UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Date of Report: October 19, 2011
(Date of earliest event reported)
Oak Valley Bancorp
(Exact name of registrant as specified in its charter)
|
CA |
001-34142 |
26-2326676 |
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125 N. Third Ave. Oakdale, CA |
95361 |
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(209) 848-2265
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On October 19, 2011 Oak Valley Bancorp issued a press release, a copy of which is attached as Exhibit 99.1 and incorporated herein by reference. The press release announced the Company’s operating results for the quarter ended September 30, 2011.
The information in this Item 2.02 in this Form 8-K and the Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
See “Item 2.02. Results of Operations and Financial Condition” which is incorporated by reference in this Item 7.01.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits
99.1 Press Release of Oak Valley Bancorp dated October 19, 2011
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: October 19, 2011 |
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OAK VALLEY BANCORP | ||
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By: |
/s/ Richard A. McCarty |
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Richard A. McCarty | ||
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Executive Vice President and Chief Financial Officer | ||
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(Principal Financial Officer and duly authorized signatory) | ||
Exhibit Index
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Exhibit No. |
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Description |
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99.1 |
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Press Release of Oak Valley Bancorp dated October 19, 2011 |
Exhibit 99.1
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PRESS RELEASE |
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For Immediate Release | |
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Date: |
October 19, 2011 |
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Contact: |
Ron Martin/Chris Courtney/Rick McCarty |
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Phone: |
(209) 848-2265 |
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www.ovcb.com |
OAK VALLEY BANCORP REPORTS 3rd QUARTER RESULTS
OAKDALE, CA – 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, 2011, consolidated net income was $1,749,000, while consolidated net income available to common shareholders was $1,177,000, or $0.15 per diluted common share. This compared favorably to net income available to common shareholders of $931,000, or $0.12 per diluted common share for the same period a year ago.
Year-to-date results for the nine months ended September 30, 2011, include net income of $4,364,000 and net income available to common shareholders of $3,371,000, compared to net income of $3,128,000 and net income available to common shareholders of $2,496,000 during the same period last year.
Net interest income remained stable decreasing slightly by $20,000 or 0.3% to $6.3 million for the three months ended September 30, 2011, compared to the same period last year. Year-to-date net interest income increased $182,000 from the previous year to $18.8 million. The bank’s balance sheet growth, driven by core deposit expansion, and corresponding increases in the investment portfolio, have effectively offset the impact of the decrease in the loan portfolio.
Non interest expense for the quarter and nine month period ended September 30, 2011 totaled $4.2 million and $13.1 million, respectively, and $4.2 million and $12.9 million for the comparable periods in 2010. The year-to-date increase is primarily related to staffing and overhead costs associated with the opening of two branches in 2011.
“It has been a very positive year for Oak Valley Community Bank. We opened two new locations within the core of our existing footprint, expanding service and convenience for both new and current customers,” stated Ron Martin, CEO. “Earlier this year, we also
reached a milestone, celebrating our 20 year anniversary and two decades providing a true community banking alternative to our friends and neighbors who appreciate the value of investing in the communities we call home.”
The Company continues to experience solid reductions in non-performing assets. As of September 30, 2011, non-performing assets to total assets are 1.50%, or $8.7 million, down from 2.00%, or $10.7 million for the same period a year ago.
The provision for loan losses during the three months ended September 30, 2011, was $300,000, compared to $1.0 million during the same quarter of last year. However, in the last 12 months the ratio of loan loss reserves to gross loans has been increased from 1.88% to 2.26%.
During the quarter, the Company repaid the Treasury Capital Purchase Programs funds. This resulted in the accelerated accretion of $361 thousand associated with a corresponding warrant to purchase Oak Valley Bancorp common stock. The Bancorp concurrently participated in the Small Business Lending Fund, maintaining its strong capital position.
Total assets were $584.0 million at September 30, 2011, an increase of $49.1 million, or 9.2%, from September 30, 2010. The Company’s total deposits were $505.5 million as of September 30, 2011, an increase of $56.6 million, or 12.6% over September 30, 2010. Gross loans decreased by $17.6 million, to $391.4 million as of September 30, 2011, a decrease of 4.3% from September 30, 2010.
