Oak Valley Bancorp Reports 3rd Quarter Results

Marketwired

OAKDALE, CA--(Marketwired - Oct 22, 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 September 30, 2013, consolidated net income available to common shareholders was a record $1,505,000, or $0.19 per diluted common share. This compared to consolidated net income available to common shareholders of $1,395,000, or $0.18 per diluted common share for the same period a year ago.

Year-to-date results for the nine months ended September 30, 2013, include consolidated net income available to common shareholders of $4,111,000, representing a 4.7% increase over the $3,925,000 recorded during the same period last year. 

Total assets were $659.2 million at September 30, 2013, an increase of $31.4 million, or 5.0%, from September 30, 2012. Total deposits were $591.6 million as of September 30, 2013, an increase of $38.3 million, or 6.9% over September 30, 2012. Gross loans increased to $413.9 million at September 30, 2013, an increase of $25.1 million, or 6.5%, from September 30, 2012. 

"We've remained deliberately focused on building solid relationships, knowing our financial performance is driven by the strength of our customers and the depth of our relationships with them," stated Chris Courtney, President and CEO of the Company and the Bank. "We are extremely pleased to report another quarter of solid earnings. We've been cautiously anticipating a return of borrowing confidence from the local business community and we think we have seen a glimpse of that in recent months. We remain hopeful that the trend continues through the year and beyond."

Net interest income reflected a decrease of $224,000 or 3.6% to $6.0 million for the three months ended September 30, 2013, compared to $6.3 million for the same period last year. Loan and investment yields continue to be tempered by pressures on interest rates, but the growth in loan volume has helped mitigate the decrease in net interest income. The Company's net interest margin for the three months ended September 30, 2013 was 4.12%, compared 4.57% for the same period last year.

Non-interest expense for the quarter and nine month period ended September 30, 2013 totaled $4.6 million and $14.0 million, respectively, and $4.5 million and $13.7 million, respectively, for the comparable periods in 2012. The year-to-date increase corresponds primarily to growth in full time equivalent staff from 123 to 135. Data processing costs associated with increased deposit account activity have also been a factor.

Non-performing assets as of September 30, 2013 were $4.5 million, or 0.68% of total assets. This is down from $6.6 million, or 1.05% at September 30, 2012. The decrease reflects the continued management of the portfolio.

The provision for loan losses during the three months ended September 30, 2013, was $100,000, compared to $300,000 for the same period the previous year. The ratio of loan loss reserves to gross loans decreased to 1.85% at September 30, 2013, compared to 2.05% at September 30, 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)   3rd Quarter   2nd Quarter   1st Quarter   4th Quarter   3rd Quarter  
Selected Quarterly Operating Data:   2013   2013   2013   2012   2012  
                                 
  Net interest income   $ 6,030   $ 6,024   $ 5,849   $ 6,115   $ 6,254  
  Provision for loan losses     100     100     100     250     300  
  Non-interest income     866     818     785     855     790  
  Non-interest expense     4,619     4,734     4,639     4,513     4,527  
  Income before income taxes     2,177     2,008     1,895     2,207     2,217  
  Provision for income taxes     672     634     595     718     738  
  Net income     1,505     1,374     1,300     1,489     1,479  
  Preferred stock dividends and accretion     -     -     (68 )   (84 )   (84 )
  Net income available to common shareholders   $ 1,505   $ 1,374   $ 1,232   $ 1,405   $ 1,395  
                                 
  Earnings per common share - basic   $ 0.19   $ 0.18   $ 0.16   $ 0.18   $ 0.18  
  Earnings per common share - diluted   $ 0.19   $ 0.18   $ 0.16   $ 0.18   $ 0.18  
  Dividends declared per common share     -     -     -     -     -  
  Return on average common equity     9.45 %   8.48 %   7.82 %   8.87 %   9.02 %
  Return on average assets     0.92 %   0.86 %   0.81 %   0.91 %   0.97 %
  Net interest margin (1)     4.12 %   4.18 %   4.05 %   4.15 %   4.57 %
  Efficiency ratio (1)     64.65 %   67.17 %   67.95 %   63.23 %   63.11 %
                                 
