Oak Valley Bancorp Reports 3rd Quarter Results
Rhea-AI Summary
Oak Valley Bancorp (NASDAQ: OVLY) reported its Q3 2024 financial results. Consolidated net income was $7,324,000, or $0.89 per diluted share, compared to $5,889,000 in the prior quarter and $7,354,000 in Q3 2023. The increase from Q2 was primarily due to loan recoveries resulting in a $1,620,000 reversal of allowance for credit losses. Net interest income was $17,655,000, up from $17,292,000 in Q2 but down from $18,938,000 in Q3 2023. The net interest margin was 4.04%, compared to 4.11% in Q2 and 4.34% in Q3 2023.
Total assets reached $1.90 billion, gross loans were $1.08 billion, and total deposits were $1.69 billion as of September 30, 2024. Non-performing assets remained at zero, and the allowance for credit losses as a percentage of gross loans increased to 1.07%. The bank maintains a strong liquidity position with $213.9 million in cash and cash equivalents.
Positive
- Consolidated net income increased to $7,324,000 in Q3 2024, up from $5,889,000 in Q2 2024
- Loan recoveries resulted in a $1,620,000 reversal of allowance for credit losses
- Net interest income increased to $17,655,000 from $17,292,000 in the prior quarter
- Total assets grew to $1.90 billion, an increase of $59.9 million from Q2 2024
- Gross loans increased by $103.9 million year-over-year
- Total deposits rose to $1.69 billion, up $45.6 million from Q2 2024
- Non-performing assets remained at zero for all of 2024 and 2023
- Strong liquidity position with $213.9 million in cash and cash equivalents
Negative
- Net income decreased year-over-year for both Q3 and YTD periods
- Net interest margin declined to 4.04% from 4.34% in Q3 2023
- Increase in deposit interest expense and general operating expenses
- Average cost of funds increased to 0.83% from 0.33% year-over-year
News Market Reaction – OVLY
On the day this news was published, OVLY declined 1.27%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
OAKDALE, Calif., Oct. 18, 2024 (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 September 30, 2024, consolidated net income was
The increase in third quarter net income compared to the prior quarter was primarily due to loan recoveries that resulted in a reversal of allowance for credit losses of
Net interest income for the three months ended September 30, 2024 was
“Our strong core deposits have helped manage funding costs and maintain a healthy net interest margin. Loan growth is crucial to minimizing future margin compression amid possible interest rate drops. Oak Valley was founded on service-focused relationship banking, which drives these efforts. Our success in growing relationships relies on standing out from our competitors by meeting and surpassing client expectations,” stated Rick McCarty, President and Chief Operating Officer.
Non-interest income was
Non-interest expense totaled
Total assets were
Non-performing assets (“NPA”) remained at zero as of September 30, 2024, as they were for all of 2024 and 2023. The allowance for credit losses (“ACL”) as a percentage of gross loans increased to
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.
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.
| Contact: | Chris Courtney/Rick McCarty |
| Phone: | (209) 848-2265 |
| www.ovcb.com |
| Oak Valley Bancorp | ||||||||||||||||
| Financial Highlights (unaudited) | ||||||||||||||||
| ($ in thousands, except per share) | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | 3rd Quarter | |||||||||||
| Selected Quarterly Operating Data: | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
| Net interest income | $ | 17,655 | $ | 17,292 | $ | 17,241 | $ | 17,914 | $ | 18,938 | ||||||
| (Reversal of) provision for credit losses | (1,620 | ) | - | - | 1,130 | 300 | ||||||||||
| Non-interest income | 1,846 | 1,760 | 1,519 | 1,755 | 1,566 | |||||||||||
| Non-interest expense | 11,324 | 11,616 | 11,529 | 10,760 | 10,578 | |||||||||||
| Net income before income taxes | 9,797 | 7,436 | 7,231 | 7,779 | 9,626 | |||||||||||
| Provision for income taxes | 2,473 | 1,547 | 1,504 | 1,914 | 2,272 | |||||||||||
| Net income | $ | 7,324 | $ | 5,889 | $ | 5,727 | $ | 5,865 | $ | 7,354 | ||||||
| Earnings per common share - basic | $ | 0.89 | $ | 0.72 | $ | 0.70 | $ | 0.72 | $ | 0.90 | ||||||
| Earnings per common share - diluted | $ | 0.89 | $ | 0.71 | $ | 0.69 | $ | 0.71 | $ | 0.89 | ||||||
| Dividends paid per common share | $ | 0.225 | $ | - | $ | 0.225 | $ | - | $ | 0.160 | ||||||
| Return on average common equity | 16.54 | % | 14.19 | % | 13.86 | % | 16.44 | % | 19.85 | % | ||||||
| Return on average assets | 1.56 | % | 1.30 | % | 1.26 | % | 1.27 | % | 1.57 | % | ||||||
| Net interest margin (1) | 4.04 | % | 4.11 | % | 4.09 | % | 4.15 | % | 4.34 | % | ||||||
| Efficiency ratio (2) | 56.96 | % | 59.12 | % | 59.61 | % | 53.08 | % | 49.89 | % | ||||||
