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Oak Valley Bancorp Reports 4th Quarter Results


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© Marketwire 2013
2013-01-22 20:23:58 -

OAKDALE, CA -- (Marketwire) -- 01/22/13 -- Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported financial results for the fiscal year ended December 31, 2012. Net income for 2012 totaled $5.8 million compared to $5.9 million for 2011. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $5.3 million, or $0.69 per diluted share, compared to net income of $4.7 million, or $0.61 per diluted common share, in 2011. This represents a 13.4% increase in net income available to common shareholders and marks record earnings for Oak Valley Bancorp.



For the three months ended December 31, 2012, Oak Valley Bancorp reported net income of $1.49 million. After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $1.41 million, or $0.18 per diluted share, representing a 5.7% increase in net income available to common shareholders when compared to the three months ended December 31, 2011.



Total assets grew to $660.5 million as of December 31, 2012, which was an increase of $48.3 million, or 7.9% over the prior year. Deposits increased to $587.0 million, which was an increase of $50.8 million, or 9.5% over the prior year. Gross loans at year end totaled $391.0 million, reflecting a decrease of $5.2 million, or 1.3%, from December 31, 2011.



Non-performing assets totaled $6.9 million, or 1.05% of total assets at December 31, 2012, compared to $7.5 million, or 1.22% of total assets, at December 31, 2011. Charge-offs corresponding to updated valuations account for the decline in non-performing assets.





The allowance for loan losses totaled 2.04% of gross loans at December 31, 2012 compared to 2.17% at December 31, 2011. The decrease in reserve ratio corresponds with the charge-offs on non-performing assets. The annual provision for loan losses of $1.2 million in 2012 was down from $1.5 million in 2011.



"The fundamentals of the Company remain strong, including the credit quality of the portfolio and continued deposit growth," commented Chris Courtney, President. "We are cautiously optimistic about loan growth opportunities in the coming year, as we begin to see signs of increased interest in commercial borrowing."



Net interest income of $24.8 million for the year ended December 31, 2012, decreased by $335,000, or 1.3%, from the prior year. This decrease comes from new loans boarding and maturing loans repricing in a low interest rate environment, causing downward pressure on yields. The Company's net interest margin was 4.52% for the year ended December 31, 2012, compared to 4.83% for the year ended December 31, 2011. Interest margin has also been affected by excess deposits being deployed into lower yielding securities and cash based investments.



Non-interest income was $3.1 million for the year ended December 31, 2012, compared to $2.8 million the prior year. The increase primarily relates to growth in deposit related service charges and fee income generated from increased residential mortgage lending.



Non-interest expense was $18.2 million for the year ended December 31, 2012, compared to $17.4 million for the prior year, an increase of $855,000, or 4.9%. This increase consists of costs associated with operating two additional branches for a full year, as well as costs related to servicing deposit growth across all branches.



"We are pleased to report another record year for earnings," stated Ron Martin, CEO. "Our ability to perform with the best of our peers is a tribute to the relationship banking model and the character and capacity of our customers."



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 : ctt.marketwire.com/?release=977053&id=2508616&type=1& .. .



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          4th         3rd         2nd         1st         4th
 share)            Quarter     Quarter     Quarter     Quarter     Quarter
Selected
 Quarterly
 Operating Data:    2012        2012        2012        2012        2011

  Net interest
   income        $    6,115  $    6,254  $    6,212  $    6,264  $    6,335
  Provision for
   loan losses          250         300         300         300         300
  Non-interest
   income               855         790         672         831         636
  Non-interest
   expense            4,513       4,527       4,612       4,597       4,259
  Income before
   income taxes       2,207       2,217       1,972       2,198       2,412
  Provision for
   income taxes         718         738         620         737         915
                 ----------  ----------  ----------  ----------  ----------
  Net income          1,489       1,479       1,352       1,461       1,497
  Preferred stock
   dividends and
   accretion            (84)        (84)       (114)       (169)       (168)
                 ----------  ----------  ----------  ----------  ----------
  Net income
   available to
   common
   shareholders  $    1,405  $    1,395  $    1,238  $    1,292  $    1,329
                 ==========  ==========  ==========  ==========  ==========

