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, 2017, consolidated net income was $2,468,000, or
$0.31 per diluted common share, compared to $2,830,000, or $0.35
per diluted common share, for the prior quarter and $1,930,000, or
$0.24 per diluted common share for the same period of 2016. The
earnings decrease compared to the prior period is primarily due to
one-time merger-related settlement payments that were recorded in
the second quarter. The increase compared to the same period last
year was primarily due to loan growth and the positive impact of
recent FOMC rate hikes on our cash balances, both resulting in an
increase in net interest income.
Net interest income increased to $8,620,000 for
the three months ended September 30, 2017, compared to $8,455,000
for the prior quarter and $7,829,000 for the same period of 2016,
due to loan growth and increased yields on cash balances as
described above. Net interest margin for the three months
ended September 30, 2017 was 3.78%, compared to 3.74% for the prior
quarter, and 3.73% for the same period of 2016. The net interest
margin expanded slightly compared to the prior periods as the Bank
continues to deploy low-yielding cash balances into higher yielding
loans and investment securities.
Non-interest income for the three months ended
September 30, 2017 totaled $1,276,000, compared to $2,036,000
during the prior quarter, and $1,077,000 for the same period of
2016. The decrease compared to the prior quarter is due to the
previously mentioned merger-related settlement payments which were
recorded in the second quarter. The increase compared to the third
quarter of 2016 is due to a $211,000 gain on the sale of an OREO
property.
Non-interest expense for the three months ended
September 30, 2017 totaled $6,060,000, compared to $6,076,000
during the prior quarter, and $5,924,000 for the same period of
2016. The increase compared to last year corresponds to
staffing increases and general operating costs related to servicing
the growing loan and deposit portfolios.
Total assets were $996.7 million as of September
30, 2017, a decrease of $23.8 million from June 30, 2017 and an
increase of $49.7 million over September 30, 2016. Gross loans were
$636.6 million as of September 30, 2017, an increase of $12.8
million over June 30, 2017, and an increase of $34.0 million over
September 30, 2016. The Company’s total deposits were $901.7
million as of September 30, 2017, a decrease of $24.1 million over
June 30, 2017, and an increase of $42.0 million over September 30,
2016.
“We are pleased to report another solid quarter.
Our vision remains steadfast - to build loyalty and lifelong
relationships, based on trust and the needs of our clients.
In turn, they will share their satisfaction with friends and
business partners, allowing us to reach new customers and grow the
bank,” stated Chris Courtney, President and CEO.
Non-performing assets as of September 30, 2017
were $1,564,000, or 0.16% of total assets, compared to $3,242,000,
or 0.32% of total assets, as of June 30, 2017, and $4,099,000, or
0.43%, at September 30, 2016. The decrease during the quarter
is due to the sale of one OREO property and a significant pay-down
on one impaired loan relationship. Provisions for loan loss
of $70,000 were recorded during the third quarter of 2017, mainly
due to loan growth, as credit quality has continued to improve,
thus decreasing the allowance for loan losses to 1.24% of gross
loans at September 30, 2017 compared to 1.26% at June 30, 2017 and
1.29% at September 30, 2016.
Oak Valley Bancorp operates Oak Valley Community
Bank & Eastern Sierra Community Bank, through which it offers a
variety of loan and deposit products to individuals and small
businesses. They currently operate through 16 conveniently located
branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon,
Manteca, Tracy, two branches in Sonora, three branches in Modesto,
and three branches in their Eastern Sierra Division, which includes
Bridgeport, Mammoth Lakes and Bishop.
