Oak Valley Bancorp (NASDAQ: OVLY) Q2 profit $5.1M, declares dividend
Rhea-AI Filing Summary
Oak Valley Bancorp reported Q2 2026 results and declared a cash dividend. For the three months ended June 30, 2026, net income was $5,114,000, or $0.61 per diluted share, down from $5,309,000 in Q1 2026 and $5,588,000 a year earlier.
Management attributes the decrease mainly to higher non-interest expense and lower non-interest income, partly offset by higher net interest income and a lower credit loss provision. Net interest income was $18,944,000 and net interest margin was 4.15%, supported by loan growth of $18,264,000 during the quarter and $55,859,000 over the prior twelve months.
Total assets were $2.00 billion, gross loans $1.17 billion and deposits $1.76 billion at June 30, 2026, with cash and equivalents of $194,803,000. Non-performing assets were $2,631,000, or 0.13% of total assets, after a $1,735,000 charge-off and transfer of $2,581,000 to OREO on a collateral-dependent loan. The Board declared a $0.375 per share dividend, payable August 14, 2026 to shareholders of record on August 3, 2026, totaling approximately $3,155,000.
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Insights
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8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q2 2026: $5,114,000
Diluted EPS Q2 2026: $0.61
Net interest income Q2 2026: $18,944,000
+5 more
8 metrics
Net income Q2 2026
$5,114,000
Three months ended June 30, 2026
Diluted EPS Q2 2026
$0.61
Three months ended June 30, 2026
Net interest income Q2 2026
$18,944,000
Three months ended June 30, 2026
Net interest margin Q2 2026
4.15%
Three months ended June 30, 2026
Total assets
$2.00 billion
Balance at June 30, 2026
Gross loans
$1.17 billion
Balance at June 30, 2026
Non-performing assets ratio
0.13%
Non-performing assets as a percentage of total assets at June 30, 2026
Dividend per share declared
$0.375
Cash dividend payable August 14, 2026
Key Terms
net interest margin, non-interest income, non-performing assets, allowance for credit losses, +1 more
5 terms
net interest margin financial
"Net interest margin for the three months ended June 30, 2026 was 4.15%"
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-interest income financial
"Non-interest income was $1,665,000 for the three-months ended June 30, 2026"
Non-interest income is the money a bank or financial company earns from activities other than charging interest on loans, such as service fees, account charges, trading gains, and income from managing client investments. For investors, it matters because it diversifies a firm’s revenue stream—like a store that sells both products and offers repair services—making profits less tied to lending rates and helping stability when interest-driven income falls.
non-performing assets financial
"Non-performing assets (NPA) totaled $2,631,000 as of June 30, 2026"
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
allowance for credit losses financial
"The allowance for credit losses as a percentage of gross loans decreased to 0.96%"
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.
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.
Earnings Snapshot
Net income Q2 2026: $5,114,000
Three and six months ended June 30, 2026
Net income Q2 2026
$5,114,000
vs $5,309,000 in Q1 2026 and $5,588,000 in Q2 2025
Diluted EPS Q2 2026
$0.61
vs $0.64 in Q1 2026 and $0.67 in Q2 2025
Net income six months 2026
$10,423,000
vs $10,885,000 for the six months ended June 30, 2025
Net interest income Q2 2026
$18,944,000
vs $18,824,000 in Q1 2026 and $18,154,000 in Q2 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Oak Valley Bancorp (OVLY) Q2 2026 earnings?
Oak Valley Bancorp reported Q2 2026 net income of $5,114,000, or $0.61 diluted EPS. This compares with $5,309,000, or $0.64 EPS, in Q1 2026 and $5,588,000, or $0.67 EPS, in Q2 2025.
How did net interest income and margin perform for OVLY in Q2 2026?
In Q2 2026, Oak Valley Bancorp generated net interest income of $18,944,000 and a net interest margin of 4.15%. Net interest income increased from $18,824,000 in Q1 2026 and $18,154,000 in Q2 2025, reflecting loan growth and higher loan yields.
What were Oak Valley Bancorp (OVLY) assets, loans, and deposits at June 30, 2026?
At June 30, 2026, Oak Valley Bancorp reported total assets of $2.00 billion, gross loans of $1.17 billion, and deposits of $1.76 billion. Loans grew by $18,264,000 during Q2 2026 and $55,859,000 over the prior twelve months.
What is OVLY’s asset quality and allowance position as of June 30, 2026?
Non-performing assets totaled $2,631,000, or 0.13% of total assets at June 30, 2026, down from $4,574,000 in Q1 2026. The allowance for credit losses was $11,172,000, equal to 0.96% of gross loans, after a $1,735,000 charge-off on a collateral-dependent loan.
What dividend did Oak Valley Bancorp (OVLY) declare in July 2026?
The Board declared a cash dividend of $0.375 per share of common stock. Shareholders of record on August 3, 2026 will be paid on August 14, 2026, with total dividend payments of approximately $3,155,000, the second dividend in 2026.
How did Oak Valley Bancorp’s six-month 2026 results compare to 2025?
For the six months ended June 30, 2026, net income was $10,423,000, or $1.25 diluted EPS, versus $10,885,000, or $1.31 diluted EPS, for the same 2025 period. Net interest income rose to $37,768,000 from $35,961,000, while non-interest expense also increased.