Oak Valley Bancorp Reports 2nd Quarter Results and Announces Cash Dividend
Rhea-AI Summary
Oak Valley Bancorp (NASDAQ: OVLY) reported Q2 2026 net income of $5.1 million, or $0.61 diluted EPS, down from $5.3 million ($0.64) in Q1 2026 and $5.6 million ($0.67) in Q2 2025. Net interest income rose to $18.9 million, while non-interest income decreased to $1.7 million and non-interest expense increased to $14.2 million.
Net interest margin was 4.15% versus 4.12% in Q1 2026. Total assets were $2.00 billion, gross loans $1.17 billion, and deposits $1.76 billion at June 30, 2026. Non-performing assets were $2.6 million (0.13% of assets) following a $1.7 million charge-off and OREO transfer. The board declared a Q2 cash dividend of $0.375 per share, payable August 14, 2026 to shareholders of record on August 3, 2026, totaling about $3.2 million.
Positive
- Net interest income up to $18.9M in Q2 2026 from $18.2M year prior
- Net interest margin improved to 4.15% in Q2 2026 from 4.11% in Q2 2025
- Gross loans grew $55.9M year-over-year to $1.17B at June 30, 2026
- Total assets increased $80.7M year-over-year to $2.00B
- Book value per share rose to $25.80 from $22.17 a year earlier
- Non-performing assets ratio declined to 0.13% from 0.23% in Q1 2026
- Cash dividend of $0.375 per share declared, ~$3.2M total payout
Negative
- Q2 2026 net income decreased to $5.1M from $5.3M in Q1 2026
- Q2 2026 net income down from $5.6M in Q2 2025
- Six-month 2026 net income declined to $10.4M from $10.9M in 2025
- Non-interest expense rose to $14.2M in Q2 2026 vs. $12.4M in Q2 2025
- Efficiency ratio weakened to 66.46% in Q2 2026 from 60.75% in Q2 2025
- Allowance ratio fell to 0.96% of gross loans after a $1.7M charge-off
News Market Reaction – OVLY
In the Jul 23 session, OVLY declined 2.03%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
OAKDALE, Calif., July 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 three months ended June 30, 2026, consolidated net income was
The decrease in second quarter net income compared to the prior periods was primarily the result of an increase in non-interest expense and lower non-interest income, partially offset by an increase in net interest income and a lower provision for credit losses. The year-to-date decrease compared to 2025 was driven by higher non-interest expense, partially offset by increases in net interest income and non-interest income.
Net interest income for the three-months ended June 30, 2026 was
Non-interest income was
Non-interest expense totaled
Total assets were
"We are pleased with the continued expansion of our customer base. Our second quarter results reflect loan growth, disciplined balance sheet management, and the benefit of a steady net interest margin," stated Rick McCarty, President and Chief Executive Officer. "Our team continues to manage the business with a long-term, relationship-focused approach that supports our clients, communities, and shareholders."
