Oak Valley Bancorp Reports 3rd Quarter Results

Oak Valley Bancorp Reports 3rd Quarter Results 
OAKDALE, CA -- (Marketwire) -- 10/18/12 --  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 September
30, 2012, net income was $1,479,000, while net income available to
common shareholders was a record $1,395,000, or $0.18 per diluted
common share. This compared to net income of $1,749,000 and net
income available to common shareholders of $1,177,000, or $0.15 per
diluted common share for the same period a year ago.  
Year-to-date results for the nine months ended September 30, 2012,
include net income of $4,292,000 and net income available to common
shareholders of $3,925,000, compared to net income of $4,364,000 and
net income available to common shareholders of $3,371,000 during the
same period last year.  
Increased net income available to shareholders corresponds to
reductions in preferred stock dividends and accretion. The source of
the reductions is two-fold; initially, from the repayment of the
Treasury Capital Purchase Program funds in 2011, and more recently,
from last quarter's repayment of $6,750,000, or half, of the
outstanding preferred stock related to the Company's participation in
the Small Business Lending Fund.  
Net interest income reflected a decrease of $85,000 or 1.3% to $6.25
million for the three months ended September 30, 2012, compared to
$6.34 million for the same period last year. Year-to-date net
interest income reflected a similar cumulative decrease of $115,000
from the previous year to $18.7 million. As the current low rate
environment continues to put pressure on loan and investment yields
the Company's net interest margin decreased for the three months
ended September 30, 2012 to 4.57%, compared to 4.85% for the same
period last year. 
Non-interest expense for the quarter and nine month period ended
September 30, 2012 totaled $4.5 million and $13.7 million,
respectively, and $4.2 million and $13.1 million, respectively, for
the comparable periods in 2011. The year-to-date increase is
primarily due to additional staffing and overhead costs associated
with two new branch openings last year.  
Non-performing assets continue to trend d
own. As of September 30,
2012, non-performing assets to total assets are 1.05%, or $6.6
million, compared to 1.50%, or $8.7 million for the same period a
year ago.  
Loan loss reserves to gross loans as of September 30, 2012 remain
solid at 2.05%, down from 2.26% as of September 30, 2011. The
decrease in the loan loss reserve corresponds to charge-offs of
non-performing assets. The provision for loan losses during the three
months ended September 30, 2012, was $300,000, the same as the last
year.  
Total assets were $627.8 million at September 30, 2012, an increase
of $43.9 million, or 7.5%, from September 30, 2011. The Company's
total deposits were $553.3 million as of September 30, 2012, an
increase of $47.8 million, or 9.5% over September 30, 2011. Gross
loans decreased by $2.7 million, to $388.7 million as of September
30, 2012, a decrease of 0.7% from September 30, 2011.  
"The continued strength of our financial performance is built on a
foundation of excellent customer relationships and strong credit
quality," stated Ron Martin, CEO. "We continue to focus on our
customers and relationship development, knowing that as borrowing
confidence is restored, we are ready to meet the lending needs of the
community."  
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.  


 
                                                                            
                             Oak Valley Bancorp                             
                      Financial Highlights (unaudited)                      
                                                                            
($ in thousands,         3rd        2nd        1st        4th        3rd    
 except per share)     Quarter    Quarter    Quarter    Quarter    Quarter  
Selected Quarterly                                                          
 Operating Data:        2012       2012       2012       2011       2011    
                                                                            
  Net interest                                                              
   income            $    6,254 $    6,212 $    6,264 $    6,335 $    6,339 
  Provision for loan                                                        
   losses                   300        300        300        300        300 
  Non-interest                                                              
   income                   790        672        831        636        764 
  Non-interest                                                              
   expense                4,527      4,612      4,597      4,259      4,208 
  Income before                                                             
   income taxes           2,217      1,972      2,198      2,412      2,595 
  Provision for                                                             
   income taxes             738        620        737        915        846 
                     ---------- ---------- ---------- ---------- ---------- 
  Net income              1,479      1,352      1,461      1,497      1,749 
  Preferred stock                                                           
   dividends and                                                            
   accretion                (84)      (114)      (169)      (168)      (572)
                     ---------- ---------- ---------- ---------- ---------- 
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders      $    1,395 $    1,238 $    1,292 $    1,329 $    1,177 
                     ========== ========== ========== ========== ========== 
                             
                                               
  Earnings per                                                              
   common share -                                                           
   basic                   0.18       0.16       0.17       0.17       0.15 
  Earnings per                                                              
   common share -                                                           
   diluted                 0.18       0.16       0.17       0.17       0.15 
  Dividends declared                                                        
   per common share           -          -          -          -          - 
  Return on average                                                         
   common equity           9.02%      8.37%      8.93%      9.34%      8.44%
  Return on average                                                         
   assets                  0.97%      0.92%      0.98%      1.00%      1.21%
  Net interest                                                              
   margin (1)              4.57%      4.73%      4.67%      4.70%      4.85%
  Efficiency ratio                                                          
   (1)                    63.11%     65.28%     63.74%     60.06%     58.27%
                                                                            
