Oak Valley Bancorp Reports 3rd Quarter Results

OAKDALE, CA--(Marketwired - Oct 22, 2013) - 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 September 30, 2013, consolidated net income available to common shareholders was a record $1,505,000, or $0.19 per diluted common share. This compared to consolidated net income available to common shareholders of $1,395,000, or $0.18 per diluted common share for the same period a year ago.

Year-to-date results for the nine months ended September 30, 2013, include consolidated net income available to common shareholders of $4,111,000, representing a 4.7% increase over the $3,925,000 recorded during the same period last year. 

Total assets were $659.2 million at September 30, 2013, an increase of $31.4 million, or 5.0%, from September 30, 2012. Total deposits were $591.6 million as of September 30, 2013, an increase of $38.3 million, or 6.9% over September 30, 2012. Gross loans increased to $413.9 million at September 30, 2013, an increase of $25.1 million, or 6.5%, from September 30, 2012. 

"We've remained deliberately focused on building solid relationships, knowing our financial performance is driven by the strength of our customers and the depth of our relationships with them," stated Chris Courtney, President and CEO of the Company and the Bank. "We are extremely pleased to report another quarter of solid earnings. We've been cautiously anticipating a return of borrowing confidence from the local business community and we think we have seen a glimpse of that in recent months. We remain hopeful that the trend continues through the year and beyond."

Net interest income reflected a decrease of $224,000 or 3.6% to $6.0 million for the three months ended September 30, 2013, compared to $6.3 million for the same period last year. Loan and investment yields continue to be tempered by pressures on interest rates, but the growth in loan volume has helped mitigate the decrease in net interest income. The Company's net interest margin for the three months ended September 30, 2013 was 4.12%, compared 4.57% for the same period last year.

Non-interest expense for the quarter and nine month period ended September 30, 2013 totaled $4.6 million and $14.0 million, respectively, and $4.5 million and $13.7 million, respectively, for the comparable periods in 2012. The year-to-date increase corresponds primarily to growth in full time equivalent staff from 123 to 135. Data processing costs associated with increased deposit account activity have also been a factor.

Non-performing assets as of September 30, 2013 were $4.5 million, or 0.68% of total assets. This is down from $6.6 million, or 1.05% at September 30, 2012. The decrease reflects the continued management of the portfolio.

The provision for loan losses during the three months ended September 30, 2013, was $100,000, compared to $300,000 for the same period the previous year. The ratio of loan loss reserves to gross loans decreased to 1.85% at September 30, 2013, compared to 2.05% at September 30, 2012.

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.