Oak Valley Bancorp Reports 4th Quarter Results and Announces Cash Dividend

Rhea-AI Summary

Oak Valley Bancorp (NASDAQ: OVLY) reported consolidated net income of $6.34M for Q4 2025 ($0.76 EPS) and $23.91M for full-year 2025 ($2.88 EPS), a 4.1% decline versus 2024. Net interest income was $19.46M Q4 and $74.62M YTD, driven by $95.3M growth in average earning assets year-over-year. Total assets reached a milestone of $2.02B at Dec 31, 2025. Non-performing assets rose to $4.6M (0.23% of assets) after one collateral-dependent loan was placed on non-accrual, prompting a $865K provision for credit losses and a loan-loss allowance of 1.08% of gross loans. The board declared a $0.375 per-share cash dividend payable Feb 13, 2026.

Positive

• Total assets reached $2.02B milestone
• Deposits increased by $97.3M year-over-year
• Net interest income $74.62M for 2025 (+6.6% YoY)
• Declared cash dividend of $0.375 per share (~$3.15M)

Negative

• One collateral-dependent loan placed on non-accrual, creating $4.6M NPAs
• Recorded $865K provision for credit losses in Q4 2025
• Quarterly net interest margin decreased after 75 bp of Fed cuts

News Market Reaction

%

1 alert

% News Effect

On the day this news was published, OVLY declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

OAKDALE, Calif., Jan. 23, 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 December 31, 2025, consolidated net income was $6,335,000 or $0.76 per diluted share (EPS), as compared to $6,693,000, or $0.81 EPS, for the prior quarter and 6,008,000, or $0.73 EPS for the same period a year ago. Consolidated net income for the year ended December 31, 2025, totaled $23,913,000, or $2.88 EPS, representing a decrease of 4.1% compared to 24,948,000, or $3.02 EPS for 2024. The decrease in QTD earnings compared to the prior quarter is due to a provision for credit losses of $865,000 recorded during the quarter, related to a collateral-dependent loan that was placed on non-accrual status as of year-end. The QTD increase over the same period a year ago is due to earning asset growth of $95.3 million and the corresponding net interest income expansion.

“We are pleased to report another strong operational performance. Our sustained growth and solid financial results have enabled us to reach the milestone of $2 billion in total assets and reflect the dedication of our team and our steadfast focus on building lasting relationships with our clients,” said Chris Courtney, Chief Executive Officer.

Net interest income was $19,457,000 and $74,615,000 for the fourth quarter and year ended December 31, 2025, respectively, compared to $19,197,000 during the prior quarter, $17,846,000 for the fourth quarter of 2024, and $70,034,000 for the year ended December 31, 2024. The QTD increase compared to prior quarter is due to growth of $38.3 million in average earning assets. The QTD and YTD increases over 2024 are due to growth in average earning assets of $95.3 million and $85.9 million, respectively. Interest expense has stabilized as evidenced by the average cost of funds of 0.76% in 2025, compared to 0.78% in 2024.

Net interest margin was 4.14%(1) and 4.13%(3) for the fourth quarter and year ended December 31, 2025, respectively, as compared to 4.16%(1) for the prior quarter, 4.00%(1) for the fourth quarter of 2024, and 4.07%(3) for the year ended December 31, 2024. The fourth quarter interest margin decrease compared to the prior quarter is due to the three federal fund rate cuts totaling 75 basis points that began in September 2025. The QTD and YTD interest margin increases over the same periods in 2024 are the result of an increase in loan yield and a decrease in average cost of funds.

Non-interest income for the fourth quarter and year ended December 31, 2025, totaled $1,825,000 and $7,114,000, respectively, compared to $1,973,000 during the prior quarter, $1,430,000 for the fourth quarter of 2024, and $6,555,000 for the year ended December 31, 2024. The decrease from the prior quarter was due to death benefits received from the redemption of bank owned life insurance policies during the third quarter of 2025. The QTD and YTD increases from prior periods in 2024 were primarily due to unrealized market value changes on equity securities, investment advisory fee income, service charges on deposit accounts, and the YTD increase includes the previously mentioned life insurance benefits.

Non-interest expense for the fourth quarter and year ended December 31, 2025, totaled $12,262,000 and $50,274,000, respectively, compared to $12,700,000 during the prior quarter, $11,548,000 for the fourth quarter of 2024 and $46,017,000 for the year ended December 31, 2024. The decrease compared to the prior quarter is the result of year-end accrual adjustments. The QTD and YTD increases compared to the same periods in 2024 correspond to staffing expense, board of director fees, data processing, and general operating costs related to servicing the loan and deposit portfolios.

