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: January 23, 2012
(Date of earliest event reported)
Oak Valley Bancorp
(Exact name of registrant as specified in its charter)
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CA |
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001-34142 |
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26-2326676 |
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(State or other jurisdiction |
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(Commission File |
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(IRS Employer |
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125 N. Third Ave. Oakdale, CA |
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95361 |
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(Address of principal executive |
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(Zip Code) |
(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 January 23, 2012 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 December 31, 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 January 23, 2012
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: January 24, 2012 |
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OAK VALLEY BANCORP | |
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| |
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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 99.1
PRESS RELEASE
For Immediate Release
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Date: |
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January 23, 2011 |
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Contact: |
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Ron Martin/Chris Courtney/Rick McCarty |
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Phone: |
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(209) 848-2265 |
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www.ovcb.com |
OAK VALLEY BANCORP REPORTS 4th 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 financial results for the fiscal year ended December 31, 2011. Net income for 2011 totaled $5.9 million compared to $4.6 million for 2010. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $4.7 million, or $0.61 per diluted share, compared to net income of $3.8 million, or $0.49 per diluted common share, in 2010. This represents a 24% increase in net income available to common shareholders and marks record earnings for Oak Valley Bancorp.
For the three months ended December 31, 2011, Oak Valley Bancorp reported net income of $1.5 million. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $1.3 million, or $0.17 per diluted share, representing a 3.0% increase in net income available to common shareholders when compared to the three months ended December 31, 2010.
Total assets grew to $612.4 million as of December 31, 2011, which was an increase of $60.0 million, or 10.9% over the prior year. Deposits increased to $536.2 million, which was an increase of $59.5 million, or 12.5% over the prior year. Gross loans at year end totaled $396.2 million, reflecting a decrease of $8.0 million, or 2.0%, from December 31, 2010.
“We are pleased to report the results of another successful year. In a year which included our 20 year anniversary and the opening of two new branches, operational growth remained strong. Asset growth driven by core deposits continues to positively impact earnings,” stated Ron Martin, CEO.
Loan loss reserves as a percentage of gross loans increased to 2.17% at December 31, 2011 compared to 2.04% at December 31, 2010. The increased reserve ratio was realized even with a lower annual provision of $1.5 million in 2011, down from $4.0 million in 2010.
The Company continues to experience solid reductions in non-performing assets. Non-performing assets totaled $7.5 million, or 1.22% of total assets at December 31, 2011, compared to $12.3 million, or 2.22% of total assets, at December 31, 2010.
“Credit quality is an absolute cornerstone for any financial institution. We have, through deliberate adherence to sound principles, been successful in managing our credit portfolio and mitigating non-performing assets this year and throughout our history,” commented Chris Courtney, President. “It is reassuring to have the ideals on which we base our decisions validated by our emergence from these trying times, not only strong, but poised to continue serving the needs of the community,” Courtney concluded.
Net interest income of $25.2 million for the year ended December 31, 2011, increased slightly by $173,000, or 0.7%, from the prior year. The Company’s net interest margin was 4.83% for the year ended December 31, 2011, compared to 5.20% for the year ended December 31, 2010. This decrease is largely the result of pressure on the Bank’s yield on earnings assets which currently outpaces the Bank’s ability to make subsequent reductions to its cost of funds given the historically low interest rate environment.
Non-interest expense of $17.4 million for the year ended December 31, 2011, increased $618,000, or 3.7%, from the prior year. This was partially the result of expansion and staffing related expenses associated with opening the new Modesto and Manteca offices.
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please call 1-866-844-7500 or visit www.ovcb.com.
