OAKDALE, CA--(Marketwire - April 22, 2010) - Oak Valley Bancorp (
NASDAQ:
OVLY), the bank
holding company for Oak Valley Community Bank and Eastern Sierra Community
Bank, recently reported financial results. For the three months ended
March 31, 2010, net income was $948,000, while net income available to
common shareholders was $737,000, or $0.10 per diluted common share. This
compared to net income available to common shareholders of $220,000, or
$0.03 per diluted common share for the same period a year ago.
Increased net interest income and net interest margin expansion continues
to support the Bank's earnings growth. Net interest income grew by
$404,000, or 7.1%, to $6.1 million compared to $5.7 million for the same
period last year. Net interest margin during the same periods were 5.22%
and 4.86%, respectively.
Non interest expense for the quarter totaled $4.4 million, a decrease from
$4.7 million for the three months ended December 31, 2009, but an increase
from $3.9 million during the same period a year ago. Write downs and
expenses associated with Other Real Estate Owned (OREO) represented the
majority of the year-over-year increase. The provision for loan losses
during the three months ended March 31, 2010, was $1.0 million, compared to
$900,000 in the prior quarter, and $1.9 million in the same quarter of last
year.
Management continues to actively write-down non-performing assets to
reflect current values. First quarter non-performing assets to total assets
are 2.85%, or $14.9 million, up from 2.66%, or $13.9 million for the same
period a year ago, but down from the 3.16%, or $16.6 million for the three
months ended December 31, 2009. As of March 31, 2010, nine loan
relationships were on non-accrual status totaling $12.3 million. OREO held
as of March 31, 2010 totaled $2.5 million and consists of eight properties.
Total assets were $520.3 million at March 31, 2010, a decrease of $3.5
million, or 0.7%, from March 31, 2009. Gross loans decreased by $19.4
million, to $411.0 million as of March 31, 2010, a decrease of 4.5% from
March 31, 2009. The Bank's total deposits were $431.6 million as of March
31, 2010, an increase of $21.5 million, or 5.3% over March 31, 2009.
"Despite the recession and sluggish economy, our ongoing focus on
attracting new business and core deposit accounts has served us well with
respect to growing our customer base and expanding our net interest
margin," commented Ron Martin, CEO. "Although balance sheet growth has
been repressed due to limited loan demand, we have continued to progress in
our ability to develop primary banking relationships with the business
community and broaden the relationships we have with existing retail and
commercial banking clients," Martin concluded.
Oak Valley Bancorp operates Oak Valley and Eastern Sierra Community Bank,
through which it offers a variety of loan and deposit products to
individuals and small businesses. The Company currently operates through 12
conveniently located branches: Oakdale, Sonora, Turlock, Stockton,
Patterson, Ripon, Escalon, two 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 us online at
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 Community Bank
Statement of Condition (unaudited)
($ in thousands, 1st 4th 3rd 2nd 1st
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly
Operating Data: 2010 2009 2009 2009 2009
Net interest
income $ 6,060 $ 6,079 $ 6,020 $ 5,887 $ 5,656
Provision for
loan losses 1,005 900 925 2,137 1,900
Non-interest
income 647 618 778 647 598
Non-interest
expense 4,445 4,749 4,745 4,787 3,938
Income before
income taxes 1,257 1,048 1,128 (389) 416
Provision for
income taxes 309 313 249 (344) (14)
--------- --------- --------- --------- ---------
Net income 948 735 879 (45) 430
Preferred stock
dividends and
accretion (211) (210) (210) (210) (210)
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 737 525 669 (255) 220
========= ========= ========= ========= =========
Earnings per
common share -
basic 0.10 0.07 0.09 (0.03) 0.03
Earnings per
common share -
diluted 0.10 0.07 0.09 (0.03) 0.03
Dividends declared
per common share (1) - - - - 0.025
Return on average
common equity 6.22% 4.41% 5.73% -2.23% 1.97%
Return on average
assets 0.75% 0.56% 0.67% -0.03% 0.34%
Net interest
margin (2) 5.22% 5.10% 5.06% 4.96% 4.86%
Efficiency Ratio (2) 65.59% 69.52% 68.77% 71.59% 61.97%
Capital - Period End
Book value per
share $ 6.24 $ 6.14 $ 6.06 $ 5.89 $ 5.91
Credit Quality -
Period End
Nonperforming
assets/ total
assets 2.85% 3.16% 2.09% 1.94% 2.66%
Loan loss reserve/
gross loans (3) 1.65% 1.65% 1.50% 1.34% 1.53%
Period End Balance
Sheet
($ in thousands)
Total assets $ 520,275 $ 524,722 $ 521,179 $ 525,606 $ 523,747
Gross Loans 411,013 425,627 425,374 424,390 430,416
Nonperforming
assets 14,854 16,568 10,904 10,177 13,906
Allowance for
credit losses (3) 6,762 7,020 6,396 5,701 6,603
Deposits 431,624 429,210 431,533 419,941 410,089
Common Equity 47,904 47,192 46,563 45,130 45,286
Total Capital (4) 61,404 60,692 60,063 58,630 58,786
Non-Financial Data
Full-time
equivalent staff 118 117 120 111 117
Number of banking
offices, domestic
and foreign 12 12 12 12 12
Common Shares
outstanding
Period end 7,681,877 7,681,877 7,681,877 7,661,627 7,661,627
Period average -
basic 7,681,877 7,681,877 7,668,891 7,661,627 7,661,627
Period average -
diluted 7,705,488 7,709,076 7,694,058 7,686,800 7,703,892
Market Ratios
Stock Price $ 4.10 $ 4.41 $ 4.30 $ 4.25 $ 3.75
Price/Earnings 10.54 16.27 12.43 N/A 32.22
Price/Book 0.66 0.72 0.71 0.72 0.63
(1) Common shareholder cash dividend of $191,542 was paid in the first
quarter of 2009.
(2) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%.
(3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
(4) Includes $13.5 million in preferred stock issued to the U.S. Treasury
under the TARP Capital Purchase Program.
Contact Information: Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com