Oak Valley Bancorp Reports 3rd Quarter Results

Quarterly lending margins improved, while nine-month expenses rose and period-end equity declined from both comparison periods.

Rhea-AI Summary

Oak Valley Bancorp (NASDAQ: OVLY) reported third-quarter 2026 net income of $6.45 million, higher sequentially but lower year over year. Diluted earnings per share were $0.77, versus $0.61 in the prior quarter and $0.81 a year earlier. Net interest income rose to $19.802 million from $18.944 million sequentially and $19.197 million a year earlier. Net interest margin, measured on a tax-equivalent basis, widened to 4.24% from 4.15% and 4.16%, respectively.

Nine-month net income fell to $16.873 million from $17.578 million as non-interest expenses increased. At September 30, assets were $1.976 billion and deposits were $1.763 billion, both below year-earlier levels. Gross loans declined sequentially but increased year over year to $1.154 billion. Non-performing assets totaled $2.581 million, versus $2.631 million in June and none a year earlier. Book value per share fell to $22.70 from $25.80 in June.

15 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 15 points

How the balance works

Positive

• Moderate pointThird-quarter net income of $6.450 million exceeded $5.114 million sequentially but trailed $6.693 million a year earlier.
• Moderate pointQuarterly net interest income of $19.802 million increased from $18.944 million sequentially and $19.197 million a year earlier.
• Moderate pointTax-equivalent net interest margin of 4.24% exceeded 4.15% sequentially and 4.16% a year earlier.
• Moderate pointGross loans of $1.154 billion increased $41.226 million year over year but declined $11.660 million sequentially.
• Moderate pointThird-quarter dividends paid per share increased to $0.375 from $0.300 a year earlier.

10 minor points

• Minor pointDiluted EPS of $0.77 rose from $0.61 sequentially but fell from $0.81 a year earlier.
• Minor pointNine-month net interest income increased to $57.570 million from $55.158 million in 2025.
• Minor pointNine-month tax-equivalent net interest margin increased to 4.17% from 4.12% in 2025.
• Minor pointQuarterly non-interest expense of $13.420 million fell from $14.157 million sequentially but exceeded $12.700 million a year earlier.
• Minor pointQuarterly non-interest income of $1.851 million exceeded $1.665 million sequentially but trailed $1.973 million a year earlier.
• Minor pointNine-month non-interest income rose to $5.468 million from $5.289 million in 2025.
• Minor pointNine-month dividends paid per share increased to $0.750 from $0.600 in 2025.
• Minor pointQuarterly return on average equity of 12.16% exceeded 9.74% sequentially but trailed 14.30% a year earlier.
• Minor pointQuarterly return on average assets of 1.28% exceeded 1.04% sequentially but trailed 1.35% a year earlier.
• Minor pointTax-equivalent quarterly efficiency ratio of 60.15% improved from 66.46% sequentially but worsened from 58.27% a year earlier.

Negative

• Moderate pointNine-month net income declined to $16.873 million from $17.578 million in 2025.
• Moderate pointNine-month non-interest expense increased to $41.083 million from $37.493 million in 2025.
• Moderate pointPeriod-end common equity fell to $191.099 million from $217.034 million in June and $198.280 million a year earlier.
• Minor pointNine-month diluted EPS fell to $2.02 from $2.12 in 2025.
• Minor pointBook value per share fell to $22.70 from $25.80 in June and $23.63 a year earlier.

10 minor points

• Minor pointTotal assets of $1.976 billion declined $25.404 million sequentially and $19.242 million year over year.
• Minor pointDeposits of $1.763 billion were essentially unchanged sequentially but decreased $12.299 million year over year.
• Minor pointNon-performing assets of $2.581 million declined from $2.631 million in June but compared with none a year earlier.
• Minor pointCredit-loss allowance coverage of 0.97% of gross loans exceeded June's 0.96% but trailed 1.03% a year earlier.
• Minor pointSecond-quarter 2026 loan charge-off of $1.735 million reduced credit-loss allowance coverage compared with the prior year.
• Minor pointThird-quarter credit-loss provision of $42,000 compared with $21,000 sequentially and a $60,000 reversal a year earlier.
• Minor pointNine-month credit-loss provision increased to $527,000 from $459,000 in 2025.
• Minor pointNine-month return on average equity declined to 10.72% from 12.71% in 2025.
• Minor pointNine-month return on average assets declined to 1.13% from 1.22% in 2025.
• Minor pointNine-month tax-equivalent efficiency ratio worsened to 63.15% from 60.17% in 2025.