| Capital - Period End | ||||||||||||||||
| Book value per common share | $ | 22.18 | $ | 20.55 | $ | 19.97 | $ | 20.03 | $ | 16.29 | ||||||
| Credit Quality - Period End | ||||||||||||||||
| Nonperforming assets / total assets | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| Credit loss reserve / gross loans | 1.07 | % | 1.04 | % | 1.05 | % | 1.07 | % | 1.00 | % | ||||||
| Period End Balance Sheet | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Total assets | $ | 1,900,455 | $ | 1,840,521 | $ | 1,805,739 | $ | 1,842,422 | $ | 1,835,402 | ||||||
| Gross loans | 1,075,138 | 1,070,036 | 1,039,509 | 1,016,579 | 971,243 | |||||||||||
| Nonperforming assets | - | - | - | - | - | |||||||||||
| Allowance for credit losses | 11,479 | 11,121 | 10,922 | 10,896 | 9,738 | |||||||||||
| Deposits | 1,690,301 | 1,644,748 | 1,612,400 | 1,650,534 | 1,666,548 | |||||||||||
| Common equity | 185,393 | 171,799 | 166,916 | 166,092 | 135,095 | |||||||||||
| Non-Financial Data | ||||||||||||||||
| Full-time equivalent staff | 222 | 223 | 219 | 222 | 225 | |||||||||||
| Number of banking offices | 18 | 18 | 18 | 18 | 18 | |||||||||||
| Common Shares outstanding | ||||||||||||||||
| Period end | 8,358,711 | 8,359,556 | 8,359,556 | 8,293,168 | 8,293,468 | |||||||||||
| Period average - basic | 8,221,475 | 8,219,699 | 8,209,617 | 8,200,177 | 8,197,083 | |||||||||||
| Period average - diluted | 8,263,790 | 8,248,295 | 8,244,648 | 8,236,897 | 8,232,338 | |||||||||||
| Market Ratios | ||||||||||||||||
| Stock Price | $ | 26.57 | $ | 24.97 | $ | 24.78 | $ | 29.95 | $ | 25.08 | ||||||
| Price/Earnings | 7.52 | 8.69 | 8.86 | 10.55 | 7.05 | |||||||||||
| Price/Book | 1.20 | 1.22 | 1.24 | 1.50 | 1.54 | |||||||||||
| (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of | ||||||||||||||||
| (2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of | ||||||||||||||||
| A marginal federal/state combined tax rate of | ||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||
| Profitability | 2024 | 2023 | ||||||||||||||
| ($ in thousands, except per share) | ||||||||||||||||
| Net interest income | $ | 52,188 | $ | 57,888 | ||||||||||||
| Provision for (reversal of) credit losses | (1,620 | ) | (160 | ) | ||||||||||||
| Non-interest income | 5,125 | 4,876 | ||||||||||||||
| Non-interest expense | 34,469 | 30,397 | ||||||||||||||
| Net income before income taxes | 24,464 | 32,527 | ||||||||||||||
| Provision for income taxes | 5,524 | 7,544 | ||||||||||||||
| Net income | $ | 18,940 | $ | 24,983 | ||||||||||||
| Earnings per share - basic | $ | 2.30 | $ | 3.05 | ||||||||||||
| Earnings per share - diluted | $ | 2.30 | $ | 3.04 | ||||||||||||
| Dividends paid per share | $ | 0.450 | $ | 0.320 | ||||||||||||
| Return on average equity | 14.90 | % | 23.71 | % | ||||||||||||
| Return on average assets | 1.38 | % | 1.76 | % | ||||||||||||
| Net interest margin (1) | 4.08 | % | 4.39 | % | ||||||||||||
| Efficiency ratio (2) | 58.55 | % | 47.48 | % | ||||||||||||
| Capital - Period End | ||||||||||||||||
| Book value per share | $ | 22.18 | $ | 16.29 | ||||||||||||
| Credit Quality - Period End | ||||||||||||||||
| Nonperforming assets/ total assets | 0.00 | % | 0.00 | % | ||||||||||||
| Credit loss reserve/ gross loans | 1.07 | % | 1.00 | % | ||||||||||||
| Period End Balance Sheet | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Total assets | $ | 1,900,455 | $ | 1,835,402 | ||||||||||||
| Gross loans | 1,075,138 | 971,243 | ||||||||||||||
| Nonperforming assets | - | - | ||||||||||||||
| Allowance for credit losses | 11,479 | 9,738 | ||||||||||||||
| Deposits | 1,690,301 | 1,666,548 | ||||||||||||||
| Stockholders' equity | 185,393 | 135,095 | ||||||||||||||
| Non-Financial Data | ||||||||||||||||
| Full-time equivalent staff | 222 | 225 | ||||||||||||||
| Number of banking offices | 18 | 18 | ||||||||||||||
| Common Shares outstanding | ||||||||||||||||
| Period end | 8,358,711 | 8,293,468 | ||||||||||||||
| Period average - basic | 8,216,947 | 8,191,749 | ||||||||||||||
| Period average - diluted | 8,252,286 | 8,228,869 | ||||||||||||||
| Market Ratios | ||||||||||||||||
| Stock Price | $ | 26.57 | $ | 25.08 | ||||||||||||
| Price/Earnings | 8.65 | 6.15 | ||||||||||||||
| Price/Book | 1.20 | 1.54 | ||||||||||||||
| (1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of | ||||||||||||||||
| (2) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of | ||||||||||||||||
| A marginal federal/state combined tax rate of | ||||||||||||||||
FAQ
What was Oak Valley Bancorp's (OVLY) net income for Q3 2024?
How did OVLY's Q3 2024 net income compare to the previous quarter?
What was Oak Valley Bancorp's (OVLY) net interest margin for Q3 2024?
How much did OVLY's total assets grow in Q3 2024?
What was the status of Oak Valley Bancorp's (OVLY) non-performing assets as of September 30, 2024?
