OAKDALE, CA--(Marketwire - October 20, 2010) - Oak Valley Bancorp (
Year-to-date results for the nine months ended September 30, 2010, include net income of $3,128,000 and net income available to common shareholders of $2,496,000, compared to net income of $1,264,000 and net income available to common shareholders of $633,000 during the same period last year.
Net interest income for the three months ended September 30, 2010 increased by $339,000 over the same period the previous year to $6.4 million. For the nine months ending September 30, 2010 net interest income was $18.7 million, a $1.1 million increase over the $17.6 million for the same period last year. Net interest margin for the three months ended September 30, 2010 was 5.23%, compared to 5.06% during the same period last year. Year-to-date net interest margin was 5.27%, compared to 4.96% in the first nine months of 2009.
"The third quarter proved to be another positive quarter for the bank in terms of net interest income. Our net interest margin remained strong as our cost of funds continued to decrease, offsetting the repricing of credits in this historically low rate environment," stated Ron Martin, CEO.
Noninterest expense for the three-months ended September 30, 2010 was of $4.2 million, compared to $4.7 million for the same period in 2009. For the nine-months ended September 30, 2010, noninterest expense totaled $13.0 million, compared to $13.5 million for the same period the previous year. Write downs and expenses associated with impaired loans and Other Real Estate Owned (OREO) continue to impact noninterest expense totals, but were down to $700,000 year-to-date versus $2.0 million during the same period in last year.
Nonperforming assets as of September 30, 2010 totaled $10.7 million or 2.00% of total assets, a decrease from the $11.9 million, or 2.29%, at June 30, 2010, yet relatively flat compared to the $10.9 million, or 2.09% in nonperforming assets for the same period the previous year. The reduction marked the third consecutive quarter in which the Bank recorded a decrease in non-performing assets. The provision for loan losses for the nine months ended September 30, 2010 were down $1.9 million from the same period the previous year to $3.0 million, corresponding to the stabilization of the loan portfolio.
Total assets grew to $534.9 million at September 30, 2010, an increase of $13.7 million, or 2.6%, over September 30, 2009. Gross loans decreased to $409.0 million as of September 30, 2010, a decrease of $16.4 million, or 3.9% from September 30, 2009. The Bank's total deposits increased to $448.9 million on September 30, 2010, which was an increase of $17.4 million, or 4.0% over September 30, 2009.
"As we continue to navigate the waters of economic uncertainty, we are pleased with our deposit growth and ability to improve our deposit mix as awareness of the Oak Valley brand increases and customers naturally gravitate toward reliable banks with proven stability," remarked Chris Courtney, President. "The additional liquidity positions us well to serve the borrowing needs of the business community as consumer confidence improves and loan demand returns to more normal levels," concluded Courtney.