For more information, 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) |
3rd Quarter |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
Selected Quarterly Operating Data: |
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
8,620 |
|
$ |
8,455 |
|
$ |
8,082 |
|
$ |
8,049 |
|
$ |
7,829 |
|
|
Provision for loan
losses |
|
70 |
|
|
35 |
|
|
- |
|
|
69 |
|
|
90 |
|
|
Non-interest
income |
|
1,276 |
|
|
2,036 |
|
|
1,471 |
|
|
1,242 |
|
|
1,077 |
|
|
Non-interest
expense |
|
6,060 |
|
|
6,076 |
|
|
6,207 |
|
|
6,017 |
|
|
5,924 |
|
|
Net income before
income taxes |
|
3,766 |
|
|
4,380 |
|
|
3,346 |
|
|
3,205 |
|
|
2,892 |
|
|
Provision for income
taxes |
|
1,298 |
|
|
1,550 |
|
|
1,139 |
|
|
883 |
|
|
962 |
|
|
Net income |
$ |
2,468 |
|
$ |
2,830 |
|
$ |
2,207 |
|
$ |
2,322 |
|
$ |
1,930 |
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic |
$ |
0.31 |
|
$ |
0.35 |
|
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.24 |
|
|
Earnings per common
share - diluted |
$ |
0.31 |
|
$ |
0.35 |
|
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.24 |
|
|
Dividends paid per
common share |
$ |
0.125 |
|
$ |
- |
|
$ |
0.125 |
|
$ |
- |
|
$ |
0.12 |
|
|
Return on average
common equity |
|
11.04 |
% |
|
13.14 |
% |
|
10.73 |
% |
|
11.07 |
% |
|
9.28 |
% |
|
Return on average
assets |
|
0.98 |
% |
|
1.14 |
% |
|
0.91 |
% |
|
0.95 |
% |
|
0.82 |
% |
|
Net interest margin
(1) |
|
3.78 |
% |
|
3.74 |
% |
|
3.69 |
% |
|
3.68 |
% |
|
3.73 |
% |
|
Efficiency ratio
(2) |
|
59.55 |
% |
|
61.14 |
% |
|
63.88 |
% |
|
60.79 |
% |
|
62.08 |
% |
|
|
|
|
|
|
|
Capital -
Period End |
|
|
|
|
|
|
Book value per common
share |
$ |
11.07 |
|
$ |
10.89 |
|
$ |
10.40 |
|
$ |
10.19 |
|
$ |
10.24 |
|
|
|
|
|
|
|
|
Credit
Quality - Period End |
|
|
|
|
|
|
Nonperforming assets/
total assets |
|
0.16 |
% |
|
0.32 |
% |
|
0.38 |
% |
|
0.42 |
% |
|
0.43 |
% |
|
Loan loss reserve/
gross loans |
|
1.24 |
% |
|
1.26 |
% |
|
1.28 |
% |
|
1.28 |
% |
|
1.29 |
% |
|
|
|
|
|
|
|
Period End
Balance Sheet |
|
|
|
|
|
($ in
thousands) |
|
|
|
|
|
|
Total assets |
$ |
996,721 |
|
$ |
1,020,495 |
|
$ |
989,879 |
|
$ |
1,002,110 |
|
$ |
947,017 |
|
|
Gross loans |
|
636,609 |
|
|
623,809 |
|
|
612,894 |
|
|
610,949 |
|
|
602,569 |
|
|
Nonperforming
assets |
|
1,564 |
|
|
3,242 |
|
|
3,777 |
|
|
4,247 |
|
|
4,099 |
|
|
Allowance for loan
losses |
|
7,917 |
|
|
7,854 |
|
|
7,827 |
|
|
7,832 |
|
|
7,767 |
|
|
Deposits |
|
901,716 |
|
|
925,786 |
|
|
899,169 |
|
|
914,093 |
|
|
859,756 |
|
|
Common equity |
|
89,676 |
|
|
88,100 |
|
|
84,061 |
|
|
82,450 |
|
|
82,858 |
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
Full-time equivalent
staff |
|
164 |
|
|
164 |
|
|
159 |
|
|
161 |
|
|
158 |
|
|
Number of banking
offices |
|
16 |
|
|
16 |
|
|
16 |
|
|
16 |
|
|
16 |
|
|
|
|
|
|
|
|
Common
Shares outstanding |
|
|
|
|
|
|
Period end |
|
8,098,605 |
|
|
8,089,705 |
|
|
8,082,205 |
|
|
8,088,455 |
|
|
8,093,555 |
|
