Oak Valley Bancorp Reports 1st Quarter Results

Q: What did Oak Valley Bancorp (OVLY) report for net income in 1Q26?

Oak Valley Bancorp reported consolidated net income of $5.309 million for 1Q26. According to the company, this equals $0.64 diluted EPS and compares to $6.335 million in the prior quarter and $5.297 million a year earlier.

Q: How did Oak Valley Bancorp's net interest margin (NIM) change in 1Q26 for OVLY?

Net interest margin was 4.12% for 1Q26. According to the company, NIM was 4.14% in the prior quarter and 4.09% in 1Q25, reflecting yield and balance variations.

Q: What credit-quality metrics did OVLY report for March 31, 2026?

Non-performing assets were $4.6 million or 0.23% of assets at March 31, 2026. According to the company, one collateral-dependent loan drove the increase and ACL rose to 1.13% of gross loans.

Q: How large were Oak Valley Bancorp's loans, deposits, and assets at March 31, 2026 (OVLY)?

At March 31, 2026, the company reported total assets of $2.01 billion , gross loans of $1.15 billion , and total deposits of $1.78 billion . According to the company, loans and deposits increased year-over-year.

Q: Why did OVLY record a provision for credit losses in 1Q26 and how large was it?

Oak Valley recorded a provision for credit losses of $464,000 in 1Q26. According to the company, the provision reflects CECL model output and monitoring of macroeconomic and credit factors.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Oak Valley Bancorp (NASDAQ: OVLY) reported unaudited 1Q26 results: consolidated net income was $5.309M or $0.64 diluted EPS. Net interest income was $18.824M and net interest margin was 4.12%. Non-interest income was $1.952M and non-interest expense was $13.506M. Total assets were $2.01B, gross loans $1.15B, and deposits $1.78B. Non-performing assets were $4.6M (0.23% of assets). A provision for credit losses of $464K was recorded and ACL rose to 1.13% of gross loans.

Positive

Net income of $5.309M in 1Q26
Net interest income increased year-over-year to $18.824M
Assets of $2.01B and gross loans of $1.15B
Liquidity with $201.6M in cash and equivalents

Negative

Net income down from prior quarter ($6.335M prior quarter)
Non-interest expense rose to $13.506M, up from $12.262M
Deposits decreased $12.0M from December 31, 2025
Provision for credit losses of $464K recorded in 1Q26 and ACL rose to 1.13%

Key Figures

Net income: $5,309,000 EPS (diluted): $0.64 Net interest income: $18,824,000 +5 more

8 metrics

Net income $5,309,000 Three months ended March 31, 2026

EPS (diluted) $0.64 Three months ended March 31, 2026

Net interest income $18,824,000 Three months ended March 31, 2026

Non-interest expense $13,506,000 Quarter ended March 31, 2026

Total assets $2.01 billion As of March 31, 2026

Gross loans $1.15 billion As of March 31, 2026

Total deposits $1.78 billion As of March 31, 2026

Non-performing assets $4.6 million (0.23% of assets) As of March 31, 2026

Market Reality Check

Price: $34.19 Vol: Volume 31,793 vs 20-day a...

normal vol

$34.19 Last Close

Volume Volume 31,793 vs 20-day average 28,925 indicates slightly elevated trading interest. normal

Technical Shares at $34.19 are trading above the 200-day MA of $29.78, near the 52-week high of $35.47.

Peers on Argus

OVLY slipped 0.59% with peers mixed: some regional banks down (e.g., CFFI -0.93%...

OVLY slipped 0.59% with peers mixed: some regional banks down (e.g., CFFI -0.93%, FUNC -0.29%) and others modestly higher, suggesting company-specific focus rather than a clear sector rotation.

Historical Context

5 past events · Latest: Mar 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 27	Workplace award	Positive	-0.8%	Recognition as a 2026 Best Place to Work in the Central Valley.
Mar 02	Executive hire	Positive	+1.8%	Appointment of a new Senior Vice President, Credit Administrator.
Feb 23	Branch leadership	Positive	-2.3%	New vice president and branch manager to drive Ripon branch growth.
Jan 26	CEO transition	Neutral	+0.0%	Planned CEO retirement with internal successor named for continuity.
Jan 23	Earnings & dividend	Neutral	+0.0%	Q4 2025 results, full-year 2025 earnings and a cash dividend declaration.

Pattern Detected

Recent headlines have been operational and governance updates with generally modest price reactions.

Recent Company History

Over the past few months, Oak Valley Bancorp has highlighted workplace recognition, leadership additions, CEO retirement plans, and Q4 2025 results with a cash dividend. Prior results noted $23.91M 2025 net income and asset growth past $2.02B, alongside higher non-performing assets and credit provisions. Against this backdrop, the latest Q1 2026 report shows continued balance sheet expansion, slightly lower quarterly earnings versus Q4 2025, and stable credit quality metrics, extending the existing narrative of disciplined regional growth.

Market Pulse Summary

This announcement details Q1 2026 results, with net income of $5.31M and EPS of $0.64, modestly belo...

