OAKDALE, CA--(Marketwire - August 4, 2009) - 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 June
30, 2009, the Bank reported a net loss of $45,000. After adjustment for
preferred stock dividends and accretion this represents a net loss of
$257,000 available to common shareholders, compared to income of $553,000,
or $0.07 per diluted common share, for the three months ended June 30,
2008. Year-to-date results for the six months ended June 30, 2009, include
net income of $385,000 and net income available to common shareholders
representing a loss of $37,000.
Provisioning for loan losses of $2.1 million and OREO write downs of
$846,000 for the three-months ended June 30, 2009 led to the decrease in
net income. Another expense contributing to the erosion of net income in
the second quarter was the FDIC imposed, one-time, special insurance
assessment for all financial institutions and represented $234,000 for the
Bank.
"While we are of course disappointed to post a net loss for the quarter,
core earnings are stronger than ever and the bank is well positioned for
economic recovery," stated Ron Martin, CEO. "Aggressive credit management
and early problem loan recognition continues to be a priority for the
Bank's management team. All OREO property is written down appropriately
and all non-accrual loans are adequately reserved in light of current
market values. The Bank's non-performing assets to total assets remain
below local and national peer groups," added Chris Courtney, President.
Total charge-offs and write-downs to OREO for the quarter were just over
$3.9 million. The result is a decrease in non-performing assets of $3.73
million to $10.2 million, or 1.94% of total assets at June 30, 2009, from
$13.9 million, or 2.66% of total assets at March 31, 2009.
Increased net interest income corresponding to growth and an expanding net
interest margin continues to support the Bank's financial position. Net
interest income as of June 30, 2009 was $11.5 million, a $1.6 million
increase over the $9.9 million in the same period the previous year; net
interest margin during the same periods were 4.92% and 4.68%, respectively.
Growth accounted for $1.1 million of the realized interest income gains,
while margin expansion accounted for $500,000. The Bank has also focused on
non-interest expense, driving costs associated with employment and benefits
down by $968,000 for the six months ended June 30, 2009, compared to the
same period in 2008.
Total assets grew to $525.6 million at June 30, 2009, an increase of $49.5
million, or 10.4%, over June 30, 2008. Gross loans increased by $23.9
million, to $424.4 million as of June 30, 2009, an increase of 6.0% over
June 30, 2008. The Bank's total deposits also increased to $419.9 million
on June 30, 2009, which was $61.8 million, or 17.2% over June 30, 2008.
The bank's risk based capital position remains strong at 13.2%, compared to
regulatory guidelines of 10% for well capitalized banks.
Oak Valley Bancorp operates Oak Valley and Eastern Sierra Community Bank,
through which it offers a variety of loan and deposit products to
individuals and small businesses. The Company currently operates through 12
conveniently located branches: Oakdale, Sonora, Turlock, Stockton,
Patterson, Ripon, Escalon, two branches in Modesto, and three branches in
their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes and
Bishop.
For more information call 1-866-844-7500 or visit us online at
www.ovcb.com.
This press release includes forward-looking statements about the
corporation for which the corporation claims the protection of safe harbor
provisions contained in the Private Securities Litigation Reform Act of
1995.
Forward-looking statements are based on management's knowledge and belief
as of today and include information concerning the corporation's possible
or assumed future financial condition, and its results of operations and
business. Forward-looking statements are subject to risks and
uncertainties. A number of important factors could cause actual results to
differ materially from those in the forward-looking statements. Those
factors include fluctuations in interest rates, government policies and
regulations (including monetary and fiscal policies), legislation, economic
conditions, including increased energy costs in California, credit quality
of borrowers, operational factors and competition in the geographic and
business areas in which the company conducts its operations. All
forward-looking statements included in this press release are based on
information available at the time of the release, and the Company assumes
no obligation to update any forward-looking statement.
