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 22, 2013
(Date of earliest event reported)
Oak Valley Bancorp
(Exact name of registrant as specified in its charter)
CA |
|
001-34142 |
|
26-2326676 |
125 N. Third Ave. Oakdale, CA |
|
95361
|
(209) 848-2265
(Registrants 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 22, 2013 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 Companys operating results for the quarter ended September 30, 2013.
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 22, 2013
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.
Dated: October 24, 2013 |
| |
|
OAK VALLEY BANCORP | |
|
| |
|
By: |
/s/ Richard A. McCarty |
|
|
Richard A. McCarty |
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer and duly authorized signatory) |
Exhibit 99.1
PRESS RELEASE
For Immediate Release
Date: |
October 22, 2013 |
Contact: |
Chris Courtney/Rick McCarty |
Phone: |
(209) 848-2265 |
|
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, 2013, consolidated net income available to common shareholders was a record $1,505,000, or $0.19 per diluted common share. This compared to consolidated net income available to common shareholders of $1,395,000, or $0.18 per diluted common share for the same period a year ago.
Year-to-date results for the nine months ended September 30, 2013, include consolidated net income available to common shareholders of $4,111,000, representing a 4.7% increase over the $3,925,000 recorded during the same period last year.
Total assets were $659.2 million at September 30, 2013, an increase of $31.4 million, or 5.0%, from September 30, 2012. Total deposits were $591.6 million as of September 30, 2013, an increase of $38.3 million, or 6.9% over September 30, 2012. Gross loans increased to $413.9 million at September 30, 2013, an increase of $25.1 million, or 6.5%, from September 30, 2012.
Weve remained deliberately focused on building solid relationships, knowing our financial performance is driven by the strength of our customers and the depth of our relationships with them, stated Chris Courtney, President and CEO of the Company and the Bank. We are extremely pleased to report another quarter of solid earnings. Weve been cautiously anticipating a return of borrowing confidence from the local business community and we think we have seen a glimpse of that in recent months. We remain hopeful that the trend continues through the year and beyond.
Net interest income reflected a decrease of $224,000 or 3.6% to $6.0 million for the three months ended September 30, 2013, compared to $6.3 million for the same period last year. Loan and investment yields continue to be tempered by pressures on interest rates, but the growth in loan volume has helped mitigate the decrease in net interest income. The Companys net interest margin for the three months ended September 30, 2013 was 4.12%, compared 4.57% for the same period last year.
Non-interest expense for the quarter and nine month period ended September 30, 2013 totaled $4.6 million and $14.0 million, respectively, and $4.5 million and $13.7 million, respectively, for the comparable periods in 2012. The year-to-date increase corresponds primarily to growth in full time equivalent staff from 123 to 135. Data processing costs associated with increased deposit account activity have also been a factor.
Non-performing assets as of September 30, 2013 were $4.5 million, or 0.68% of total assets. This is down from $6.6 million, or 1.05% at September 30, 2012. The decrease reflects the continued management of the portfolio.
The provision for loan losses during the three months ended September 30, 2013, was $100,000, compared to $300,000 for the same period the previous year. The ratio of loan loss reserves to gross loans decreased to 1.85% at September 30, 2013, compared to 2.05% at September 30, 2012.
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please call 1-866-844-7500 or visit www.ovcb.com.
This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on managements knowledge and belief as of today and include information concerning the corporations possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.
