Oak Valley Bancorp Delivers Strong Third Quarter Performance
Oak Valley Bancorp Shows Remarkable Performance in Third Quarter
Oak Valley Bancorp (NASDAQ: OVLY), the esteemed bank holding company for Oak Valley Community Bank and the Eastern Sierra Community Bank division, has reported its third-quarter results demonstrating solid financial health and growth potential.
Financial Highlights and Income Growth
During the latest reporting period, Oak Valley Bancorp unveiled a significant increase in its net income, totaling $6,693,000 or $0.81 per diluted share. This marks a notable rise from $5,588,000 or $0.67 EPS in the previous quarter and $7,324,000 or $0.89 EPS from the same quarter last year. For the first nine months of the year, net income reached $17,578,000, down slightly from $18,940,000 reported in 2024.
Insight into Revenue Growth Factors
The upward trajectory in third-quarter net income is primarily attributed to remarkable growth in earning assets and a rise in the yield from the loan portfolio. This has directly resulted in an increased net interest income. Despite quarter-to-date and year-to-date decreases compared to 2024, largely due to a reversal of credit loss allowances last year, Oak Valley remains in a strong position.
Net Interest Income Performance
Net interest income for the three months ending on September 30, 2025, stood at an impressive $19,197,000, showcasing growth from $18,154,000 in the prior quarter and $17,655,000 a year earlier. The rise is largely attributed to increased loan yields and steady growth in average earning assets.
Non-Interest Income and Expenses Overview
Non-interest income reached $1,973,000 for the quarter, up from $1,703,000 in the preceding quarter and $1,846,000 last year. This increase can be credited to a one-off gain from life insurance policy redemption and higher earnings from investment advisory services.
On the other hand, non-interest expenses were stable, totaling $12,700,000, reflecting slight growth primarily driven by staffing expenses associated with new operations. Oak Valley expanded its team in preparation for the opening of a new branch in Lodi.
Asset Growth and Loan Portfolio Stability
As of the end of September 2025, total assets are reported at $2.00 billion, marking an increase of $74.5 million from June and $95 million from the previous year. The total loans reached $1.11 billion, showing stable growth from the earlier quarters.
Deposits and Liquidity Strength
Total deposits hit $1.77 billion, reflecting robust growth compared to both the previous quarter and the same period last year. Oak Valley's liquidity is further strengthened by a strong cash and cash equivalents balance of $247.2 million.
Maintaining Asset Quality and Managing Risks
The company reported maintaining zero non-performing assets, highlighting a strong asset quality framework. The allowance for credit losses was stable at 1.03% of gross loans, a marginal improvement compared to last year. Management's proactive risk assessment displayed confidence in the strength of the loan portfolio.
Expansive Banking Services
Oak Valley Bancorp, through its divisions, continues to provide a variety of banking solutions tailored for individuals and small businesses across 19 branches. The commitment to customer service and regional growth aligns with their expansion strategy in California.
Contact Information
If you need further details or wish to connect with Oak Valley Bancorp, you can contact Chris Courtney or Rick McCarty at (209) 848-2265 or visit their website at www.ovcb.com.
Frequently Asked Questions
What were Oak Valley Bancorp’s net income and EPS for the third quarter?
Oak Valley Bancorp reported a net income of $6,693,000, translating to $0.81 per diluted share for the third quarter.
How does the third quarter income compare to previous periods?
In comparison to the previous quarter, income rose from $5,588,000 (or $0.67 EPS). This is a decrease from $7,324,000 ($0.89 EPS) from the same period last year.
What factors contributed to the increase in net interest income?
The increase in net interest income was primarily due to higher yields on loans and growth in average earning assets.
How is Oak Valley Bancorp managing its asset quality?
The company maintains a strong asset quality with no non-performing assets recorded, and a stable allowance for credit losses at 1.03% of gross loans.
What services does Oak Valley Bancorp offer?
The company offers a variety of loan and deposit products tailored to individuals and small businesses through its network of 19 branches.
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