Oak Valley Bancorp (NASDAQ:OVLY) (the “Company”), the bank holding
company for Oak Valley Community Bank and Eastern Sierra Community
Bank, recently reported consolidated financial results. For the
three months ended March 31, 2017, consolidated net income was
$2,207,000, or $0.27 per diluted common share. This compared to
consolidated net income of $2,322,000, or $0.29 per diluted common
share, for the prior quarter and $1,509,000, or $0.19 per diluted
common share, for the same period a year ago.
The increase in net income compared to the first
quarter of 2016 was primarily the result of continued loan growth,
a reduction in the provision for loan losses, and an increase in
non-interest income mainly due to gains on called securities
recorded in the first quarter of 2017. Compared to the fourth
quarter of 2016, these gains were offset by increased operating
costs and provision for income taxes as we recorded one-time tax
benefits during the fourth quarter of 2016.
Net interest income for the three months ended
March 31, 2017 was $8,082,000, compared to $8,049,000 in the prior
quarter and $7,542,000 for the same period last year. The increase
is mainly attributable to growth of our loan and investment
portfolios. The net interest margin for the three months ended
March 31, 2017 was 3.69%, compared to 3.68% for the prior quarter
and 3.76% for the same period last year. The year-over-year
decrease in loan and investment yields is a direct result of the
low interest rate environment, but the Company has been able to
mitigate margin compression by deploying low interest earning cash
balances into higher yielding loans and investments.
Non-interest expense totaled $6,207,000 for the
quarter ended March 31, 2017, compared to $6,017,000 in the
previous quarter and $6,187,000 in the same quarter a year ago. The
increases are due primarily to an increase in salaries and
benefits.
Non-interest income was $1,471,000 for the quarter
ended March 31, 2017, compared to $1,242,000 for the prior quarter
and $1,037,000 for the same period last year. The increase compared
to the prior periods is primarily related to an increase in gains
from called investment securities.
“We’re pleased to report another quarter of solid
operating results and are optimistic of continued financial
performance given the strong loan demand we’ve recently
experienced, and the emerging strength and confidence we’re seeing
in the communities we serve,” stated Chris Courtney, President and
CEO.
Total assets were $989.9 million at March 31, 2017,
a decrease of $12.2 million over December 31, 2016 and an increase
of $84.1 million over March 31, 2016. Gross loans were $612.9
million at March 31, 2017, an increase of $1.9 million over
December 31, 2016, and an increase of $44.7 million over March 31,
2016. The Company’s total deposits were $899.2 million as of March
31, 2017, a decrease of $14.9 million and an increase of $76.7
million from December 31, 2016 and March 31, 2016,
respectively.
As of March 31, 2017, non-performing assets were
$3.8 million or 0.38% of total assets, compared to $4.2 million or
0.42% of total assets as of December 31, 2016 and $8.8 million or
0.97% of total assets as of March 31, 2016. The decrease in
year-over-year non-performing assets compared to the same period
one year ago is due primarily to proceeds received for the payoff
of one loan relationship which occurred in April 2016 resulting in
the reduction of non-performing assets by $3.9 million at that
time.