News Explained

The table reports that Oak Valley Bancorp paid a third-quarter common dividend of $0.375 per share, compared with a dash in the second-quarter table and $0.300 in the third quarter of 2025; this is a completed cash distribution, not a new payout commitment.

Key Figures

Quarterly net income: $6.450 million Diluted EPS: $0.77 Nine-month net income: $16.873 million +4 more

Quarterly net income

$6.450 million

3Q26; compared with $5.114 million in 2Q26 and $6.693 million in 3Q25

Diluted EPS

$0.77

3Q26; compared with $0.61 in 2Q26 and $0.81 in 3Q25

Nine-month net income

$16.873 million

Nine months ended September 30, 2026; compared with $17.578 million in 2025

Nine-month diluted EPS

$2.02

Nine months ended September 30, 2026; compared with $2.12 in 2025

Net interest income

$19.802 million

3Q26; compared with $18.944 million in 2Q26 and $19.197 million in 3Q25

Net interest margin

4.24%

3Q26; compared with 4.15% in 2Q26 and 4.16% in 3Q25

Non-performing assets

$2.581 million

At September 30, 2026; compared with $2.631 million at June 30, 2026 and none at September 30, 2025

Historical Context

1 past event · Latest: Jul 22

1 event

1. Jul 22

   Quarterly earnings

   24h Move

   -2.0%

   Q2 net income and diluted EPS were below Q1 and year-earlier levels; net interest margin was 4.15%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, non-gaap, cecl, allowance for credit losses, +1 more

5 terms

net interest margin financial

"Net interest margin for the three months ended September 30, 2026 was 4.24%"

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-gaap financial

"This is a non-GAAP measure that is computed on a fully tax equivalent basis"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

cecl financial

"within our current expected credit loss (“CECL”) risk model"

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

allowance for credit losses financial

"The allowance for credit losses ("ACL") as a percentage of gross loans was 0.97%"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

diluted eps financial

"consolidated net income was $6,450,000, or $0.77 per diluted share (EPS)"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

OAKDALE, Calif., Oct. 21, 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 September 30, 2026, consolidated net income was $6,450,000, or $0.77 per diluted share (EPS), as compared to $5,114,000, or $0.61 EPS, for the prior quarter and $6,693,000, or $0.81 EPS, for the same period a year ago. Consolidated net income for the nine months ended September 30, 2026 was $16,873,000, or $2.02 EPS, compared to $17,578,000, or $2.12 EPS, for the same period of 2025.

The increase in third quarter net income compared to the prior quarter was primarily due to an increase in net interest income, a decrease in non-interest expense, and an increase in non-interest income. Year-to-date net income decreased compared to 2025 primarily due to an increase in non-interest expense, partially offset by increases in net interest income and non-interest income.

Net interest income for the three months ended September 30, 2026 was $19,802,000, compared to $18,944,000 in the prior quarter and $19,197,000 in the same period a year ago. The increase in net interest income over the prior periods was driven by growth in average earning assets and an increase in the yield on average earning assets. Net interest margin for the three months ended September 30, 2026 was 4.24%, compared to 4.15% for the prior quarter and 4.16% for the same period last year.

Non-interest income was $1,851,000 for the quarter ended September 30, 2026, compared to $1,665,000 for the prior quarter and $1,973,000 for the same period last year. The increase compared to the prior period was primarily due to an increase in debit card transaction fee income, and dividends received from the Federal Home Loan Bank. The decrease compared to the same period of 2025 was mainly due to a one-time gain from the redemption of a life insurance policy recorded in 2025.

Non-interest expense totaled $13,420,000 for the quarter ended September 30, 2026, compared to $14,157,000 in the prior quarter and $12,700,000 in the same quarter a year ago. The decrease compared to the prior quarter is due to a one-time benefit expense recorded during the prior quarter for accelerated vesting of certain restricted stock awards. The increase over the same period a year ago reflects staffing expenses and general operating costs related to supporting the Company's growth and expanded branch network.

