Oak Valley Community Bank Reports Record 1st Quarter

OAKDALE, CA -- (MARKET WIRE) -- April 17, 2007 --Oak Valley Community Bank, traded as (OTCBB: OVYB), announced its financial results for the three months ended March 31, 2007. The Bank posted the highest first quarter earnings in its 16 year history, exceeding $1.0 million, or $0.14 per diluted share compared to $839 thousand, or $0.11 per diluted share, for the same period in 2006. Total assets increased by $50 million, or 12.5% over March 31, 2006, to $453 million at the end of the first quarter. Net interest income increased by $434 thousand, or 10.4% over the same period last year, as loans grew by $51 million, or 15.0% since March 31, 2006. Non interest expense grew by $369 thousand, or 12.5%, compared to the same period in 2006, as a result of costs associated with new facilities and corresponding personnel.

"As we have grown the past year, we have experienced an increase in expenses and margin compression resulting in constant pressure on earnings. Despite that pressure, first quarter results are a promising indicator of the year to come. Never in our 16 year history have we posted one-million dollars in income during the first quarter," stated Ron Martin, CEO. "As our newest branches continue to expand and we remain focused on the growth of core deposits, we are optimistic that our aggregate results for the year will continue to exceed our budgeted goals," he concluded.

The first quarter also marked the bank's occupation of its new headquarters in the Historic Clocktower Building at the intersection of highways 120 and 108 in Oakdale. An extensive restoration process returned this circa 1909 landmark bank building to its original luster, underscoring the bank's commitment to a style of relationship banking from yesteryear. "It is rare for any organization to have such a strong structural depiction of what it stands for -- and this historic building represents, to our employees and customers, our commitment to a brand of old-fashioned service that is uncommon in the banking industry today," stated Chris Courtney, President.

"With a twelve month history of operation in most of our new locations, we are recognizing stabilization in our non interest expense. That combined with the sustained loan growth has enabled us to post solid first quarter earnings," stated Rick McCarty, CFO. "We look forward to further loan growth and diligent management of our net interest margin to assist us in continuing this trend."

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 conveniently located branches: Oakdale, Escalon, Sonora, Turlock, Stockton, Patterson, Ripon, two branches in Modesto, and three branches in their Eastern Sierra Division, which include Bridgeport, Mammoth Lakes and Bishop.

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
                     3/31/2007  12/31/2006  9/30/2006  6/30/2006  3/31/2006
Profitability
($ in thousands,
 except per share)
Selected Quarterly
 Operating Data:
   Net interest
    income           $   4,602  $   4,515  $   4,419  $   4,231  $   4,168
   Provision for
    loan losses            170         50        140        220        185
   Non-interest
    income                 540        541        432        412        340
   Non-interest
    expense              3,320      3,135      3,082      3,052      2,951
   Income before
    income taxes         1,652      1,871      1,629      1,372      1,371
   Provision for
    income taxes           650        717        632        532        532
   Net income            1,002      1,154        997        840        839
   Earnings per
    common share -
    basic (1)             0.14       0.16       0.14       0.12       0.12
   Earnings per
    common share -
    diluted (1)           0.14       0.16       0.14       0.11       0.11
   Dividends
    declared per
    common share (2)         -          -       0.19          -          -
   Return on average
    common equity        11.50%     13.48%     11.91%     10.31%     10.71%
   Return on average
    assets                0.92%      1.05%      0.93%      0.83%      0.88%
   Net interest
    margin (3)            4.49%      4.45%      4.47%      4.60%      4.70%
   Efficiency Ratio(3)   63.75%     61.23%     62.72%     64.83%     64.57%

Capital - Period End
   Tier 1 risk-based
    capital ratio         8.76%      8.42%      8.68%      9.15%      9.10%
   Book value per
    share (1)        $    5.01  $    4.85  $    4.66  $    4.65  $    4.51

Credit Quality -
 Period End
   Nonperforming
    assets/assets         0.00%      0.00%      0.01%      0.01%      0.00%
   Loan loss
    reserve/loans(4)      1.16%      1.15%      1.18%      1.22%      1.17%

Period End Balance
 Sheet
($ in thousands)
Total assets         $ 452,520  $ 455,431  $ 428,670  $ 409,103  $ 402,080
   Gross Loans         387,580    378,393    363,807    341,652    337,016
   Nonperforming
    assets                   -          -         22         25          -
   Allowance for
    credit losses(4)     4,480      4,341      4,296      4,157      3,938
   Deposits            352,086    378,530    371,950    365,003    353,376
   Common Equity        35,665     34,424     33,025     32,931     31,815
Non-Financial Data
   Full-time
    equivalent staff       115        112        110        108        108
   Number of banking
    offices,domestic        12         12         12         12         12
    and foreign
Common Shares
 outstanding
   Period end (1)    7,122,171  7,103,243  7,094,244  7,079,326  7,046,732
   Period average -
    basic (1)        7,108,923  7,095,114  7,090,707  7,059,219  7,004,325
   Period average -
    diluted (1)      7,293,827  7,358,875  7,375,174  7,357,295  7,349,790
Market Ratios
   Stock Price (1)   $   11.10  $   13.03  $   14.40  $   13.50  $   14.95
   Price/Earnings    $   19.43  $   20.18  $   25.81  $   28.30  $   30.76
   Price/Book        $    2.22  $    2.69  $    3.09  $    2.90  $    3.31


(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) Ratio computed on a fully tax equivalent basis using a marginal tax
    rate of 35%.
(4) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.

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

Oak Valley Community Bank Reports Record 1st Quarter Results