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto; and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please call 1-866-844-7500 or visit www.ovcb.com.
This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the corporation’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
###
Oak Valley Community Bank
Statement of Condition (unaudited)
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($ in thousands, except per share) |
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3rd Quarter |
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2nd Quarter |
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1st Quarter |
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4th Quarter |
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3rd Quarter |
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Selected Quarterly Operating Data: |
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2011 |
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2011 |
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2011 |
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2010 |
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2010 |
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Net interest income |
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$ |
6,339 |
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$ |
6,300 |
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$ |
6,206 |
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$ |
6,343 |
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$ |
6,359 |
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Provision for loan losses |
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300 |
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300 |
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600 |
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1,005 |
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1,005 |
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Non-interest income |
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764 |
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680 |
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671 |
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715 |
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676 |
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Non-interest expense |
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4,208 |
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4,401 |
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4,526 |
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3,826 |
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4,188 |
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Income before income taxes |
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2,595 |
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2,279 |
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1,751 |
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2,227 |
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1,842 |
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Provision for income taxes |
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846 |
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829 |
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586 |
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727 |
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701 |
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Net income |
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1,749 |
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1,450 |
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1,165 |
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1,500 |
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1,141 |
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Preferred stock dividends and accretion |
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(572 |
) |
(211 |
) |
(210 |
) |
(210 |
) |
(210 |
) | |||||
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Net income available to common shareholders |
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1,177 |
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1,239 |
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955 |
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1,290 |
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931 |
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Earnings per common share - basic |
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0.15 |
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0.16 |
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0.12 |
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0.17 |
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0.12 |
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Earnings per common share - diluted |
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0.15 |
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0.16 |
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0.12 |
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0.17 |
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0.12 |
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Dividends declared per common share |
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- |
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- |
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- |
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- |
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- |
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Return on average common equity |
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8.44% |
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9.33% |
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7.48% |
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9.99% |
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7.38% |
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Return on average assets |
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1.21% |
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1.03% |
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0.85% |
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1.09% |
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0.86% |
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Net interest margin (1) |
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4.85% |
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4.86% |
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4.92% |
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5.01% |
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5.23% |
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Efficiency Ratio (1) |
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58.27% |
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61.79% |
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65.09% |
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53.03% |
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58.99% |
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Capital - Period End |
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Book value per share |
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$ |
7.26 |
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$ |
7.02 |
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$ |
6.78 |
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$ |
6.64 |
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$ |
6.57 |
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Credit Quality - Period End |
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Nonperforming assets/ total assets |
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1.50% |
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1.62% |
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2.02% |
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2.22% |
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2.00% |
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Loan loss reserve/ gross loans |
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2.26% |
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2.20% |
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2.22% |
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2.04% |
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1.88% |
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Period End Balance Sheet |
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($ in thousands) |
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Total assets |
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$ |
583,955 |
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$ |
572,262 |
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$ |
562,769 |
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$ |
552,396 |
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$ |
534,879 |
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Gross Loans |
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391,379 |
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390,521 |
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395,243 |
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404,194 |
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408,971 |
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Nonperforming assets |
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8,748 |
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9,245 |
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11,386 |
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12,253 |
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10,690 |
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Allowance for credit losses |
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8,857 |
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8,591 |
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8,765 |
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8,255 |
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7,700 |