Total assets were $2.02 billion at December 31, 2025, an increase of $27.7 million over September 30, 2025, and $122.5 million over December 31, 2024. Gross loans were $1.14 billion as of December 31, 2025, an increase of $31.1 million from September 30, 2025, and $37.4 million from December 31, 2024. The Company’s total deposits were $1.79 billion as of December 31, 2025, an increase of $18.1 million from September 30, 2025, and $97.3 million from December 31, 2024. Our liquidity position remains strong as evidenced by $232.2 million in cash and cash equivalents balances at December 31, 2025.

Non-performing assets (“NPA”) as of December 31, 2025, were $4.6 million, or 0.23% of total assets, compared to zero NPA as of September 30, 2025 and December 31, 2024. The increase in NPA compared to the prior periods is due to one collateral-dependent loan that was placed on non-accrual status in December 2025, when management became aware that full collection of the loan balance was not likely. This loan was individually analyzed based on the appraised value of the commercial real estate collateral and a specific reserve was included in the allowance for credit losses (“ACL”) calculation. The company recorded a provision for credit losses of $865,000 during the fourth quarter recognizing the reserve for the collateral-dependent loan, combined with the pooled loan calculation which considers macro-economic conditions and other credit-related factors within our current expected credit loss (“CECL”) risk model. As a result, the ACL as a percentage of gross loans increased to 1.08% at December 31, 2025, compared to 1.03% at September 30, 2025 and 1.04% at December 31, 2024. Given industry concerns of credit risk specific to commercial real estate, management has performed a thorough analysis of this segment within the ACL computation, concluding that the credit loss reserves relative to gross loans remain at acceptable levels, and credit quality remains stable.

