Oak Valley Bancorp Reports 1st Quarter Results

Oak Valley Bancorp Reports 1st Quarter Results 
OAKDALE, CA -- (Marketwired) -- 04/17/13 --  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,
2013, consolidated net income was $1,300,000, while consolidated net
income available to common shareholders was $1,232,000, or $0.16 per
diluted common share. This compared to consolidated net income of
$1,461,000 and net income available to common shareholders of
$1,292,000, or $0.17 per diluted common share for the same period a
year ago.  
Total assets were $648.4 million at March 31, 2013, an increase of
$54.9 million, or 9.3%, from March 31, 2012. Gross loans decreased by
$2.6 million, to $390.0 million as of March 31, 2013, a decrease of
0.7% from March 31, 2012. The Bank's total deposits were $580.2
million as of March 31, 2013, an increase of $61.5 million, or 11.9%
over March 31, 2012.  
Net interest income for the three months ended March 31, 2013 was
$5.8 million, decreasing by $415,000, or 6.6% from $6.3 million for
the same period last year. The net interest margin for the three
months ended March 31, 2013 was 4.05%, compared to 4.15% for the
three months prior and 4.67% for the same period last year.  
"Margin compression will continue to play a considerable role in
banking sector profitability this year, however, we remain encouraged
by signs of strengthening commercial loan demand," stated Ron Martin,
CEO. "After experiencing early loan paydowns in January, commercial
borrowing activity gained momentum and we replaced the majority of
those loan balances by quarter-end," Martin concluded 
Non-interest expense for the quarter ended March 31, 2013 totaled
$4.6 million, essentially flat compared to the same period the
previous year. While full time equivalent staffing rose to 134 from
126 for the same period a year ago, total non-interest expense
remained stable as strong loan production led to an increase in
deferred cost which helped offset salary expense. 
The provision for loan losses during the three months ended March 31,
2013, was $100,000, compared to $300,000 during the same quarter of
last year. The ratio of loan loss reserves to gross loans for t
he
quarter was 1.99%, compared to 2.04% for the three months prior and
1.98% for the same period last year. As of March 31, 2013
non-performing assets were $6.4 million or 0.99% of total assets,
compared to $6.7 million or 1.12% of total assets as of March 31,
2012.  
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,                                                            
 except per                                                                 
 share)                                                                     
Selected             1st         4th         3rd         2nd         1st    
 Quarterly         Quarter     Quarter     Quarter     Quarter     Quarter  
 Operating Data:    2013        2012        2012        2012        2012    
---------------- ----------  ----------  ----------  ----------  ---------- 
                                                                            
  Net interest                                                              
   income        $    5,849  $    6,115  $    6,254  $    6,212  $    6,264 
  Provision for                                                             
   loan losses          100         250         300         300         300 
  Non-interest                                                              
   income               785         855         790         672         831 
  Non-interest                                                              
   expense            4,639       4,513       4,527       4,612       4,597 
  Income before                                                             
   income taxes       1,895       2,207       2,217       1,972       2,198 
  Provision for                                                             
   income taxes         595         718         738         620         737 
                 ----------  ----------  ----------  ----------  ---------- 
  Net income          1,300       1,489       1,479       1,352       1,461 
  Preferred                                                                 
   stock                                                                    
   dividends and                                                            
   accretion            (68)        (84)        (84)       (114)       (169)
                 ----------  ----------  ----------  ----------  ---------- 
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders  $    1,232  $    1,405  $    1,395  $    1,238  $    1,292 
                 ==========  ==========  ==========  ==========  ========== 
                                                                            
  Earnings per                                                              
   common share                                                             
   - basic       $     0.16  $     0.18  $     0.18  $     0.16  $     0.17 
  Earnings per                                                              
   common share                                                             
   - diluted     $     0.16  $     0.18  $     0.18  $     0.16  $     0.17 
  Dividends                                                                 
   declared per                                                             
 
  common share           -           -           -           -           - 
  Return on                                                                 
   average                                                                  
   common equity       7.82%       8.87%       9.02%       8.36%       8.93%
  Return on                                                                 
   average                                                                  
   assets              0.81%       0.91%       0.97%       0.92%       0.98%
  Net interest                                                              
   margin (1)          4.05%       4.15%       4.57%       4.73%       4.67%
  Efficiency                                                                
   ratio (1)          67.95%      63.23%      63.11%      65.28%      63.74%
                                                                            
Capital - Period                                                            
 End                                                                        
  Book value per                                                            
   share         $     8.10  $     7.99  $     7.85  $     7.63  $     7.37 
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets              0.99%       1.05%       1.05%       1.20%       1.12%
  Loan loss                                                                 
   reserve/                                                                 
   gross loans         1.99%       2.04%       2.05%       2.05%       1.98%
                                                                            
Period End                                                                  
 Balance Sheet                                                              
----------------                                                            
($ in thousands)                                                            
  Total assets   $  648,418  $  660,581  $  627,817  $  596,417  $  593,513 
  Gross loans       389,992     390,986     388,714     390,515     392,584 
  Nonperforming                                                             
   assets             6,439       6,923       6,611       7,185       6,656 
  Allowance for                                                             
   loan losses        7,743       7,975       7,953       8,008       7,792 
  Deposits          580,215     586,993     553,333     526,407     518,727 
  Common equity      64,098      63,219      62,075      60,185      58,092 
  Total capital                                                             
   (2)               64,098      69,969      68,825      66,935      71,592 
                                                                            
Non-Financial                                                               
 Data                                                                       
  Full-time                                                                 
   equivalent                                                               
   staff                134         130         123         125         126 
  Number of                                                                 
   banking                                                                  
   offices               14          14          14          14          14 
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end      7,914,730   7,907,780   7,909,280   7,890,905   7,883,780 
  Period average                                                            
   - basic        7,778,333   7,762,261   7,750,727   7,728,024   7,722,609 
  Period average                                                            
   - diluted      7,830,439   7,793,523   7,778,146   7,750,952   7,743,941 
                                                                            
Market Ratios                                                               
  Stock Price    $     8.14  $     7.45  $     7.49  $     6.96  $     7.39 
  Price/Earnings      12.67       10.38       10.49       10.84       11.01 
  Price/Book           1.01        0.93        0.95        0.91        1.00 
                                                                            
(1) Ratio computed on a fully tax equivalent basis using a marginal federal 
    tax rate of 34%.                                                        
(2) Includes preferred stock issued to the U.S. Treasury under the SBLF     
    Program of $6.75 million for the quarters ended June 30, September 30   
    and December 31, 2012, and $13.5 million for the quarter ended March 31,
    2012. There was no preferred stock outstanding as of March 31, 2013.    

  
Contact: 
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265 
www.ovcb.com 
 
 
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