Oak Valley Bancorp Reports 2nd Quarter Results

Oak Valley Bancorp Reports 2nd Quarter Results 
OAKDALE, CA -- (Marketwired) -- 07/18/13 --  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 June 30,
2013, consolidated net income available to common shareholders was
$1,374,000, or $0.18 per diluted common share. This compared to
consolidated net income available to common shareholders of
$1,238,000, or $0.16 per diluted common share for the same period a
year ago.  
Total assets were $644.2 million at June 30, 2013, an increase of
$47.8 million, or 8.0%, from June 30, 2012. The Company's total
deposits were $577.1 million as of June 30, 2013, an increase of
$50.7 million, or 9.6% over June 30, 2012. Gross loans remained
essentially unchanged at $390.6 million as of June 30, 2013, compared
to $390.5 million as of June 30, 2012.  
"We are pleased to report another quarter of solid earnings, in the
face of continued margin compression," stated Chris Courtney,
President and CEO of the Company and the Bank. "We remain steadied by
the ongoing efforts of our lenders and managers who have worked
diligently to retain and strengthen existing relationships, as well
as, build new ones." 
Net interest income reflected a decrease of $188,000 or 3.0% to $6.0
million for the three months ended June 30, 2013, compared to $6.2
million for the same period last year. The low interest rate
environment continues to drive loan and investment yields down. The
Company's net interest margin for the three months ended June 30,
2013 was 4.18%, compared to 4.73% for the same period last year. 
Non interest expense for the quarter and six month periods ended June
30, 2013 totaled $4.7 million and $9.4 million, respectively, a
slight increase over the $4.6 million and $9.2 million for the
comparable periods in 2012. This increase corresponds to growth in
full time equivalent staff from 125 to 134. Data processing costs
associated with increased deposit account activity have also
increased.  
Non-performing assets as of June 30, 2013 were $4.2 million, or 0.65%
of total assets. This is down from $7.2 million, or 1.20% at June 30,
2012. The decrease reflects the continued management of the
portfol
io.  
The provision for loan losses during the three months ended June 30,
2013, was $100,000, compared to $300,000 for the same period of the
previous year. The ratio of loan loss reserves to gross loans
decreased to 1.94% as of June 30, 2013, compared to 2.05% at June 30,
2012, as a result of the reduction of non-performing assets. 
The Bank 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             2nd         1st         4th         3rd         2nd    
 Quarterly         Quarter     Quarter     Quarter     Quarter     Quarter  
 Operating Data:    2013        2013        2012        2012        2012    
                 ----------  ----------  ----------  ----------  ---------- 
                                                                            
  Net interest                                                              
   income        $    6,024  $    5,849  $    6,115  $    6,254  $    6,212 
  Provision for                                                             
   loan losses          100         100         250         300         300 
  Non-interest                                                              
   income               818         785         855         790         672 
  Non-interest                                                              
   expense            4,734       4,639       4,513       4,527       4,612 
  Income before                                                             
   income taxes       2,008       1,895       2,207       2,217       1,972 
  Provision for                                                             
   income taxes         634         595         718         738         620 
                 ----------  ----------  ----------  ----------  ---------- 
  Net income          1,374       1,300       1,489       1,479       1,352 
  Preferred                                                                 
   stock                                                                    
   dividends and                                                            
   accretion              -         (68)        (84)        (84)       (114)
                 ----------  ----------  ----------  ----------  ---------- 
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders  $    1,374  $    1,232  $    1,405  $    1,395  $    1,238 
                 ==========  ==========  ==========  ==========  ========== 
                                                                            
  Earnings per                                                              
   common share                                                             
   - basic       $     0.18  $     0.16  $     0.18  $     0.18  $     0.16 
  Earnings per                                                              
   common share                                                             
   - diluted     $     0.18  $     0.16  $     0.18  $     0.18  $     0.16 
  Dividends                                                                 
   declared per                                                             
   common share           -           -           -           -           - 
  Return on                                                                 
   average                                                                  
   common equity       8.48%       7.82%       8.87%       9.02%       8.36%
  Return on                                                                 
   average                                                                  
   assets              0.86%       0.81%       0.91%       0.97%       0.92%
  Net interest                                                              
   margin (1)          4.18%       4.05%       4.15%       4.57%       4.73%
  Efficiency                                                                
   ratio (1)          67.17%      67.95%      63.23%      63.11%      65.28%
                                                                            
Capital - Period                                                            
 End                                                                        
  Book value per                                                            
   share         $     8.01  $     8.10  $     7.99  $     7.85  $     7.63 
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets              0.65%       0.99%       1.05%       1.05%       1.20%
  Loan loss                                                                 
   reserve/                                                                 
   gross loans         1.94%       1.99%       2.04%       2.05%       2.05%
                                                                            
