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 the 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
