SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

April 21, 2011 19:33 ET

Oak Valley Bancorp Reports 1st Quarter Results

OAKDALE, CA--(Marketwire - Apr 21, 2011) - Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended March 31, 2011, consolidated net income was $1,165,000, while consolidated net income available to common shareholders was $955,000, or $0.12 per diluted common share. This compared favorably to net income available to common shareholders of $737,000, or $0.10 per diluted common share for the same period a year ago.

Net interest income remained solid to support the Bank's earnings growth, increasing by $145,000, or 2.4% to $6.2 million for the three months ended March 31, 2011, compared to $6.1 million for the same period last year. This increase is primarily attributable to the growth in average earning assets of $39.5 million in the first quarter of 2011, compared to the same period in 2010. The net interest margin for the three months ended March 31, 2011 was 4.92%, compared to 5.01% for the three months prior and 5.22% for the same period last year.

"We have consistently progressed in our ability to attract and broaden banking relationships with the local consumer and business communities. The corresponding increase in core deposits has led to a continued reduction in the Bank's cost of funds and increased balance sheet liquidity. The key to margin expansion will be in the deployment of those resources as the economy recovers and loan demand returns," stated Chris Courtney, President.

Non interest expense for the quarter ended March 31, 2011 totaled $4.5 million, a slight increase over the $4.4 million for the three months ended March 31, 2010. Write downs associated with Other Real Estate Owned (OREO) represented $219,000, leaving only $559,000 in OREO carrying balances outstanding. The provision for loan losses during the three months ended March 31, 2011, was $600,000, compared to $1.0 million during the same quarter of last year. However, in the last 12 months the ratio of loan loss reserves to gross loans has been increased from 1.65% to 2.22%.

Management continues to actively write-down non-performing assets to reflect current values. As of March 31, 2011, non-performing assets to total assets are 2.02%, or $11.4 million, down from 2.85%, or $14.9 million for the same period a year ago, and also down from the 2.22%, or $12.3 million at December 31, 2010. As of March 31, 2011, eight loan relationships were on non-accrual status totaling $10.7 million. As previously mentioned, OREO held as of March 31, 2011 totaled $559,000 and consisted of 3 properties.

Total assets were $562.8 million at March 31, 2011, an increase of $42.5 million, or 8.2%, from March 31, 2010. Gross loans decreased by $15.8 million, to $395.2 million as of March 31, 2011, a decrease of 3.8% from March 31, 2010. The Bank's total deposits were $485.6 million as of March 31, 2011, an increase of $54.0 million, or 12.5% over March 31, 2010.

"We are pleased with our overall performance. Our net interest margin remains strong, non-performing assets continue to decline and our customer base continues to grow. The Bank's strong foundation has allowed us to explore expansion opportunities and maintain a high level of support to the communities we serve," stated Ron Martin, CEO.

Earlier this year, Oak Valley Community Bank announced plans to open new branches in Modesto and Manteca. The Bank currently operates through 12 branches in 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 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)

($ in thousands,
 except per share)      1st        4th        3rd        2nd        1st
Selected Quarterly    Quarter    Quarter    Quarter    Quarter    Quarter
 Operating Data:        2011       2010       2010       2010       2010

  Net interest
   income            $   6,206  $   6,343  $   6,359  $   6,244  $   6,060
  Provision for loan
   losses                  600      1,005      1,005      1,005      1,005
  Non-interest
   income                  671        715        676        732        647
  Non-interest
   expense               4,526      3,826      4,188      4,316      4,445
  Income before
   income taxes          1,751      2,227      1,842      1,655      1,257
  Provision for
   income taxes            586        727        701        616        309
                     ---------  ---------  ---------  ---------  ---------
  Net income             1,165      1,500      1,141      1,039        948
  Preferred stock
   dividends and
   accretion              (210)      (210)      (210)      (211)      (211)
                     ---------  ---------  ---------  ---------  ---------
  Net income
   available to
   common
   shareholders            955      1,290        931        828        737
                     =========  =========  =========  =========  =========

  Earnings per
   common share -
   basic                  0.12       0.17       0.12       0.11       0.10
  Earnings per
   common share -
   diluted                0.12       0.17       0.12       0.11       0.10
  Dividends declared
   per common share          -          -          -          -          -
  Return on average
   common equity          7.48%      9.99%      7.38%      6.84%      6.22%
  Return on average
   assets                 0.85%      1.09%      0.86%      0.81%      0.75%
  Net interest
   margin (1)             4.92%      5.01%      5.23%      5.36%      5.22%
  Efficiency Ratio (1)   65.10%     53.03%     58.99%     61.21%     65.59%

Capital - Period End
  Book value per
   share             $    6.78  $    6.64  $    6.57  $    6.38  $    6.24

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets                 2.02%      2.22%      2.00%      2.29%      2.85%
  Loan loss reserve/
   gross loans            2.22%      2.04%      1.88%      1.85%      1.65%

Period End Balance
 Sheet
($ in thousands)
  Total assets       $ 562,769  $ 552,396  $ 534,879  $ 519,203  $ 520,275
  Gross Loans          395,243    404,194    408,971    411,067    411,013
  Nonperforming
   assets               11,386     12,253     10,690     11,882     14,854
  Allowance for
   credit losses         8,765      8,255      7,700      7,614      6,762
  Deposits             485,641    476,739    448,904    435,756    431,624
  Common Equity         52,279     51,158     50,605     48,984     47,904
  Total Capital (2)     65,779     64,658     64,105     62,484     61,404

Non-Financial Data
  Full-time
   equivalent staff        125        120        115        117        118
  Number of banking
   offices                  12         12         12         12         12

Common Shares
 outstanding
  Period end         7,713,794  7,702,127  7,702,127  7,681,877  7,681,877
  Period average -
   basic             7,711,401  7,702,127  7,692,900  7,681,877  7,681,877
  Period average -
   diluted           7,742,230  7,719,157  7,729,175  7,720,440  7,705,488

Market Ratios
  Stock Price        $    5.99  $    5.90  $    5.40  $    5.25  $    4.10
  Price/Earnings         11.93       8.88      11.25      12.14      10.54
  Price/Book              0.88       0.89       0.82       0.82       0.66


(1) Ratio computed on a fully tax equivalent basis using a marginal
    federal tax rate of 34%.
(2) Includes $13.5 million in preferred stock issued to the U.S. Treasury
    under the TARP Capital Purchase Program.

Contact Information

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