Non-performing assets (NPA) totaled
The Board of Directors of Oak Valley Bancorp at their July 21, 2026, meeting declared the payment of a cash dividend of
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 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: ($ in thousands, except per share) | 2nd Quarter 2026 | 1st Quarter 2026 | 4th Quarter 2025 | 3rd Quarter 2025 | 2nd Quarter 2025 | ||||||||||||||||
| Net interest income | $ | 18,944 | $ | 18,824 | $ | 19,457 | $ | 19,197 | $ | 18,154 | |||||||||||
| Provision for (reversal of) credit losses | 21 | 464 | 865 | (60 | ) | 245 | |||||||||||||||
| Non-interest income | 1,665 | 1,952 | 1,825 | 1,973 | 1,703 | ||||||||||||||||
| Non-interest expense | 14,157 | 13,506 | 12,262 | 12,700 | 12,443 | ||||||||||||||||
| Net income before income taxes | 6,431 | 6,806 | 8,155 | 8,530 | 7,169 | ||||||||||||||||
| Provision for income taxes | 1,317 | 1,497 | 1,820 | 1,837 | 1,581 | ||||||||||||||||
| Net income | $ | 5,114 | $ | 5,309 | $ | 6,335 | $ | 6,693 | $ | 5,588 | |||||||||||
| Earnings per common share - basic | $ | 0.62 | $ | 0.64 | $ | 0.77 | $ | 0.81 | $ | 0.68 | |||||||||||
| Earnings per common share - diluted | $ | 0.61 | $ | 0.64 | $ | 0.76 | $ | 0.81 | $ | 0.67 | |||||||||||
| Dividends paid per common share | $ | - | $ | 0.375 | $ | - | $ | 0.300 | $ | - | |||||||||||
| Return on average common equity | 9.74 | % | 10.23 | % | 12.32 | % | 14.30 | % | 12.21 | % | |||||||||||
| Return on average assets | 1.04 | % | 1.07 | % | 1.25 | % | 1.35 | % | 1.18 | % | |||||||||||
| Net interest margin (1) | 4.15 | % | 4.12 | % | 4.14 | % | 4.16 | % | 4.11 | % | |||||||||||
| Efficiency ratio (2) | 66.46 | % | 62.99 | % | 55.94 | % | 58.27 | % | 60.75 | % | |||||||||||
| Capital - Period End | |||||||||||||||||||||
| Book value per common share | $ | 25.80 | $ | 24.50 | $ | 24.79 | $ | 23.63 | $ | 22.17 | |||||||||||
| Credit Quality - Period End | |||||||||||||||||||||
| Nonperforming assets / total assets | 0.13 | % | 0.23 | % | 0.23 | % | 0.00 | % | 0.00 | % | |||||||||||
| Credit loss reserve / gross loans | 0.96 | % | 1.13 | % | 1.08 | % | 1.03 | % | 1.03 | % | |||||||||||
| Balance Sheet - Period End (in thousands) | |||||||||||||||||||||
| Total assets | $ | 2,001,578 | $ | 2,010,299 | $ | 2,023,116 | $ | 1,995,416 | $ | 1,920,909 | |||||||||||
| Gross loans | 1,165,715 | 1,147,451 | 1,143,930 | 1,112,829 | 1,109,856 | ||||||||||||||||
| Nonperforming assets | 2,631 | 4,574 | 4,587 | - | - | ||||||||||||||||
| Allowance for credit losses | 11,172 | 12,910 | 12,381 | 11,420 | 11,430 | ||||||||||||||||
| Deposits | 1,763,551 | 1,780,996 | 1,792,962 | 1,774,882 | 1,711,241 | ||||||||||||||||
| Common equity | 217,034 | 206,154 | 207,975 | 198,280 | 185,805 | ||||||||||||||||
| Balance Sheet - Average (in thousands) | |||||||||||||||||||||
| Average assets | $ | 1,980,142 | $ | 2,006,175 | $ | 2,013,766 | $ | 1,961,374 | $ | 1,903,741 | |||||||||||
| Average earning assets | 1,884,736 | 1,905,874 | 1,914,907 | 1,876,588 | 1,818,430 | ||||||||||||||||
| Average equity | 210,662 | 210,562 | 203,994 | 185,638 | 183,612 | ||||||||||||||||
| Non-Financial Data | |||||||||||||||||||||
| Full-time equivalent staff | 246 | 244 | 238 | 237 | 231 | ||||||||||||||||
| Number of banking offices | 19 | 19 | 19 | 18 | 18 | ||||||||||||||||
| Common Shares outstanding | |||||||||||||||||||||
| Period end | 8,413,458 | 8,413,458 | 8,388,221 | 8,390,621 | 8,382,062 | ||||||||||||||||
| Period average - basic | 8,272,810 | 8,257,567 | 8,249,256 | 8,246,666 | 8,245,147 | ||||||||||||||||