Analysis

This announcement details Q1 2026 results, with net income of $5.31M and EPS of $0.64, modestly below the prior quarter but slightly above the prior year. Balance sheet growth continued, with total assets at $2.01B, gross loans at $1.15B, and deposits at $1.78B. Investors may focus on rising non-interest expenses, non-performing assets of $4.6M, and a $464,000 credit loss provision while monitoring credit quality and margin trends in upcoming quarters.

Key Terms

net interest margin, non-performing assets, allowance for credit loss, current expected credit loss, +1 more

5 terms

net interest margin financial

"As a result, net interest margin for the three months ended March 31, 2026 was 4.12%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Non-performing assets (“NPA”) were $4.6 million, or 0.23% of total assets"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit loss financial

"recognized a specific allowance for credit loss (“ACL”) reserve"

An allowance for credit loss is a reserve a lender records on its balance sheet to cover loans or receivables it expects it won’t fully collect, similar to setting money aside in a rainy-day fund for bills that might not be paid. It matters to investors because larger allowances reduce reported profits and available capital, signaling higher credit risk and affecting valuations, capital adequacy and future earnings expectations.

current expected credit loss financial

"as part of its current expected credit loss (“CECL”) calculation"

An accounting approach that requires lenders and companies to estimate and record the credit losses they expect on loans and receivables now, using current conditions and reasonable forecasts rather than waiting for a default to occur. It matters to investors because it changes reported reserves and profits up front and gives an earlier, more forward-looking signal of credit quality—like packing an umbrella today because the forecast predicts rain, which affects a company’s cushion against bad loans.

provision for credit losses financial

"a provision for credit losses of $464,000 was recorded during the first quarter"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

AI-generated analysis. Not financial advice.

04/22/2026 - 05:00 PM

OAKDALE, Calif., April 22, 2026 (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 first quarter of 2026. For the three months ended March 31, 2026, consolidated net income was $5,309,000, or $0.64 per diluted share (EPS). This compares to consolidated net income of $6,335,000, or $0.77 EPS, for the prior quarter and $5,297,000, or $0.64 EPS, for the same period a year ago. The net income decrease compared to the prior period was primarily due to an increase in operating expenses and a decrease in net interest income. The net income increase compared to the prior year was due to an increase in net interest income driven by earning asset growth.

Net interest income for the three months ended March 31, 2026 was $18,824,000, compared to $19,457,000 in the prior quarter, and $17,807,000 in the same period a year ago. The decrease from the prior quarter is due to lower yields on cash balances, lower average earning assets, a slight increase in the interest rate paid on deposit accounts and two less days of interest accruals, while the year-over-year increase is due to growth in earning assets and loan yields. As a result, net interest margin for the three months ended March 31, 2026 was 4.12%, compared to 4.14% for the prior quarter and 4.09% for the same period last year.

Non-interest income was $1,952,000 for the quarter ended March 31, 2026, compared to $1,825,000 for the prior quarter and $1,613,000 for the same period last year. The increase compared to prior periods was mainly due to a special dividend of $181,000 received from the Federal Home Loan Bank.

Non-interest expense totaled $13,506,000 for the quarter ended March 31, 2026, compared to $12,262,000 in the previous quarter and $12,624,000 in the same quarter a year ago. The increase in non-interest expense corresponds primarily to staffing expenses and general operating costs related to servicing the growing loan and deposit portfolios.

Total assets were $2.01 billion at March 31, 2026, a decrease of $12.8 million and an increase of $85.9 million from December 31, 2025 and March 31, 2025, respectively. Gross loans were $1.15 billion at March 31, 2026, an increase of $3.5 million and $56.5 million over December 31, 2025 and March 31, 2025, respectively. The Company’s total deposits were $1.78 billion at March 31, 2026, a decrease of $12.0 million and an increase of $67.4 million from December 31, 2025 and March 31, 2025, respectively. Our liquidity position remains strong, as evidenced by $201.6 million in cash and cash equivalents balances at March 31, 2026.

“Our balance sheet remains strong and we continue to see stable performance across our core business lines,” stated Chris Courtney, CEO. “We remain committed to disciplined growth while maintaining a conservative approach to risk management.”

Non-performing assets (“NPA”) were $4.6 million, or 0.23% of total assets as of March 31, 2026 and December 31, 2025, compared to zero at March 31, 2025. The increase compared to the same period a year ago is due to one collateral-dependent loan that was placed on non-accrual status in December 2025. The company individually evaluated this loan and recognized a specific allowance for credit loss (“ACL”) reserve as part of its current expected credit loss (“CECL”) calculation. Management continues to monitor macro-economic conditions and other credit-related factors utilized for pooled loans within the CECL risk model. As a result of the model output, a provision for credit losses of $464,000 was recorded during the first quarter, as compared to $865,000 in the prior quarter, and zero in the same period of the prior year. The ACL as a percentage of gross loans increased to 1.13% at March 31, 2026, compared to 1.08% at December 31, 2025 and 1.05% at March 31, 2025. Management concluded that the ACL reserve relative to gross loans remains at acceptable levels, and credit quality remains stable.

