The Bank's loan loss provision totaled $4.0 million in 2010, compared to $5.9 million in loan loss provision for the year ended December 31, 2009. The decrease in loan loss provisions reflect a reduction in charge-offs. Net charge-offs totaled $2.6 million in 2010 versus $4.6 million in 2009. The allowance for loan losses as a percentage of loans totaled 2.04% at December 31, 2010 compared to 1.65% at December 31, 2009. Non-performing assets totaled $12.3 million, or 2.22% of total assets at December 31, 2010, compared to $16.6 million, or 3.16% of total assets, at December 31, 2009. Of the $12.3 million, non-performing loans account for $11.5 million, all secured by real estate, while the remaining $778,000 is comprised of foreclosed properties. Write-downs on OREO properties totaled $424,000 during 2010. "We've been successful in mitigating and reducing non-performing assets in 2010. Our adherence to conservative credit practices has undoubtedly served us well through these precarious times. While we claim no immunity to the economic woes that challenge all of us today, we are optimistic that the principles which have guided us through our 20 year history will continue to serve us well in the years to come," said Chris Courtney, President. Net interest income of $25.0 million for the year ended December 31, 2010, increased by $1.4 million, or 5.8%, from the prior year. The Bank's net interest margin was 5.20% for the year ended December 31, 2010, compared to 4.99% for the year ended December 31, 2009. The increase is a result of the Bank's ability to reduce its cost of funds at a more rapid rate than the yield on earning assets is declining. Non-interest expense of $16.8 million for the year ended December 31, 2010, decreased $1.4 million, or 7.9%, from the prior year. This was the result of a $2.0 million, year over year, reduction in write-downs and expenses associated with foreclosed properties, which was partially offset by increases in employee salaries and benefits, from the prior year. "Net interest income continues to be a key driver of profitability. The Bank's ongoing goal to expand our customer base and serve the banking needs of the community enabled us to increase core deposits and further expand our margin in this low rate environment," stated Rick McCarty, CFO. Earlier this year, the Bank announced plans to open new branches in Modesto and Manteca in 2011. The new locations will bring the Bank's branch total to 14. Currently, Oak Valley Community Bank operates through 12 branches in 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 on Oak Valley Community Bank, 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, 4th 3rd 2nd 1st 4th
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly
Operating Data: 2010 2010 2010 2010 2009
Net interest
income $ 6,343 $ 6,359 $ 6,244 $ 6,060 $ 6,079
Provision for loan
losses 1,005 1,005 1,005 1,005 900
Non-interest
income 715 676 732 647 618
Non-interest
expense 3,826 4,188 4,316 4,445 4,749
Income before
income taxes 2,227 1,842 1,655 1,257 1,048
Provision for
income taxes 727 701 616 309 313
--------- --------- --------- --------- ---------
Net income 1,500 1,141 1,039 948 735
Preferred stock
dividends and
accretion (210) (210) (211) (211) (210)
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 1,290 931 828 737 525
========= ========= ========= ========= =========
Earnings per
common share -
basic 0.17 0.12 0.11 0.10 0.07
Earnings per
common share -
diluted 0.17 0.12 0.11 0.10 0.07
Dividends declared
per common share
(1) - - - - -
Return on average
common equity 9.99% 7.38% 6.84% 6.22% 4.41%
Return on average
assets 1.09% 0.86% 0.81% 0.75% 0.56%
Net interest
margin (2) 5.01% 5.23% 5.36% 5.22% 5.10%
Efficiency Ratio
(2) 53.03% 58.99% 61.21% 65.59% 69.52%
Capital - Period End
Book value per
share $ 6.64 $ 6.57 $ 6.38 $ 6.24 $ 6.14
Credit Quality -
Period End
Nonperforming
assets/ total
assets 2.22% 2.00% 2.29% 2.85% 3.16%
Loan loss reserve/
gross loans 2.04% 1.88% 1.85% 1.65% 1.65%
Period End Balance
Sheet
($ in thousands)
Total assets $ 552,894 $ 534,879 $ 519,203 $ 520,275 $ 524,722
Gross Loans 404,194 408,971 411,067 411,013 425,627
Nonperforming
assets 12,253 10,690 11,882 14,854 16,568
Allowance for
credit losses 8,255 7,700 7,614 6,762 7,020
Deposits 476,739 448,904 435,756 431,624 429,210
Common Equity 51,158 50,605 48,984 47,904 47,192
Total Capital (3) 64,658 64,105 62,484 61,404 60,692
Non-Financial Data
Full-time
equivalent staff 117 115 117 118 117
Number of banking
offices 12 12 12 12 12
Common Shares
outstanding
Period end 7,702,127 7,702,127 7,681,877 7,681,877 7,681,877
Period average -
basic 7,702,127 7,692,900 7,681,877 7,681,877 7,681,877
Period average -
diluted 7,719,157 7,729,175 7,720,440 7,705,488 7,709,076
Market Ratios
Stock Price $ 5.90 $ 5.40 $ 5.25 $ 4.10 $ 4.41
Price/Earnings 8.88 11.25 12.14 10.54 16.27
Price/Book 0.89 0.82 0.82 0.66 0.72
TWELVE MONTHS ENDED
--------- ---------
($ in thousands, DECEMBER 31, DECEMBER 31,
except per share) 2010 2009
--------- ---------
Net interest
income $ 25,006 $ 23,642
Provision for loan
losses 4,020 5,862
Non-interest
income 2,770 2,641
Non-interest
expense 16,775 18,218
Income before
income taxes 6,981 2,203
Provision for
income taxes 2,353 203
--------- ---------
Net income 4,628 2,000
Preferred stock
dividends and
accretion (842) (842)
--------- ---------
Net income
available to
common
shareholders 3,786 1,158
========= =========
Earnings per
common share -
basic 0.49 0.15
Earnings per
common share -
diluted 0.49 0.15
Dividends declared
per common share
(1) - 0.025
Return on average
common equity 7.65% 2.51%
Return on average
assets 0.88% 0.38%
Net interest
margin (2) 5.20% 4.99%
Efficiency Ratio
(2) 59.62% 68.04%
Capital - Period End
Book value per
share $ 6.64 $ 6.14
Credit Quality -
Period End
Nonperforming
assets/ total
assets 2.22% 3.16%
Loan loss reserve/
gross loans 2.04% 1.65%
Period End Balance
Sheet
($ in thousands)
Total assets $ 552,894 $ 524,722
Gross Loans 404,194 425,627
Nonperforming
assets 12,253 16,568
Allowance for
credit losses 8,255 7,020
Deposits 476,739 429,210
Common Equity 51,158 47,192
Total Capital (3) 64,658 60,692
Non-Financial Data
Full-time
equivalent staff 117 117
Number of banking
offices 12 12
Common Shares
outstanding
Period end 7,702,127 7,681,877
Period average -
basic 7,689,760 7,668,562
Period average -
diluted 7,720,624 7,696,822
Market Ratios
Stock Price $ 5.90 $ 4.41
Price/Earnings 11.98 29.20
Price/Book 0.89 0.72
(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) 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