| Period average - diluted | 8,333,393 | 8,322,124 | 8,304,597 | 8,299,039 | 8,285,299 | ||||||||||||||||
| Market Ratios | |||||||||||||||||||||
| Stock Price | $ | 33.75 | $ | 32.43 | $ | 30.06 | $ | 28.17 | $ | 27.24 | |||||||||||
| Price/Earnings | 13.61 | 12.44 | 9.87 | 8.75 | 10.02 | ||||||||||||||||
| Price/Book | 1.31 | 1.32 | 1.21 | 1.19 | 1.23 | ||||||||||||||||
| (1) | This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of | ||||||||||||||||||||
| (2) | This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of | ||||||||||||||||||||
| Profitability | SIX MONTHS ENDED JUNE 30, | ||||||||||||||||||||
| ($ in thousands, except per share) | 2026 | 2025 | |||||||||||||||||||
| Net interest income | $ | 37,768 | $ | 35,961 | |||||||||||||||||
| Provision for (reversal of) credit losses | 485 | 519 | |||||||||||||||||||
| Non-interest income | 3,617 | 3,316 | |||||||||||||||||||
| Non-interest expense | 27,663 | 24,793 | |||||||||||||||||||
| Net income before income taxes | 13,237 | 13,965 | |||||||||||||||||||
| Provision for income taxes | 2,814 | 3,080 | |||||||||||||||||||
| Net income | $ | 10,423 | $ | 10,885 | |||||||||||||||||
| Earnings per share - basic | $ | 1.26 | $ | 1.32 | |||||||||||||||||
| Earnings per share - diluted | $ | 1.25 | $ | 1.31 | |||||||||||||||||
| Dividends paid per share | $ | 0.375 | $ | 0.300 | |||||||||||||||||
| Return on average equity | 9.98 | % | 11.89 | % | |||||||||||||||||
| Return on average assets | 1.05 | % | 1.15 | % | |||||||||||||||||
| Net interest margin (3) | 4.13 | % | 4.10 | % | |||||||||||||||||
| Efficiency ratio (4) | 64.72 | % | 61.19 | % | |||||||||||||||||
| Capital - Period End | |||||||||||||||||||||
| Book value per share | $ | 25.80 | $ | 22.17 | |||||||||||||||||
| Credit Quality - Period End | |||||||||||||||||||||
| Nonperforming assets/ total assets | 0.13 | % | 0.00 | % | |||||||||||||||||
| Credit loss reserve/ gross loans | 0.96 | % | 1.03 | % | |||||||||||||||||
| Balance Sheet - Period End (in thousands) | |||||||||||||||||||||
| Total assets | $ | 2,001,578 | $ | 1,920,909 | |||||||||||||||||
| Gross loans | 1,165,715 | 1,109,856 | |||||||||||||||||||
| Nonperforming assets | 2,631 | - | |||||||||||||||||||
| Allowance for credit losses | 11,172 | 11,430 | |||||||||||||||||||
| Deposits | 1,763,551 | 1,711,241 | |||||||||||||||||||
| Stockholders' equity | 217,034 | 185,805 | |||||||||||||||||||
| Balance Sheet - Average (in thousands) | |||||||||||||||||||||
| Average assets | $ | 1,993,086 | $ | 1,903,663 | |||||||||||||||||
| Average earning assets | 1,895,247 | 1,816,395 | |||||||||||||||||||
| Average equity | 210,613 | 184,596 | |||||||||||||||||||
| Non-Financial Data | |||||||||||||||||||||
| Full-time equivalent staff | 246 | 231 | |||||||||||||||||||
| Number of banking offices | 19 | 18 | |||||||||||||||||||
| Common Shares outstanding | |||||||||||||||||||||
| Period end | 8,413,458 | 8,382,062 | |||||||||||||||||||
| Period average - basic | 8,265,231 | 8,238,532 | |||||||||||||||||||
| Period average - diluted | 8,327,790 | 8,281,819 | |||||||||||||||||||
| Market Ratios | |||||||||||||||||||||
| Stock Price | $ | 33.75 | $ | 27.24 | |||||||||||||||||
| Price/Earnings | 13.27 | 10.22 | |||||||||||||||||||
| Price/Book | 1.31 | 1.23 | |||||||||||||||||||
| (3) | This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of | ||||||||||||||||||||
| (4) | This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of | ||||||||||||||||||||
| Contact: | Rick McCarty/Jeff Gall |
| Phone: | (209) 848-2265 |
| www.ovcb.com |