###
Oak Valley Bancorp
Financial Highlights (unaudited)
($ in thousands, except per share) |
|
3rd Quarter |
|
2nd Quarter |
|
1st Quarter |
|
4th Quarter |
|
3rd Quarter |
| |||||
Selected Quarterly Operating Data: |
|
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
|
$ |
6,030 |
|
$ |
6,024 |
|
$ |
5,849 |
|
$ |
6,115 |
|
$ |
6,254 |
|
Provision for loan losses |
|
100 |
|
100 |
|
100 |
|
250 |
|
300 |
| |||||
Non-interest income |
|
866 |
|
818 |
|
785 |
|
855 |
|
790 |
| |||||
Non-interest expense |
|
4,619 |
|
4,734 |
|
4,639 |
|
4,513 |
|
4,527 |
| |||||
Income before income taxes |
|
2,177 |
|
2,008 |
|
1,895 |
|
2,207 |
|
2,217 |
| |||||
Provision for income taxes |
|
672 |
|
634 |
|
595 |
|
718 |
|
738 |
| |||||
Net income |
|
1,505 |
|
1,374 |
|
1,300 |
|
1,489 |
|
1,479 |
| |||||
Preferred stock dividends and accretion |
|
- |
|
- |
|
(68) |
|
(84) |
|
(84) |
| |||||
Net income available to common shareholders |
|
$ |
1,505 |
|
$ |
1,374 |
|
$ |
1,232 |
|
$ |
1,405 |
|
$ |
1,395 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings per common share - basic |
|
$ |
0.19 |
|
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.18 |
|
$ |
0.18 |
|
Earnings per common share - diluted |
|
$ |
0.19 |
|
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.18 |
|
$ |
0.18 |
|
Dividends declared per common share |
|
- |
|
- |
|
- |
|
- |
|
- |
| |||||
Return on average common equity |
|
9.45% |
|
8.48% |
|
7.82% |
|
8.87% |
|
9.02% |
| |||||
Return on average assets |
|
0.92% |
|
0.86% |
|
0.81% |
|
0.91% |
|
0.97% |
| |||||
Net interest margin (1) |
|
4.12% |
|
4.18% |
|
4.05% |
|
4.15% |
|
4.57% |
| |||||
Efficiency ratio (1) |
|
64.65% |
|
67.17% |
|
67.95% |
|
63.23% |
|
63.11% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capital - Period End |
|
|
|
|
|
|
|
|
|
|
| |||||
Book value per share |
|
$ |
7.99 |
|
$ |
8.01 |
|
$ |
8.10 |
|
$ |
7.99 |
|
$ |
7.85 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Credit Quality - Period End |
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming assets/ total assets |
|
0.68% |
|
0.65% |
|
0.99% |
|
1.05% |
|
1.05% |
| |||||
Loan loss reserve/ gross loans |
|
1.85% |
|
1.94% |
|
1.99% |
|
2.04% |
|
2.05% |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Period End Balance Sheet |
|
|
|
|
|
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|
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|
|
| |||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
|
$ |
659,192 |
|
$ |
644,230 |
|
$ |
648,418 |
|
$ |
660,581 |
|
$ |
627,817 |
|
Gross loans |
|
413,856 |
|
390,647 |
|
389,992 |
|
390,986 |
|
388,714 |
| |||||
Nonperforming assets |
|
4,495 |
|
4,189 |
|
6,439 |
|
6,923 |
|
6,611 |
| |||||
Allowance for loan losses |
|
7,669 |
|
7,570 |
|
7,743 |
|
7,975 |
|
7,953 |
| |||||
Deposits |
|
591,642 |
|
577,129 |
|
580,215 |
|
586,993 |
|
553,333 |
| |||||
Common equity |
|
63,379 |
|
63,457 |
|
64,098 |
|
63,219 |
|
62,075 |
| |||||
Total capital (2) |
|
63,379 |
|
63,457 |
|
64,098 |
|
69,969 |
|
68,825 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-Financial Data |
|
|
|
|
|
|
|
|
|
|
| |||||
Full-time equivalent staff |
|
135 |
|
134 |
|
134 |
|
130 |
|
123 |
| |||||
Number of banking offices |
|
14 |
|
14 |
|
14 |
|
14 |
|
14 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common Shares outstanding |
