EX-99.1 2 a12-3482_1ex99d1.htm EX-99.1

Exhibit 99.1

 

PRESS RELEASE

 

For Immediate Release

 

Date:

 

January 23, 2011

Contact:

 

Ron Martin/Chris Courtney/Rick McCarty

Phone:

 

(209) 848-2265

 

 

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)

 

($ in thousands, except per share)

 

4th Quarter

 

3rd Quarter

 

2nd Quarter

 

1st Quarter

 

4th Quarter

 

Selected Quarterly Operating Data:

 

2011

 

2011

 

2011

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

6,335

 

$

6,339

 

$

6,300

 

$

6,206

 

$

6,343

 

Provision for loan losses

 

300

 

300

 

300

 

600

 

1,005

 

Non-interest income

 

636

 

764

 

680

 

671

 

715

 

Non-interest expense

 

4,259

 

4,208

 

4,401

 

4,526

 

3,826

 

Income before income taxes

 

2,412

 

2,595

 

2,279

 

1,751

 

2,227

 

Provision for income taxes

 

915

 

846

 

829

 

586

 

727

 

Net income

 

1,497

 

1,749

 

1,450

 

1,165

 

1,500

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - basic

 

0.17

 

0.15

 

0.16

 

0.12

 

0.17

 

Earnings per common share - diluted

 

0.17

 

0.15

 

0.16

 

0.12

 

0.17

 

Dividends declared per common share

 

—

 

—

 

—

 

—

 

—

 

Return on average common equity

 

9.34

%

8.44

%

9.33

%

7.48

%

9.99

%

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

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital - Period End

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

7.37

 

$

7.26

 

$

7.02

 

$

6.78

 

$

6.64

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality - Period End

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets/ total assets

 

1.22

%

1.50

%

1.62

%

2.02

%

2.22

%

Loan loss reserve/ gross loans

 

2.17

%

2.26

%

2.20

%

2.22

%

2.04

%

 

Period End Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

612,377

 

$

583,955

 

$

572,262

 

$

562,769

 

$

552,396

 

Gross Loans

 

396,202

 

391,379

 

390,521

 

395,243

 

404,194

 

Nonperforming assets

 

7,477

 

8,748

 

9,245

 

11,386

 

12,253

 

Allowance for loan losses

 

8,609

 

8,857

 

8,591

 

8,765

 

8,255

 

Deposits

 

536,204

 

505,505

 

496,212

 

485,641

 

476,739

 

Common Equity

 

56,902

 

56,064

 

54,134

 

52,279

 

51,158

 

Total Capital (2)

 

70,402

 

69,564

 

67,634

 

65,779

 

64,658

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data

 

 

 

 

 

 

 

 

 

 

 

Full-time equivalent staff

 

128

 

127

 

130

 

125

 

120

 

Number of banking offices

 

14

 

14

 

13

 

12

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares outstanding

 

 

 

 

 

 

 

 

 

 

 

Period end

 

7,718,469

 

7,718,469

 

7,713,794

 

7,713,794

 

7,702,127

 

Period average - basic

 

7,705,164

 

7,705,164

 

7,713,794

 

7,711,401

 

7,702,127

 

Period average - diluted

 

7,737,248

 

7,731,463

 

7,745,193

 

7,742,230

 

7,719,157

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Ratios

 

 

 

 

 

 

 

 

 

 

 

Stock Price

 

$

6.75

 

$

4.05

 

$

5.85

 

$

5.99

 

$

5.90

 

Price/Earnings

 

9.87

 

6.68

 

9.08

 

11.93

 

8.88

 

Price/Book

 

0.92

 

0.56

 

0.83

 

0.88

 

0.89

 

 


 

 

 

Year Ended December 31,

 

($ in thousands, except per share)

 

2011

 

2010

 

 

 

 

 

 

 

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

%

 

 

 

 

 

 

Capital - Period End

 

 

 

 

 

Book value per share

 

$

7.37

 

$

6.64

 

 

 

 

 

 

 

Credit Quality - Period End

 

 

 

 

 

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.