This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the corporation’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
###
Oak Valley Community Bank
Statement of Condition (unaudited)
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($ in thousands, except per share) |
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4th Quarter |
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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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Selected Quarterly Operating Data: |
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2011 |
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2011 |
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2011 |
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2011 |
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2010 |
| |||||
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|
|
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|
|
|
|
|
| |||||
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Net interest income |
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$ |
6,335 |
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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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Provision for loan losses |
|
300 |
|
300 |
|
300 |
|
600 |
|
1,005 |
| |||||
|
Non-interest income |
|
636 |
|
764 |
|
680 |
|
671 |
|
715 |
| |||||
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Non-interest expense |
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4,259 |
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4,208 |
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4,401 |
|
4,526 |
|
3,826 |
| |||||
|
Income before income taxes |
|
2,412 |
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2,595 |
|
2,279 |
|
1,751 |
|
2,227 |
| |||||
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Provision for income taxes |
|
915 |
|
846 |
|
829 |
|
586 |
|
727 |
| |||||
|
Net income |
|
1,497 |
|
1,749 |
|
1,450 |
|
1,165 |
|
1,500 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Preferred stock dividends and accretion |
|
(168 |
) |
(572 |
) |
(211 |
) |
(210 |
) |
(210 |
) | |||||
|
Net income available to common shareholders |
|
1,329 |
|
1,177 |
|
1,239 |
|
955 |
|
1,290 |
| |||||
|
|
|
|
|
|
|
|
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|
|
|
| |||||
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Earnings per common share - basic |
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0.17 |
|
0.15 |
|
0.16 |
|
0.12 |
|
0.17 |
| |||||
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Earnings per common share - diluted |
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0.17 |
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0.15 |
|
0.16 |
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0.12 |
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0.17 |
| |||||
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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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9.34 |
% |
8.44 |
% |
9.33 |
% |
7.48 |
% |
9.99 |
% | |||||
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Return on average assets |
|
1.00 |
% |
1.21 |
% |
1.03 |
% |
0.85 |
% |
1.09 |
% | |||||
|
Net interest margin (1) |
|
4.70 |
% |
4.85 |
% |
4.86 |
% |
4.92 |
% |
5.01 |
% | |||||
|
Efficiency Ratio (1) |
|
60.06 |
% |
58.27 |
% |
61.79 |
% |
65.09 |
% |
53.03 |
% | |||||
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|
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| |||||
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Capital - Period End |
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|
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Book value per share |
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$ |
7.37 |
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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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|
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Credit Quality - Period End |
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Nonperforming assets/ total assets |
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1.22 |
% |
1.50 |
% |
1.62 |
% |
2.02 |
% |
2.22 |
% | |||||
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Loan loss reserve/ gross loans |
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2.17 |
% |
2.26 |
% |
2.20 |
% |
2.22 |
% |
2.04 |
% | |||||
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Period End Balance Sheet |
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($ in thousands) |
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Total assets |
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$ |
612,377 |
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$ |
583,955 |
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$ |
572,262 |
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$ |
562,769 |
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$ |
552,396 |
|
|
Gross Loans |
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396,202 |
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391,379 |
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390,521 |
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395,243 |
|
404,194 |
| |||||
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Nonperforming assets |
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7,477 |
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8,748 |
|
9,245 |
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11,386 |
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12,253 |
| |||||
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Allowance for loan losses |
