Oak Valley Bancorp Reports 1st Quarter Results

Oak Valley Bancorp Reports 1st Quarter Results 
OAKDALE, CA -- (Marketwired) -- 04/18/14 --  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 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.  


 
                                                                            
                             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:    2014        2013        2013        2013        2013    
                                                                            
  Net interest                                                              
   income        $    6,104  $    6,372  $    6,030  $    6,024  $    5,849 
  Provision for                                                             
   loan losses            -           -         100         100         100 
  Non-interest                                                              
   income               810         812         866         818         785 
  Non-interest                                                              
   expense            4,881       4,668       4,619       4,734       4,639 
  Net income                                                                
   before income                                                            
   taxes              2,033       2,516       2,177       2,008       1,895 
  Provision for                                                             
   income taxes         625         809         672         634         595 
                 ----------  ----------  ----------  ----------  ---------- 
  Net income          1,408       1,707       1,505       1,374       1,300 
  Preferred                                                                 
   stock                                                                    
   dividends              -           -           -           -          68 
                 ----------  ----------  ----------  ----------  ---------- 
  Net income                                                                
   available to                                                             
   common                                                                   
   shareholders  $    1,408  $    1,707  $    1,505  $    1,374  $    1,232 
                 ==========  ==========  ==========  ==========  ========== 
                                                                            
  Earnings per                                                              
   common share                                                             
   - basic       $     0.18  $     0.22  $     0.19  $     0.18  $     0.16 
  Earnings per                                                              
   common share                                                             
   - diluted     $     0.18  $     0.22  $     0.19  $     0.18  $     0.16 
  Dividends paid                                                            
   per common                                                               
   share         $     0.10  $        -           -           -           - 
  Return on                                                                 
   average                                                                  
   common equity       8.59%      10.47%       9.45%       8.48%       7.82%
  Return on                                                                 
   average                                                                  
   assets              0.84%       1.01%       0.92%       0.86%       0.81%
  Net interest                                                              
   margin (1)          4.04%       4.19%       4.12%       4.18%       4.05%
  Efficiency                                                                
   ratio (2)          68.29%      63.05%      64.65%      67.17%      67.95%
                                                                            
Capital - Period                                                            
 End                                                                        
  Book value per                                                            
   common share  $     8.40  $     8.14  $     7.99  $     8.01  $     8.10 
                                                                            
Credit Quality -                                                            
 Period End                                                                 
  Nonperforming                                                             
   assets/ total                                                            
   assets              0.90%       0.48%       0.68%       0.65%       0.99%
  Loan loss                                                                 
   reserve/                                                                 
   gross loans         1.80%       1.83%       1.85%       1.94%       1.99%
                                                                            
Period End                                                                  
 Balance Sheet                                                              
($ in thousands)                                                            
  Total assets   $  687,591  $  671,853  $  659,192  $  644,230  $  648,418 
  Gross loans       422,510     419,438     413,856     390,647     389,992 
  Nonperforming                                                             
   assets             6,164       3,256       4,495       4,189       6,439 
  Allowance for                                                             
   loan losses        7,615       7,659       7,669       7,570       7,743 
  Deposits          615,997     602,633     591,642     577,129     580,215 
  Common equity      67,824      64,517      63,379      63,457      64,098 
                                                                            
Non-Financial                                                               
 Data                                                                       
  Full-time                                                                 
   equivalent                                                               
   staff                142         136         135         134         134 
  Number of                                                                 
   banking                                                                  
   offices               14          14          14          14          14 
                                                                            
Common Shares                                                               
 outstanding                                                                
  Period end      8,071,355   7,929,730   7,929,730   7,924,730   7,914,730 
  Period average                                                            
   - basic        7,878,152   7,803,247   7,802,705   7,802,012   7,778,333 
  Period average                                                            
   - diluted      7,941,456   7,859,380   7,851,157   7,842,964   7,830,439 
                                                                            
Market Ratios                                                               
  Stock Price    $     9.41  $     8.37  $     7.96  $     7.67  $     8.14 
  Price/Earnings      12.98        9.64       10.40       10.86       12.67 
  Price/Book           1.12        1.03        1.00        0.96        1.01 
                                                                            
(1) Ratio computed on a fully tax equivalent basis using a marginal federal 
 tax rate of 34%.                                                           
(2) Ratio computed on a fully tax equivalent basis using a marginal federal 
 tax rate of 34%, and a marginal federal/state combined tax rate of 41.15%  
 for applicable revenue.                                                    

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