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Deposits |
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505,505 |
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496,212 |
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485,641 |
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476,739 |
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448,904 |
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Common Equity |
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56,071 |
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54,134 |
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52,279 |
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51,158 |
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50,605 |
| |||||
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Total Capital (2) |
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69,571 |
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67,634 |
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65,779 |
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64,658 |
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64,105 |
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Non-Financial Data |
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Full-time equivalent staff |
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127 |
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130 |
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125 |
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120 |
|
115 |
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Number of banking offices |
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14 |
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13 |
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12 |
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12 |
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12 |
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Common Shares outstanding |
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|
|
|
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|
|
|
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Period end |
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7,718,469 |
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7,713,794 |
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7,713,794 |
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7,702,127 |
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7,702,127 |
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Period average - basic |
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7,705,164 |
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7,713,794 |
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7,711,401 |
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7,702,127 |
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7,692,900 |
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Period average - diluted |
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7,731,463 |
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7,745,193 |
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7,742,230 |
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7,719,157 |
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7,729,175 |
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Market Ratios |
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Stock Price |
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$ |
4.05 |
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$ |
5.85 |
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$ |
5.99 |
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$ |
5.90 |
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$ |
5.40 |
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Price/Earnings |
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6.68 |
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9.08 |
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11.93 |
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8.88 |
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11.25 |
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Price/Book |
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0.56 |
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0.83 |
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0.88 |
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0.89 |
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0.82 |
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($ in thousands, except per share) |
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Nine Months Ended September 30, | ||||||
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2011 |
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2010 |
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Net interest income |
|
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$ |
18,845 |
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$ |
18,663 |
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Provision for loan losses |
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|
1,200 |
|
3,015 |
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Non-interest income |
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|
2,115 |
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2,055 |
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Non-interest expense |
|
|
13,135 |
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12,949 |
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Income before income taxes |
|
|
6,625 |
|
4,754 |
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Provision for income taxes |
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|
2,261 |
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1,626 |
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Net income |
|
|
4,364 |
|
3,128 |
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Preferred stock dividends and accretion |
|
|
(993 |
) |
(632 |
) | ||
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Net income available to common shareholders |
|
|
3,371 |
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2,496 |
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|
|
|
|
|
|
| ||
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Earnings per common share - basic |
|
|
0.44 |
|
0.32 |
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Earnings per common share - diluted |
|
|
0.44 |
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0.32 |
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Dividends declared per common share |
|
|
- |
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- |
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Return on average common equity |
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|
8.43% |
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6.83% |
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Return on average assets |
|
|
1.03% |
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0.81% |
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Net interest margin (1) |
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4.88% |
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5.27% |
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Efficiency Ratio (1) |
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|
61.68% |
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61.88% |
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Capital - Period End |
|
|
|
|
|
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Book value per share |
|
|
$ |
7.26 |
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$ |
6.57 |
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|
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Credit Quality - Period End |
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|
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Nonperforming assets/ total assets |
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|
1.50% |
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2.00% |
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Loan loss reserve/ gross loans |
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|
2.26% |
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1.88% |
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|
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Period End Balance Sheet |
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($ in thousands) |
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|
|
|
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Total assets |
|
|
$ |
583,955 |
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$ |
534,879 |
|
|
Gross Loans |
|
|
391,379 |
|
408,971 |
| ||
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Nonperforming assets |
|
|
8,748 |
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10,690 |
| ||
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Allowance for credit losses |
|
|
8,857 |
|
7,700 |
| ||
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Deposits |
|
|
505,505 |
|
448,904 |
| ||
|
Common Equity |
|
|
56,071 |
|
50,605 |
| ||
|
Total Capital (2) |
|
|
69,571 |
|
64,105 |
| ||
|
|
|
|
|
|
|
| ||
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Non-Financial Data |
|
|
|
|
|
| ||
|
Full-time equivalent staff |
|
|
127 |
|
115 |
| ||
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Number of banking offices |
|
|
14 |
|
12 |
| ||
|
|
|
|
|
|
|
| ||
|
Common Shares outstanding |
|
|
|
|
|
| ||
|
Period end |
|
|
7,718,469 |
|
7,702,127 |
| ||
|
Period average - basic |
|
|
7,710,097 |
|
7,685,592 |
| ||
|
Period average - diluted |
|
|
7,739,589 |
|
7,719,616 |
| ||
|
|
|
|
|
|
|
| ||
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Market Ratios |
|
|
|
|
|
| ||
|
Stock Price |
|
|
$ |
4.05 |
|
$ |
5.40 |
|
|
Price/Earnings |
|
|
6.93 |
|
12.44 |
| ||
|
Price/Book |
|
|
0.56 |
|
0.82 |
| ||
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2) Includes $13.5 million in preferred stock issued to the U.S. Treasury under the SBLF Program. Prior to 9/30/2011, it was issued under the TARP Capital Purchase Program.