EX-99.1 2 a13-22838_1ex99d1.htm EX-99.1

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.

 

“We’ve 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.  We’ve 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 Company’s 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 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, 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

 

 

 

 

 

 

 

 

 

 

 

($ 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.