Oak Valley Bancorp Reports 1st Quarter Results

Marketwired

OAKDALE, CA--(Marketwired - Apr 17, 2013) - 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 March 31, 2013, consolidated net income was $1,300,000, while consolidated net income available to common shareholders was $1,232,000, or $0.16 per diluted common share. This compared to consolidated net income of $1,461,000 and net income available to common shareholders of $1,292,000, or $0.17 per diluted common share for the same period a year ago.

Total assets were $648.4 million at March 31, 2013, an increase of $54.9 million, or 9.3%, from March 31, 2012. Gross loans decreased by $2.6 million, to $390.0 million as of March 31, 2013, a decrease of 0.7% from March 31, 2012. The Bank's total deposits were $580.2 million as of March 31, 2013, an increase of $61.5 million, or 11.9% over March 31, 2012.

Net interest income for the three months ended March 31, 2013 was $5.8 million, decreasing by $415,000, or 6.6% from $6.3 million for the same period last year. The net interest margin for the three months ended March 31, 2013 was 4.05%, compared to 4.15% for the three months prior and 4.67% for the same period last year.

"Margin compression will continue to play a considerable role in banking sector profitability this year, however, we remain encouraged by signs of strengthening commercial loan demand," stated Ron Martin, CEO. "After experiencing early loan paydowns in January, commercial borrowing activity gained momentum and we replaced the majority of those loan balances by quarter-end," Martin concluded

Non-interest expense for the quarter ended March 31, 2013 totaled $4.6 million, essentially flat compared to the same period the previous year. While full time equivalent staffing rose to 134 from 126 for the same period a year ago, total non-interest expense remained stable as strong loan production led to an increase in deferred cost which helped offset salary expense.

The provision for loan losses during the three months ended March 31, 2013, was $100,000, compared to $300,000 during the same quarter of last year. The ratio of loan loss reserves to gross loans for the quarter was 1.99%, compared to 2.04% for the three months prior and 1.98% for the same period last year. As of March 31, 2013 non-performing assets were $6.4 million or 0.99% of total assets, compared to $6.7 million or 1.12% of total assets as of March 31, 2012.

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)                              
Selected Quarterly Operating Data:   1st Quarter
2013
    4th Quarter
2012
    3rd Quarter
2012
    2nd Quarter
2012
    1st Quarter
2012
 
                               
  Net interest income   $ 5,849     $ 6,115     $ 6,254     $ 6,212     $ 6,264  
  Provision for loan losses     100       250       300       300       300  
  Non-interest income     785       855       790       672       831  
  Non-interest expense     4,639       4,513       4,527       4,612       4,597  
  Income before income taxes     1,895       2,207       2,217       1,972       2,198  
  Provision for income taxes     595       718       738       620       737  
  Net income     1,300       1,489       1,479       1,352       1,461  
  Preferred stock dividends and accretion     (68 )     (84 )     (84 )     (114 )     (169 )
  Net income available to common shareholders   $ 1,232     $ 1,405     $ 1,395     $ 1,238     $ 1,292  
                                           
  Earnings per common share - basic   $ 0.16     $ 0.18     $ 0.18     $ 0.16     $ 0.17  
  Earnings per common share - diluted   $ 0.16     $ 0.18     $ 0.18     $ 0.16     $ 0.17  
  Dividends declared per common share     -       -       -       -       -  
  Return on average common equity     7.82 %     8.87 %     9.02 %     8.36 %     8.93 %
  Return on average assets     0.81 %     0.91 %     0.97 %     0.92 %     0.98 %
  Net interest margin (1)     4.05 %     4.15 %     4.57 %     4.73 %     4.67 %
  Efficiency ratio (1)     67.95 %     63.23 %     63.11 %     65.28 %     63.74 %
                                         
Capital - Period End                                        
  Book value per share   $ 8.10     $ 7.99     $ 7.85     $ 7.63     $ 7.37  
                                         
Credit Quality - Period End                                        
  Nonperforming assets/ total assets     0.99 %     1.05 %     1.05 %     1.20 %     1.12 %
  Loan loss reserve/ gross loans     1.99 %     2.04 %     2.05 %     2.05 %     1.98 %
                                         
Period End Balance Sheet                                        
($ in thousands)                                        
  Total assets   $ 648,418     $ 660,581     $ 627,817     $ 596,417     $ 593,513  
  Gross loans     389,992       390,986       388,714       390,515       392,584  
  Nonperforming assets     6,439       6,923       6,611       7,185       6,656  
  Allowance for loan losses     7,743       7,975       7,953       8,008       7,792  
  Deposits     580,215       586,993       553,333       526,407       518,727  
  Common equity     64,098       63,219       62,075       60,185       58,092  
  Total capital (2)     64,098       69,969       68,825       66,935       71,592  
                                         
Non-Financial Data                                        
  Full-time equivalent staff     134       130       123       125       126  
  Number of banking offices     14       14       14       14       14  
                                         
Common Shares outstanding                                        
  Period end     7,914,730       7,907,780       7,909,280       7,890,905       7,883,780  
  Period average - basic     7,778,333       7,762,261       7,750,727       7,728,024       7,722,609  
  Period average - diluted     7,830,439       7,793,523       7,778,146       7,750,952       7,743,941  
                                         
Market Ratios                                        
  Stock Price   $ 8.14     $ 7.45     $ 7.49     $ 6.96     $ 7.39  
  Price/Earnings     12.67       10.38       10.49       10.84       11.01  
  Price/Book     1.01       0.93       0.95       0.91       1.00  
                                           
(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 quarters ended June 30, September 30 and December 31, 2012, and $13.5 million for the quarter ended March 31, 2012. There was no preferred stock outstanding as of March 31, 2013.
     
     
     
Contact:

Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com
View Comments (0)