Period End                                                                  
 Balance Sheet                                                              
($ in thousands)                                                            
  Total assets   $  644,230  $  648,418  $  660,581  $  627,817  $  596,417 
  Gross loans       390,647     389,992     390,986     388,714     390,515 
  Nonperforming                                                             
   assets             4,189       6,439       6,923       6,611       7,185 
  Allowance for                                                             
   loan losses        7,570       7,743       7,975       7,953       8,008 
  Deposits          577,129     580,215     586,993     553,333     526,407 
  Common equity      63,457      64,098      63,219      62,075      60,185 
  Total capital                                                             
   (2)               63,457      64,098      69,969      68,825      66,935 
                                                                            
Non-Financial                                                               
 Data                                                                       
  Full-time                                                                 
   equivalent                                                               
   staff                134         134         130         123         125 
  Number of                                                                 
   banking                                                                  
   offices               14          14          14          14          14 
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end      7,924,730   7,914,730   7,907,780   7,909,280   7,890,905 
  Period average                                                            
   - basic        7,802,012   7,778,333   7,762,261   7,750,727   7,728,024 
  Period average                                                            
   - diluted      7,842,964   7,830,439   7,793,523   7,778,146   7,750,952 
                                                                            
Market Ratios                                                               
  Stock Price    $     7.67  $     8.14  $     7.45  $     7.49  $     6.96 
  Price/Earnings      10.86       12.67       10.38       10.49       10.84 
  Price/Book           0.96        1.01        0.93        0.95        0.91 
                                                                            
                                                                            
                                                                            
                  SIX MONTHS ENDED JUNE                                     
                           30,                                              
                    2013        2012                                        
                 ----------  ----------                                     
                                                                            
($ in thousands,                                                            
 except per                                                                 
 share)                                                                     
Selected                                                                    
 Quarterly                                                                  
 Operating Data:                                                            
                                                                            
  Net interest                                                              
   income        $   11,873  $   12,476                                     
  Provision for                                                             
   loan losses          200         600                                     
  Non-interest                                                              
   income             1,603       1,503                                     
  Non-interest                                                              
   expense            9,373       9,209                                     
  Income before                                                             
   income taxes       3,903       4,170                                     
  Provision for                                                             
   income taxes       1,229       1,357                                     
                 ----------  ----------                                     
  Net income          2,674       2,813                                     
  Preferred                                                                 
   stock                                                                    
   dividends and                                                            
   accretion            (68)       (283)                                    
                 ----------  ----------                                     
  Net income                                                                
   available to                              
                               
   common                                                                   
   shareholders  $    2,606  $    2,530                                     
                 ==========  ==========                                     
                                                                            
  Earnings per                                                              
   common share                                                             
   - basic             0.33        0.33                                     
  Earnings per                                                              
   common share                                                             
   - diluted           0.33        0.33                                     
  Dividends                                                                 
   declared per                                                             
   common share           -           -                                     
  Return on                                                                 
   average                                                                  
   common equity       8.16%       8.65%                                    
  Return on                                                                 
   average                                                                  
   assets              0.84%       0.95%                                    
  Net interest                                                              
   margin (1)          4.11%       4.70%                                    
  Efficiency                                                                
   ratio (1)          67.55%      64.50%                                    
                                                                            
Capital - Period                                                            
 End                                                                        
  Book value per                                                            
   share         $     8.01  $     7.63                                     
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets              0.65%       1.20%                                    
  Loan loss                                                                 
   reserve/                                                                 
   gross loans         1.94%       2.05%                                    
                                                                            
Period End                                                                  
 Balance Sheet                                                              
($ in thousands)                                                            
  Total assets   $  644,230  $  596,417                                     
  Gross loans       390,647     390,515                                     
  Nonperforming                                                             
   assets             4,189       7,185                                     
  Allowance for                                                             
   loan losses        7,570       8,008                                     
  Deposits          577,129     526,407                                     
  Common equity      63,457      60,185                                     
  Total capital                                                             
   (2)               63,457      66,935                                     
                                                                            
Non-Financial                                                               
 Data                                                                       
  Full-time                                                                 
   equivalent                                                               
   staff                134         125                                     
  Number of                                                                 
   banking                                                                  
   offices               14          14                                     
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end      7,924,730   7,890,905                                     
  Period average                                                            
   - basic        7,790,238   7,725,316                                     
  Period average                                                            
   - diluted      7,836,736   7,747,446                                     
                                                                            
Market Ratios                                                               
  Stock Price    $     7.67  $     6.96                                     
  Price/Earnings      11.37       10.60                                     
  Price/Book           0.96        0.91                                     
                                                                            
                                                                            
(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. There was no preferred stock outstanding as of March 31 
 and June 30, 2013.                                                         

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