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8,609 |
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8,857 |
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8,591 |
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8,765 |
|
8,255 |
| |||||
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Deposits |
|
536,204 |
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505,505 |
|
496,212 |
|
485,641 |
|
476,739 |
| |||||
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Common Equity |
|
56,902 |
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56,064 |
|
54,134 |
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52,279 |
|
51,158 |
| |||||
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Total Capital (2) |
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70,402 |
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69,564 |
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67,634 |
|
65,779 |
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64,658 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Non-Financial Data |
|
|
|
|
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|
|
| |||||
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Full-time equivalent staff |
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128 |
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127 |
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130 |
|
125 |
|
120 |
| |||||
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Number of banking offices |
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14 |
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14 |
|
13 |
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12 |
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12 |
| |||||
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|
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|
|
|
|
|
|
|
|
|
| |||||
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Common Shares outstanding |
|
|
|
|
|
|
|
|
|
|
| |||||
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Period end |
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7,718,469 |
|
7,718,469 |
|
7,713,794 |
|
7,713,794 |
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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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7,705,164 |
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7,713,794 |
|
7,711,401 |
|
7,702,127 |
| |||||
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Period average - diluted |
|
7,737,248 |
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7,731,463 |
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7,745,193 |
|
7,742,230 |
|
7,719,157 |
| |||||
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|
|
|
|
|
| |||||
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Market Ratios |
|
|
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|
|
| |||||
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Stock Price |
|
$ |
6.75 |
|
$ |
4.05 |
|
$ |
5.85 |
|
$ |
5.99 |
|
$ |
5.90 |
|
|
Price/Earnings |
|
9.87 |
|
6.68 |
|
9.08 |
|
11.93 |
|
8.88 |
| |||||
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Price/Book |
|
0.92 |
|
0.56 |
|
0.83 |
|
0.88 |
|
0.89 |
| |||||
|
|
|
Year Ended December 31, |
| ||||
|
($ in thousands, except per share) |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
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Net interest income |
|
$ |
25,180 |
|
$ |
25,006 |
|
|
Provision for loan losses |
|
1,500 |
|
4,020 |
| ||
|
Non-interest income |
|
2,751 |
|
2,770 |
| ||
|
Non-interest expense |
|
17,394 |
|
16,775 |
| ||
|
Income before income taxes |
|
9,037 |
|
6,981 |
| ||
|
Provision for income taxes |
|
3,176 |
|
2,353 |
| ||
|
Net income |
|
5,861 |
|
4,628 |
| ||
|
Preferred stock dividends and accretion |
|
(1,161 |
) |
(842 |
) | ||
|
Net income available to common shareholders |
|
4,700 |
|
3,786 |
| ||
|
|
|
|
|
|
| ||
|
Earnings per common share - basic |
|
0.61 |
|
0.49 |
| ||
|
Earnings per common share - diluted |
|
0.61 |
|
0.49 |
| ||
|
Dividends declared per common share |
|
— |
|
— |
| ||
|
Return on average common equity |
|
8.67 |
% |
7.65 |
% | ||
|
Return on average assets |
|
1.02 |
% |
0.88 |
% | ||
|
Net interest margin (1) |
|
4.83 |
% |
5.20 |
% | ||
|
Efficiency Ratio (1) |
|
61.28 |
% |
59.62 |
% | ||
|
|
|
|
|
|
| ||
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Capital - Period End |
|
|
|
|
| ||
|
Book value per share |
|
$ |
7.37 |
|
$ |
6.64 |
|
|
|
|
|
|
|
| ||
|
Credit Quality - Period End |
|
|
|
|
| ||
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Nonperforming assets/ total assets |
|
1.22 |
% |
2.22 |
% | ||
|
Loan loss reserve/ gross loans |
|
2.17 |
% |
2.04 |
% | ||
|
Period End Balance Sheet |
|
|
|
|
| ||
|
($ in thousands) |
|
|
|
|
| ||
|
Total assets |
|
$ |
612,377 |
|
$ |
552,396 |
|
|
Gross Loans |
|
396,202 |
|
404,194 |
| ||
|
Nonperforming assets |
|
7,477 |
|
12,253 |
| ||
|
Allowance for credit losses |
|
8,609 |
|
8,255 |
| ||
|
Deposits |
|
536,204 |
|
476,739 |
| ||
|
Common Equity |
|
56,902 |
|
51,158 |
| ||
|
Total Capital (2) |
|
70,402 |
|
64,658 |
| ||
|
|
|
|
|
|
| ||
|
Non-Financial Data |
|
|
|
|
| ||
|
Full-time equivalent staff |
|
128 |
|
120 |
| ||
|
Number of banking offices |
|
14 |
|
12 |
| ||
|
|
|
|
|
|
| ||
|
Common Shares outstanding |
|
|
|
|
| ||
|
Period end |
|
7,718,469 |
|
7,702,127 |
| ||
|
Period average - basic |
|
7,708,853 |
|
7,689,760 |
| ||
|
Period average - diluted |
|
7,738,999 |
|
7,720,624 |
| ||
|
|
|
|
|
|
| ||
|
Market Ratios |
|
|
|
|
| ||
|
Stock Price |
|
$ |
6.75 |
|
$ |
5.90 |
|
|
Price/Earnings |
|
11.07 |
|
11.98 |
| ||
|
Price/Book |
|
0.92 |
|
0.89 |
| ||
(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.