|
Period average -
basic |
|
8,064,690 |
|
|
8,062,026 |
|
|
8,041,829 |
|
|
8,032,380 |
|
|
8,030,782 |
|
|
Period average -
diluted |
|
8,083,137 |
|
|
8,080,030 |
|
|
8,071,768 |
|
|
8,066,575 |
|
|
8,063,381 |
|
|
|
|
|
|
|
|
Market
Ratios |
|
|
|
|
|
|
Stock Price |
$ |
16.79 |
|
$ |
13.90 |
|
$ |
13.20 |
|
$ |
12.55 |
|
$ |
10.20 |
|
|
Price/Earnings |
|
13.83 |
|
|
9.87 |
|
|
11.86 |
|
|
10.94 |
|
|
10.70 |
|
|
Price/Book |
|
1.52 |
|
|
1.28 |
|
|
1.27 |
|
|
1.23 |
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
($ in
thousands, except per share) |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
25,157 |
|
$ |
23,477 |
|
|
|
|
|
Provision for (reversal
of) loan losses |
|
105 |
|
|
415 |
|
|
|
|
|
Non-interest
income |
|
4,783 |
|
|
3,170 |
|
|
|
|
|
Non-interest
expense |
|
18,343 |
|
|
18,298 |
|
|
|
|
|
Net income before
income taxes |
|
11,492 |
|
|
7,934 |
|
|
|
|
|
Provision for income
taxes |
|
3,987 |
|
|
2,591 |
|
|
|
|
|
Net income |
$ |
7,505 |
|
$ |
5,343 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic |
$ |
0.93 |
|
$ |
0.67 |
|
|
|
|
|
Earnings per common
share - diluted |
$ |
0.93 |
|
$ |
0.66 |
|
|
|
|
|
Dividends paid per
common share |
$ |
0.250 |
|
$ |
0.240 |
|
|
|
|
|
Return on average
common equity |
|
11.64 |
% |
|
8.83 |
% |
|
|
|
|
Return on average
assets |
|
1.01 |
% |
|
0.78 |
% |
|
|
|
|
Net interest margin
(1) |
|
3.73 |
% |
|
3.84 |
% |
|
|
|
|
Efficiency ratio
(2) |
|
61.48 |
% |
|
63.95 |
% |
|
|
|
|
|
|
|
|
|
|
Capital -
Period End |
|
|
|
|
|
|
Book value per common
share |
$ |
11.07 |
|
$ |
10.24 |
|
|
|
|
|
|
|
|
|
|
|
Credit
Quality - Period End |
|
|
|
|
|
|
Nonperforming assets/
total assets |
|
0.16 |
% |
|
0.43 |
% |
|
|
|
|
Loan loss reserve/
gross loans |
|
1.24 |
% |
|
1.29 |
% |
|
|
|
|
|
|
|
|
|
|
Period End
Balance Sheet |
|
|
|
|
|
($ in
thousands) |
|
|
|
|
|
|
Total assets |
$ |
996,721 |
|
$ |
947,017 |
|
|
|
|
|
Gross loans |
|
636,609 |
|
|
602,569 |
|
|
|
|
|
Nonperforming
assets |
|
1,564 |
|
|
4,099 |
|
|
|
|
|
Allowance for loan
losses |
|
7,917 |
|
|
7,767 |
|
|
|
|
|
Deposits |
|
901,716 |
|
|
859,756 |
|
|
|
|
|
Common equity |
|
89,676 |
|
|
82,858 |
|
|
|
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
Full-time equivalent
staff |
|
164 |
|
|
158 |
|
|
|
|
|
Number of banking
offices |
|
16 |
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
Common
Shares outstanding |
|
|
|
|
|
|
Period end |
|
8,098,605 |
|
|
8,093,555 |
|
|
|
|
|
Period average -
basic |
|
8,056,265 |
|
|
8,022,602 |
|
|
|
|
|
Period average -
diluted |
|
8,078,353 |
|
|
8,058,558 |
|
|
|
|
|
|
|
|
|
|
|
Market
Ratios |
|
|
|
|
|
|
Stock Price |
$ |
16.79 |
|
$ |
10.20 |
|
|
|
|
|
Price/Earnings |
|
13.48 |
|
|
11.50 |
|
|
|
|
|
Price/Book |
|
1.52 |
|
|
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: Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com
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