SOURCE: Oak Valley Community Bank

April 21, 2006 11:34 ET

Oak Valley Community Bank Reports 1st Quarter Results

OAKDALE, CA -- (MARKET WIRE) -- April 21, 2006 -- Oak Valley Community Bank (OTC BB: OVYB) announced its financial results for the three months ended March 31, 2006. The Bank reached another milestone this quarter, exceeding $400 million in total assets. Total assets increased by $73 million, or 22% over March 31, 2005, to $402 million at the end of the first quarter. Net income for the first quarter of 2006 was $839,000, or $0.12 per weighted average share compared to $837,000, or $0.12 per share, for the same period in 2005. Net interest income increased by $683,000, or 20% over the same period last year, as loans grew by $75 million, or 28% since March 31, 2005. Non interest expense grew by $703,000, or 31%, compared to the same period in 2005, as the Bank's branch network grew by 50%, to 12 branches.

"Branch expansion was a strategic objective of Oak Valley Community Bank in 2005, and it continues to be in 2006," stated Ron Martin, CEO. "We increased our branch network by four branches, a fifty percent increase, in the last twelve months, taking advantage of opportunities in underserved markets, and grew our asset base to over $400 million. With additional locations in the planning and construction phases we expect 2006 to be another year of exceptional growth."

"The increase in non interest expense is a result of management and support staff increases necessary to accommodate branch expansion," stated Rick McCarty, CFO. "Solid loan growth continues to provide strong earnings to support new branches as they mature. Deposit growth has also been exceptional in new markets and in turn will shorten the timeframe to greater profitability."

Established in 1991, Oak Valley Community Bank offers a variety of loan and deposit products dedicated to serving the needs of individuals and small businesses. The Bank currently operates through 12 conveniently located branches: Oakdale, Escalon, Sonora, Turlock, Stockton, Patterson, Ripon, two branches in Modesto, and three branches in their Eastern Sierra Division, which include Bridgeport, Mammoth Lakes and Bishop.

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 Community Bank
                    Statement of Condition (unaudited)

                                 For the Three Months Ended
                 ---------------------------------------------------------
                 3/31/2006   12/31/2005  9/30/2005   6/30/2005   3/31/2005
Profitability
($ in thousands,
 except per
 share)
Selected
 Quarterly
 Operating Data:
  Net interest
   income        $    4,168  $    4,152  $    3,988  $    3,538  $   3,485
  Provision for
   loan losses          185         200         170         145        190
  Non-interest
   income               340         353         352         319        322
  Non-interest
   expense            2,951       2,544       2,338       2,246      2,248
  Income before
   income taxes       1,371       1,762       1,832       1,467      1,368
  Provision for
   income taxes         532         684         709         571        532
  Net income            839       1,078       1,124         896        837
  Earnings per
   common share
   - basic (1)         0.12        0.15        0.16        0.13       0.12
  Earnings per
   common share
   - diluted (1)       0.11        0.15        0.15        0.12       0.11
  Dividends
   declared per
   common share
   (2)                    -           -       0.250           -          -
  Return on
   average
   common equity      10.71%      13.91%      14.70%      12.17%     11.78%
  Return on
   average
   assets              0.88%       1.19%       1.31%       1.10%      1.04%
  Net interest
   margin              4.67%       4.91%       4.96%       4.63%      4.61%
  Efficiency
   Ratio              65.47%      56.46%      53.86%      58.22%     59.06%
Capital - Period
 End
  Tier 1
   risk-based
   capital ratio
   (3)                 9.11%       9.36%       9.86%      10.40%     10.68%
  Book value per
   share (1)           4.51        4.44        4.31        4.34       4.17

Credit Quality -
 Period End
  Nonperforming
   assets/assets       0.00%       0.00%       0.00%       0.00%      0.00%
  Loan loss
   reserve/loans       1.23%       1.25%       1.29%       1.30%      1.32%

Period End
 Balance Sheet
($ in thousands)
Total assets     $  402,080  $  382,122  $  350,801  $  336,432  $ 329,578
  Gross Loans       337,016     318,108     292,403     278,319    262,437
  Nonperforming
   assets                 -           -           -           -          -
  Allowance for
   credit losses      4,157       3,976       3,777       3,607      3,462
  Deposits          353,376     329,080     284,391     281,926    285,799
  Common Equity      31,815      31,038      30,106      30,052     28,827
Non-Financial
 Data
  Full-time
   equivalent
   staff                108         101          91          79         81
  Number of
   banking
   offices,
   domestic
   and foreign           12          11           9           8          8
Common Shares
 outstanding
  Period end (1)  7,046,732   6,988,224   6,986,874   6,922,109  6,907,428
  Period average
   - basic (1)    7,004,325   6,987,549   6,954,491   6,914,768  6,897,368
  Period average
   - diluted (1)  7,349,790   7,361,137   7,310,637   7,340,576  7,317,830
Market Ratios
  Stock Price
   (1)                14.95       15.67       12.67       13.17      13.50
  Price/Earnings
   (1)                30.76       25.60       19.76       25.33      27.44
  Price/Book (1)       3.31        3.53        2.94        3.03       3.23


                                                     For the Year Ended
                                                   ----------------------
                                                   12/31/2005  12/31/2004
Profitability
($ in thousands, except per share)
Selected Quarterly Operating Data:
  Net interest income                              $   15,163  $   12,736
  Provision for loan losses                               705         938
  Non-interest income                                   1,347       1,451
  Non-interest expense                                  9,375       7,940
  Income before income taxes                            6,429       5,311
  Provision for income taxes                            2,495       2,059
  Net income                                            3,935       3,251
  Earnings per common share - basic (1)                  0.57        0.49
  Earnings per common share - diluted (1)                0.54        0.46
  Dividends declared per common share (2)               0.250       0.290
  Return on average common equity                       13.18%      12.59%
  Return on average assets                               1.16%       1.19%
  Net interest margin                                    4.78%       4.97%
  Efficiency Ratio                                      56.79%      55.96%
Capital - Period End
  Tier 1 risk-based capital ratio                        9.36%      10.63%
  Book value per share (1)                               4.44        4.10

Credit Quality - Period End
  Nonperforming assets/assets                            0.00%       0.00%
  Loan loss reserve/loans                                1.25%       1.27%

Period End Balance Sheet
($ in thousands)
Total assets                                       $  382,122  $  313,063
  Gross Loans                                         318,108     258,495
  Nonperforming assets                                      -           -
  Allowance for credit losses                           3,976       3,272
  Deposits                                            329,080     249,043
  Common Equity                                        31,038      28,245
Non-Financial Data
  Full-time equivalent staff                              101          77
  Number of banking offices, domestic
   and foreign                                             11           7
Common Shares outstanding
  Period end (1)                                    6,988,224   6,889,451
  Period average - basic (1)                        6,942,723   6,657,413
  Period average - diluted (1)                      7,316,311   7,010,802
Market Ratios
  Stock Price (1)                                       15.67       14.89
  Price/Earnings (1)                                    27.65       30.49
  Price/Book (1)                                         3.53        3.63


(1) Number of shares adjusted for January 3, 2006, three for two stock
    split.
(2) Dividend per share data does not reflect stock split.
(3) 1st Quarter 2006 estimated.

Contact Information

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