Oak Valley Community Bank
Statement of Condition (unaudited)
($ in thousands, 2nd 1st 4th 3rd 2nd
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly
Operating Data: 2009 2009 2008 2008 2008
--------- --------- --------- --------- ---------
Net interest
income $ 5,887 $ 5,656 $ 5,333 $ 5,292 $ 5,081
Provision for
loan losses 2,137 1,900 1,001 602 440
Non-interest
income 647 598 602 634 672
Non-interest
expense 4,787 3,938 4,712 4,535 4,562
Income before
income taxes (389) 416 222 789 751
Provision for
income taxes (344) (14) (61) 240 198
--------- --------- --------- --------- ---------
Net income (45) 430 283 549 553
Preferred stock
dividends and
accretion (212) (210) (64) - -
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders (257) 220 219 549 553
========= ========= ========= ========= =========
Earnings per
common share -
basic (0.03) 0.03 0.03 0.07 0.07
Earnings per
common share -
diluted (0.03) 0.03 0.03 0.07 0.07
Dividends
declared per
common share (1) - 0.025 0.025 0.050 -
Return on average
common equity -2.24% 1.97% 1.95% 4.91% 5.01%
Return on average
assets -0.03% 0.34% 0.23% 0.45% 0.47%
Net interest
margin (2) 4.97% 4.87% 4.72% 4.76% 4.77%
Efficiency Ratio
(2) 71.46% 61.80% 78.30% 76.03% 78.04%
Capital - Period End
Book value per
share $ 5.89 $ 5.91 $ 5.81 $ 5.77 $ 5.71
Credit Quality -
Period End
Nonperforming
assets/assets 1.94% 2.66% 1.47% 1.33% 1.35%
Loan loss
reserve/loans
(3) 1.34% 1.53% 1.30% 1.12% 1.08%
Period End Balance
Sheet
($ in thousands)
Total assets $ 525,606 $ 523,747 $ 508,203 $ 490,111 $ 476,094
Gross Loans 424,390 430,416 428,177 416,664 400,537
Nonperforming
assets 10,177 13,906 7,467 6,538 6,435
Allowance for
credit losses
(3) 5,701 6,603 5,569 4,650 4,321
Deposits 419,941 410,089 378,248 365,230 358,159
Common Equity 45,130 45,286 44,486 44,151 43,735
Non-Financial Data
Full-time
equivalent staff 111 117 117 119 128
Number of banking
offices,
domestic
and foreign 12 12 12 12 12
Common Shares
outstanding
Period end 7,661,627 7,661,627 7,661,627 7,658,252 7,658,252
Period average -
basic 7,661,627 7,661,627 7,660,526 7,658,252 7,641,534
Period average -
diluted 7,686,800 7,703,892 7,723,711 7,743,091 7,697,681
Market Ratios
Stock Price $ 4.25 $ 3.75 $ 6.00 $ 6.30 $ 7.00
Price/Earnings N/A 32.22 52.82 22.14 24.12
Price/Book 0.72 0.63 1.03 1.09 1.23
SIX MONTHS ENDED
----------------------
JUNE 30, JUNE 30,
($ in thousands, except per share) 2009 2008
---------- ----------
Net interest income $ 11,543 $ 9,890
Provision for loan losses 4,037 585
Non-interest income 1,246 1,306
Non-interest expense 8,725 8,639
Income before income taxes 27 1,972
Provision for income taxes (358) 643
---------- ----------
Net income 385 1,329
Preferred stock dividends and accretion (423) -
---------- ----------
Net income available to common shareholders (37) 1,329
========== ==========
Earnings per common share - basic (0.00) 0.17
Earnings per common share - diluted (0.00) 0.17
Dividends declared per common share (1) 0.025 -
Return on average common equity -0.17% 6.09%
Return on average assets 0.15% 0.58%
Net interest margin (2) 4.92% 4.68%
Efficiency Ratio (2) 66.74% 75.95%
Capital - Period End
Book value per share $ 5.89 $ 5.71
Credit Quality - Period End
Nonperforming assets/assets 1.94% 1.35%
Loan loss reserve/loans (3) 1.34% 1.08%
Period End Balance Sheet
($ in thousands)
Total assets $ 525,606 $ 476,094
Gross Loans 424,390 400,537
Nonperforming assets 10,177 6,435
Allowance for credit losses (3) 5,701 4,321
Deposits 419,941 358,159
Common Equity 45,130 43,735
Non-Financial Data
Full-time equivalent staff 111 128
Number of banking offices, domestic
and foreign 12 12
Common Shares outstanding
Period end 7,661,627 7,658,252
Period average - basic 7,661,627 7,625,787
Period average - diluted 7,691,821 7,695,980
Market Ratios
Stock Price $ 4.25 $ 7.00
Price/Earnings N/A 20.03
Price/Book 0.72 1.23
(1) Cash dividends of $191,542, $382,943 and $191,542 paid in the Q1 2009,
Q4 2008 and Q3 2008, respectively.
(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.
Contact Information: Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com