OAKDALE, CA--(Marketwire - October 21, 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
September 30, 2009, the Bank reported net income of $879,000. After
adjustment for preferred stock dividends and accretion this represents net
income available to common shareholders of $669,000, or $0.09 per diluted
share, compared to net income of $549,000, or $0.07 per diluted common
share, for the three months ended September 30, 2008. Year-to-date results
for the nine months ended September 30, 2009, include net income of
$1,264,000 and net income available to common shareholders of $633,000.
Total assets grew to $521.2 million at September 30, 2009, an increase of
$31.1 million, or 6.3%, over September 30, 2008. Gross loans increased by
$8.7million, to $425.4 million as of September 30, 2009, an increase of
2.1% over September 30, 2008. The Bank's total deposits increased to $431.5
million on September 30, 2009, which was an increase of $66.3 million, or
18.2% over September 30, 2008.
"Increased net interest income from growth and margin expansion continue to
bolster the Bank's financial position. Our branches have been able to grow
deposits during this declining rate environment, driving down our cost of
funds," stated Rick McCarty, CFO.
Net interest income for the three months ended September 30, 2009 increased
by $728,000 to $6.0 million. For the nine months ending September 30, 2009
net interest income was $17.6 million, a $2.4 million increase over the
$15.2 million for the same period last year. Growth of earning assets
accounted for $1,531,000 million of the increased net interest income,
while net interest margin expansion accounted for $852,000. Net interest
margin for the three months ended September 30, 2009 was 5.04%, compared to
4.76% during the same period last year. Year-to-date net interest margin
was 4.95%, compared to 4.71% in the first nine months of 2008.
Non interest expense remained relatively flat despite significant increases
in OREO expenses and FDIC assessments of $1,038,000 and $408,000
respectively, for the nine month period of 2009 as compared to 2008.
"We are delighted with our operational performance and the consistent
expansion of our net interest margin. This is the third consecutive quarter
in which we have seen net interest margin improvement," commented Ron
Martin, CEO. "Despite the strong overall performance, provision for loan
losses of $925,000 and total OREO expenses of $916,000 for the three-months
ended September 30, 2009, partially offset margin expansion. Proactive
management of our credit quality and OREO valuation will serve us well in
the long term as we emerge from these precarious times," Martin concluded.
Non-performing assets were up slightly, increasing by $727,000 to $10.9
million, or 2.09% of total assets at September 30, 2009, from $10.2
million, or 1.94% of total assets at June 30, 2009. Consequently, the Bank
recorded $925,000 in loan loss provisions in the third quarter, increasing
our allowance for loan loss reserve from 1.34% at June 30, 2009, to 1.50%
at September 30, 2009 even though there was not an acutely significant
migration of loans to a default status.
"A primary focus this year has been maintaining a healthy core operating
structure. We've kept a keen eye on expense management and remain staunchly
committed to relationship building and attracting customers to the bank.
These fundamentals and our ongoing adherence to strong credit practices are
of particular importance, especially at a time when the economy is only
beginning to show signs of improvement," stated Chris Courtney, President.