“We are pleased with our third-quarter operating results, highlighted by stronger net interest income and expanded net interest margin,” stated Rick McCarty, President and Chief Executive Officer. “These results reflect the strength of our core banking franchise and our team’s disciplined approach to balance sheet management.”

Total assets were $1.98 billion at September 30, 2026, a decrease of $25,404,000 from June 30, 2026 and $19,242,000 from September 30, 2025. Gross loans were $1.15 billion at September 30, 2026, a decrease of $11,660,000 from June 30, 2026 and an increase of $41,226,000 over September 30, 2025. The Company's total deposits were $1.76 billion as of September 30, 2026, essentially unchanged from June 30, 2026 and a decrease of $12,299,000 from September 30, 2025. Our liquidity position remains strong, as evidenced by $179,669,000 in cash and cash equivalent balances at September 30, 2026.

Non-performing assets ("NPA") totaled $2,581,000 as of September 30, 2026, compared to $2,631,000 at June 30, 2026 and no NPA at September 30, 2025. The Company recorded a provision for credit losses of $42,000 during the third quarter related to off-balance-sheet-items as determined by macro-economic conditions and other credit-related factors within our current expected credit loss (“CECL”) risk model. Non-performing assets were 0.13% of total assets at September 30, 2026, consistent with June 30, 2026. The allowance for credit losses ("ACL") as a percentage of gross loans was 0.97% at September 30, 2026, compared to 0.96% at June 30, 2026 and 1.03% at September 30, 2025. The ACL decrease compared to the prior year is a result of the $1,735,000 loan charge-off during the second quarter of 2026.

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 businesses and individuals. 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.

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

 

