SOURCE: Oak Valley Bancorp

Oak Valley Bancorp

January 22, 2014 15:24 ET

Oak Valley Bancorp Reports 4th Quarter Results

OAKDALE, CA--(Marketwired - Jan 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 December 31, 2013, consolidated net income available to common shareholders was a record $1.7 million, or $0.22 per diluted share. This compared to consolidated net income available to common shareholders of $1.4 million, or $0.18 per diluted share for the three months ended December 31, 2012 and represented a 21.5% increase over the prior year.

Net income for 2013 totaled $5.9 million compared to $5.8 million for 2012. After adjustment for preferred stock dividends and accretion, consolidated net income available to common shareholders was $5.8 million, or $0.74 per diluted share, compared to consolidated net income of $5.3 million, or $0.69 per diluted common share, in 2012. This represents a 9.2% increase in consolidated net income available to common shareholders and marks a new annual earnings record for Oak Valley Bancorp.

Total assets grew to $672.1 million as of December 31, 2013, which was an increase of $11.5 million, or 1.7% over the prior year. Deposits increased to $602.6 million, which was an increase of $15.6 million, or 2.7% over the prior year. Gross loans at year end totaled $419.4 million, reflecting an increase of $28.5 million, or 7.3%, over December 31, 2012.

"We are pleased to report another year of solid earnings. Our commitment to customer care and relationship building is unwavering and the cornerstone of our success," stated Chris Courtney, President and CEO of the Company and the Bank. "Our results are a reflection of emerging consumer confidence and economic expansion in the communities we serve."

Non-performing assets were $3.3 million, or 0.48% of total assets at December 31, 2013. This is down from $6.9 million, or 1.05% at December 31, 2012. There are currently six properties remaining with the non-performing classification; five of which remain as loans, along with one property taken into OREO.

The allowance for loan losses totaled 1.83% of gross loans at December 31, 2013 compared to 2.04% at December 31, 2012. The annual provision for loan losses of $300,000 in 2013 was down from $1.2 million in 2012. Given the high quality of the loan portfolio, limited provisioning was required to support the growth of the portfolio.

Net interest income of $24.3 million for the year ended December 31, 2013, decreased by $570,000, or 2.3%, from the prior year. The year began with margin compression, corresponding to low loan pricing and high cash balances. The margin stabilized in the second half of the year, as cash was deployed into new loans. The Company's net interest margin was 4.13% for the year ended December 31, 2013, compared to 4.53% for the year ended December 31, 2012. Net interest margin for the three months ended December 31, 2013 was 4.19%, compared to 4.15% for the three months ended December 31, 2012.

Non-interest income was $3.3 million for the year ended December 31, 2013, compared to $3.1 million the prior year. The increase is partially attributable to additional fee income related to deposit growth and commissions corresponding to growth in Oak Valley Investments.

Non-interest expense was $18.7 million for the year ended December 31, 2013, compared to $18.2 million for the prior year, an increase of $411,000, or 2.3%. This increase consists primarily of costs associated with servicing deposit growth across all branches.

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)   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter   4th Quarter  
Selected Quarterly Operating Data:   2013   2013   2013   2013   2012  
                                 
  Net interest income   $ 6,372   $ 6,030   $ 6,024   $ 5,849   $ 6,115  
  Provision for loan losses     -     100     100     100     250  
  Non-interest income     812     866     818     785     855  
  Non-interest expense     4,668     4,619     4,734     4,639     4,513  
  Income before income taxes     2,516     2,177     2,008     1,895     2,207  
  Provision for income taxes     809     672     634     595     718  
  Net income     1,707     1,505     1,374     1,300     1,489  
  Preferred stock dividends and accretion     -     -     -     (68 )   (84 )
  Net income available to common shareholders   $ 1,707   $ 1,505   $ 1,374   $ 1,232   $ 1,405  
                                 
  Earnings per common share - basic   $ 0.22   $ 0.19   $ 0.18   $ 0.16   $ 0.18  
  Earnings per common share - diluted   $ 0.22   $ 0.19   $ 0.18   $ 0.16   $ 0.18  
  Return on average common equity     10.47 %   9.45 %   8.48 %   7.82 %   8.87 %
  Return on average assets     1.01 %   0.92 %   0.86 %   0.81 %   0.91 %
  Net interest margin (1)     4.19 %   4.12 %   4.18 %   4.05 %   4.15 %
  Efficiency ratio (1)     63.05 %   64.65 %   67.17 %   67.95 %   63.23 %
                                 