The Board of Directors of Oak Valley Bancorp at their January 20, 2026 meeting, declared the payment of a cash dividend of $0.375 per share of common stock to its shareholders of record at the close of business on February 2, 2026. The payment date will be February 13, 2026 and will amount to approximately $3,145,600. This is the first dividend payment made by the Company in 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 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:			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
($ in thousands, except per share)				2025			2025			2025			2025			2024
		Net interest income	$	19,457		$	19,197		$	18,154		$	17,807		$	17,846
		Provision for (reversal of) credit losses		865			(60	)		-			-			-
		Non-interest income		1,825			1,973			1,703			1,613			1,430
		Non-interest expense		12,262			12,700			12,688			12,624			11,548
		Net income before income taxes		8,155			8,530			7,169			6,796			7,728
		Provision for income taxes		1,820			1,837			1,581			1,499			1,720
		Net income	$	6,335		$	6,693		$	5,588		$	5,297		$	6,008
		Earnings per common share - basic	$	0.77		$	0.81		$	0.68		$	0.64		$	0.73
		Earnings per common share - diluted	$	0.76		$	0.81		$	0.67		$	0.64		$	0.73
		Dividends paid per common share	$	-		$	0.300		$	-		$	0.300		$	-
		Return on average common equity		12.32	%		14.30	%		12.21	%		11.58	%		12.86	%
		Return on average assets		1.25	%		1.35	%		1.18	%		1.13	%		1.25	%
		Net interest margin (1)		4.14	%		4.16	%		4.11	%		4.09	%		4.00	%
		Efficiency ratio (2)		55.94	%		58.27	%		61.95	%		63.00	%		58.09	%
Capital - Period End
		Book value per common share	$	24.79		$	23.63		$	22.17		$	21.89		$	21.95
Credit Quality - Period End
		Nonperforming assets / total assets		0.23	%		0.00	%		0.00	%		0.00	%		0.00	%
		Credit loss reserve / gross loans		1.08	%		1.03	%		1.03	%		1.05	%		1.04	%
Balance Sheet - Period End (in thousands)
		Total assets	$	2,023,116		$	1,995,416		$	1,920,909		$	1,924,365		$	1,900,604
		Gross loans		1,143,930			1,112,829			1,109,856			1,090,953			1,106,535
		Nonperforming assets		4,587			-			-			-			-
		Allowance for credit losses		12,381			11,420			11,430			11,448			11,460
		Deposits		1,792,962			1,774,882			1,711,241			1,713,592			1,695,690
		Common equity		207,975			198,280			185,805			183,520			183,436
Balance Sheet - Average (in thousands)
		Average assets	$	2,013,766		$	1,961,374		$	1,903,741		$	1,903,585		$	1,909,691
		Average earning assets		1,914,907			1,876,588			1,818,430			1,814,338			1,819,649
		Average equity		203,994			185,638			183,612			185,592			185,345
Non-Financial Data
		Full-time equivalent staff		238			237			231			225			223
		Number of banking offices		19			18			18			18			18
Common Shares outstanding
		Period end		8,388,221			8,390,621			8,382,062			8,382,062			8,357,211
		Period average - basic		8,249,256			8,246,666			8,245,147			8,231,844			8,224,504
		Period average - diluted		8,304,597			8,299,039			8,285,299			8,278,301			8,278,427
Market Ratios
		Stock Price	$	30.06		$	28.17		$	27.24		$	24.96		$	29.25
		Price/Earnings		9.87			8.75			10.02			9.56			10.09
		Price/Book		1.21			1.19			1.23			1.14			1.33
(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 $509 thousand, $501 thousand, $498 thousand, $497 thousand, and $484 thousand for the three-months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, 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 $639 thousand, $626 thousand, $624 thousand, $618 thousand, and $604 thousand for the three-months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
Profitability			YEAR ENDED DECEMBER 31,
($ in thousands, except per share)				2025			2024
		Net interest income	$	74,615		$	70,034
		Provision for (reversal of) credit losses		805			(1,620	)
		Non-interest income		7,114			6,555
		Non-interest expense		50,274			46,017
		Net income before income taxes		30,650			32,192
		Provision for income taxes		6,737			7,244
		Net income	$	23,913		$	24,948
		Earnings per share - basic	$	2.90		$	3.04
		Earnings per share - diluted	$	2.88		$	3.02
		Dividends paid per share	$	0.600		$	0.450
		Return on average equity		12.60	%		14.39	%
		Return on average assets		1.23	%		1.35	%
		Net interest margin (3)		4.13	%		4.07	%
		Efficiency ratio (4)		59.68	%		58.20	%
Capital - Period End
		Book value per share	$	24.79		$	21.95
Credit Quality - Period End
		Nonperforming assets/ total assets		0.23	%		0.00	%
		Credit loss reserve/ gross loans		1.08	%		1.04	%
Balance Sheet - Period End (in thousands)
		Total assets	$	2,023,116		$	1,900,604
		Gross loans		1,143,930			1,106,535
		Nonperforming assets		4,587			-
		Allowance for credit losses		12,381			11,460
		Deposits		1,792,962			1,695,690
		Stockholders' equity		207,975			183,436
Balance Sheet - Average (in thousands)
		Average assets	$	1,945,962		$	1,853,315
		Average earning assets		1,856,397			1,770,536
		Average equity		189,748			173,335
Non-Financial Data
		Full-time equivalent staff		238			223
		Number of banking offices		19			18
Common Shares outstanding
		Period end		8,388,221			8,357,211
		Period average - basic		8,243,285			8,218,846
		Period average - diluted		8,291,901			8,258,857
Market Ratios
		Stock Price	$	30.06		$	29.25
		Price/Earnings		10.36			9.64
		Price/Book		1.21			1.33
(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 $2.005 million and $2.036 million for the years ended December 31, 2025 and 2024, 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 $2.507 million and $2.478 million for the years ended December 31, 2025 and 2024, respectively.

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

FAQ

What were Oak Valley Bancorp (OVLY) Q4 2025 earnings and EPS?

Oak Valley Bancorp reported Q4 2025 net income of $6.335M, or $0.76 diluted EPS.

When is the OVLY cash dividend record and payment date for the $0.375 per share dividend?

Shareholders of record on February 2, 2026 will receive the dividend on February 13, 2026.

How large are Oak Valley Bancorp's assets and deposits at December 31, 2025 (OVLY)?

Total assets were $2.02 billion and total deposits were $1.79 billion at December 31, 2025.

Why did OVLY record a provision for credit losses in Q4 2025?

Management recorded a $865K provision after one collateral-dependent commercial loan was placed on non-accrual.

What was Oak Valley Bancorp's net interest income and margin for 2025 (OVLY)?

Net interest income was $74.615M for 2025 and net interest margin was 4.13% for the year.

How material are OVLY's non-performing assets after the December 2025 increase?

Non-performing assets were $4.6M, representing 0.23% of total assets at December 31, 2025.