Oak Valley Bancorp Reports 4th Quarter Results

Oak Valley Bancorp Reports 4th Quarter Results 
OAKDALE, CA -- (Marketwired) -- 01/22/14 --  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 December
31, 2013, consolidated net income available to common shareholders
was a record $1.7 million, or $0.22 per diluted share. This compared
to consolidated net income available to common shareholders of $1.4
million, or $0.18 per diluted share for the three months ended
December 31, 2012 and represented a 21.5% increase over the prior
year.  
Net income for 2013 totaled $5.9 million compared to $5.8 million for
2012. After adjustment for preferred stock dividends and accretion,
consolidated net income available to common shareholders was $5.8
million, or $0.74 per diluted share, compared to consolidated net
income of $5.3 million, or $0.69 per diluted common share, in 2012.
This represents a 9.2% increase in consolidated net income available
to common shareholders and marks a new annual earnings record for Oak
Valley Bancorp.  
Total assets grew to $672.1 million as of December 31, 2013, which
was an increase of $11.5 million, or 1.7% over the prior year.
Deposits increased to $602.6 million, which was an increase of $15.6
million, or 2.7% over the prior year. Gross loans at year end totaled
$419.4 million, reflecting an increase of $28.5 million, or 7.3%,
over December 31, 2012.  
"We are pleased to report another year of solid earnings. Our
commitment to customer care and relationship building is unwavering
and the cornerstone of our success," stated Chris Courtney, President
and CEO of the Company and the Bank. "Our results are a reflection of
emerging consumer confidence and economic expansion in the
communities we serve."  
Non-performing assets were $3.3 million, or 0.48% of total assets at
December 31, 2013. This is down from $6.9 million, or 1.05% at
December 31, 2012. There are currently six properties remaining with
the non-performing classification; five of which remain as loans,
along with one property taken into OREO.  
The allowance for loan losses totaled 1.83% of gross loans at
December 31, 2013 compared to 2.04% at December 31, 2012. The annual
provision for loan losses of $300,000 in 2013 was down from $1.2
million in 2012. Given the high quality of the loan portfolio,
limited provisioning was required to support the growth of the
portfolio. 
Net interest income of $24.3 million for the year ended December 31,
2013, decreased by $570,000, or 2.3%, from the prior year. The year
began with margin compression, corresponding to low loan pricing and
high cash balances. The margin stabilized in the second half of the
year, as cash was deployed into new loans. The Company's net interest
margin was 4.13% for the year ended December 31, 2013, compared to
4.53% for the year ended December 31, 2012. Net interest margin for
the three months ended December 31, 2013 was 4.19%, compared to 4.15%
for the three months ended December 31, 2012.  
Non-interest income was $3.3 million for the year ended December 31,
2013, compared to $3.1 million the prior year. The increase is
partially attributable to additional fee income related to deposit
growth and commissions corresponding to growth in Oak Valley
Investments.  
Non-interest expense was $18.7 million for the year ended December
31, 2013, compared to $18.2 million for the prior year, an increase
of $411,000, or 2.3%. This increase consists primarily of costs
associated with servicing deposit growth across all branches.  
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,         4th        3rd        2nd        1st        4th    
 except per share)     Quarter    Quarter    Quarter    Quarter    Quarter  
Selected Quarterly                                                          
 Operating Data:        2013       2013       2013       2013       2012    
                     ---------- ---------- ---------- ---------- ---------- 
                                                                            
  Net interest                                                              
   income            $    6,372 $    6,030 $    6,024 $    5,849 $    6,115 
  Provision for loan                                                        
   losses                     -        100        100        100        250 
  Non-interest                                                              
   income                   812        866        818        785        855 
  Non-interest                                                              
   expense                4,668      4,619      4,734      4,639      4,513 
  Income before                                                             
   income taxes           2,516      2,177      2,008      1,895      2,207 
  Provision for                                                             
   income taxes             809        672        634        595        718 
                     ---------- ---------- ---------- ---------- ---------- 
  Net income              1,707      1,505      1,374      1,300      1,489 
  Preferred stock                                                           
   dividends and                                                            
   accretion                  -          -          -        (68)       (84)
                     ---------- ---------- ---------- ---------- ---------- 
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders      $    1,707 $    1,505 $    1,374 $    1,232 $    1,405 
                     ========== ========== ========== ========== ========== 
                                                                            
  Earnings per                                                              
   common share -                                                           
   basic             $     0.22 $     0.19 $     0.18 $     0.16 $     0.18 
  Earnings per                                                              
   common share -                                                           
   diluted           $     0.22 $     0.19 $     0.18 $     0.16 $     0.18 
  Return on average                                                         
   common equity          10.47%      9.45%      8.48%      7.82%      8.87%
  Return on average                                                         
   assets                  1.01%      0.92%      0.86%      0.81%      0.91%
  Net interest                                                              
   margin (1)              4.19%      4.12%      4.18%      4.05%      4.15%
  Efficiency ratio                                                          
   (1)                    63.05%     64.65%     67.17%     67.95%     63.23%
                                                                            
