SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

April 20, 2012 19:50 ET

Oak Valley Bancorp Reports 1st Quarter Results

OAKDALE, CA--(Marketwire - Apr 20, 2012) - 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, 2012, consolidated net income was $1,461,000, while consolidated net income available to common shareholders was $1,292,000, or $0.17 per diluted common share. This compared favorably to net income available to common shareholders of $955,000, or $0.12 per diluted common share for the same period a year ago.

Net interest income remained stable, increasing modestly by $58,000, or 0.9% to $6.3 million for the three months ended March 31, 2012, compared to $6.2 million for the same period last year. The net interest margin for the three months ended March 31, 2012 was 4.67%, compared to 4.70% for the three months prior and 4.92% for the same period last year.

"We are pleased with the results of our first quarter performance, which saw the Company post its strongest first quarter earnings on record. Our ongoing efforts to increase core deposits and broaden banking relationships particularly within the business community have been crucial components of our success," stated Ron Martin, CEO.

Non interest expense for the quarter ended March 31, 2012 totaled $4.6 million, a slight increase over the $4.5 million for the three months ended March 31, 2011. The year over year increase is primarily related to staffing and overhead costs associated with the addition of our two newest branches in 2011.

The provision for loan losses during the three months ended March 31, 2012, was $300,000, compared to $600,000 during the same quarter of last year. During the last 12 months, the ratio of loan loss reserves to gross loans has decreased from 2.22% to 1.98%. This decrease corresponds to the aggressive recognition and action relating to non-performing loans, as evidenced by a solid reduction in non-performing assets. As of March 31, 2012, non-performing assets to total assets were 1.12%, or $6.7 million, down from 2.02%, or $11.4 million, for the same period a year ago.

Total assets were $593.5 million at March 31, 2012, an increase of $30.7 million, or 5.5%, from March 31, 2011. Gross loans decreased by $2.7 million, to $392.6 million as of March 31, 2012, a decrease of 0.7% from March 31, 2011. The Bank's total deposits were $518.7 million as of March 31, 2012, an increase of $33.1 million, or 6.8% over March 31, 2011.

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
Statement of Condition (unaudited)
($ in thousands, except per share) 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Selected Quarterly Operating Data: 2012 2011 2011 2011 2011
Net interest income $ 6,264 $ 6,335 $ 6,339 $ 6,300 $ 6,206
Provision for loan losses 300 300 300 300 600
Non-interest income 831 636 764 680 671
Non-interest expense 4,597 4,259 4,208 4,401 4,526
Income before income taxes 2,198 2,412 2,595 2,279 1,751
Provision for income taxes 737 915 846 829 586
Net income 1,461 1,497 1,749 1,450 1,165
Preferred stock dividends and accretion (169 ) (168 ) (572 ) (211 ) (210 )
Net income available to common shareholders 1,292 1,329 1,177 1,239 955
Earnings per common share - basic 0.17 0.17 0.15 0.16 0.12
Earnings per common share - diluted 0.17 0.17 0.15 0.16 0.12
Dividends declared per common share - - - - -
Return on average common equity 8.94 % 9.34 % 8.44 % 9.33 % 7.48 %
Return on average assets 0.98 % 1.00 % 1.21 % 1.03 % 0.85 %
Net interest margin (1) 4.67 % 4.70 % 4.85 % 4.86 % 4.92 %
Efficiency Ratio (1) 63.74 % 60.06 % 58.27 % 61.79 % 65.09 %
Capital - Period End
Book value per share $ 7.37 $ 7.37 $ 7.26 $ 7.02 $ 6.78
Credit Quality - Period End
Nonperforming assets/ total assets 1.12 % 1.22 % 1.50 % 1.62 % 2.02 %
Loan loss reserve/ gross loans 1.98 % 2.17 % 2.26 % 2.20 % 2.22 %
Period End Balance Sheet
($ in thousands)
Total assets $ 593,513 $ 612,172 $ 583,955 $ 572,262 $ 562,769
Gross Loans 392,584 396,202 391,379 390,521 395,243
Nonperforming assets 6,656 7,477 8,748 9,245 11,386
Allowance for loan losses 7,792 8,609 8,857 8,591 8,765
Deposits 518,727 536,204 505,505 496,212 485,641
Common Equity 58,092 56,902 56,064 54,134 52,279
Total Capital (2) 71,592 70,402 69,564 67,634 65,779
Non-Financial Data
Full-time equivalent staff 126 128 127 130 125
Number of banking offices 14 14 14 13 12
Common Shares outstanding
Period end 7,883,780 7,718,469 7,718,469 7,713,794 7,713,794
Period average - basic 7,722,609 7,705,164 7,705,164 7,713,794 7,711,401
Period average - diluted 7,743,941 7,737,248 7,731,463 7,745,193 7,742,230
Market Ratios
Stock Price $ 7.39 $ 6.75 $ 4.05 $ 5.85 $ 5.99
Price/Earnings 11.01 9.87 6.68 9.08 11.93
Price/Book 1.00 0.92 0.56 0.83 0.88
(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 SBLF Program.
Prior to 9/30/2011, it was issued under the TARP Capital Purchase Program.

Contact Information

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