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Oak Valley Bancorp
Oak Valley Bancorp
10/18/2012 | Press release
Oak Valley Bancorp Reports 3rd Quarter Results
distributed by noodls on 10/18/2012 14:56
OAKDALE, CA -- (Marketwire) -- 10/18/12 -- Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended September 30, 2012, net income was $1,479,000, while net income available to common shareholders was a record $1,395,000, or $0.18 per diluted common share. This compared to net income of $1,749,000 and net income available to common shareholders of $1,177,000, or $0.15 per diluted common share for the same period a year ago.
Year-to-date results for the nine months ended September 30, 2012, include net income of $4,292,000 and net income available to common shareholders of $3,925,000, compared to net income of $4,364,000 and net income available to common shareholders of $3,371,000 during the same period last year.
Increased net income available to shareholders corresponds to reductions in preferred stock dividends and accretion. The source of the reductions is two-fold; initially, from the repayment of the Treasury Capital Purchase Program funds in 2011, and more recently, from last quarter's repayment of $6,750,000, or half, of the outstanding preferred stock related to the Company's participation in the Small Business Lending Fund.
Net interest income reflected a decrease of $85,000 or 1.3% to $6.25 million for the three months ended September 30, 2012, compared to $6.34 million for the same period last year. Year-to-date net interest income reflected a similar cumulative decrease of $115,000 from the previous year to $18.7 million. As the current low rate environment continues to put pressure on loan and investment yields the Company's net interest margin decreased for the three months ended September 30, 2012 to 4.57%, compared to 4.85% for the same period last year.
Non-interest expense for the quarter and nine month period ended September 30, 2012 totaled $4.5 million and $13.7 million, respectively, and $4.2 million and $13.1 million, respectively, for the comparable periods in 2011. The year-to-date increase is primarily due to additional staffing and overhead costs associated with two new branch openings last year.
Non-performing assets continue to trend down. As of September 30, 2012, non-performing assets to total assets are 1.05%, or $6.6 million, compared to 1.50%, or $8.7 million for the same period a year ago.
Loan loss reserves to gross loans as of September 30, 2012 remain solid at 2.05%, down from 2.26% as of September 30, 2011. The decrease in the loan loss reserve corresponds to charge-offs of non-performing assets. The provision for loan losses during the three months ended September 30, 2012, was $300,000, the same as the last year.
Total assets were $627.8 million at September 30, 2012, an increase of $43.9 million, or 7.5%, from September 30, 2011. The Company's total deposits were $553.3 million as of September 30, 2012, an increase of $47.8 million, or 9.5% over September 30, 2011. Gross loans decreased by $2.7 million, to $388.7 million as of September 30, 2012, a decrease of 0.7% from September 30, 2011.
"The continued strength of our financial performance is built on a foundation of excellent customer relationships and strong credit quality," stated Ron Martin, CEO. "We continue to focus on our customers and relationship development, knowing that as borrowing confidence is restored, we are ready to meet the lending needs of the community."
