Oak Valley Bancorp (OVLY) Reports Q3 2023 Earnings: Net Income of $7.35 Million
Oak Valley Bancorp (NASDAQ:OVLY) reported a Q3 2023 net income of $7.35 million, down from $8.40 million in Q2 2023 but up from $6.80 million in Q3 2022.
The bank's net interest income for Q3 2023 was $18.94 million, compared to $19.41 million in Q2 2023 and $16.77 million in Q3 2022.
Total assets stood at $1.84 billion as of September 30, 2023, a decrease from the previous quarter and year.
Non-performing assets remained at zero, reflecting the bank's stable credit quality.
On October 20, 2023, Oak Valley Bancorp (NASDAQ:OVLY) released its Q3 2023 earnings report. The bank reported a consolidated net income of $7.35 million, or $0.89 per diluted share (EPS), compared to $8.40 million, or $1.02 EPS, for the prior quarter and $6.80 million, or $0.83 EPS, for the same period a year ago. The decrease in net income compared to the prior quarter was primarily due to an increase in deposit interest expense, a credit loss provision, and an increase in non-interest expense.
Financial Performance
Net interest income for the three months ended September 30, 2023, was $18.94 million, compared to $19.41 million in the prior quarter, and $16.77 million in the same period a year ago. The bank's net interest margin for Q3 2023 was 4.34%, compared to 4.45% for the prior quarter and 3.61% for the same period last year.
Non-interest income was $1.57 million for the quarter ended September 30, 2023, compared to $1.66 million for the prior quarter and $1.61 million for the same period last year. Non-interest expense totaled $10.58 million for Q3 2023, compared to $10.06 million in the prior quarter and $9.37 million in the same quarter a year ago.
Balance Sheet and Capital Position
As of September 30, 2023, total assets were $1.84 billion, a decrease of $26.3 million and $127.1 million over June 30, 2023, and September 30, 2022, respectively. Gross loans were $971.2 million at September 30, 2023, an increase of $20.8 million over June 30, 2023, and $59.0 million over September 30, 2022. The bank's total deposits were $1.67 billion as of September 30, 2023, a decrease of $15.8 million and $164.3 million from June 30, 2023, and September 30, 2022, respectively.
Management Commentary
We are pleased to report another solid quarter of financial results. We are understandably excited that our relationship teams continue to drive year-over-year loan growth, particularly in the current rate environment, stated Chris Courtney, CEO. While we have expanded our branch network and lending footprint in the Sacramento region, to capitalize on these opportunities, we remain committed to attracting banking professionals who align with our commitment to cultivating lifelong relationships with clients by treating them right and helping their businesses excel, Courtney concluded.
Credit Quality
Non-performing assets (NPA) remained at zero as of September 30, 2023, as they were for all of 2023 and 2022. The allowance for credit losses (ACL) as a percentage of gross loans increased to 1.00% at September 30, 2023, compared to 0.99% at June 30, 2023, and 1.21% at September 30, 2022.
This article first appeared on GuruFocus.
