SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

July 18, 2012 15:14 ET

Oak Valley Bancorp Reports 2nd Quarter Results

OAKDALE, CA--(Marketwire - Jul 18, 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 June 30, 2012, consolidated net income was $1,352,000, while consolidated net income available to common shareholders was $1,238,000, or $0.16 per diluted common share. This compared to net income of $1,450,000 and net income available to common shareholders of $1,239,000, or $0.16 per diluted common share for the same period a year ago.

Net interest income reflected a slight decrease of $88,000 or 1.4% to $6.2 million for the three months ended June 30, 2012, compared to $6.3 million for the same period last year. Year-to-date net interest income remained essentially flat at $12.5 million in both years. The low interest rate environment continues to drive loan and investment yields down. The company's net interest margin for the three months ended June 30, 2012 was 4.73%, compared to 4.86% for the same period last year.

Non interest expense for the quarter and six month period ended June 30, 2012 totaled $4.6 million and $9.2 million, respectively, a slight increase over the $4.4 million and $8.9 million for the comparable periods in 2011. This increase was primarily due to additional salary and overhead costs associated with recent branch additions. 

Non-performing assets as of June 30, 2012 were $7.2 million, or 1.20% of assets. This is up from $6.7 million, or 1.12% at March 31, 2012. The increase reflects the classification of one additional loan relationship as non-accrual. Non-performing assets remain at favorable levels compared to the same period last year of $9.2 million, or 1.62%. 

The provision for loan losses during the three months ended June 30, 2012, remained at $300,000, and unchanged from the same period of the previous year. The ratio of loan loss reserves to gross loans for the three months ended June 30, 2012 was 2.05%. 

Total assets were $596.4 million at June 30, 2012, an increase of $24.2 million, or 4.2%, from June 30, 2011. The Company's total deposits were $526.4 million as of June 30, 2012, an increase of $30.2 million, or 6.1% over June 30, 2011. Gross loans remained unchanged at $390.5 million as of June 30, 2012, compared to June 30, 2011. 

"Though earnings remain solid in a difficult economic environment, we have not become complacent. Faced with downward pressure on earning asset yield, corresponding to low interest rates and limited loan demand, we remain diligent in our business development efforts. The relationships we forge today will yield quality loans in the future," stated Ron Martin, CEO.

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)
Selected Quarterly Operating Data:
2nd Quarter
2012
 
 
 
 
1st Quarter
2012
 
 
 
 
4th Quarter
2011
 
 
 
 
3rd Quarter
2011
 
 
 
 
2nd Quarter
2011
 
 
                             
  Net interest income $ 6,212     $ 6,264     $ 6,335     $ 6,339     $ 6,300  
  Provision for loan losses   300       300       300       300       300  
  Non-interest income   672       831       636       764       680  
  Non-interest expense   4,612       4,597       4,259       4,208       4,401  
  Income before income taxes   1,972       2,198       2,412       2,595       2,279  
  Provision for income taxes   620       737       915       846       829  
  Net income   1,352       1,461       1,497       1,749       1,450  
  Preferred stock dividends and accretion   (114 )     (169 )     (168 )     (572 )     (211 )
  Net income available to common shareholders $ 1,238     $ 1,292     $ 1,329     $ 1,177     $ 1,239  
                                         
  Earnings per common share - basic   0.16       0.17       0.17       0.15       0.16  
  Earnings per common share - diluted   0.16       0.17       0.17       0.15       0.16  
  Dividends declared per common share   -       -       -       -       -  
  Return on average common equity   8.37 %     8.93 %     9.34 %     8.44 %     9.33 %
  Return on average assets   0.92 %     0.98 %     1.00 %     1.21 %     1.03 %
  Net interest margin (1)   4.73 %     4.67 %     4.70 %     4.85 %     4.86 %
  Efficiency ratio (1)   65.28 %     63.74 %     60.06 %     58.27 %     61.79 %
                                       
Capital - Period End                                      
  Book value per share $ 7.63     $ 7.37     $ 7.37     $ 7.26     $ 7.02  
                                       
