Oak Valley Community Bank Reports 2006 Results

OAKDALE, CA -- (MARKET WIRE) -- January 25, 2007 -- Oak Valley Community Bank, traded as (OTCBB: OVYB) on the bulletin board, reported financial results for the fiscal year ended December 31, 2006. Net income for 2006 decreased by 2.6% to $3,831,000, or $0.52 per diluted share, compared to $3,935,000, or $0.54 per diluted share for the same period in 2005. Conversely, net income for the fourth quarter of 2006 increased by 7.1% to $1,154,000, or $0.16 per share, compared to $1,078,000, or $0.15 per share, for the same period in 2005. With net income of $1,154,000, this quarter replaces the third quarter of 2005 as the highest quarterly net income posting in Bank history.

Total assets increased to $455.4 million at year end, a 19.2% increase over the year ended 2005. Gross loans increased by $60.3 million, to $378.4 million as of December 31, 2006, an increase of 19.0% over December 31, 2005. The Bank's total deposits were $378.5 million at year end 2006, which is an increase of $49.5 million, or 15.0% over December 31, 2005.

"In light of the expenses related to our growth in 2005 and 2006, we are pleased with the overall results of operation this year. Growth associated expenses, as expected, put downward pressure on earnings. Continued interest margin compression and an inverted yield curve throughout much of the year also contributed to our relatively flat net income figure. Nonetheless, we are gratified that a year which saw many competitors struggle to retain deposits and maintain asset levels, we have continued to grow the Bank," stated Ron Martin, CEO. "We are also pleased that as our newest branches now reach levels of independent profitability, as evidenced by our record fourth quarter performance, we are poised to improve earnings and realize the benefits of our expanded branch network in 2007," he concluded.

Established in 1991, Oak Valley Community Bank offers a variety of loan and deposit products dedicated to serving the needs of individuals and small businesses. The Bank currently operates through 12 convenient locations: 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. They are also nearing completion on the restoration of the Historic First National Bank building in Oakdale.

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)

                                   For the Three Months Ended
                    12/31/2006  9/30/2006  6/30/2006  3/31/2006  12/31/2005
Profitability
($ in thousands,
 except per share)
Selected Quarterly
 Operating Data:
  Net interest
   income            $   4,515  $   4,419  $   4,231  $   4,168  $   4,152
  Provision for
   loan losses              50        140        220        185        200
  Non-interest
   income                  541        432        412        340        353
  Non-interest
   expense               3,135      3,082      3,052      2,951      2,544
  Income before
   income taxes          1,871      1,629      1,372      1,371      1,762
  Provision for
   income taxes            717        632        532        532        684
  Net income             1,154        997        840        839      1,078
  Earnings per
   common share
   - basic (1)            0.16       0.14       0.12       0.12       0.15
  Earnings per
   common share
   - diluted (1)          0.16       0.14       0.11       0.11       0.15
  Dividends
   declared per
   common share (2)          -       0.19          -          -          -
  Return on average
   common equity         13.48%     11.91%     10.31%     10.71%     13.91%
  Return on average
   assets                 1.05%      0.93%      0.83%      0.88%      1.19%
  Net interest
   margin                 4.42%      4.44%      4.57%      4.67%      4.91%
  Efficiency Ratio       62.01%     63.52%     65.72%     65.47%     56.46%

Capital - Period End
  Tier 1 risk-based
   capital ratio          8.42%      8.68%      9.15%      9.10%      9.36%
  Book value per
   share (1)              4.85       4.66       4.65       4.51       4.44

Credit Quality -
 Period End
  Nonperforming
   assets/assets          0.00%      0.01%      0.01%      0.00%      0.00%
  Loan loss
   reserve/loans (3)      1.15%      1.18%      1.22%      1.17%      1.18%

Period End Balance
 Sheet ($ in
 thousands)
Total assets         $ 455,431  $ 428,670  $ 409,103  $ 402,080  $ 382,122
  Gross Loans          378,393    363,807    341,652    337,016    318,108
  Nonperforming
   assets                    -         22         25          -          -
  Allowance for
   credit losses (3)     4,341      4,296      4,157      3,938      3,757
  Deposits             378,530    371,950    365,003    353,376    329,080
  Common Equity         34,424     33,025     32,931     31,815     31,038
Non-Financial Data
  Full-time
   equivalent staff        112        110        108        108        101
  Number of banking
   offices, domestic
   and foreign              12         12         12         12         11
Common Shares
 outstanding
  Period end (1)     7,103,243  7,094,244  7,079,326  7,046,732  6,988,224
  Period average
   - basic (1)       7,095,114  7,090,707  7,059,219  7,004,325  6,987,549
  Period average
   - diluted (1)     7,358,875  7,375,174  7,357,295  7,349,790  7,361,137
Market Ratios
  Stock Price (1)        13.03      14.40      13.50      14.95      15.67
  Price/Earnings         20.18      25.81      28.30      30.76      25.60
  Price/Book              2.69       3.09       2.90       3.31       3.53




                                                         YEAR TO DATE
                                                    ----------------------
                                                    12/31/2006  12/31/2005
Profitability
($ in thousands, except per share)
Selected Quarterly Operating Data:
      Net interest income                           $   17,334  $   15,163
      Provision for loan losses                            595         705
      Non-interest income                                1,724       1,347
      Non-interest expense                              12,220       9,375
      Income before income taxes                         6,244       6,430
      Provision for income taxes                         2,413       2,495
      Net income                                         3,831       3,935
      Earnings per common share - basic (1)               0.54        0.57
      Earnings per common share - diluted (1)             0.52        0.54
      Dividends declared per common share (2)            0.190       0.250
      Return on average common equity                    11.64%      13.18%
      Return on average assets                            0.93%       1.16%
      Net interest margin                                 4.50%       4.78%
      Efficiency Ratio                                   64.12%      56.79%
Capital - Period End
      Tier 1 risk-based capital ratio                     8.42%       9.36%
      Book value per share (1)                            4.85        4.44

Credit Quality - Period End
      Nonperforming assets/assets                         0.00%       0.00%
      Loan loss reserve/loans (3)                         1.15%       1.18%

Period End Balance Sheet
($ in thousands)
Total assets                                        $  455,431  $  382,122
      Gross Loans                                      378,393     318,108
      Nonperforming assets                                   -           -
      Allowance for credit losses (3)                    4,341       3,757
      Deposits                                         378,530     329,080
      Common Equity                                     34,424      31,038
Non-Financial Data
      Full-time equivalent staff                           112         101
      Number of banking offices, domestic                   12          11
      and foreign
Common Shares outstanding
      Period end (1)                                 7,103,243   6,988,224
      Period average - basic (1)                     7,062,841   6,942,723
      Period average - diluted (1)                   7,334,603   7,316,311
Market Ratios
      Stock Price (1)                                    13.03       15.67
      Price/Earnings                                     24.02       27.65
      Price/Book                                          2.69        3.53


(1) Number of shares adjusted for January 3, 2006, three for two stock
    split.
(2) Dividend per share data does not reflect stock split.  Cash dividend
    of $1,345,072 paid in August 2006.
(3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.

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