Oak Valley Community Bank Reports 2nd Quarter Results

OAKDALE, CA--(Marketwire - July 18, 2007) - Oak Valley Community Bank, traded as (OTCBB: OVYB) on the bulletin board, reported net income of $1,003,000 or $0.14 per diluted share, for the second quarter ending June 30, 2007; a 19.5% increase in net income from the $840,000, for the same period last year. For the six month period ending June 30, 2007 net income was $2,005,000 compared to last year's $1,679,000; an increase of 19.4%. Total assets grew to over $441.3 million at June 30, 2007, an increase of $32.2 million, or 7.9%, over June 30, 2006. Gross loans increased by $35.0 million, to $376.7 million as of June 30, 2007, an increase of 10.2% over June 30, 2006. The Bank's total deposits were $364.2 million on June 30, 2007, which is a decrease of $0.8 million, or 0.2% below June 30, 2006.

"Second quarter marked another solid performance for Oak Valley Community Bank. Net income continues to increase as a result of our ongoing focus on relationship banking with strong year over year loan volume and a continually improving deposit mix. Competition for deposits while strong, has been offset to some degree by the bank's rebalancing its deposits to reward full deposit relationships and a reflection of our willingness to allow some higher cost transaction deposits to run-off," stated Ron Martin, CEO. "As we approach the remaining half of the year, we will stay true to our commitment to old-fashioned service and relationship banking which we know are vital to our long-term success," 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 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)

                        2nd        1st        4th        3rd        2nd
                      Quarter    Quarter    Quarter    Quarter    Quarter
                       2007       2007       2006       2006       2006
Profitability
($ in thousands,
 except per share)
Selected Quarterly
 Operating Data:
   Net interest
    income           $   4,653  $   4,602  $   4,515  $   4,419  $   4,231
   Provision for
    loan losses            120        170         50        140        220
   Non-interest
    income                 552        540        541        432        412
   Non-interest
    expense              3,452      3,320      3,135      3,082      3,052
   Income before
    income taxes         1,633      1,652      1,871      1,629      1,372
   Provision for
    income taxes           630        650        717        632        532
   Net income            1,003      1,002      1,154        997        840
   Earnings per
    common share
    - basic               0.14       0.14       0.16       0.14       0.12
   Earnings per
    common share
    - diluted             0.14       0.14       0.16       0.14       0.11
   Dividends
    declared per
    common share (1)         -          -          -       0.19          -
   Return on
    average common
    equity (5)           11.04%     11.50%     13.48%     11.91%     10.31%
   Return on
    average assets        0.90%      0.92%      1.05%      0.93%      0.83%
   Net interest
    margin (2)            4.47%      4.49%      4.45%      4.47%      4.60%
   Efficiency
    Ratio (2)            65.49%     63.75%     61.23%     62.72%     64.83%

Capital - Period End
   Tier 1 risk-based
    capital ratio (4)     9.62%      8.76%      8.42%      8.68%      9.15%
   Book value per
    share (5)        $    5.32  $    5.01  $    4.85  $    4.66  $    4.65

Credit Quality -
 Period End
   Nonperforming
    assets/assets         0.00%      0.00%      0.00%      0.01%      0.01%
   Loan loss
    reserve/loans (3)     1.22%      1.16%      1.15%      1.18%      1.22%

Period End Balance
 Sheet
($ in thousands)
Total assets         $ 441,334  $ 452,520  $ 455,431  $ 428,670  $ 409,103
   Gross Loans         376,671    387,580    378,393    363,807    341,652
   Nonperforming
    assets                   -          -          -         22         25
   Allowance for
    credit losses (3)    4,600      4,480      4,341      4,296      4,157
   Deposits            364,164    352,086    378,530    371,950    365,003
   Common Equity (5)    39,287     35,665     34,424     33,025     32,931
Non-Financial Data
   Full-time
    equivalent
    staff                  120        115        112        110        108
   Number of
    banking offices,
    domestic and
    foreign                 12         12         12         12         12
Common Shares
 outstanding
   Period end (5)    7,379,613  7,122,171  7,103,243  7,094,244  7,079,326
   Period average
    - basic (5)      7,167,879  7,108,923  7,095,114  7,090,707  7,059,219
   Period average
    - diluted (5)    7,341,990  7,293,827  7,358,875  7,375,174  7,357,295
Market Ratios
   Stock Price       $   10.95  $   11.10  $   13.03  $   14.40  $   13.50
   Price/Earnings    $   19.50  $   19.43  $   20.18  $   25.81  $   28.30
   Price/Book (5)    $    2.06  $    2.22  $    2.69  $    3.09  $    2.90



Profitability                                           YEAR TO DATE
                                                  ------------------------
($ in thousands, except per share)                 6/30/2007    6/30/2006
Selected Quarterly Operating Data:
      Net interest income                         $     9,254  $     8,400
      Provision for loan losses                           290          405
      Non-interest income                               1,092          751
      Non-interest expense                              6,772        6,003
      Income before income taxes                        3,285        2,743
      Provision for income taxes                        1,280        1,064
      Net income                                        2,005        1,679
      Earnings per common share - basic                  0.28         0.24
      Earnings per common share - diluted                0.27         0.23
      Dividends declared per common share (1)               -            -
      Return on average common equity (5)               11.27%       10.51%
      Return on average assets                           0.91%        0.85%
      Net interest margin (2)                            4.48%        4.57%
      Efficiency Ratio (2)                              64.62%       65.60%
Capital - Period End
      Tier 1 risk-based capital ratio (4)                9.62%        9.22%
      Book value per share (5)                    $      5.32  $      4.65

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

Period End Balance Sheet
($ in thousands)
Total assets                                      $   441,334  $   409,103
      Gross Loans                                     376,671      341,652
      Nonperforming assets                                  -           25
      Allowance for credit losses (3)                   4,600        4,157
      Deposits                                        364,164      365,003
      Common Equity (5)                                39,287       32,931
Non-Financial Data
      Full-time equivalent staff                          120          108
      Number of banking offices, domestic
       and foreign                                         12           12
Common Shares outstanding
      Period end (5)                                7,379,613    7,079,326
      Period average - basic (5)                    7,138,564    7,031,772
      Period average - diluted (5)                  7,317,633    7,329,848
Market Ratios
      Stock Price                                       10.95        13.50
      Price/Earnings                                    19.33        28.04
      Price/Book (5)                                     2.06         2.90


      (1) Dividend per share data does not reflect stock split.  Cash
          dividend of $1,345,072 paid in August 2006.
      (2) Ratio computed on a fully tax equivalent basis using a marginal
          tax rate of 35%.
      (3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
      (4) 2nd Quarter 2007 is estimated.
      (5) Includes 256,142 shares issued on June 15, 2007 for the Rights
          Subscription stock offering, totaling $2,817,562 in additional
          capital.

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