Oak Valley Bancorp's Stellar 3rd Quarter Performance
Oak Valley Bancorp (NASDAQ: OVLY), the financial institution at the heart of Oak Valley Community Bank and the Eastern Sierra Community Bank division, has shared its remarkable financial results for the three months ending September 30, 2025. The company's unaudited consolidated financial results reflect a net income of $6.69 million, translating to earnings per diluted share of $0.81. This marks an increase from $5.59 million or $0.67 EPS witnessed in the preceding quarter and $7.32 million or $0.89 EPS for the corresponding period a year prior.
Analysis of Income Growth Factors
The increase in net income compared to the previous quarter can be attributed to growth in earning assets, higher yields from the loan portfolio, and consequently elevated net interest income. However, year-to-date decreases compared to the same timeframe in 2024 are largely tied to a reversal of an allowance for credit losses totaling $1.62 million recorded in the third quarter of 2024. This was related to favorable loan recoveries and a rise in operating expenses.
Net Interest Income and Income Breakdown
Oak Valley Bancorp reported net interest income of $19.20 million for the third quarter of 2025, reflecting robust growth from $18.15 million in the previous quarter and $17.66 million from the same period last year. This increase is primarily due to growth in average earning assets, rising loan yields, and a slight decline in the average cost of funds. The net interest margin for this timeframe stood at 4.16%, compared to 4.11% in the prior quarter and 4.04% during the same period last year.
Impressive Gains in Non-Interest Income
In terms of non-interest income, the third quarter showcased an uptick to $1.97 million, offering a notable rise from $1.70 million in the previous quarter and $1.85 million from last year. The increase is largely attributed to a one-time gain from the redemption of a life insurance policy, alongside heightened production from the investment advisory services and increased service charge income on deposit accounts.
Cost Management and Operating Expenses
For the quarter concluded on September 30, 2025, non-interest expenses were reported at $12.70 million, slightly increasing from $12.69 million in the prior quarter and $11.32 million in the same quarter of the previous year. While expenses remained stable compared to the prior quarter, the year-over-year increase is primarily linked to staffing costs and operational expenditures associated with servicing expanding loan and deposit portfolios.
Strategic Growth Initiatives
During this quarter, the full-time equivalent employee count rose by six in preparation for the opening of their 19th full-service branch located in Lodi. “Our team continues to implement our growth strategy effectively while upholding exceptional asset quality and nurturing customer relationships,” stated Chris Courtney, Chief Executive Officer. “The establishment of our new Lodi branch is a testament to our commitment to expanding our footprint across the Central Valley.”
Asset Growth and Deposit Trends
At the end of September 2025, total assets reached an impressive $2.00 billion, showcasing an increase of $74.5 million and $95.0 million over June 30, 2025, and September 30, 2024, respectively. Moreover, gross loans summed up to $1.11 billion, reflecting an increase of $3.0 million from the second quarter of 2025 and $37.7 million year-over-year. The company’s total deposits amounted to $1.77 billion as of September 30, demonstrating increases of $63.6 million and $84.6 million from the previous quarter and the same time last year.
Stable Credit Quality Management
Notably, non-performing assets (NPA) held steady at zero for the entire year of 2025 as well as in 2024. The allowance for credit losses as a percentage of gross loans remained consistent at 1.03% at the end of September 2025, equivalent to the last quarter and slightly down from 1.07% a year before. Management executed a comprehensive assessment of credit risk under the Current Expected Credit Loss (CECL) methodology, concluding that their credit loss reserves relating to gross loans maintained acceptable levels and that credit quality remained stable.
Customer-Centric Banking Operations
Operating through both Oak Valley Community Bank and Eastern Sierra Community Bank, Oak Valley Bancorp offers diverse loan and deposit products aimed at individuals and small businesses alike. Their services are bolstered by 19 conveniently located branches, providing accessible and personal banking experiences.
Contact Information
For further details, you can call 1-866-844-7500. To explore more about their offerings, visit www.ovcb.com.
Frequently Asked Questions
What is Oak Valley Bancorp's stock ticker symbol?
The stock ticker symbol for Oak Valley Bancorp is OVLY.
How did Oak Valley Bancorp perform in the third quarter?
Oak Valley Bancorp reported a net income of $6.69 million, or $0.81 per diluted share for the third quarter.
What contributed to the increase in net interest income?
Increases in average earning assets, rising loan yields, and a slight decrease in average cost of funds contributed to higher net interest income.
What are non-interest income figures for the quarter?
Non-interest income for the third quarter was reported at $1.97 million, driven by a one-time gain from life insurance policy redemption and increased service charge income.
What is the total asset value for Oak Valley Bancorp?
As of September 30, 2025, total assets for Oak Valley Bancorp reached $2.00 billion.
