OAKDALE, CA -- (MARKET WIRE) -- April 17, 2007 --Oak Valley Community Bank, traded as (
OTCBB:
OVYB),
announced its financial results for the three months ended March 31, 2007. The
Bank posted the highest first quarter earnings in its 16 year history, exceeding
$1.0 million, or $0.14 per diluted share compared to $839 thousand, or $0.11 per
diluted share, for the same period in 2006. Total assets increased by $50
million, or 12.5% over March 31, 2006, to $453 million at the end of the first
quarter. Net interest income increased by $434 thousand, or 10.4% over the
same period last year, as loans grew by $51 million, or 15.0% since March 31,
2006. Non interest expense grew by $369 thousand, or 12.5%, compared to the
same period in 2006, as a result of costs associated with new facilities and
corresponding personnel.
"As we have grown the past year, we have experienced an increase in expenses and
margin compression resulting in constant pressure on earnings. Despite that
pressure, first quarter results are a promising indicator of the year to come.
Never in our 16 year history have we posted one-million dollars in income during
the first quarter," stated Ron Martin, CEO. "As our newest branches continue to
expand and we remain focused on the growth of core deposits, we are optimistic
that our aggregate results for the year will continue to exceed our budgeted
goals," he concluded.
The first quarter also marked the bank's occupation of its new headquarters in
the Historic Clocktower Building at the intersection of highways 120 and 108 in
Oakdale. An extensive restoration process returned this circa 1909 landmark
bank building to its original luster, underscoring the bank's commitment to a
style of relationship banking from yesteryear. "It is rare for any organization
to have such a strong structural depiction of what it stands for -- and this
historic building represents, to our employees and customers, our commitment to
a brand of old-fashioned service that is uncommon in the banking industry
today," stated Chris Courtney, President.
"With a twelve month history of operation in most of our new locations, we are
recognizing stabilization in our non interest expense. That combined with the
sustained loan growth has enabled us to post solid first quarter earnings,"
stated Rick McCarty, CFO. "We look forward to further loan growth and diligent
management of our net interest margin to assist us in continuing this trend."
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
3/31/2007 12/31/2006 9/30/2006 6/30/2006 3/31/2006
Profitability
($ in thousands,
except per share)
Selected Quarterly
Operating Data:
Net interest
income $ 4,602 $ 4,515 $ 4,419 $ 4,231 $ 4,168
Provision for
loan losses 170 50 140 220 185
Non-interest
income 540 541 432 412 340
Non-interest
expense 3,320 3,135 3,082 3,052 2,951
Income before
income taxes 1,652 1,871 1,629 1,372 1,371
Provision for
income taxes 650 717 632 532 532
Net income 1,002 1,154 997 840 839
Earnings per
common share -
basic (1) 0.14 0.16 0.14 0.12 0.12
Earnings per
common share -
diluted (1) 0.14 0.16 0.14 0.11 0.11
Dividends
declared per
common share (2) - - 0.19 - -
Return on average
common equity 11.50% 13.48% 11.91% 10.31% 10.71%
Return on average
assets 0.92% 1.05% 0.93% 0.83% 0.88%
Net interest
margin (3) 4.49% 4.45% 4.47% 4.60% 4.70%
Efficiency Ratio(3) 63.75% 61.23% 62.72% 64.83% 64.57%
Capital - Period End
Tier 1 risk-based
capital ratio 8.76% 8.42% 8.68% 9.15% 9.10%
Book value per
share (1) $ 5.01 $ 4.85 $ 4.66 $ 4.65 $ 4.51
Credit Quality -
Period End
Nonperforming
assets/assets 0.00% 0.00% 0.01% 0.01% 0.00%
Loan loss
reserve/loans(4) 1.16% 1.15% 1.18% 1.22% 1.17%
Period End Balance
Sheet
($ in thousands)
Total assets $ 452,520 $ 455,431 $ 428,670 $ 409,103 $ 402,080
Gross Loans 387,580 378,393 363,807 341,652 337,016
Nonperforming
assets - - 22 25 -
Allowance for
credit losses(4) 4,480 4,341 4,296 4,157 3,938
Deposits 352,086 378,530 371,950 365,003 353,376
Common Equity 35,665 34,424 33,025 32,931 31,815
Non-Financial Data
Full-time
equivalent staff 115 112 110 108 108
Number of banking
offices,domestic 12 12 12 12 12
and foreign
Common Shares
outstanding
Period end (1) 7,122,171 7,103,243 7,094,244 7,079,326 7,046,732
Period average -
basic (1) 7,108,923 7,095,114 7,090,707 7,059,219 7,004,325
Period average -
diluted (1) 7,293,827 7,358,875 7,375,174 7,357,295 7,349,790
Market Ratios
Stock Price (1) $ 11.10 $ 13.03 $ 14.40 $ 13.50 $ 14.95
Price/Earnings $ 19.43 $ 20.18 $ 25.81 $ 28.30 $ 30.76
Price/Book $ 2.22 $ 2.69 $ 3.09 $ 2.90 $ 3.31
(1) Number of shares adjusted for January 3, 2006, three for two stock
split.
(2) Dividend per share data does not reflect stock split. Cash dividend of
$1,345,072 paid in August 2006.
(3) Ratio computed on a fully tax equivalent basis using a marginal tax
rate of 35%.
(4) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
Contact Information: Contact:
Rick McCarty/Chris Courtney/Ron Martin
Phone: (209) 848-2265
www.ovcb.com