By 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.
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
Source: Oak Valley Bancorp
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