our peer group in non-performing loan and OREO totals. At the same
time, core operating results are strong and growth in loans and deposits
continue. Although many factors are contributing to this including stock
market volatility, recent bank consolidations, and the general public's
increased desire to save during an economic downturn; we recognize that the
ongoing calling efforts of our relationship managers is the primary reason
for our growth. Our staff understands the importance of getting to know our
customers and anticipating their needs," commented Chris Courtney,
President.
Oak Valley Bancorp operates Oak Valley and Eastern Sierra Community Bank,
through which it offers a variety of loan and deposit products to
individuals and small businesses. The Company currently operates through 12
conveniently located branches: Oakdale, Sonora, Turlock, Stockton,
Patterson, Ripon, Escalon, two branches in Modesto, and three branches in
their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes and
Bishop.
For more information call 1-866-844-7500 or visit us online at
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 Community Bank
Statement of Condition (unaudited)
Profitability 1st 4th 3rd 2nd 1st
($ in thousands, Quarter Quarter Quarter Quarter Quarter
except per share) 2009 2008 2008 2008 2008
Selected Quarterly
Operating Data:
Net interest
income $ 5,656 $ 5,333 $ 5,292 $ 5,081 $ 4,809
Provision for
loan losses 1,900 1,001 602 440 145
Non-interest
income 598 602 634 672 614
Non-interest
expense 3,938 4,712 4,535 4,562 4,057
Income before
income taxes 416 222 789 751 1,221
Provision for
income taxes (14) (61) 240 198 445
Net income 430 283 549 553 776
Preferred stock
dividends and
accretion (210) (64) - - -
Net income
available to
common
shareholders 220 219 549 553 776
Earnings per
common share
- basic 0.03 0.03 0.07 0.07 0.10
Earnings per
common share
- diluted 0.03 0.03 0.07 0.07 0.10
Dividends declared
per common
share (1) 0.025 0.025 0.050 - -
Return on average
common equity 1.97% 1.95% 4.91% 5.01% 7.16%
Return on average
assets 0.34% 0.23% 0.45% 0.47% 0.68%
Net interest
margin (2) 4.87% 4.72% 4.76% 4.77% 4.60%
Efficiency
Ratio (2) 61.80% 78.30% 76.03% 78.04% 73.70%
Capital - Period End
Book value per
share $ 5.91 $ 5.81 $ 5.77 $ 5.71 $ 5.69
Credit Quality -
Period End
Nonperforming
assets/assets 2.66% 1.47% 1.33% 1.35% 1.60%
Loan loss
reserve/loans (3) 1.53% 1.30% 1.12% 1.08% 1.09%
Period End Balance
Sheet
($ in thousands)
Total assets $ 523,747 $ 508,203 $ 490,111 $ 476,094 $ 463,044
Gross Loans 430,416 428,177 416,664 400,537 387,647
Nonperforming
assets 13,906 7,467 6,538 6,435 7,395
Allowance for
credit losses (3) 6,603 5,569 4,650 4,321 4,225
Deposits 410,089 378,248 365,230 358,159 362,760
Common Equity 45,286 44,486 44,151 43,735 43,302
Non-Financial Data
Full-time
equivalent staff 117 117 119 128 130
Number of banking
offices, domestic
and foreign 12 12 12 12 12
Common Shares
outstanding
Period end 7,661,627 7,661,627 7,658,252 7,658,252 7,611,377
Period average
- basic 7,661,627 7,660,526 7,658,252 7,641,534 7,610,039
Period average
- diluted 7,703,892 7,723,711 7,743,091 7,697,681 7,696,308
Market Ratios
Stock Price $ 3.75 $ 6.00 $ 6.30 $ 7.00 $ 8.49
Price/Earnings 32.22 52.82 22.14 24.12 20.69
Price/Book 0.63 1.03 1.09 1.23 1.49
(1) Cash dividends of $191,542, $382,943 and $191,542 paid in the Q1 2009,
Q4 2008 and Q3 2008, respectively.
(2) Ratio computed on a fully tax equivalent basis using a marginal
federal tax rate of 34%.
(3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
Contact Information: Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com