Oak Valley Bancorp
Financial Highlights (unaudited)
Selected Quarterly Operating Data:			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
($ in thousands, except per share)				2026			2026			2026			2025			2025
		Net interest income	$	19,802		$	18,944		$	18,824		$	19,457		$	19,197
		Provision for (reversal of) credit losses		42			21			464			865			(60	)
		Non-interest income		1,851			1,665			1,952			1,825			1,973
		Non-interest expense		13,420			14,157			13,506			12,262			12,700
		Net income before income taxes		8,191			6,431			6,806			8,155			8,530
		Provision for income taxes		1,741			1,317			1,497			1,820			1,837
		Net income	$	6,450		$	5,114		$	5,309		$	6,335		$	6,693
		Earnings per common share - basic	$	0.78		$	0.62		$	0.64		$	0.77		$	0.81
		Earnings per common share - diluted	$	0.77		$	0.61		$	0.64		$	0.76		$	0.81
		Dividends paid per common share	$	0.375		$	-		$	0.375		$	-		$	0.300
		Return on average common equity		12.16%			9.74%			10.23%			12.32%			14.30%
		Return on average assets		1.28%			1.04%			1.07%			1.25%			1.35%
		Net interest margin (1)		4.24%			4.15%			4.12%			4.14%			4.16%
		Efficiency ratio (2)		60.15%			66.46%			62.99%			55.94%			58.27%
Capital - Period End
		Book value per common share	$	22.70		$	25.80		$	24.50		$	24.79		$	23.63
Credit Quality - Period End
		Nonperforming assets / total assets		0.13%			0.13%			0.23%			0.23%			0.00%
		Credit loss reserve / gross loans		0.97%			0.96%			1.13%			1.08%			1.03%
Balance Sheet - Period End (in thousands)
		Total assets	$	1,976,174		$	2,001,578		$	2,010,299		$	2,023,116		$	1,995,416
		Gross loans		1,154,055			1,165,715			1,147,451			1,143,930			1,112,829
		Nonperforming assets		2,581			2,631			4,574			4,587			-
		Allowance for credit losses		11,214			11,172			12,910			12,381			11,420
		Deposits		1,762,583			1,763,551			1,780,996			1,792,962			1,774,882
		Common equity		191,099			217,034			206,154			207,975			198,280
Balance Sheet - Average (in thousands)
		Average assets	$	1,999,329		$	1,980,142		$	2,006,175		$	2,013,766		$	1,961,374
		Average earning assets		1,902,124			1,884,736			1,905,874			1,914,907			1,876,588
		Average equity		210,369			210,662			210,562			203,994			185,638
Non-Financial Data
		Full-time equivalent staff		247			246			244			238			237
		Number of banking offices		19			19			19			19			18
Common Shares outstanding
		Period end		8,419,978			8,413,458			8,413,458			8,388,221			8,390,621
		Period average - basic		8,290,685			8,272,810			8,257,567			8,249,256			8,246,666
		Period average - diluted		8,348,220			8,333,393			8,322,124			8,304,597			8,299,039
Market Ratios
		Stock Price	$	33.67		$	33.75		$	32.43		$	30.06		$	28.17
		Price/Earnings		10.91			13.61			12.44			9.87			8.75
		Price/Book		1.48			1.31			1.32			1.21			1.19
(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 $536 thousand, $546 thousand, $539 thousand, $509 thousand, and $501 thousand for the three-months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 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 $659 thousand, $694 thousand, $666 thousand, $639 thousand, and $626 thousand for the three-months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.
Profitability			NINE MONTHS ENDED SEPTEMBER 30,
($ in thousands, except per share)				2026			2025
		Net interest income	$	57,570		$	55,158
		Provision for (reversal of) credit losses		527			459
		Non-interest income		5,468			5,289
		Non-interest expense		41,083			37,493
		Net income before income taxes		21,428			22,495
		Provision for income taxes		4,555			4,917
		Net income	$	16,873		$	17,578
		Earnings per share - basic	$	2.04		$	2.13
		Earnings per share - diluted	$	2.02		$	2.12
		Dividends paid per share	$	0.750		$	0.600
		Return on average equity		10.72%			12.71%
		Return on average assets		1.13%			1.22%
		Net interest margin (3)		4.17%			4.12%
		Efficiency ratio (4)		63.15%			60.17%
Capital - Period End
		Book value per share	$	22.70		$	23.63
Credit Quality - Period End
		Nonperforming assets/ total assets		0.13%			0.00%
		Credit loss reserve/ gross loans		0.97%			1.03%
Balance Sheet - Period End (in thousands)
		Total assets	$	1,976,174		$	1,995,416
		Gross loans		1,154,055			1,112,829
		Nonperforming assets		2,581			-
		Allowance for credit losses		11,214			11,420
		Deposits		1,762,583			1,774,882
		Stockholders' equity		191,099			198,280
Balance Sheet - Average (in thousands)
		Average assets	$	1,995,190		$	1,923,112
		Average earning assets		1,897,564			1,836,679
		Average equity		210,530			184,947
Non-Financial Data
		Full-time equivalent staff		247			237
		Number of banking offices		19			18
Common Shares outstanding
		Period end		8,419,978			8,390,621
		Period average - basic		8,273,809			8,241,273
		Period average - diluted		8,334,675			8,287,622
Market Ratios
		Stock Price	$	33.67		$	28.17
		Price/Earnings		12.35			9.88
		Price/Book		1.48			1.19
(3	)	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 $1.621 million and $1.496 million for the nine months ended September 30, 2026 and 2025, respectively.
(4	)	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 $2.018 million and $1.868 million for the nine months ended September 30, 2026 and 2025, respectively.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Oak Valley Bancorp's third-quarter 2026 earnings?

Oak Valley Bancorp earned $6.450 million, or $0.77 per diluted share, in the three months ended September 30, 2026. That compares with $5.114 million, or $0.61 per diluted share, in the prior quarter and $6.693 million, or $0.81 per diluted share, a year earlier.

Why did Oak Valley Bancorp's third-quarter 2026 non-interest expenses decline from the prior quarter?

The company attributed the sequential decline to a one-time benefit expense in the prior quarter for accelerated vesting of certain restricted stock awards. Third-quarter non-interest expenses were $13.420 million, compared with $14.157 million in the prior quarter.

What drove Oak Valley Bancorp's third-quarter 2026 non-interest income changes?

The company attributed the sequential increase to higher debit card transaction fee income and Federal Home Loan Bank dividends. The year-over-year decline mainly reflected a one-time gain from redeeming a life insurance policy recorded in 2025.

What was Oak Valley Bancorp's third-quarter 2026 credit-loss provision for?

The $42,000 provision related to off-balance-sheet items. It reflected macroeconomic conditions and other credit-related factors within the bank's current expected credit loss model, which estimates anticipated credit losses.