OAKDALE, Calif., July 18, 2025 (GLOBE NEWSWIRE) -- Oak Valley Bancorp (NASDAQ:OVLY) (the "Company"), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results. For the three months ended June 30, 2025, consolidated net income was $5,588,000, or $0.67 per diluted share (EPS), as compared to $5,297,000, or $0.64 EPS, for the prior quarter and $5,889,000, or $0.71 EPS, for the same period a year ago. Consolidated net income for the six months ended June 30, 2025 was $10,885,000, or $1.31 EPS, compared to $11,616,000 or $1.41 EPS for the same period of 2024.

The increase in second quarter net income compared to the prior quarter was the result of loan growth, a rise in the yield of the loan portfolio, and the corresponding increase in interest income. The QTD and YTD decreases compared to the same periods of 2024 were related to an increase in deposit interest expense and general operating expenses.

Net interest income for the three-months ended June 30, 2025 was $18,154,000, compared to $17,807,000 in the prior quarter, and $17,292,000 in the same period a year ago. The increase in net interest income over the prior periods is attributed to an increase in average earning asset balances and loan yields. Gross loans grew by $18,903,000 and $39,820,000 during the second quarter and prior twelve months, respectively, while loans yields continue to trend upward. The cost of funds increased throughout 2024, but began to decline during the first six months of 2025, ending at 0.77% during the second quarter of 2025, as compared to 0.79% for the prior quarter, and 0.73% for the same period of 2024. Net interest margin for the three months ended June 30, 2025 was 4.11%, compared to 4.09% for the prior quarter and 4.11% for the same period last year.

"Our solid earnings results reflect our steady and cautious approach to managing our business. The increase in net interest income due to loan growth and stable interest margins demonstrates our ability to navigate changing market conditions. Our commitment to relationship-based deposit growth remains strong, enabling us to maintain a competitive lending strategy and manage profitability," stated Rick McCarty, President and Chief Operating Officer.

Non-interest income was $1,703,000 for the three-months ended June 30, 2025, compared to $1,613,000 for the prior quarter and $1,760,000 for the same period last year. The increase over the prior period was mainly due to fair value adjustments on a limited partner equity investment and increased production from our investment advisory service and related fee income. The decrease compared to the same period a year ago was the result of the same investment advisory service fee income.

Non-interest expense totaled $12,688,000 for the three-months ended June 30, 2025, compared to $12,624,000 in the prior quarter and $11,616,000 in the same quarter a year ago. The increases compared to prior periods are due to general operating costs related to servicing the growing loan and deposit portfolios.

Total assets were $1.92 billion at June 30, 2025, a decrease of $3.5 million from March 31, 2025 and an increase of $80.4 million over June 30, 2024. Gross loans were $1.11 billion at June 30, 2025, an increase of $18.9 million over March 31, 2025 and $39.8 million over June 30, 2024. The Company's total deposits were $1.71 billion as of June 30, 2025, a decrease of $2.4 million from March 31, 2025 and an increase of $66.5 million over June 30, 2024. Our liquidity position remains strong, as evidenced by $198.9 million in cash and cash equivalents balances at June 30, 2025.

"We are pleased with the continued expansion of our loan portfolio and the overall strength of our balance sheet. While deposits declined marginally from the previous quarter, our year-over-year deposit trajectory remains on an upward trend," stated Chris Courtney, CEO. "Our growth is a testament to the unwavering dedication and collaboration of our team members. Their commitment to providing outstanding service to our clients has been instrumental in driving our steady growth and ability to exceed client expectations."

Non-performing assets ("NPA") remained at zero as of June 30, 2025, as they were for all of 2025 and 2024. The allowance for credit losses ("ACL") as a percentage of gross loans decreased slightly to 1.03% at June 30, 2025, compared to 1.05% at March 31, 2025 and 1.04% at June 30, 2024. The decrease in the ACL as a percentage of gross loans from the prior periods is mainly due to the growth in the loan portfolio. Management has performed a thorough analysis of credit risk as part of the CECL model's ACL computation, concluding that the credit loss reserves relative to gross loans remains at acceptable levels, and credit quality remains stable. As a result, the Company did not record a provision for credit losses during the second quarter.

The Board of Directors of Oak Valley Bancorp at their July 15, 2025, meeting declared the payment of a cash dividend of $0.30 per share of common stock to its shareholders of record at the close of business on July 28, 2025. The payment date will be August 8, 2025 and will amount to approximately $2,515,000. This is the second dividend payment made by the Company in 2025.

Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in their Eastern Sierra division, which includes Bridgeport, Mammoth Lakes, and Bishop. The company will open its 19th branch location later this year in Lodi.