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, 3rd 2nd 1st 4th 3rd
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly 2009 2009 2009 2008 2008
Operating Data:
Net interest
income $ 6,020 $ 5,887 $ 5,656 $ 5,333 $ 5,292
Provision for loan
losses 925 2,137 1,900 1,001 602
Non-interest
income 778 647 598 602 634
Non-interest
expense 4,745 4,787 3,938 4,712 4,535
Income before
income taxes 1,128 (389) 416 222 789
Provision for
income taxes 249 (344) (14) (61) 240
--------- --------- --------- --------- ---------
Net income 879 (45) 430 283 549
Preferred stock
dividends and
accretion (210) (210) (210) (64) -
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 669 (255) 220 219 549
========= ========= ========= ========= =========
Earnings per
common share -
basic 0.09 (0.03) 0.03 0.03 0.07
Earnings per
common share -
diluted 0.09 (0.03) 0.03 0.03 0.07
Dividends declared
per common share
(1) - - 0.025 0.025 0.050
Return on average
common equity 5.73% -2.23% 1.97% 1.95% 4.91%
Return on average
assets 0.67% -0.03% 0.34% 0.23% 0.45%
Net interest
margin (2) 5.04% 4.95% 4.85% 4.72% 4.76%
Efficiency Ratio
(2) 68.77% 71.59% 61.97% 78.30% 76.03%
Capital - Period End
Book value per
share $ 6.06 $ 5.89 $ 5.91 $ 5.81 $ 5.77
Credit Quality -
Period End
Nonperforming
assets/assets 2.09% 1.94% 2.66% 1.47% 1.33%
Loan loss
reserve/loans (3) 1.50% 1.34% 1.53% 1.30% 1.12%
Period End Balance
Sheet
($ in thousands)
Total assets $ 521,179 $ 525,606 $ 523,747 $ 508,203 $ 490,111
Gross Loans 425,374 424,390 430,416 428,177 416,664
Nonperforming
assets 10,904 10,177 13,906 7,467 6,538
Allowance for
credit losses (3) 6,396 5,701 6,603 5,569 4,650
Deposits 431,533 419,941 410,089 378,248 365,230
Common Equity 46,563 45,130 45,286 44,486 44,151
Total Capital (4) 60,063 58,630 58,786 57,986 44,151
Non-Financial Data
Full-time
equivalent staff 120 111 117 117 119
Number of banking
offices, domestic
and foreign 12 12 12 12 12
Common Shares
outstanding
Period end 7,681,877 7,661,627 7,661,627 7,661,627 7,658,252
Period average -
basic 7,668,891 7,661,627 7,661,627 7,660,526 7,658,252
Period average -
diluted 7,694,058 7,686,800 7,703,892 7,723,711 7,743,091
Market Ratios
Stock Price $ 4.30 $ 4.25 $ 3.75 $ 6.00 $ 6.30
Price/Earnings 12.43 N/A 32.22 52.82 22.14
Price/Book 0.71 0.72 0.63 1.03 1.09
NINE MONTHS ENDED
---------------------
SEPTEMBER 30, SEPTEMBER 30,
--------- ----------
($ in thousands, 2009 2008
except per share) --------- ----------
Net interest
income $ 17,563 $ 15,181
Provision for loan
losses 4,962 1,187
Non-interest
income 2,023 1,920
Non-interest
expense 13,469 13,153
Income before
income taxes 1,155 2,761
Provision for
income taxes (109) 883
--------- ---------
Net income 1,264 1,878
Preferred stock
dividends and
accretion (631) -
--------- ---------
Net income
available to
common
shareholders 633 1,878
========= =========
Earnings per
common share -
basic 0.08 0.25
Earnings per
common share -
diluted 0.08 0.24
Dividends declared
per common share
(1) 0.025 0.050
Return on average
common equity 1.85% 5.71%
Return on average
assets 0.32% 0.53%
Net interest
margin (2) 4.95% 4.71%
Efficiency Ratio
(2) 67.54% 75.95%
Capital - Period End
Book value per
share $ 6.06 $ 5.77
Credit Quality -
Period End
Nonperforming
assets/assets 2.09% 1.33%
Loan loss
reserve/loans (3) 1.50% 1.12%
Period End Balance
Sheet
($ in thousands)
Total assets $ 521,179 $ 490,111
Gross Loans 425,374 416,664
Nonperforming
assets 10,904 6,538
Allowance for
credit losses (3) 6,396 4,650
Deposits 431,533 365,230
Common Equity 46,563 44,151
Total Capital (4) 60,063 44,151
Non-Financial Data
Full-time
equivalent staff 120 119
Number of banking
offices, domestic
and foreign 12 12
Common Shares
outstanding
Period end 7,681,877 7,658,252
Period average -
basic 7,664,075 7,636,687
Period average -
diluted 7,692,110 7,737,050
Market Ratios
Stock Price $ 4.30 $ 6.30
Price/Earnings 38.93 19.23
Price/Book 0.71 1.09
(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.
(4) 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