|
|
|
|
|
|
|
|
|
|
| |||||
Period end |
|
7,929,730 |
|
7,924,730 |
|
7,914,730 |
|
7,907,780 |
|
7,909,280 |
| |||||
Period average - basic |
|
7,802,705 |
|
7,802,012 |
|
7,778,333 |
|
7,762,261 |
|
7,750,727 |
| |||||
Period average - diluted |
|
7,851,157 |
|
7,842,964 |
|
7,830,439 |
|
7,793,523 |
|
7,778,146 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Market Ratios |
|
|
|
|
|
|
|
|
|
|
| |||||
Stock Price |
|
$ |
7.96 |
|
$ |
7.67 |
|
$ |
8.14 |
|
$ |
7.45 |
|
$ |
7.49 |
|
Price/Earnings |
|
10.40 |
|
10.86 |
|
12.67 |
|
10.38 |
|
10.49 |
| |||||
Price/Book |
|
1.00 |
|
0.96 |
|
1.01 |
|
0.93 |
|
0.95 |
|
|
NINE MONTHS ENDED SEPTEMBER 30, | ||||||
|
|
2013 |
|
2012 |
| ||
|
|
|
|
|
| ||
($ in thousands, except per share) |
|
|
|
|
| ||
Selected Quarterly Operating Data: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Net interest income |
|
$ |
17,903 |
|
$ |
18,730 |
|
Provision for loan losses |
|
300 |
|
900 |
| ||
Non-interest income |
|
2,469 |
|
2,293 |
| ||
Non-interest expense |
|
13,992 |
|
13,736 |
| ||
Income before income taxes |
|
6,080 |
|
6,387 |
| ||
Provision for income taxes |
|
1,901 |
|
2,095 |
| ||
Net income |
|
4,179 |
|
4,292 |
| ||
Preferred stock dividends and accretion |
|
(68) |
|
(367) |
| ||
Net income available to common shareholders |
|
$ |
4,111 |
|
$ |
3,925 |
|
|
|
|
|
|
| ||
Earnings per common share - basic |
|
0.53 |
|
0.51 |
| ||
Earnings per common share - diluted |
|
0.52 |
|
0.51 |
| ||
Dividends declared per common share |
|
- |
|
- |
| ||
Return on average common equity |
|
8.59% |
|
8.78% |
| ||
Return on average assets |
|
0.87% |
|
0.96% |
| ||
Net interest margin (1) |
|
4.11% |
|
4.66% |
| ||
Efficiency ratio (1) |
|
66.57% |
|
64.04% |
| ||
|
|
|
|
|
| ||
Capital - Period End |
|
|
|
|
| ||
Book value per share |
|
$ |
7.99 |
|
$ |
7.85 |
|
|
|
|
|
|
| ||
Credit Quality - Period End |
|
|
|
|
| ||
Nonperforming assets/ total assets |
|
0.68% |
|
1.05% |
| ||
Loan loss reserve/ gross loans |
|
1.85% |
|
2.05% |
| ||
|
|
|
|
|
| ||
Period End Balance Sheet |
|
|
|
|
| ||
($ in thousands) |
|
|
|
|
| ||
Total assets |
|
$ |
659,192 |
|
$ |
627,817 |
|
Gross loans |
|
413,856 |
|
388,714 |
| ||
Nonperforming assets |
|
4,495 |
|
6,611 |
| ||
Allowance for loan losses |
|
7,669 |
|
7,953 |
| ||
Deposits |
|
591,642 |
|
553,333 |
| ||
Common equity |
|
63,379 |
|
62,075 |
| ||
Total capital (2) |
|
63,379 |
|
68,825 |
| ||
|
|
|
|
|
| ||
Non-Financial Data |
|
|
|
|
| ||
Full-time equivalent staff |
|
135 |
|
123 |
| ||
Number of banking offices |
|
14 |
|
14 |
| ||
|
|
|
|
|
| ||
Common Shares outstanding |
|
|
|
|
| ||
Period end |
|
7,929,730 |
|
7,909,280 |
| ||
Period average - basic |
|
7,794,439 |
|
7,733,848 |
| ||
Period average - diluted |
|
7,841,596 |
|
7,757,754 |
| ||
|
|
|
|
|
| ||
Market Ratios |
|
|
|
|
| ||
Stock Price |
|
$ |
7.96 |
|
$ |
7.49 |
|
Price/Earnings |
|
11.29 |
|
11.08 |
| ||
Price/Book |
|
1.00 |
|
0.95 |
|
(1) Ratio computed on a fully tax equivalent basis using a marginal federal tax rate of 34%.
(2) Includes preferred stock issued to the U.S. Treasury under the SBLF Program of $6.75 million for the quarters ended September 30 and December 31, 2012. There was no preferred stock outstanding as of March 31, June 30, and September 30, 2013.