Capital - Period End                                
  Book value per share   $ 7.99   $ 8.01   $ 8.10   $ 7.99   $ 7.85  
                                 
Credit Quality - Period End                                
  Nonperforming assets/ total assets     0.68 %   0.65 %   0.99 %   1.05 %   1.05 %
  Loan loss reserve/ gross loans     1.85 %   1.94 %   1.99 %   2.04 %   2.05 %
                                 
Period End Balance Sheet                                
($ in thousands)                                
  Total assets   $ 659,192   $ 644,230   $ 648,418   $ 660,581   $ 627,817  
  Gross loans     413,856     390,647     389,992     390,986     388,714  
  Nonperforming assets     4,495     4,189     6,439     6,923     6,611  
  Allowance for loan losses     7,669     7,570     7,743     7,975     7,953  
  Deposits     591,642     577,129     580,215     586,993     553,333  
  Common equity     63,379     63,457     64,098     63,219     62,075  
  Total capital (2)     63,379     63,457     64,098     69,969     68,825  
                                 
Non-Financial Data                                
  Full-time equivalent staff     135     134     134     130     123  
  Number of banking offices     14     14     14     14     14  
                                 
Common Shares outstanding                                
  Period end     7,929,730     7,924,730     7,914,730     7,907,780     7,909,280  
  Period average - basic     7,802,705     7,802,012     7,778,333     7,762,261     7,750,727  
  Period average - diluted     7,851,157     7,842,964     7,830,439     7,793,523     7,778,146  
                                 
Market Ratios                                
  Stock Price   $ 7.96   $ 7.67   $ 8.14   $ 7.45   $ 7.49  
  Price/Earnings     10.40     10.86     12.67     10.38     10.49  
  Price/Book     1.00     0.96     1.01     0.93     0.95  
                                 
                                 
                                 
    NINE MONTHS ENDED SEPTEMBER 30,              
    2013   2012              
                                 
($ in thousands, except per share)                                
Selected Quarterly Operating Data:                                
                                 
  Net interest income   $ 17,903   $ 18,730                    
  Provision for loan losses     300     900                    
  Non-interest income     2,469     2,293                    
  Non-interest expense     13,992     13,736                    
  Income before income taxes     6,080     6,387                    
  Provision for income taxes     1,901     2,095                    
  Net income     4,179     4,292                    
  Preferred stock dividends and accretion     (68 )   (367 )                  
  Net income available to common shareholders   $ 4,111   $ 3,925                    
                                 
  Earnings per common share - basic     0.53     0.51                    
  Earnings per common share - diluted     0.52     0.51                    
  Dividends declared per common share     -     -                    
  Return on average common equity     8.59 %   8.78 %                  
  Return on average assets     0.87 %   0.96 %                  
  Net interest margin (1)     4.11 %   4.66 %                  
  Efficiency ratio (1)     66.57 %   64.04 %                  
                                 
Capital - Period End                                
  Book value per share   $ 7.99   $ 7.85                    
                                 
Credit Quality - Period End                                
  Nonperforming assets/ total assets     0.68 %   1.05 %                  
  Loan loss reserve/ gross loans     1.85 %   2.05 %                  
                                 
Period End Balance Sheet                                
($ in thousands)                                
  Total assets   $ 659,192   $ 627,817                    
  Gross loans     413,856     388,714                    
  Nonperforming assets     4,495     6,611                    
  Allowance for loan losses     7,669     7,953                    
  Deposits     591,642     553,333                    
  Common equity     63,379     62,075                    
  Total capital (2)     63,379     68,825                    
                                 
Non-Financial Data                                
  Full-time equivalent staff     135     123                    
  Number of banking offices     14     14                    
                                 
Common Shares outstanding                                
  Period end     7,929,730     7,909,280                    
  Period average - basic     7,794,439     7,733,848                    
  Period average - diluted     7,841,596     7,757,754                    
                                 
Market Ratios                                
  Stock Price   $ 7.96   $ 7.49                    
  Price/Earnings     11.29     11.08                    
  Price/Book     1.00     0.95                    
                                 
(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 September 30 and December 31, 2012.  There was no preferred stock outstanding as of March 31, June 30, and September 30, 2013.                  
Contact:

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