Capital - Period End                                                        
  Book value per                                                            
   share             $     7.85 $     7.63 $     7.37 $     7.37 $     7.26 
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets                  1.05%      1.20%      1.12%      1.22%      1.50%
  Loan loss reserve/                                                        
   gross loans             2.05%      2.05%      1.98%      2.17%      2.26%
                                                                            
Period End Balance                                                          
 Sheet                                                                      
($ in thousands)                                                            
  Total assets       $  627,817 $  596,417 $  593,513 $  612,172 $  583,955 
  Gross loans           388,714    390,515    392,584    396,202    391,379 
  Nonperforming                                                             
   assets                 6,611      7,185      6,656      7,477      8,748 
  Allowance for loan                                                        
   losses                 7,953      8,008      7,792      8,609      8,857 
  Deposits              553,333    526,407    518,727    536,204    505,505 
  Common equity          62,075     60,185     58,092     56,902     56,071 
  Total capital (2)      68,825     66,935     71,592     70,402     69,571 
                                                                            
Non-Financial Data                                                          
  Full-time                                                                 
   equivalent staff         123        125        126        128        127 
  Number of banking                                                         
   offices                   14         14         14         14         14 
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end          7,909,280  7,890,905  7,883,780  7,718,469  7,718,469 
  Period average -                                                          
   basic              7,750,727  7,728,024  7,722,609  7,705,164  7,705,164 
  Period average -                                                          
   diluted            7,778,146  7,750,952  7,743,941  7,737,248  7,731,463 
                                                                            
Market Ratios                                                               
  Stock Price        $     7.49 $     6.96 $     7.39 $     6.75 $     4.05 
  Price/Earnings          10.49      10.83      11.01       9.87       6.68 
  Price/Book               0.95       0.91       1.00       0.92       0.56 
                                                                            
(1) Ratio computed on a fully tax equivalent basis using a marginal federal 
 tax rate of 34%.                                                           
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury   
 under the SBLF Program.                                                    
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million. 
                                                                            
                                                                            
                                                                            
                                            Nine Months Ended September 30, 
                                                 2012             2011      
                                           ---------------  --------------- 
                                                                            
  Net interest income                      $        18,730  $        18,845 
  Provision for loan losses                            900            1,200 
  Non-interest income                                2,293            2,115 
  Non-interest expense                              13,736           13,135 
  Income before income taxes                         6,387            6,625 
  Provision for income taxes                         2,095            2,261 
                                           ---------------  --------------- 
  Net income                                         4,292            4,364 
  Preferred stock dividends and accretion             (367)            (993)
                                           ---------------  --------------- 
  Net income available to common                                            
   shareholders                            $         3,925  $         3,371 
                                           ===============  =============== 
                                                                            
  Earnings per common share - basic                   0.51             0.44 
  Earnings per common share - diluted                 0.51             0.44 
  Dividends declared per common share                    -                - 
  Return on average common equity                     8.78%            8.43%
  Return on average assets                            0.96%            1.03%
  Net interest margin (1)                             4.66%            4.88%
  Efficiency ratio (1)                               64.04%           61.68%
                                                                            
Capital - Period End                                                        
  Book value per share                     $          7.85  $          7.26 
                                                                            
Credit Quality - Period End                                                 
  Nonperforming assets/ total assets                  1.05%            1.50%
  Loan loss reserve/ gross loans                      2.05%            2.26%
                                                                            
Period End Balance Sheet                                                    
($ in thousands)                                                            
  Total assets                             $       627,817  $       583,955 
  Gross loans                                      388,714          391,379 
  Nonperforming assets                               6,611            8,748 
  Allowance for loan losses                          7,953            8,857 
  Deposits                                         553,333          505
,505 
  Common equity                                     62,075           56,071 
  Total capital (2)                                 68,825           69,571 
                                                                            
Non-Financial Data                                                          
  Full-time equivalent staff                           123              127 
  Number of banking offices                             14               14 
                                                                            
Common Shares outstanding                                                   
  Period end                                     7,909,280        7,718,469 
  Period average - basic                         7,733,848        7,710,097 
  Period average - diluted                       7,757,754        7,739,589 
                                                                            
Market Ratios                                                               
  Stock Price                              $          7.49  $          4.05 
  Price/Earnings                                     11.08             6.93 
  Price/Book                                          0.95             0.56 
                                                                            
(1) Ratio computed on a fully tax equivalent basis using a marginal federal 
 tax rate of 34%.                                                           
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury   
 under the SBLF Program.                                                    
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million. 

  
Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com 
 
 
Press spacebar to pause and continue. Press esc to stop.