For more information, 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)

Selected Quarterly Operating Data:		2nd Quarter			1st Quarter			4th Quarter			3rd Quarter			2nd Quarter
($ in thousands, except per share)		2025			2025			2024			2024			2024

	Net interest income	$	18,154		$	17,807		$	17,846		$	17,655		$	17,292
	(Reversal of) provision for credit losses		-			-			-			(1,620	)		-
	Non-interest income		1,703			1,613			1,430			1,846			1,760
	Non-interest expense		12,688			12,624			11,548			11,324			11,616
	Net income before income taxes		7,169			6,796			7,728			9,797			7,436
	Provision for income taxes		1,581			1,499			1,720			2,473			1,547
	Net income	$	5,588		$	5,297		$	6,008		$	7,324		$	5,889

	Earnings per common share - basic	$	0.68		$	0.64		$	0.73		$	0.89		$	0.72
	Earnings per common share - diluted	$	0.67		$	0.64		$	0.73		$	0.89		$	0.71
	Dividends paid per common share	$	-		$	0.300		$	-		$	0.225		$	-
	Return on average common equity		12.21	%		11.58	%		12.86	%		16.54	%		14.19	%
	Return on average assets		1.18	%		1.13	%		1.25	%		1.56	%		1.30	%
	Net interest margin (1)		4.11	%		4.09	%		4.00	%		4.04	%		4.11	%
	Efficiency ratio (2)		63.90	%		65.01	%		59.91	%		58.07	%		60.97	%

Capital - Period End
	Book value per common share	$	22.17		$	21.89		$	21.95		$	22.18		$	20.55

Credit Quality - Period End
	Nonperforming assets / total assets		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
	Credit loss reserve / gross loans		1.03	%		1.05	%		1.04	%		1.07	%		1.04	%

Balance Sheet - Period End (in thousands)
	Total assets	$	1,920,909		$	1,924,365		$	1,900,604		$	1,900,455		$	1,840,521
	Gross loans		1,109,856			1,090,953			1,106,535			1,075,138			1,070,036
	Nonperforming assets		-			-			-			-			-
	Allowance for credit losses		11,430			11,448			11,460			11,479			11,121
	Deposits		1,711,241			1,713,592			1,695,690			1,690,301			1,644,748
	Common equity		185,805			183,520			183,436			185,393			171,799

Balance Sheet - Average (in thousands)
	Average assets	$	1,903,741		$	1,903,585		$	1,909,691		$	1,863,983		$	1,814,643
	Average earning assets		1,818,430			1,814,338			1,819,649			1,780,056			1,737,270
	Average equity		183,612			185,592			185,345			175,693			166,429

Non-Financial Data
	Full-time equivalent staff		231			225			223			222			223
	Number of banking offices		18			18			18			18			18

Common Shares outstanding
	Period end		8,382,062			8,382,062			8,357,211			8,358,711			8,359,556
	Period average - basic		8,245,147			8,231,844			8,224,504			8,221,475			8,219,699
	Period average - diluted		8,285,299			8,278,301			8,278,427			8,263,790			8,248,295

Market Ratios
	Stock Price	$	27.24		$	24.96		$	29.25		$	26.57		$	24.97
	Price/Earnings		10.02			9.56			10.09			7.52			8.69
	Price/Book		1.23			1.14			1.33			1.20			1.22

(1) This is a non-GAAP measure because its computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
(2) This ratio was changed to GAAP basis as of the quarter ended December 31, 2024, and all prior periods have been restated accordingly.



Profitability		SIX MONTHS ENDED JUNE 30,
($ in thousands, except per share)		2025			2024

	Net interest income	$	35,961		$	34,533
	(Reversal of) provision for credit losses		-			-
	Non-interest income		3,316			3,279
	Non-interest expense		25,312			23,145
	Net income before income taxes		13,965			14,667
	Provision for income taxes		3,080			3,051
	Net income	$	10,885		$	11,616

	Earnings per share - basic	$	1.32		$	1.41
	Earnings per share - diluted	$	1.31		$	1.41
	Dividends paid per share	$	0.30		$	0.225
	Return on average equity		11.89	%		14.03	%
	Return on average assets		1.15	%		1.28	%
	Net interest margin (1)		4.10	%		4.10	%
	Efficiency ratio (2)		64.44	%		59.36	%

Capital - Period End
	Book value per share	$	22.17		$	20.55

Credit Quality - Period End
	Nonperforming assets/ total assets		0.00	%		0.00	%
	Credit loss reserve/ gross loans		1.03	%		1.04	%

Balance Sheet - Period End (in thousands)
	Total assets	$	1,920,909		$	1,840,521
	Gross loans		1,109,856			1,070,036
	Nonperforming assets		-			-
	Allowance for credit losses		11,430			11,121
	Deposits		1,711,241			1,644,748
	Stockholders' equity		185,805			171,799

Balance Sheet - Average (in thousands)
	Average assets	$	1,903,663		$	1,819,426
	Average earning assets		1,816,395			1,740,898
	Average equity		184,596			166,071

Non-Financial Data
	Full-time equivalent staff		231			223
	Number of banking offices		18			18

Common Shares outstanding
	Period end		8,382,062			8,359,556
	Period average - basic		8,238,532			8,214,658
	Period average - diluted		8,281,819			8,246,472

Market Ratios
	Stock Price	$	27.24		$	24.97
	Price/Earnings		10.22			8.81
	Price/Book		1.23			1.22

	(1) This is a non-GAAP measure because its computed on a fully tax equivalent basis using a marginal federal tax rate of 21%.
	(2) This ratio was changed to GAAP basis as of the year ended December 31, 2024, and the prior period has been restated accordingly.

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

Oak Valley Bancorp Reports 2nd Quarter Results and Announces Cash Dividend