Capital - Period End                                
  Book value per share   $ 8.24   $ 7.99   $ 8.01   $ 8.10   $ 7.99  
                                 
Credit Quality - Period End                                
  Nonperforming assets/ total assets     0.48 %   0.68 %   0.65 %   0.99 %   1.05 %
  Loan loss reserve/ gross loans     1.83 %   1.85 %   1.94 %   1.99 %   2.04 %
                                 
Period End Balance Sheet                                
($ in thousands)                                
  Total assets   $ 672,060   $ 659,192   $ 644,230   $ 648,418   $ 660,581  
  Gross loans     419,438     413,856     390,647     389,992     390,986  
  Nonperforming assets     3,256     4,495     4,189     6,439     6,923  
  Allowance for loan losses     7,659     7,669     7,570     7,743     7,975  
  Deposits     602,633     591,642     577,129     580,215     586,993  
  Common equity     65,310     63,379     63,457     64,098     63,219  
  Total capital (2)     65,310     63,379     63,457     64,098     69,969  
                                 
Non-Financial Data                                
  Full-time equivalent staff     136     135     134     134     130  
  Number of banking offices     14     14     14     14     14  
                                 
Common Shares outstanding                                
  Period end     7,929,730     7,929,730     7,924,730     7,914,730     7,907,780  
  Period average - basic     7,803,247     7,802,705     7,802,012     7,778,333     7,762,261  
  Period average - diluted     7,859,380     7,851,157     7,842,964     7,830,439     7,793,523  
                                 
Market Ratios                                
  Stock Price   $ 8.37   $ 7.96   $ 7.67   $ 8.14   $ 7.45  
  Price/Earnings     9.64     10.40     10.86     12.67     10.38  
  Price/Book     1.02     1.00     0.96     1.01     0.93  
                                 
                                 
                                 
    YEAR ENDED
DECEMBER 31,
                   
    2013   2012                    
                                 
($ in thousands, except per share)                                
Selected Quarterly Operating Data:                                
                                 
  Net interest income   $ 24,275   $ 24,845                    
  Provision for loan losses     300     1,150                    
  Non-interest income     3,281     3,148                    
  Non-interest expense     18,660     18,249                    
  Income before income taxes     8,596     8,594                    
  Provision for income taxes     2,710     2,813                    
  Net income     5,886     5,781                    
  Preferred stock dividends and accretion     (68 )   (452 )                  
  Net income available to common shareholders   $ 5,818   $ 5,329                    
                                 
  Earnings per common share - basic   $ 0.75   $ 0.69                    
  Earnings per common share - diluted   $ 0.74   $ 0.69                    
  Return on average common equity     9.07 %   8.80 %                  
  Return on average assets     0.90 %   0.95 %                  
  Net interest margin (1)     4.13 %   4.53 %                  
  Efficiency ratio (1)     65.65 %   63.83 %                  
                                 
Capital - Period End                                
  Book value per share   $ 8.24   $ 7.99                    
                                 
Credit Quality - Period End                                
  Nonperforming assets/ total assets     0.48 %   1.05 %                  
  Loan loss reserve/ gross loans     1.83 %   2.04 %                  
                                 
Period End Balance Sheet                                
($ in thousands)                                
  Total assets   $ 672,060   $ 660,581                    
  Gross loans     419,438     390,986                    
  Nonperforming assets     3,256     6,923                    
  Allowance for loan losses     7,659     7,975                    
  Deposits     602,633     586,993                    
  Common equity     65,310     63,219                    
  Total capital (2)     65,310     69,969                    
                                 
Non-Financial Data                                
  Full-time equivalent staff     136     130                    
  Number of banking offices     14     14                    
                                 
Common Shares outstanding                                
  Period end     7,929,730     7,907,780                    
  Period average - basic     7,796,659     7,740,990                    
  Period average - diluted     7,846,078     7,766,745                    
                                 
Market Ratios                                
  Stock Price   $ 8.37   $ 7.45                    
  Price/Earnings     11.22     10.85                    
  Price/Book     1.02     0.93                    
                                 
                                 
  (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.  
  (2) Includes preferred stock issued to the U.S. Treasury under the SBLF Program of $6.75 million for the quarter ended December 31, 2012. There was no preferred stock outstanding as of March 31, June 30, September 30, and December 31, 2013.  
     
                                 

Contact Information

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