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 June 30, 2024,
consolidated net income was $5,889,000, or $0.71 per diluted share
(EPS), as compared to $5,727,000, or $0.69 EPS, for the prior
quarter and $8,404,000, or $1.02 EPS, for the same period a year
ago. Consolidated net income for the six months ended June 30, 2024
was $11,616,000, or $1.41 EPS, compared to $17,629,000 or $2.14 EPS
for the same period of 2023.
The increase in second quarter net income
compared to the prior quarter was due to growth in the deposit and
loan portfolios, and an increase in non-interest income. The QTD
and YTD decreases compared to the same periods of 2023 were related
to an increase in deposit interest expense and general operating
expenses.
Net interest income for the three months ended
June 30, 2024 was $17,292,000, compared to $17,241,000 in the prior
quarter, and $19,407,000 in the same period a year ago. The
increase in net interest income over the prior quarter is
attributed to loan growth and an increase of 6 basis points in the
average earning asset yield. The decrease from the same period a
year ago is due to an increase in the average cost of funds to 73
bps for the second quarter of 2024, compared to 16 bps for the
comparable period of 2023. The higher interest expense was
partially offset by loan growth of $119.5 million over the same
period. Net interest margin for the three months ended June 30,
2024 was 4.11%, compared to 4.09% for the prior quarter and 4.45%
for the same period last year.
“Our earnings performance reflects our
consistent and prudent approach to managing our business. We
continue to focus on relationship-based core deposit growth which
enables us to maintain our lending activity and enhance
profitability,” stated Rick McCarty, President and Chief Operating
Officer.
Non-interest income was $1,760,000 for the
quarter ended June 30, 2024, compared to $1,519,000 for the prior
quarter and $1,655,000 for the same period last year. The increases
compared to prior periods was mainly due to increased production
from our investment advisory service and related fee income.
Non-interest expense totaled $11,616,000 for the
quarter ended June 30, 2024, compared to $11,529,000 in the prior
quarter and $10,062,000 in the same quarter a year ago. The second
quarter increase compared to prior periods is due to general
operating costs related to servicing the growing loan and deposit
portfolios.
Total assets were $1.84 billion at June 30,
2024, an increase of $34.1 million over March 31, 2024 and a
decrease of $21.2 million from June 30, 2023. Gross loans were
$1.07 billion at June 30, 2024, an increase of $30.5 million over
March 31, 2024 and $119.5 million over June 30, 2023. The Company’s
total deposits were $1.64 billion as of June 30, 2024, an increase
of $32.3 million over March 31, 2024 and a decrease of $37.6
million from June 30, 2023. The deposit increase during the second
quarter was due in part to an increase in new checking accounts and
their corresponding balances resulting from the new checking
acquisition program launched by the bank in January 2024. The
deposit decrease compared to the same period a year ago was due to
the migration of rate-sensitive deposits, prior to the bank making
deposit rate increases in July 2023. Our liquidity position remains
strong, as evidenced by $180.3 million in cash and cash equivalents
balances at June 30, 2024.
“We are pleased to report another strong
financial performance and solid earnings for the quarter. We have
achieved steady growth, driven by our ability to meet the needs of
our customers and communities,” stated Chris Courtney, CEO. “We
appreciate the dedication and professionalism of our team members
who deliver excellent service to our clients every day.”
Non-performing assets (“NPA”) remained at zero
as of June 30, 2024, as they were for all of 2024 and 2023. The
allowance for credit losses (“ACL”) as a percentage of gross loans
decreased slightly to 1.04% at June 30, 2024, compared to 1.05% at
March 31, 2024 and increased from 0.99% at June 30, 2023. The
decrease from the prior quarter is due to the growth in outstanding
loans. Given industry concerns of credit risk specific to
commercial real estate, management has performed a thorough
analysis of this segment as part of the CECL credit risk model’s
ACL computation, concluding that the credit loss reserves relative
to gross loans remains at acceptable levels, and credit quality
remains stable. As a result, the Company did not record a provision
for credit losses during the second quarter.
The Board of Directors of Oak Valley Bancorp at
their July 16, 2024, meeting declared the payment of a cash
dividend of $0.225 per share of common stock to its shareholders of
record at the close of business on July 29, 2024. The payment date
will be August 9, 2024 and will amount to approximately $1,881,000.
This is the second dividend payment made by the Company in
2024.
