SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

October 22, 2014 16:47 ET

Oak Valley Bancorp Reports 3rd Quarter Results

OAKDALE, CA--(Marketwired - Oct 22, 2014) - 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, 2014, consolidated net income available to common shareholders was $1,535,000, or $0.19 per diluted common share. This compared to consolidated net income available to common shareholders of $1,505,000, or $0.19 per diluted common share for the same period a year ago.

Year-to-date results for the nine months ended September 30, 2014, include consolidated net income available to common shareholders of $5,480,000, representing a 33.3% increase over the $4,111,000 recorded during the same period last year. In addition to income from normal operations, year-to-date income was bolstered by a $1.88 million credit to the loan loss provision related to the recovery of a previously charged off loan that was received in the second quarter of 2014.

Total assets were $706.8 million at September 30, 2014, an increase of $47.6 million, or 7.2%, from September 30, 2013. The Company's total deposits were $630.2 million as of September 30, 2014, an increase of $38.5 million, or 6.5% over September 30, 2013. Gross loans increased to $435.8 million at September 30, 2014, an increase of $21.9 million, or 5.3% from September 30, 2013.

Net interest income increased $359,000 or 6.0% to $6.4 million for the three months ended September 30, 2014, compared to $6.0 million for the same period last year. The increase is driven primarily by the increase in loan volume. The Company's net interest margin for the three months ended September 30, 2014 was 4.13%, compared to 4.12% for the same period last year.

"We are pleased to report another quarter of solid earnings. Our emphasis on growth through core deposits has served us well and will continue to provide us with a hedge against an eventual rise in interest rates," stated Chris Courtney, President and CEO of the Company and the Bank. "Despite uncertainty in the global economy, loan demand continues to be strong locally and we are well positioned to meet that demand and help Central Valley businesses grow," Courtney concluded.

Non-interest expense for the three month and nine month periods ended September 30, 2014 totaled $5.1 million and $15.0 million, respectively, an increase over the $4.6 million and $14.0 million for the comparable periods in 2013. This increase corresponds to growth in full time equivalent staff from 135 to 145 some of which is related to the intentional practice of hiring key personnel prior to branch openings in expansion markets and some of which is natural volume related growth within the commercial lending and credit areas. Deposit growth and activity continue to add related servicing costs as well.

There was no provision for loan loss during the three months ended September 30, 2014, compared to $100,000 for the same period the previous year. The ratio of loan loss reserves to gross loans decreased to 1.73% at September 30, 2014, compared to 1.85% at September 30, 2013. Non-performing assets as of September 30, 2014 were $4.3 million, or 0.61% of total assets, as compared to $4.5 million, or 0.68% at September 30, 2013.

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. Earlier this year the Company announced plans to open a branch in Tracy, which is scheduled to open in November.

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:   3rd
Quarter
2014
  2nd
Quarter
2014
    1st
Quarter
2014
    4th
Quarter
2013
    3rd
Quarter
2013
 
                               
  Net interest income   $ 6,389     $ 6,175     $ 6,104     $ 6,372     $ 6,030  
  (Recovery of) provision for loan losses     -       (1,877 )     -       -       100  
  Non-interest income     940       927       810       812       866  
  Non-interest expense     5,112       4,989       4,881       4,668       4,619  
  Net income before income taxes     2,217       3,990       2,033       2,516       2,177  
  Provision for income taxes     682       1,453       625       809       672  
  Net income available to common shareholders     1,535       2,537       1,408       1,707       1,505  
                                           
  Earnings per common share - basic   $ 0.19     $ 0.32     $ 0.18     $ 0.22     $ 0.19  
  Earnings per common share - diluted   $ 0.19     $ 0.32     $ 0.18     $ 0.22     $ 0.19  
  Dividends paid per common share   $ 0.065     $ -     $ 0.10     $ -     $ -  
  Return on average common equity     8.44 %     14.53 %     8.59 %     10.47 %     9.45 %
  Return on average assets     0.88 %     1.50 %     0.84 %     1.01 %     0.92 %
  Net interest margin (1)     4.13 %     4.07 %     4.04 %     4.19 %     4.12 %
  Efficiency ratio (2)     66.76 %     67.55 %     68.29 %     63.05 %     64.65 %
                                         
