Oak Valley Bancorp Reports 1st Quarter Results

Marketwired

OAKDALE, CA--(Marketwire -04/20/12)- Oak Valley Bancorp (NASDAQ: OVLY - News), 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, 2012, consolidated net income was $1,461,000, while consolidated net income available to common shareholders was $1,292,000, or $0.17 per diluted common share. This compared favorably to net income available to common shareholders of $955,000, or $0.12 per diluted common share for the same period a year ago.

Net interest income remained stable, increasing modestly by $58,000, or 0.9% to $6.3 million for the three months ended March 31, 2012, compared to $6.2 million for the same period last year. The net interest margin for the three months ended March 31, 2012 was 4.67%, compared to 4.70% for the three months prior and 4.92% for the same period last year.

"We are pleased with the results of our first quarter performance, which saw the Company post its strongest first quarter earnings on record. Our ongoing efforts to increase core deposits and broaden banking relationships particularly within the business community have been crucial components of our success," stated Ron Martin, CEO.

Non interest expense for the quarter ended March 31, 2012 totaled $4.6 million, a slight increase over the $4.5 million for the three months ended March 31, 2011. The year over year increase is primarily related to staffing and overhead costs associated with the addition of our two newest branches in 2011.

The provision for loan losses during the three months ended March 31, 2012, was $300,000, compared to $600,000 million during the same quarter of last year. During the last 12 months, the ratio of loan loss reserves to gross loans has decreased from 2.22% to 1.98%. This decrease corresponds to the aggressive recognition and action relating to non-performing loans, as evidenced by a solid reduction in non-performing assets. As of March 31, 2012, non-performing assets to total assets were 1.12%, or $6.7 million, down from 2.02%, or $11.4 million, for the same period a year ago.

Total assets were $593.5 million at March 31, 2012, an increase of $30.7 million, or 5.5%, from March 31, 2011. Gross loans decreased by $2.7 million, to $392.6 million as of March 31, 2012, a decrease of 0.7% from March 31, 2011. The Bank's total deposits were $518.7 million as of March 31, 2012, an increase of $33.1 million, or 6.8% over March 31, 2011.

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
                     Statement of Condition (unaudited)

($ in thousands,
 except per          1st         4th         3rd         2nd         1st
 share)            Quarter     Quarter     Quarter     Quarter     Quarter
Selected
 Quarterly
 Operating Data:    2012        2011        2011        2011        2011

  Net interest
   income        $    6,264  $    6,335  $    6,339  $    6,300  $    6,206
  Provision for
   loan losses          300         300         300         300         600
  Non-interest
   income               831         636         764         680         671
  Non-interest
   expense            4,597       4,259       4,208       4,401       4,526
  Income before
   income taxes       2,198       2,412       2,595       2,279       1,751
  Provision for
   income taxes         737         915         846         829         586
                 ----------  ----------  ----------  ----------  ----------
  Net income          1,461       1,497       1,749       1,450       1,165
  Preferred
   stock
   dividends and
   accretion           (169)       (168)       (572)       (211)       (210)
                 ----------  ----------  ----------  ----------  ----------
  Net income
   available to
   common
   shareholders       1,292       1,329       1,177       1,239         955
                 ==========  ==========  ==========  ==========  ==========

  Earnings per
   common share
   - basic             0.17        0.17        0.15        0.16        0.12
  Earnings per
   common share
   - diluted           0.17        0.17        0.15        0.16        0.12
  Dividends
   declared per
   common share           -           -           -           -           -
  Return on
   average
   common equity       8.94%       9.34%       8.44%       9.33%       7.48%
  Return on
   average
   assets              0.98%       1.00%       1.21%       1.03%       0.85%
  Net interest
   margin (1)          4.67%       4.70%       4.85%       4.86%       4.92%
  Efficiency
   Ratio (1)          63.74%      60.06%      58.27%      61.79%      65.09%

Capital - Period
 End
  Book value per
   share         $     7.37  $     7.37  $     7.26  $     7.02  $     6.78

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets              1.12%       1.22%       1.50%       1.62%       2.02%
  Loan loss
   reserve/
   gross loans         1.98%       2.17%       2.26%       2.20%       2.22%

Period End
 Balance Sheet
($ in thousands)
  Total assets   $  593,513  $  612,172  $  583,955  $  572,262  $  562,769
  Gross Loans       392,584     396,202     391,379     390,521     395,243
  Nonperforming
   assets             6,656       7,477       8,748       9,245      11,386
  Allowance for
   loan losses        7,792       8,609       8,857       8,591       8,765
  Deposits          518,727     536,204     505,505     496,212     485,641
  Common Equity      58,092      56,902      56,064      54,134      52,279
  Total Capital
   (2)               71,592      70,402      69,564      67,634      65,779

Non-Financial
 Data
  Full-time
   equivalent
   staff                126         128         127         130         125
  Number of
   banking
   offices               14          14          14          13          12

Common Shares
 outstanding
  Period end      7,883,780   7,718,469   7,718,469   7,713,794   7,713,794
  Period average
   - basic        7,722,609   7,705,164   7,705,164   7,713,794   7,711,401
  Period average
   - diluted      7,743,941   7,737,248   7,731,463   7,745,193   7,742,230

Market Ratios
  Stock Price    $     7.39  $     6.75  $     4.05  $     5.85  $     5.99
  Price/Earnings      11.01        9.87        6.68        9.08       11.93
  Price/Book           1.00        0.92        0.56        0.83        0.88


(1) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%.
(2) Includes $13.5 million in preferred stock issued to the U.S. Treasury
under the SBLF Program.
    Prior to 9/30/2011, it was issued under the TARP Capital Purchase
    Program.
Contact:

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

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