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) |
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
2nd Quarter |
Selected Quarterly Operating Data: |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
17,292 |
|
$ |
17,241 |
|
$ |
17,914 |
|
$ |
18,938 |
|
$ |
19,407 |
|
|
Provision
for (reversal of) credit losses |
|
- |
|
|
- |
|
|
1,130 |
|
|
300 |
|
|
- |
|
|
Non-interest
income |
|
1,760 |
|
|
1,519 |
|
|
1,755 |
|
|
1,566 |
|
|
1,655 |
|
|
Non-interest
expense |
|
11,616 |
|
|
11,529 |
|
|
10,760 |
|
|
10,578 |
|
|
10,062 |
|
|
Net income
before income taxes |
|
7,436 |
|
|
7,231 |
|
|
7,779 |
|
|
9,626 |
|
|
11,000 |
|
|
Provision
for income taxes |
|
1,547 |
|
|
1,504 |
|
|
1,914 |
|
|
2,272 |
|
|
2,596 |
|
|
Net
income |
$ |
5,889 |
|
$ |
5,727 |
|
$ |
5,865 |
|
$ |
7,354 |
|
$ |
8,404 |
|
|
|
|
|
|
|
|
|
Earnings per
common share - basic |
$ |
0.72 |
|
$ |
0.70 |
|
$ |
0.72 |
|
$ |
0.90 |
|
$ |
1.03 |
|
|
Earnings per
common share - diluted |
$ |
0.71 |
|
$ |
0.69 |
|
$ |
0.71 |
|
$ |
0.89 |
|
$ |
1.02 |
|
|
Dividends
paid per common share |
$ |
- |
|
$ |
0.225 |
|
$ |
- |
|
$ |
0.160 |
|
$ |
- |
|
|
Return on
average common equity |
|
14.19 |
% |
|
13.86 |
% |
|
16.44 |
% |
|
19.85 |
% |
|
23.48 |
% |
|
Return on
average assets |
|
1.30 |
% |
|
1.26 |
% |
|
1.27 |
% |
|
1.57 |
% |
|
1.79 |
% |
|
Net interest
margin (1) |
|
4.11 |
% |
|
4.09 |
% |
|
4.15 |
% |
|
4.34 |
% |
|
4.45 |
% |
|
Efficiency
ratio (2) |
|
59.12 |
% |
|
59.61 |
% |
|
53.08 |
% |
|
49.89 |
% |
|
46.31 |
% |
|
|
|
|
|
|
|
Capital - Period End |
|
|
|
|
|
|
Book value
per common share |
$ |
20.55 |
|
$ |
19.97 |
|
$ |
20.03 |
|
$ |
16.29 |
|
$ |
17.76 |
|
|
|
|
|
|
|
|
Credit Quality - Period End |
|
|
|
|
|
|
Nonperforming assets/ total assets |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
Credit loss
reserve/ gross loans |
|
1.04 |
% |
|
1.05 |
% |
|
1.07 |
% |
|
1.00 |
% |
|
0.99 |
% |
|
|
|
|
|
|
|
Period End Balance Sheet |
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
Total
assets |
$ |
1,840,521 |
|
$ |
1,805,739 |
|
$ |
1,842,422 |
|
$ |
1,835,402 |
|
$ |
1,861,713 |
|
|
Gross
loans |
|
1,070,036 |
|
|
1,039,509 |
|
|
1,016,579 |
|
|
971,243 |
|
|
950,488 |
|
|
Nonperforming assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Allowance
for credit losses |
|
11,121 |
|
|
10,922 |
|
|
10,896 |
|
|
9,738 |
|
|
9,411 |
|
|
Deposits |
|
1,644,748 |
|
|
1,612,400 |
|
|
1,650,534 |
|
|
1,666,548 |
|
|
1,682,378 |
|
|
Common
equity |
|
171,799 |
|
|
166,916 |
|
|
166,092 |
|
|
135,095 |
|
|
147,122 |
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
Full-time
equivalent staff |
|
223 |
|
|
219 |
|
|
222 |
|
|
225 |
|
|
213 |
|
|
Number of
banking offices |
|
18 |
|
|
18 |
|
|
18 |
|
|
18 |
|
|
18 |
|
|
|
|
|
|
|
|
Common Shares outstanding |
|
|
|
|
|
|
Period
end |
|
8,359,556 |
|
|
8,359,556 |
|
|
8,293,168 |
|
|
8,293,468 |
|
|
8,281,661 |
|
|
Period
average - basic |
|
8,219,699 |
|
|
8,209,617 |
|
|
8,200,177 |
|
|
8,197,083 |
|
|
8,195,270 |
|
|
Period
average - diluted |
|
8,248,295 |
|
|
8,244,648 |
|
|
8,236,897 |
|
|
8,232,338 |
|
|
8,227,218 |
|
|
|
|
|
|
|
|
Market Ratios |
|
|
|
|
|
|
Stock
Price |
$ |
24.97 |
|
$ |
24.78 |
|
$ |
29.95 |
|
$ |
25.08 |
|
$ |
25.19 |
|
|
Price/Earnings |