Capital - Period End                                  
  Book value per common share   $ 9.01     $ 8.84     $ 8.40     $ 8.14     $ 7.99  
                                         
Credit Quality - Period End                                  
  Nonperforming assets/ total assets     0.61 %     0.75 %     0.90 %     0.48 %     0.68 %
  Loan loss reserve/ gross loans     1.73 %     1.74 %     1.80 %     1.83 %     1.85 %
                                         
Period End Balance Sheet                                  
($ in thousands)                                  
  Total assets   $ 706,821     $ 678,319     $ 687,591     $ 671,853     $ 659,192  
  Gross loans     435,776       435,671       422,510       419,438       413,856  
  Nonperforming assets     4,333       5,065       6,164       3,256       4,495  
  Allowance for loan losses     7,541       7,602       7,615       7,659       7,669  
  Deposits     630,178       602,978       615,997       602,633       591,642  
  Common equity     72,793       71,369       67,824       64,517       63,379  
                                         
Non-Financial Data                                  
  Full-time equivalent staff     145       144       142       136       135  
  Number of banking offices     14       14       14       14       14  
                                         
Common Shares outstanding                                  
  Period end     8,074,855       8,075,855       8,071,355       7,929,730       7,929,730  
  Period average - basic     7,959,316       7,953,499       7,878,152       7,803,247       7,802,705  
  Period average - diluted     8,011,125       8,001,815       7,941,456       7,859,380       7,851,157  
                                         
Market Ratios                                  
  Stock Price   $ 10.03     $ 9.93     $ 9.41     $ 8.37     $ 7.96  
  Price/Earnings     13.11       7.76       12.98       9.64       10.40  
  Price/Book     1.11       1.12       1.12       1.03       1.00  
                                           
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
   
(2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%, and a marginal federal/state combined tax rate of 41.15% for applicable revenue.
             
             
    NINE MONTHS ENDED  
    SEPTEMBER 30,  
    2014     2013  
             
  Net interest income   $ 18,668     $ 17,903  
  (Recovery of) provision for loan losses     (1,877 )     300  
  Non-interest income     2,677       2,469  
  Non-interest expense     14,982       13,992  
  Net income before income taxes     8,240       6,080  
  Provision for income taxes     2,760       1,901  
  Net income     5,480       4,179  
  Preferred stock dividends     -       (68 )
  Net income available to common shareholders   $ 5,480     $ 4,111  
                   
  Earnings per common share - basic   $ 0.69     $ 0.53  
  Earnings per common share - diluted   $ 0.69     $ 0.52  
  Dividends paid per common share   $ 0.165     $ -  
  Return on average common equity     10.53 %     8.59 %
  Return on average assets     1.07 %     0.87 %
  Net interest margin (1)     4.08 %     4.11 %
  Efficiency ratio (2)     67.52 %     66.57 %
                 
Capital - Period End                
  Book value per common share   $ 9.01     $ 7.99  
                 
Credit Quality - Period End                
  Nonperforming assets/ total assets     0.61 %     0.68 %
  Loan loss reserve/ gross loans     1.73 %     1.85 %
                 
Period End Balance Sheet                
($ in thousands)                
  Total assets   $ 706,821     $ 659,192  
  Gross loans     435,776       413,856  
  Nonperforming assets     4,333       4,495  
  Allowance for loan losses     7,541       7,669  
  Deposits     630,178       591,642  
  Common equity     72,793       63,379  
                 
Non-Financial Data                
  Full-time equivalent staff     145       135  
  Number of banking offices     14       14  
                 
Common Shares outstanding                
  Period end     8,074,855       7,929,730  
  Period average - basic     7,930,620       7,794,439  
  Period average - diluted     7,985,054       7,841,596  
                 
Market Ratios                
  Stock Price   $ 10.03     $ 7.96  
  Price/Earnings     10.86       11.29  
  Price/Book     1.11       1.00  
                   
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
   
(2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%, and a marginal federal/state combined tax rate of 41.15% for applicable revenue.

Contact Information

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