  Earnings per
   common share -
   basic               0.18        0.18        0.16        0.17        0.17
  Earnings per
   common share -
   diluted             0.18        0.18        0.16        0.17        0.17
  Dividends
   declared per
   common share           -           -           -           -           -
  Return on
   average common
   equity              8.87%       9.02%       8.36%       8.93%       9.34%
  Return on
   average assets      0.91%       0.97%       0.92%       0.98%       1.00%
  Net interest
   margin (1)          4.15%       4.57%       4.73%       4.67%       4.70%
  Efficiency
   ratio (1)          63.23%      63.11%      65.28%      63.74%      60.06%

Capital - Period
 End
  Book value per
   share         $     7.99  $     7.85  $     7.63  $     7.37  $     7.37

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets              1.05%       1.05%       1.20%       1.12%       1.22%
  Loan loss
   reserve/ gross
   loans               2.04%       2.05%       2.05%       1.98%       2.17%

Period End
 Balance Sheet
($ in thousands)
  Total assets   $  660,480  $  627,817  $  596,417  $  593,513  $  612,172
  Gross loans       390,986     388,714     390,515     392,584     396,202
  Nonperforming
   assets             6,923       6,611       7,185       6,656       7,477
  Allowance for
   loan losses        7,975       7,953       8,008       7,792       8,609
  Deposits          586,993     553,333     526,407     518,727     536,204
  Common equity      63,219      62,075      60,185      58,092      56,902
  Total capital
   (2)               69,969      68,825      66,935      71,592      70,402

Non-Financial
 Data
  Full-time
   equivalent
   staff                130         123         125         126         128
  Number of
   banking
   offices               14          14          14          14          14

Common Shares
 outstanding
  Period end      7,907,780   7,909,280   7,890,905   7,883,780   7,718,469
  Period average
   - basic        7,762,261   7,750,727   7,728,024   7,722,609   7,705,164
  Period average
   - diluted      7,793,523   7,778,146   7,750,952   7,743,941   7,737,248

Market Ratios
  Stock Price    $     7.45  $     7.49  $     6.96  $     7.39  $     6.75
  Price/Earnings      10.38       10.49       10.84       11.01        9.87
  Price/Book           0.93        0.95        0.91        1.00        0.92

(1) Ratio computed on a fully tax equivalent basis using a marginal federal
 tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury
 under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.


                                                           Year Ended
                                                          December 31,
                                                        2012        2011
                                                     ----------  ----------

  Net interest income                                $   24,845  $   25,180
  Provision for loan losses                               1,150       1,500
  Non-interest income                                     3,148       2,751
  Non-interest expense                                   18,249      17,394
  Income before income taxes                              8,594       9,037
  Provision for income taxes                              2,813       3,176
                                                     ----------  ----------
  Net income                                              5,781       5,861
  Preferred stock dividends and accretion                  (452)     (1,161)
                                                     ----------  ----------
  Net income available to common shareholders        $    5,329  $    4,700
                                                     ==========  ==========

  Earnings per common share - basic                        0.69        0.61
  Earnings per common share - diluted                      0.69        0.61
  Dividends declared per common share                         -           -
  Return on average common equity                          8.80%       8.67%
  Return on average assets                                 0.95%       1.02%
  Net interest margin (1)                                  4.52%       4.83%
  Efficiency ratio (1)                                    63.83%      61.28%

Capital - Period End
  Book value per share                               $     7.99  $     7.37

Credit Quality - Period End
  Nonperforming assets/ total assets                       1.05%       1.22%
  Loan loss reserve/ gross loans                           2.04%       2.17%

Period End Balance Sheet
($ in thousands)
  Total assets                                       $  660,480  $  612,172
  Gross loans                                           390,986     396,202
  Nonperforming assets                                    6,923       7,477
  Allowance for loan losses                               7,975       8,609
  Deposits                                              586,993     536,204
  Common equity                                          63,219      56,902
  Total capital (2)                                      69,969      70,402

Non-Financial Data
  Full-time equivalent staff                                130         128
  Number of banking offices                                  14          14

Common Shares outstanding
  Period end                                          7,907,780   7,718,469
  Period average - basic                              7,740,990   7,708,853
  Period average - diluted                            7,766,745   7,738,999

Market Ratios
  Stock Price                                        $     7.45  $     6.75
  Price/Earnings                                          10.85       11.07
  Price/Book                                               0.93        0.92

(1) Ratio computed on a fully tax equivalent basis using a marginal federal
 tax rate of 34%.
(2) Includes $6.75 million in preferred stock issued to the U.S. Treasury
 under the SBLF Program.
Prior to 6/30/2012, the amount of preferred stock issued was $13.5 million.





Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com : www.ovcb.com/



Press Information:




Contact Person:


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