Credit Quality - Period End                                      
  Nonperforming assets/ total assets   1.20 %     1.12 %     1.22 %     1.50 %     1.62 %
  Loan loss reserve/ gross loans   2.05 %     1.98 %     2.17 %     2.26 %     2.20 %
                                       
Period End Balance Sheet                                      
($ in thousands)                                      
  Total assets $ 596,417     $ 593,513     $ 612,172     $ 583,955     $ 572,262  
  Gross loans   390,515       392,584       396,202       391,379       390,521  
  Nonperforming assets   7,185       6,656       7,477       8,748       9,245  
  Allowance for loan losses   8,008       7,792       8,609       8,857       8,591  
  Deposits   526,407       518,727       536,204       505,505       496,212  
  Common equity   60,185       58,092       56,902       56,064       54,134  
  Total capital (2)   66,935       71,592       70,402       69,564       67,634  
                                       
Non-Financial Data                                      
  Full-time equivalent staff   125       126       128       127       130  
  Number of banking offices   14       14       14       14       13  
                                       
Common Shares outstanding                                      
  Period end   7,890,905       7,883,780       7,718,469       7,718,469       7,713,794  
  Period average - basic   7,728,024       7,722,609       7,705,164       7,705,164       7,713,794  
  Period average - diluted   7,750,952       7,743,941       7,737,248       7,731,463       7,745,193  
                                       
Market Ratios                                      
  Stock Price $ 6.96     $ 7.39     $ 6.75     $ 4.05     $ 5.85  
  Price/Earnings   10.83       11.01       9.87       6.68       9.08  
  Price/Book   0.91       1.00       0.92       0.56       0.83  
     
(1)   Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2)   Includes $6.75 million in preferred stock issued to the U.S. Treasury under the SBLF Program.
    Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.
    Prior to 9/30/2011, the preferred stock was issued under the TARP Capital Purchase Program.
     
     
     
    Six Months Ended June 30,  
    2012     2011  
                 
  Net interest income   $ 12,476     $ 12,506  
  Provision for loan losses     600       900  
  Non-interest income     1,503       1,351  
  Non-interest expense     9,209       8,927  
  Income before income taxes     4,170       4,030  
  Provision for income taxes     1,357       1,415  
  Net income     2,813       2,615  
  Preferred stock dividends and accretion     (283 )     (421 )
  Net income available to common shareholders   $ 2,530     $ 2,194  
                   
  Earnings per common share - basic     0.33       0.28  
  Earnings per common share - diluted     0.33       0.28  
  Dividends declared per common share     -       -  
  Return on average common equity     8.65 %     8.42 %
  Return on average assets     0.95 %     0.94 %
  Net interest margin (1)     4.70 %     4.89 %
  Efficiency ratio (1)     64.50 %     63.43 %
                 
Capital - Period End                
  Book value per share   $ 7.63     $ 7.02  
                 
Credit Quality - Period End                
  Nonperforming assets/ total assets     1.20 %     1.62 %
  Loan loss reserve/ gross loans     2.05 %     2.20 %
                 
Period End Balance Sheet                
($ in thousands)                
  Total assets   $ 596,417     $ 572,262  
  Gross loans     390,515       390,521  
  Nonperforming assets     7,185       9,245  
  Allowance for loan losses     8,008       8,591  
  Deposits     526,407       496,212  
  Common equity     60,185       54,134  
  Total capital (2)     66,935       67,634  
                 
Non-Financial Data                
  Full-time equivalent staff     125       130  
  Number of banking offices     14       13  
                 
Common Shares outstanding                
  Period end     7,890,905       7,713,794  
  Period average - basic     7,725,316       7,712,604  
  Period average - diluted     7,747,446       7,743,707  
                 
Market Ratios                
  Stock Price   $ 6.96     $ 5.85  
  Price/Earnings     10.60       10.20  
  Price/Book     0.91       0.83  
     
(1)   Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2)   Includes $6.75 million in preferred stock issued to the U.S. Treasury under the SBLF Program.
    Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.
    Prior to 9/30/2011, the preferred stock was issued under the TARP Capital Purchase Program.
     

Contact Information

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