Capital - Period End                                                        
  Book value per                                                            
   share             $     8.24 $     7.99 $     8.01 $     8.10 $     7.99 
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets                  0.48%      0.68%      0.65%      0.99%      1.05%
  Loan loss reserve/                                                        
   gross loans             1.83%      1.85%      1.94%      1.99%      2.04%
                                                                            
Period End Balance                                                          
 Sheet                                                                      
($ in thousands)                                                            
  Total assets       $  672,060 $  659,192 $  644,230 $  648,418 $  660,581 
  Gross loans           419,438    413,856    390,647    389,992    390,986 
  Nonperforming                                                             
   assets                 3,256      4,495      4,189      6,439      6,923 
  Allowance for loan                                                        
   losses                 7,659      7,669      7,570      7,743      7,975 
  Deposits              602,633    591,642    577,129    580,215    586,993 
  Common equity          65,310     63,379     63,457     64,098     63,219 
  Total capital (2)      65,310     63,379     63,457     64,098     69,969 
                                                                            
Non-Financial Data                                                          
  Full-t
ime                                                                 
   equivalent staff         136        135        134        134        130 
  Number of banking                                                         
   offices                   14         14         14         14         14 
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end          7,929,730  7,929,730  7,924,730  7,914,730  7,907,780 
  Period average -                                                          
   basic              7,803,247  7,802,705  7,802,012  7,778,333  7,762,261 
  Period average -                                                          
   diluted            7,859,380  7,851,157  7,842,964  7,830,439  7,793,523 
                                                                            
Market Ratios                                                               
  Stock Price        $     8.37 $     7.96 $     7.67 $     8.14 $     7.45 
  Price/Earnings           9.64      10.40      10.86      12.67      10.38 
  Price/Book               1.02       1.00       0.96       1.01       0.93 
                                                                            
                                                                            
                                                                            
                          YEAR ENDED                                        
                          DECEMBER 31,                                      
                        2013       2012                                     
                     ---------- ----------                                  
                                                                            
($ in thousands,                                                            
 except per share)                                                          
Selected Quarterly                                                          
 Operating Data:                                                            
                                                                            
  Net interest                                                              
   income            $   24,275 $   24,845                                  
  Provision for loan                                                        
   losses                   300      1,150                                  
  Non-interest                                                              
   income                 3,281      3,148                                  
  Non-interest                                                              
   expense               18,660     18,249                                  
  Income before                                                             
   income taxes           8,596      8,594                                  
  Provision for                                                             
   income taxes           2,710      2,813                                  
                     ---------- ----------                                  
  Net income              5,886      5,781                                  
  Preferred stock                                                           
   dividends and                                                            
   accretion                (68)      (452)                                 
                     ---------- ----------                                  
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders      $    5,818 $    5,329                                  
                     ========== ==========      
                            
                                                                            
  Earnings per                                                              
   common share -                                                           
   basic             $     0.75 $     0.69                                  
  Earnings per                                                              
   common share -                                                           
   diluted           $     0.74 $     0.69                                  
  Return on average                                                         
   common equity           9.07%      8.80%                                 
  Return on average                                                         
   assets                  0.90%      0.95%                                 
  Net interest                                                              
   margin (1)              4.13%      4.53%               
                  
  Efficiency ratio                                                          
   (1)                    65.65%     63.83%                                 
                                                                            
Capital - Period End                                                        
  Book value per                                                            
   share             $     8.24 $     7.99                                  
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets                  0.48%      1.05%                                 
  Loan loss reserve/                                                        
   gross loans             1.83%      2.04%                                 
                                                                            
Period End Balance                                                          
 Sheet                                                                      
($ in thousands)                                                            
  Total assets       $  672,060 $  660,581                                  
  Gross loans           419,438    390,986                                  
  Nonperforming                                                             
   assets                 3,256      6,923                                  
  Allowance for loan                                                        
   losses                 7,659      7,975                                  
  Deposits              602,633    586,993                                  
  Common equity          65,310     63,219                                  
  Total capital (2)      65,310     69,969                                  
                                                                            
Non-Financial Data                                                          
  Full-time                                                                 
   equivalent staff         136        130                                  
  Number of banking                                                         
   offices                   14         14                                  
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end          7,929,730  7,907,780                                  
  Period average -                                                          
   basic              7,796,659  7,740,990                                  
  Period average -                                                          
   diluted            7,846,078  7,766,745                                  
                                                                            
Market Ratios                                                               
  Stock Price        $     8.37 $     7.45                                  
  Price/Earnings          11.22      10.85                                  
  Price/Book               1.02       0.93                                  
                                                                            
                                                                            
  (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 quarter ended December 31, 2012. There  
   was no preferred stock outstanding as of March 31, June 30, September    
   30, and December 31, 2013.                                               

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