OAKDALE, CA--(Marketwire - Apr 21, 2011) - 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, 2011, consolidated net income was $1,165,000, while consolidated net income available to common shareholders was $955,000, or $0.12 per diluted common share. This compared favorably to net income available to common shareholders of $737,000, or $0.10 per diluted common share for the same period a year ago.
Net interest income remained solid to support the Bank's earnings growth, increasing by $145,000, or 2.4% to $6.2 million for the three months ended March 31, 2011, compared to $6.1 million for the same period last year. This increase is primarily attributable to the growth in average earning assets of $39.5 million in the first quarter of 2011, compared to the same period in 2010. The net interest margin for the three months ended March 31, 2011 was 4.92%, compared to 5.01% for the three months prior and 5.22% for the same period last year.
"We have consistently progressed in our ability to attract and broaden banking relationships with the local consumer and business communities. The corresponding increase in core deposits has led to a continued reduction in the Bank's cost of funds and increased balance sheet liquidity. The key to margin expansion will be in the deployment of those resources as the economy recovers and loan demand returns," stated Chris Courtney, President.
Non interest expense for the quarter ended March 31, 2011 totaled $4.5 million, a slight increase over the $4.4 million for the three months ended March 31, 2010. Write downs associated with Other Real Estate Owned (OREO) represented $219,000, leaving only $559,000 in OREO carrying balances outstanding. The provision for loan losses during the three months ended March 31, 2011, was $600,000, compared to $1.0 million during the same quarter of last year. However, in the last 12 months the ratio of loan loss reserves to gross loans has been increased from 1.65% to 2.22%.
Management continues to actively write-down non-performing assets to reflect current values. As of March 31, 2011, non-performing assets to total assets are 2.02%, or $11.4 million, down from 2.85%, or $14.9 million for the same period a year ago, and also down from the 2.22%, or $12.3 million at December 31, 2010. As of March 31, 2011, eight loan relationships were on non-accrual status totaling $10.7 million. As previously mentioned, OREO held as of March 31, 2011 totaled $559,000 and consisted of 3 properties.
Total assets were $562.8 million at March 31, 2011, an increase of $42.5 million, or 8.2%, from March 31, 2010. Gross loans decreased by $15.8 million, to $395.2 million as of March 31, 2011, a decrease of 3.8% from March 31, 2010. The Bank's total deposits were $485.6 million as of March 31, 2011, an increase of $54.0 million, or 12.5% over March 31, 2010.
"We are pleased with our overall performance. Our net interest margin remains strong, non-performing assets continue to decline and our customer base continues to grow. The Bank's strong foundation has allowed us to explore expansion opportunities and maintain a high level of support to the communities we serve," stated Ron Martin, CEO.
Earlier this year, Oak Valley Community Bank announced plans to open new branches in Modesto and Manteca. The Bank currently operates through 12 branches in 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 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,
except per share) 1st 4th 3rd 2nd 1st
Selected Quarterly Quarter Quarter Quarter Quarter Quarter
Operating Data: 2011 2010 2010 2010 2010
Net interest
income $ 6,206 $ 6,343 $ 6,359 $ 6,244 $ 6,060
Provision for loan
losses 600 1,005 1,005 1,005 1,005
Non-interest
income 671 715 676 732 647
Non-interest
expense 4,526 3,826 4,188 4,316 4,445
Income before
income taxes 1,751 2,227 1,842 1,655 1,257
Provision for
income taxes 586 727 701 616 309
--------- --------- --------- --------- ---------
Net income 1,165 1,500 1,141 1,039 948
Preferred stock
dividends and
accretion (210) (210) (210) (211) (211)
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 955 1,290 931 828 737
========= ========= ========= ========= =========
Earnings per
common share -
basic 0.12 0.17 0.12 0.11 0.10
Earnings per
common share -
diluted 0.12 0.17 0.12 0.11 0.10
Dividends declared
per common share - - - - -
Return on average
common equity 7.48% 9.99% 7.38% 6.84% 6.22%
Return on average
assets 0.85% 1.09% 0.86% 0.81% 0.75%
Net interest
margin (1) 4.92% 5.01% 5.23% 5.36% 5.22%
Efficiency Ratio (1) 65.10% 53.03% 58.99% 61.21% 65.59%
Capital - Period End
Book value per
share $ 6.78 $ 6.64 $ 6.57 $ 6.38 $ 6.24
Credit Quality -
Period End
Nonperforming
assets/ total
assets 2.02% 2.22% 2.00% 2.29% 2.85%
Loan loss reserve/
gross loans 2.22% 2.04% 1.88% 1.85% 1.65%
Period End Balance
Sheet
($ in thousands)
Total assets $ 562,769 $ 552,396 $ 534,879 $ 519,203 $ 520,275
Gross Loans 395,243 404,194 408,971 411,067 411,013
Nonperforming
assets 11,386 12,253 10,690 11,882 14,854
Allowance for
credit losses 8,765 8,255 7,700 7,614 6,762
Deposits 485,641 476,739 448,904 435,756 431,624
Common Equity 52,279 51,158 50,605 48,984 47,904
Total Capital (2) 65,779 64,658 64,105 62,484 61,404
Non-Financial Data
Full-time
equivalent staff 125 120 115 117 118
Number of banking
offices 12 12 12 12 12
Common Shares
outstanding
Period end 7,713,794 7,702,127 7,702,127 7,681,877 7,681,877
Period average -
basic 7,711,401 7,702,127 7,692,900 7,681,877 7,681,877
Period average -
diluted 7,742,230 7,719,157 7,729,175 7,720,440 7,705,488
Market Ratios
Stock Price $ 5.99 $ 5.90 $ 5.40 $ 5.25 $ 4.10
Price/Earnings 11.93 8.88 11.25 12.14 10.54
Price/Book 0.88 0.89 0.82 0.82 0.66
(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 TARP Capital Purchase Program.
Contact Information: Contact: Ron Martin/Chris Courtney/Rick McCarty Phone: (209) 848-2265 www.ovcb.com