|
8.69 |
|
|
8.86 |
|
|
10.55 |
|
|
7.05 |
|
|
6.12 |
|
|
Price/Book |
|
1.22 |
|
|
1.24 |
|
|
1.50 |
|
|
1.54 |
|
|
1.42 |
|
|
|
|
|
|
|
|
(1) Ratio computed on a fully tax equivalent basis using a marginal
federal tax rate of 21%. |
|
|
|
(2) Ratio computed on a fully tax equivalent basis using a marginal
federal tax rate of 21%. |
|
|
|
A marginal federal/state
combined tax rate of 29.56%, was used for applicable revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED JUNE 30, |
|
|
|
Profitability |
|
2024 |
|
|
2023 |
|
|
|
|
($ in thousands, except per share) |
|
|
|
|
|
|
Net interest
income |
$ |
34,533 |
|
$ |
38,950 |
|
|
|
|
|
Provision
for (reversal of) credit losses |
|
- |
|
|
(460 |
) |
|
|
|
|
Non-interest
income |
|
3,279 |
|
|
3,310 |
|
|
|
|
|
Non-interest
expense |
|
23,145 |
|
|
19,819 |
|
|
|
|
|
Net income
before income taxes |
|
14,667 |
|
|
22,901 |
|
|
|
|
|
Provision
for income taxes |
|
3,051 |
|
|
5,272 |
|
|
|
|
|
Net
income |
$ |
11,616 |
|
$ |
17,629 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share - basic |
$ |
1.41 |
|
$ |
2.15 |
|
|
|
|
|
Earnings per
share - diluted |
$ |
1.41 |
|
$ |
2.14 |
|
|
|
|
|
Dividends
paid per share |
$ |
0.225 |
|
$ |
0.160 |
|
|
|
|
|
Return on
average equity |
|
14.03 |
% |
|
25.80 |
% |
|
|
|
|
Return on
average assets |
|
1.28 |
% |
|
1.86 |
% |
|
|
|
|
Net interest
margin (1) |
|
4.10 |
% |
|
4.42 |
% |
|
|
|
|
Efficiency
ratio (2) |
|
59.36 |
% |
|
46.31 |
% |
|
|
|
|
|
|
|
|
|
|
Capital - Period End |
|
|
|
|
|
|
Book value
per share |
$ |
20.55 |
|
$ |
17.76 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality - Period End |
|
|
|
|
|
|
Nonperforming assets/ total assets |
|
0.00 |
% |
|
0.00 |
% |
|
|
|
|
Credit loss
reserve/ gross loans |
|
1.04 |
% |
|
0.99 |
% |
|
|
|
|
|
|
|
|
|
|
Period End Balance Sheet |
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
Total
assets |
$ |
1,840,521 |
|
$ |
1,861,713 |
|
|
|
|
|
Gross
loans |
|
1,070,036 |
|
|
950,488 |
|
|
|
|
|
Nonperforming assets |
|
- |
|
|
- |
|
|
|
|
|
Allowance
for credit losses |
|
11,121 |
|
|
9,411 |
|
|
|
|
|
Deposits |
|
1,644,748 |
|
|
1,682,378 |
|
|
|
|
|
Stockholders' equity |
|
171,799 |
|
|
147,122 |
|
|
|
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
Full-time
equivalent staff |
|
223 |
|
|
213 |
|
|
|
|
|
Number of
banking offices |
|
18 |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
Common Shares outstanding |
|
|
|
|
|
|
Period
end |
|
8,359,556 |
|
|
8,281,661 |
|
|
|
|
|
Period
average - basic |
|
8,214,658 |
|
|
8,189,038 |
|
|
|
|
|
Period
average - diluted |
|
8,246,472 |
|
|
8,227,105 |
|
|
|
|
|
|
|
|
|
|
|
Market Ratios |
|
|
|
|
|
|
Stock
Price |
$ |
24.97 |
|
$ |
25.19 |
|
|
|
|
|
Price/Earnings |
|
8.81 |
|
|
5.80 |
|
|
|
|
|
Price/Book |
|
1.22 |
|
|
1.42 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio computed on
a fully tax equivalent basis using a marginal federal tax rate of
21%. |
|
|
|
(2) Ratio computed on
a fully tax equivalent basis using a marginal federal tax rate of
21%. |
|
|
|
A marginal federal/state
combined tax rate of 29.56%, was used for applicable revenue. |
|
|
Oak Valley Bancorp (NASDAQ:OVLY)
過去 株価チャート
から 7 2024 まで 8 2024
Oak Valley Bancorp (NASDAQ:OVLY)
過去 株価チャート
から 8 2023 まで 8 2024