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 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,
except per share) 3rd 2nd 1st 4th 3rd
Selected Quarterly Quarter Quarter Quarter Quarter Quarter
Operating Data: 2010 2010 2010 2009 2009
Net interest
income $ 6,359 $ 6,244 $ 6,060 $ 6,079 $ 6,020
Provision for
loan losses 1,005 1,005 1,005 900 925
Non-interest
income 676 732 647 618 778
Non-interest
expense 4,188 4,316 4,445 4,749 4,745
Income before
income taxes 1,842 1,655 1,257 1,048 1,128
Provision for
income taxes 701 616 309 313 249
--------- --------- --------- --------- ---------
Net income 1,141 1,039 948 735 879
Preferred stock
dividends and
accretion (210) (211) (211) (210) (210)
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 931 828 737 525 669
========= ========= ========= ========= =========
Earnings per
common share
- basic 0.12 0.11 0.10 0.07 0.09
Earnings per
common share
- diluted 0.12 0.11 0.10 0.07 0.09
Dividends
declared per
common share (1) - - - - -
Return on average
common equity 7.38% 6.84% 6.22% 4.41% 5.73%
Return on average
assets 0.86% 0.81% 0.75% 0.56% 0.67%
Net interest
margin (2) 5.23% 5.36% 5.22% 5.10% 5.06%
Efficiency
Ratio (2) 58.99% 61.21% 65.59% 69.52% 68.77%
Capital - Period End
Book value per
share $ 6.57 $ 6.38 $ 6.24 $ 6.14 $ 6.06
Credit Quality -
Period End
Nonperforming
assets/ total
assets 2.00% 2.29% 2.85% 3.16% 2.09%
Loan loss
reserve/ gross
loans (3) 1.88% 1.85% 1.65% 1.65% 1.50%
Period End Balance
Sheet
($ in thousands)
Total assets $ 534,879 $ 519,203 $ 520,275 $ 524,722 $ 521,179
Gross Loans 408,971 411,067 411,013 425,627 425,374
Nonperforming
assets 10,690 11,882 14,854 16,568 10,904
Allowance for
credit losses
(3) 7,700 7,614 6,762 7,020 6,396
Deposits 448,904 435,756 431,624 429,210 431,533
Common Equity 50,605 48,984 47,904 47,192 46,563
Total Capital
(4) 64,105 62,484 61,404 60,692 60,063
Non-Financial Data
Full-time
equivalent staff 115 117 118 117 120
Number of banking
offices 12 12 12 12 12
Common Shares
outstanding
Period end 7,702,127 7,681,877 7,681,877 7,681,877 7,681,877
Period average
- basic 7,692,900 7,681,877 7,681,877 7,681,877 7,668,891
Period average
- diluted 7,729,175 7,720,440 7,705,488 7,709,076 7,694,058
Market Ratios
Stock Price $ 5.40 $ 5.25 $ 4.10 $ 4.41 $ 4.30
Price/Earnings 11.25 12.14 10.54 16.27 12.43
Price/Book 0.82 0.82 0.66 0.72 0.71
NINE MONTHS ENDED
-----------------------------
SEPTEMBER 30, SEPTEMBER 30,
($ in thousands, except per share) 2010 2009
------------- -------------
Net interest income $ 18,663 $ 17,563
Provision for loan losses 3,015 4,962
Non-interest income 2,055 2,023
Non-interest expense 12,949 13,469
Income before income taxes 4,754 1,155
Provision for income taxes 1,626 (109)
------------- -------------
Net income 3,128 1,264
Preferred stock dividends and
accretion (632) (631)
------------- -------------
Net income available to common
shareholders 2,496 633
============= =============
Earnings per common share - basic 0.32 0.08
Earnings per common share - diluted 0.32 0.08
Dividends declared per common share (1) - 0.025
Return on average common equity 6.83% 1.85%
Return on average assets 0.81% 0.32%
Net interest margin (2) 5.27% 4.96%
Efficiency Ratio (2) 61.88% 67.54%
Capital - Period End
Book value per share $ 6.57 $ 6.06
Credit Quality - Period End
Nonperforming assets/ total assets 2.00% 2.09%
Loan loss reserve/ gross loans (3) 1.88% 1.50%
Period End Balance Sheet
($ in thousands)
Total assets $ 534,879 $ 521,179
Gross Loans 408,971 425,374
Nonperforming assets 10,690 10,904
Allowance for credit losses (3) 7,700 6,396
Deposits 448,904 431,533
Common Equity 50,605 46,563
Total Capital (4) 64,105 60,063
Non-Financial Data
Full-time equivalent staff 115 120
Number of banking offices 12 12
Common Shares outstanding
Period end 7,702,127 7,681,877
Period average - basic 7,685,592 7,664,075
Period average - diluted 7,719,616 7,692,110
Market Ratios
Stock Price $ 5.40 $ 4.30
Price/Earnings 12.44 38.93
Price/Book 0.82 0.71
(1) Common shareholder cash dividend of $191,542 was paid in the first
quarter of 2009.
(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