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 19 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, Lodi, two branches in Sonora, three branches in Modesto, and three branches in the Eastern Sierra division which includes Bridgeport, Mammoth Lakes, and Bishop. 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:		1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
($ in thousands, except per share)			2026			2025			2025			2025			2025

	Net interest income	$	18,824		$	19,457		$	19,197		$	18,154		$	17,807
	Provision for (reversal of) credit losses		464			865			(60	)		-			-
	Non-interest income		1,952			1,825			1,973			1,703			1,613
	Non-interest expense		13,506			12,262			12,700			12,688			12,624
	Net income before income taxes		6,806			8,155			8,530			7,169			6,796
	Provision for income taxes		1,497			1,820			1,837			1,581			1,499
	Net income	$	5,309		$	6,335		$	6,693		$	5,588		$	5,297

	Earnings per common share - basic	$	0.64		$	0.77		$	0.81		$	0.68		$	0.64
	Earnings per common share - diluted	$	0.64		$	0.76		$	0.81		$	0.67		$	0.64
	Dividends paid per common share	$	0.375		$	-		$	0.300		$	-		$	0.300
	Return on average common equity		10.23	%		12.32	%		14.30	%		12.21	%		11.58	%
	Return on average assets		1.07	%		1.25	%		1.35	%		1.18	%		1.13	%
	Net interest margin (1)		4.12	%		4.14	%		4.16	%		4.11	%		4.09	%
	Efficiency ratio (2)		62.99	%		55.94	%		58.27	%		61.95	%		63.00	%

Capital - Period End
	Book value per common share	$	24.50		$	24.79		$	23.63		$	22.17		$	21.89

Credit Quality - Period End
	Nonperforming assets / total assets		0.23	%		0.23	%		0.00	%		0.00	%		0.00	%
	Credit loss reserve / gross loans		1.13	%		1.08	%		1.03	%		1.03	%		1.05	%

Balance Sheet - Period End (in thousands)
	Total assets	$	2,010,299		$	2,023,116		$	1,995,416		$	1,920,909		$	1,924,365
	Gross loans		1,147,451			1,143,930			1,112,829			1,109,856			1,090,953
	Nonperforming assets		4,574			4,587			-			-			-
	Allowance for credit losses		12,910			12,381			11,420			11,430			11,448
	Deposits		1,780,996			1,792,962			1,774,882			1,711,241			1,713,592
	Common equity		206,154			207,975			198,280			185,805			183,520

Balance Sheet - Average (in thousands)
	Average assets	$	2,006,175		$	2,013,766		$	1,961,374		$	1,903,741		$	1,903,585
	Average earning assets		1,905,874			1,914,907			1,876,588			1,818,430			1,814,338
	Average equity		210,562			203,994			185,638			183,612			185,592

Non-Financial Data
	Full-time equivalent staff		244			238			237			231			225
	Number of banking offices		19			19			18			18			18

Common Shares outstanding
	Period end		8,413,458			8,388,221			8,390,621			8,382,062			8,382,062
	Period average - basic		8,257,567			8,249,256			8,246,666			8,245,147			8,231,844
	Period average - diluted		8,322,124			8,304,597			8,299,039			8,285,299			8,278,301

Market Ratios
	Stock Price	$	32.43		$	30.06		$	28.17		$	27.24		$	24.96
	Price/Earnings		12.44			9.87			8.75			10.02			9.56
	Price/Book		1.32			1.21			1.19			1.23			1.14

(1)	This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%. The resulting adjustment to net interest income is $539 thousand, $509 thousand, $501 thousand, $498 thousand, and $497 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
(2)	This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%, and a federal/state combined tax rate of 29.56%. The resulting adjustment to pre-tax income is $666 thousand, $639 thousand, $626 thousand, $624 thousand, and $618 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.

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

FAQ

What did Oak Valley Bancorp (OVLY) report for net income in 1Q26?

Oak Valley Bancorp reported consolidated net income of $5.309 million for 1Q26. According to the company, this equals $0.64 diluted EPS and compares to $6.335 million in the prior quarter and $5.297 million a year earlier.

How did Oak Valley Bancorp's net interest margin (NIM) change in 1Q26 for OVLY?

Net interest margin was 4.12% for 1Q26. According to the company, NIM was 4.14% in the prior quarter and 4.09% in 1Q25, reflecting yield and balance variations.

What credit-quality metrics did OVLY report for March 31, 2026?

Non-performing assets were $4.6 million or 0.23% of assets at March 31, 2026. According to the company, one collateral-dependent loan drove the increase and ACL rose to 1.13% of gross loans.

How large were Oak Valley Bancorp's loans, deposits, and assets at March 31, 2026 (OVLY)?

At March 31, 2026, the company reported total assets of $2.01 billion, gross loans of $1.15 billion, and total deposits of $1.78 billion. According to the company, loans and deposits increased year-over-year.

Why did OVLY record a provision for credit losses in 1Q26 and how large was it?

Oak Valley recorded a provision for credit losses of $464,000 in 1Q26. According to the company, the provision reflects CECL model output and monitoring of macroeconomic and credit factors.