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please 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)
($ in thousands, 3rd 2nd 1st 4th 3rd
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly
Operating Data: 2012 2012 2012 2011 2011
Net interest
income $ 6,254 $ 6,212 $ 6,264 $ 6,335 $ 6,339
Provision for loan
losses 300 300 300 300 300
Non-interest
income 790 672 831 636 764
Non-interest
expense 4,527 4,612 4,597 4,259 4,208
Income before
income taxes 2,217 1,972 2,198 2,412 2,595
Provision for
income taxes 738 620 737 915 846
---------- ---------- ---------- ---------- ----------
Net income 1,479 1,352 1,461 1,497 1,749
Preferred stock
dividends and
accretion (84) (114) (169) (168) (572)
---------- ---------- ---------- ---------- ----------
Net income
available to
common
shareholders $ 1,395 $ 1,238 $ 1,292 $ 1,329 $ 1,177
========== ========== ========== ========== ==========
Earnings per
common share -
basic 0.18 0.16 0.17 0.17 0.15
Earnings per
common share -
diluted 0.18 0.16 0.17 0.17 0.15
Dividends declared
per common share - - - - -
Return on average
common equity 9.02% 8.37% 8.93% 9.34% 8.44%
Return on average
assets 0.97% 0.92% 0.98% 1.00% 1.21%
Net interest
margin (1) 4.57% 4.73% 4.67% 4.70% 4.85%
Efficiency ratio
(1) 63.11% 65.28% 63.74% 60.06% 58.27%
Capital - Period End
Book value per
share $ 7.85 $ 7.63 $ 7.37 $ 7.37 $ 7.26
Credit Quality -
Period End
Nonperforming
assets/ total
assets 1.05% 1.20% 1.12% 1.22% 1.50%
Loan loss reserve/
gross loans 2.05% 2.05% 1.98% 2.17% 2.26%
Period End Balance
Sheet
($ in thousands)
Total assets $ 627,817 $ 596,417 $ 593,513 $ 612,172 $ 583,955
Gross loans 388,714 390,515 392,584 396,202 391,379
Nonperforming
assets 6,611 7,185 6,656 7,477 8,748
Allowance for loan
losses 7,953 8,008 7,792 8,609 8,857
Deposits 553,333 526,407 518,727 536,204 505,505
Common equity 62,075 60,185 58,092 56,902 56,071
Total capital (2) 68,825 66,935 71,592 70,402 69,571
Non-Financial Data
Full-time
equivalent staff 123 125 126 128 127
Number of banking
offices 14 14 14 14 14
Common Shares
outstanding
Period end 7,909,280 7,890,905 7,883,780 7,718,469 7,718,469
Period average -
basic 7,750,727 7,728,024 7,722,609 7,705,164 7,705,164
Period average -
diluted 7,778,146 7,750,952 7,743,941 7,737,248 7,731,463
Market Ratios
Stock Price $ 7.49 $ 6.96 $ 7.39 $ 6.75 $ 4.05
Price/Earnings 10.49 10.83 11.01 9.87 6.68
Price/Book 0.95 0.91 1.00 0.92 0.56
(1) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury
under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.
Nine Months Ended September 30,
2012 2011
--------------- ---------------
Net interest income $ 18,730 $ 18,845
Provision for loan losses 900 1,200
Non-interest income 2,293 2,115
Non-interest expense 13,736 13,135
Income before income taxes 6,387 6,625
Provision for income taxes 2,095 2,261
--------------- ---------------
Net income 4,292 4,364
Preferred stock dividends and accretion (367) (993)
--------------- ---------------
Net income available to common
shareholders $ 3,925 $ 3,371
=============== ===============
Earnings per common share - basic 0.51 0.44
Earnings per common share - diluted 0.51 0.44
Dividends declared per common share - -
Return on average common equity 8.78% 8.43%
Return on average assets 0.96% 1.03%
Net interest margin (1) 4.66% 4.88%
Efficiency ratio (1) 64.04% 61.68%
Capital - Period End
Book value per share $ 7.85 $ 7.26
Credit Quality - Period End
Nonperforming assets/ total assets 1.05% 1.50%
Loan loss reserve/ gross loans 2.05% 2.26%
Period End Balance Sheet
($ in thousands)
Total assets $ 627,817 $ 583,955
Gross loans 388,714 391,379
Nonperforming assets 6,611 8,748
Allowance for loan losses 7,953 8,857
Deposits 553,333 505,505
Common equity 62,075 56,071
Total capital (2) 68,825 69,571
Non-Financial Data
Full-time equivalent staff 123 127
Number of banking offices 14 14
Common Shares outstanding
Period end 7,909,280 7,718,469
Period average - basic 7,733,848 7,710,097
Period average - diluted 7,757,754 7,739,589
Market Ratios
Stock Price $ 7.49 $ 4.05
Price/Earnings 11.08 6.93
Price/Book 0.95 0.56
(1) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury
under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.
Contact: Ron Martin/Chris Courtney/Rick McCarty Phone: (209) 848-2265 www.ovcb.com
Source: Oak Valley Bancorp
