Oak Valley Community Bank Receives Approval On $125,000 in Grants Submitted to Support Turlock Gospel Mission and Habitat for Humanity of Tuolumne County

Rhea-AI Summary

Oak Valley Community Bank, subsidiary of Oak Valley Bancorp (NASDAQ: OVLY), has secured approval for two 2024 AHEAD grants from the Federal Home Loan Bank of San Francisco totaling $125,000. The grants will benefit Turlock Gospel Mission ($100,000) and Habitat for Humanity of Tuolumne County ($25,000). The funding will support workforce development through Volente Coffee Roasters and upgrade communication infrastructure for affordable housing initiatives. These grants are part of a larger $7.3 million AHEAD funds distribution across Arizona, California, and Nevada, supporting 84 economic development projects.

Positive

• Secured $125,000 in AHEAD grants for community development
• Part of larger $7.3 million regional economic development initiative

Negative

• None.

Insights

Financial Analyst

The $125,000 in AHEAD grants, while supporting worthy community causes, has minimal direct financial impact on Oak Valley Community Bank's bottom line or stock value. With a market cap of $199.5M, these grants represent just 0.06% of the bank's market value. However, the strategic importance lies in strengthening community relationships and fulfilling Community Reinvestment Act (CRA) requirements, which are important for maintaining regulatory compliance and local market presence. The partnership with FHLBank San Francisco demonstrates Oak Valley's commitment to community development, potentially enhancing their reputation and customer relationships in their key markets of Stanislaus and Tuolumne counties.

Market Research Analyst

This community investment initiative aligns with the banking industry's increasing focus on ESG metrics and social responsibility. While the immediate financial impact is negligible, the strategic value comes from strengthening Oak Valley's competitive position in local markets. The bank's role in facilitating these grants helps build barriers to entry against larger national banks by deepening local relationships. The workforce development and digital infrastructure improvements supported by these grants could indirectly benefit Oak Valley by fostering economic growth in their service areas, potentially leading to increased deposit and lending opportunities in the long term.

OAKDALE, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Oak Valley Community Bank, a wholly-owned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY), announced they have received approval on two 2024 AHEAD grants which were submitted to the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) on behalf of Turlock Gospel Mission and Habitat for Humanity of Tuolumne County for $100,000 and $25,000, respectively.

The communities in Stanislaus and Tuolumne counties are one step closer to getting a needed boost in affordable housing and job training. This highly impactful grant will support Turlock Gospel Mission to create new jobs and purchase equipment for their workforce development and job training program, Volente Coffee Roasters. The grant will support Habitat for Humanity’s digital reach and community engagement in Sonora, CA, by upgrading their communication infrastructure.

As a sponsor of FHLBank San Francisco’s Community Investment Programs and advocate for the services Turlock Gospel Mission and Habitat for Humanity of Tuolumne County provide to our community, Oak Valley Community Bank authored and provided supplemental input for this grant. Jose Sabala, Oak Valley’s Community Reinvestment Officer, remarked, "We are deeply honored to facilitate these grants for Turlock Gospel Mission and Habitat for Humanity of Tuolumne County. As a community-driven bank, we are dedicated to forging partnerships that create meaningful, lasting change within our communities. The support from FHLBank San Francisco underscores a shared commitment to directing vital resources to the communities we proudly serve, and we are grateful for the chance to make a tangible impact together."

“These grants delivered in partnership with our member Oak Valley Community Bank will help boost economic opportunity and create access to vital services and support that can be life-changing for people engaged with these programs serving Stanislaus and Tuolumne counties,” said Eric Cicourel, community investment officer for FHLBank San Francisco. “We’re proud that for 20 years and counting, the AHEAD Program continues to make a positive impact throughout the communities we serve.”

AHEAD economic development grants enable FHLBank San Francisco member financial institutions like Oak Valley Community Bank to fund economic development projects that target pressing community needs and bring greater opportunity to underserved populations. AHEAD grants support innovative, targeted initiatives that will create new economic opportunity by expanding proven development models or piloting new interventions. Grants are awarded annually to the Bank’s members partnering with local nonprofits to meet diverse local needs. The grant is part of a $7.3 million disbursement of AHEAD funds awarded to 84 innovative economic development projects in Arizona, California, and Nevada. A full list of 2024 AHEAD grants are available on the FHLBank San Francisco website.

About Turlock Gospel Mission:

Turlock Gospel Mission is a 501(c)(3) non-profit organization, founded in 2007. Turlock Gospel Mission offers three meals per day, emergency overnight shelter for men, women, and their children, both Men’s and Women’s Restoration Program, and guest services including case management, transportation, clothes closet, shelter from inclement weather, on-site pet kennels, pastoral counseling, and culinary job training. For more information, call (209) 656-1033 or visit turlockgospelmission.org.

About Habitat for Humanity of Tuolumne County:

Habitat for Humanity of Tuolumne is a 501(c)(3) non-profit organization, founded in 1999. They are dedicated to eliminating substandard housing through constructing homes, advocating for fair and just housing policies, and providing training and access to resources to help families become self-reliant and successful homeowners. For more information, call (209) 536-0970 or visit www.habitattuolumne.org.

About Oak Valley Community Bank:

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.

Contact:		Chris Courtney/Rick McCarty
Phone:		(209) 848-BANK (2265) Toll Free (866) 844-7500 www.ovcb.com

FAQ

How much in AHEAD grants did Oak Valley Community Bank (OVLY) receive in 2024?

Oak Valley Community Bank received approval for $125,000 in AHEAD grants in 2024, with $100,000 allocated to Turlock Gospel Mission and $25,000 to Habitat for Humanity of Tuolumne County.

What will the 2024 AHEAD grant funds be used for by Oak Valley Community Bank (OVLY)?

The funds will support Turlock Gospel Mission's workforce development program, Volente Coffee Roasters, and help upgrade Habitat for Humanity's communication infrastructure in Sonora, CA.

How many projects received AHEAD grants alongside Oak Valley Community Bank (OVLY) in 2024?

The AHEAD program awarded grants to 84 economic development projects across Arizona, California, and Nevada, totaling $7.3 million in disbursements.