Oak Valley Bancorp Reports 1st Quarter Results

OAKDALE, CA--(Marketwired - Apr 18, 2014) - Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended March 31, 2014 consolidated net income available to common shareholders was $1,408,000, or $0.18 per diluted common share. This compared to consolidated net income of $1,300,000 and net income available to common shareholders of $1,232,000, or $0.16 per diluted common share for the same period a year ago. 

Total assets were $687.6 million at March 31, 2014, an increase of $39.2 million, or 6.0%, over March 31, 2013. Gross loans increased by $32.5 million to $422.5 million as of March 31, 2014, an increase of 8.3% over March 31, 2013. The Bank's total deposits were $616.0 million as of March 31, 2014, an increase of $35.8 million, or 6.2% over March 31, 2013.

Net interest income for the three months ended March 31, 2014 was $6.1 million, an increase of $255,000, or 4.4% over net interest income of $5.8 million for the same period last year. The net interest margin for the three months ended March 31, 2014 was 4.04%, compared to 4.05% for the same period last year.

"We are pleased to report another strong quarter of earnings and are excited about the momentum we've maintained with regard to lending activity following the strong finish in 2013. Our confidence in the growth potential and future opportunities in the communities we serve grows stronger every day," stated Chris Courtney, President and CEO.

Non-interest expense for the quarter ended March 31, 2014 totaled $4.9 million, an increase of $242,000 or 5.2% over the same period of 2013. This was due in part to a modest increase in salaries and benefits, as full time equivalent staffing rose from 134 employees to 142, as of March 31, 2014 compared to March 31, 2013, as we added staff to support continued deposit and loan growth. Deposit servicing costs related to year-over-year increases in deposit accounts and corresponding transaction volume also contributed to the increase in non-interest expense. Non-interest income increased by $25,000 or 3.2% during the first quarter as compared to prior year, primarily due to service charge income from the increased volume of deposit accounts. 

As of March 31, 2014 non-performing assets were $6.2 million or 0.90% of total assets, compared to $6.4 million or 0.99% of total assets as of March 31, 2013. There was no provision for loan losses during the three months ended March 31, 2014, compared to $100,000 during the same period last year. The allowance for loan losses totaled 1.80% of gross loans at March 31, 2014 compared to 1.99% at March 31, 2013. 

The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.

For more information, please 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.