OAKDALE, Calif., April 22, 2026 (GLOBE NEWSWIRE) -- Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results for the first quarter of 2026. For the three months ended March 31, 2026, consolidated net income was $5,309,000, or $0.64 per diluted share (EPS). This compares to consolidated net income of $6,335,000, or $0.77 EPS, for the prior quarter and $5,297,000, or $0.64 EPS, for the same period a year ago. The net income decrease compared to the prior period was primarily due to an increase in operating expenses and a decrease in net interest income. The net income increase compared to the prior year was due to an increase in net interest income driven by earning asset growth.
Net interest income for the three months ended March 31, 2026 was $18,824,000, compared to $19,457,000 in the prior quarter, and $17,807,000 in the same period a year ago. The decrease from the prior quarter is due to lower yields on cash balances, lower average earning assets, a slight increase in the interest rate paid on deposit accounts and two less days of interest accruals, while the year-over-year increase is due to growth in earning assets and loan yields. As a result, net interest margin for the three months ended March 31, 2026 was 4.12%, compared to 4.14% for the prior quarter and 4.09% for the same period last year.
Non-interest income was $1,952,000 for the quarter ended March 31, 2026, compared to $1,825,000 for the prior quarter and $1,613,000 for the same period last year. The increase compared to prior periods was mainly due to a special dividend of $181,000 received from the Federal Home Loan Bank.
Non-interest expense totaled $13,506,000 for the quarter ended March 31, 2026, compared to $12,262,000 in the previous quarter and $12,624,000 in the same quarter a year ago. The increase in non-interest expense corresponds primarily to staffing expenses and general operating costs related to servicing the growing loan and deposit portfolios.
Total assets were $2.01 billion at March 31, 2026, a decrease of $12.8 million and an increase of $85.9 million from December 31, 2025 and March 31, 2025, respectively. Gross loans were $1.15 billion at March 31, 2026, an increase of $3.5 million and $56.5 million over December 31, 2025 and March 31, 2025, respectively. The Company’s total deposits were $1.78 billion at March 31, 2026, a decrease of $12.0 million and an increase of $67.4 million from December 31, 2025 and March 31, 2025, respectively. Our liquidity position remains strong, as evidenced by $201.6 million in cash and cash equivalents balances at March 31, 2026.
“Our balance sheet remains strong and we continue to see stable performance across our core business lines,” stated Chris Courtney, CEO. “We remain committed to disciplined growth while maintaining a conservative approach to risk management.”
Non-performing assets (“NPA”) were $4.6 million, or 0.23% of total assets as of March 31, 2026 and December 31, 2025, compared to zero at March 31, 2025. The increase compared to the same period a year ago is due to one collateral-dependent loan that was placed on non-accrual status in December 2025. The company individually evaluated this loan and recognized a specific allowance for credit loss (“ACL”) reserve as part of its current expected credit loss (“CECL”) calculation. Management continues to monitor macro-economic conditions and other credit-related factors utilized for pooled loans within the CECL risk model. As a result of the model output, a provision for credit losses of $464,000 was recorded during the first quarter, as compared to $865,000 in the prior quarter, and zero in the same period of the prior year. The ACL as a percentage of gross loans increased to 1.13% at March 31, 2026, compared to 1.08% at December 31, 2025 and 1.05% at March 31, 2025. Management concluded that the ACL reserve relative to gross loans remains at acceptable levels, and credit quality remains stable.
Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 19 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, Lodi, two branches in Sonora, three branches in Modesto, and three branches in the Eastern Sierra division which includes Bridgeport, Mammoth Lakes, and Bishop. For more information, 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 BancorpFinancial Highlights (unaudited) Selected Quarterly Operating Data:1st Quarter4th Quarter3rd Quarter2nd Quarter1st Quarter($ in thousands, except per share) 2026 2025 2025 2025 2025 Net interest income$18,824 $19,457 $19,197 $18,154 $17,807 Provision for (reversal of) credit losses 464 865 (60) - - Non-interest income 1,952 1,825 1,973 1,703 1,613 Non-interest expense 13,506 12,262 12,700 12,688 12,624 Net income before income taxes 6,806 8,155 8,530 7,169 6,796 Provision for income taxes 1,497 1,820 1,837 1,581 1,499 Net income$5,309 $6,335 $6,693 $5,588 $5,297 Earnings per common share - basic$0.64 $0.77 $0.81 $0.68 $0.64 Earnings per common share - diluted$0.64 $0.76 $0.81 $0.67 $0.64 Dividends paid per common share$0.375 $- $0.300 $- $0.300 Return on average common equity 10.23% 12.32% 14.30% 12.21% 11.58% Return on average assets 1.07% 1.25% 1.35% 1.18% 1.13% Net interest margin (1) 4.12% 4.14% 4.16% 4.11% 4.09% Efficiency ratio (2) 62.99% 55.94% 58.27% 61.95% 63.00% Capital - Period End Book value per common share$24.50 $24.79 $23.63 $22.17 $21.89 Credit Quality - Period End Nonperforming assets / total assets 0.23% 0.23% 0.00% 0.00% 0.00% Credit loss reserve / gross loans 1.13% 1.08% 1.03% 1.03% 1.05% Balance Sheet - Period End (in thousands) Total assets$2,010,299 $2,023,116 $1,995,416 $1,920,909 $1,924,365 Gross loans 1,147,451 1,143,930 1,112,829 1,109,856 1,090,953 Nonperforming assets 4,574 4,587 - - - Allowance for credit losses 12,910 12,381 11,420 11,430 11,448 Deposits 1,780,996 1,792,962 1,774,882 1,711,241 1,713,592 Common equity 206,154 207,975 198,280 185,805 183,520 Balance Sheet - Average (in thousands) Average assets$2,006,175 $2,013,766 $1,961,374 $1,903,741 $1,903,585 Average earning assets 1,905,874 1,914,907 1,876,588 1,818,430 1,814,338 Average equity 210,562 203,994 185,638 183,612 185,592 Non-Financial Data Full-time equivalent staff 244 238 237 231 225 Number of banking offices 19 19 18 18 18 Common Shares outstanding Period end 8,413,458 8,388,221 8,390,621 8,382,062 8,382,062 Period average - basic 8,257,567 8,249,256 8,246,666 8,245,147 8,231,844 Period average - diluted 8,322,124 8,304,597 8,299,039 8,285,299 8,278,301 Market Ratios Stock Price$32.43 $30.06 $28.17 $27.24 $24.96 Price/Earnings 12.44 9.87 8.75 10.02 9.56 Price/Book 1.32 1.21 1.19 1.23 1.14 (1)This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%. The resulting adjustment to net interest income is $539 thousand, $509 thousand, $501 thousand, $498 thousand, and $497 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
(2)
This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%, and a federal/state combined tax rate of 29.56%. The resulting adjustment to pre-tax income is $666 thousand, $639 thousand, $626 thousand, $624 thousand, and $618 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
www.ovcb.com