The Company did not record a provision for loan
losses during the first quarter of 2017. The allowance for loan
losses remained flat at 1.28% of gross loans at March 31, 2017 and
December 31, 2016, and decreased slightly from 1.33% at March 31,
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) |
1st Quarter |
4th Quarter |
3rd Quarter |
2nd Quarter |
1st Quarter |
Selected Quarterly Operating Data: |
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net
interest income |
$ |
8,082 |
|
$ |
8,049 |
|
$ |
7,829 |
|
$ |
8,106 |
|
$ |
7,542 |
|
|
Provision
for loan losses |
|
- |
|
|
69 |
|
|
90 |
|
|
125 |
|
|
200 |
|
|
Non-interest income |
|
1,471 |
|
|
1,242 |
|
|
1,077 |
|
|
1,056 |
|
|
1,037 |
|
|
Non-interest expense |
|
6,207 |
|
|
6,017 |
|
|
5,924 |
|
|
6,187 |
|
|
6,187 |
|
|
Net
income before income taxes |
|
3,346 |
|
|
3,205 |
|
|
2,892 |
|
|
2,850 |
|
|
2,192 |
|
|
Provision
for income taxes |
|
1,139 |
|
|
883 |
|
|
962 |
|
|
946 |
|
|
683 |
|
|
Net
income |
$ |
2,207 |
|
$ |
2,322 |
|
$ |
1,930 |
|
$ |
1,904 |
|
$ |
1,509 |
|
|
|
|
|
|
|
|
|
Earnings
per common share - basic |
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.19 |
|
|
Earnings
per common share - diluted |
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.19 |
|
|
Dividends
paid per common share |
$ |
0.125 |
|
$ |
- |
|
$ |
0.12 |
|
$ |
- |
|
$ |
0.12 |
|
|
Return on
average common equity |
|
10.73 |
% |
|
11.07 |
% |
|
9.28 |
% |
|
9.48 |
% |
|
7.68 |
% |
|
Return on
average assets |
|
0.91 |
% |
|
0.95 |
% |
|
0.82 |
% |
|
0.85 |
% |
|
0.67 |
% |
|
Net
interest margin (1) |
|
3.69 |
% |
|
3.68 |
% |
|
3.73 |
% |
|
4.03 |
% |
|
3.76 |
% |
|
Efficiency ratio (2) |
|
63.84 |
% |
|
60.79 |
% |
|
62.08 |
% |
|
62.48 |
% |
|
67.46 |
% |
|
|
|
|
|
|
|
Capital -
Period End |
|
|
|
|
|
|
Book
value per common share |
$ |
10.40 |
|
$ |
10.19 |
|
$ |
10.24 |
|
$ |
10.14 |
|
$ |
9.76 |
|
|
|
|
|
|
|
|
Credit
Quality - Period End |
|
|
|
|
|
|
Nonperforming assets/ total assets |
|
0.38 |
% |
|
0.42 |
% |
|
0.43 |
% |
|
0.42 |
% |
|
0.97 |
% |
|
Loan loss
reserve/ gross loans |
|
1.28 |
% |
|
1.28 |
% |
|
1.29 |
% |
|
1.32 |
% |
|
1.33 |
% |
|
|
|
|
|
|
|
Period End
Balance Sheet |
|
|
|
|
|
($ in
thousands) |
|
|
|
|
|
|
Total
assets |
$ |
989,879 |
|
$ |
1,002,110 |
|
$ |
947,017 |
|
$ |
925,635 |
|
$ |
905,750 |
|
|
Gross
loans |
|
612,894 |
|
|
610,949 |
|
|
602,569 |
|
|
579,774 |
|
|
568,227 |
|
|
Nonperforming assets |
|
3,777 |
|
|
4,247 |
|
|
4,099 |
|
|
3,884 |
|
|
8,763 |
|
|
Allowance
for loan losses |
|
7,827 |
|
|
7,832 |
|
|
7,767 |
|
|
7,680 |
|
|
7,557 |
|
|
Deposits |
|
899,169 |
|
|
914,093 |
|
|
859,756 |
|
|
838,458 |
|
|
822,440 |
|
|
Common
equity |
|
84,061 |
|
|
82,450 |
|
|
82,858 |
|
|
81,993 |
|
|
78,960 |
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
Full-time
equivalent staff |
|
159 |
|
|
161 |
|
|
158 |
|
|
158 |
|
|
164 |
|
|
Number of
banking offices |
|
16 |
|
|
16 |
|
|
16 |
|
|
16 |
|
|
16 |
|
|
|
|
|
|
|
|
Common
Shares outstanding |
|
|
|
|
|
|
Period
end |
|
8,082,205 |
|
|
8,088,455 |
|
|
8,093,555 |
|
|
8,088,155 |
|
|
8,088,155 |
|
|
Period
average - basic |
|
8,041,829 |
|
|
8,032,380 |
|
|
8,030,782 |
|
|
8,028,332 |
|
|
8,008,602 |
|
|
Period
average - diluted |
|
8,071,768 |
|
|
8,066,575 |
|
|
8,063,381 |
|
|
8,060,464 |
|
|
8,051,776 |
|
|
|
|
|
|
|
|
Market
Ratios |
|
|
|
|
|
|
Stock
Price |
$ |
13.20 |
|
$ |
12.55 |
|
$ |
10.20 |
|
$ |
9.75 |
|
$ |
9.27 |
|
|
Price/Earnings |
|
11.86 |
|
|
10.94 |
|
|
10.70 |
|
|
10.25 |
|
|
12.27 |
|
|
Price/Book |
|
1.27 |
|
|
1.23 |
|
|
1.00 |
|
|
0.96 |
|
|
0.95 |
|
|
|
|
|
|
|
|
(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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