Oak Valley Bancorp Reports 4th Quarter Results
OAKDALE, CA, Jan 22, 2013 (Menafn - MARKETWIRE via COMTEX) --Oak Valley Bancorp OVLY, the bank holding company for OakValley Community Bank and Eastern Sierra Community Bank, recentlyreported financial results for the fiscal year ended December 31,2012. Net income for 2012 totaled 5.8 million compared to 5.9million for 2011. After adjustment for preferred stock dividends andaccretion, net income available to common shareholders was 5.3million, or 0.69 per diluted share, compared to net income of 4.7million, or 0.61 per diluted common share, in 2011. This representsa 13.4% increase in net income available to common shareholders andmarks record earnings for Oak Valley Bancorp.
For the three months ended December 31, 2012, Oak Valley Bancorpreported net income of 1.49 million. After adjustment for preferredstock dividends and accretion, net income available to commonshareholders was 1.41 million, or 0.18 per diluted share,representing a 5.7% increase in net income available to commonshareholders when compared to the three months ended December 31,2011.
Total assets grew to 660.5 million as of December 31, 2012, whichwas an increase of 48.3 million, or 7.9% over the prior year.Deposits increased to 587.0 million, which was an increase of 50.8million, or 9.5% over the prior year. Gross loans at year end totaled391.0 million, reflecting a decrease of 5.2 million, or 1.3%, fromDecember 31, 2011.
Non-performing assets totaled 6.9 million, or 1.05% of total assetsat December 31, 2012, compared to 7.5 million, or 1.22% of totalassets, at December 31, 2011. Charge-offs corresponding to updatedvaluations account for the decline in non-performing assets.
The allowance for loan losses totaled 2.04% of gross loans atDecember 31, 2012 compared to 2.17% at December 31, 2011. Thedecrease in reserve ratio corresponds with the charge-offs onnon-performing assets. The annual provision for loan losses of 1.2million in 2012 was down from 1.5 million in 2011.
"The fundamentals of the Company remain strong, including the creditquality of the portfolio and continued deposit growth," commentedChris Courtney, President. "We are cautiously optimistic about loangrowth opportunities in the coming year, as we begin to see signs ofincreased 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. Thisdecrease comes from new loans boarding and maturing loans repricingin a low interest rate environment, causing downward pressure onyields. The Company's net interest margin was 4.52% for the yearended December 31, 2012, compared to 4.83% for the year endedDecember 31, 2011. Interest margin has also been affected by excessdeposits being deployed into lower yielding securities and cash basedinvestments.
Non-interest income was 3.1 million for the year ended December 31,2012, compared to 2.8 million the prior year. The increase primarilyrelates to growth in deposit related service charges and fee incomegenerated from increased residential mortgage lending.
Non-interest expense was 18.2 million for the year ended December31, 2012, compared to 17.4 million for the prior year, an increaseof 855,000, or 4.9%. This increase consists of costs associated withoperating two additional branches for a full year, as well as costsrelated to servicing deposit growth across all branches.
"We are pleased to report another record year for earnings," statedRon Martin, CEO. "Our ability to perform with the best of our peersis a tribute to the relationship banking model and the character andcapacity of our customers."
The Company currently operates through 14 branches in Oakdale,Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, threebranches in Modesto, and three branches in their Eastern SierraDivision, which includes Bridgeport, Mammoth Lakes, and Bishop.
For more information, please call 1-866-844-7500 or visitwww.ovcb.com.
This press release includes forward-looking statements about thecorporation for which the corporation claims the protection of safeharbor provisions contained in the Private Securities LitigationReform Act of 1995.
Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning thecorporation's possible or assumed future financial condition, and itsresults of operations and business. Forward-looking statements aresubject to risks and uncertainties. A number of important factorscould cause actual results to differ materially from those in theforward-looking statements. Those factors include fluctuations ininterest rates, government policies and regulations (includingmonetary and fiscal policies), legislation, economic conditions,including increased energy costs in California, credit quality ofborrowers, operational factors and competition in the geographic andbusiness areas in which the company conducts its operations. Allforward-looking statements included in this press release are basedon information available at the time of the release, and the Companyassumes no obligation to update any forward-looking statement.
Oak Valley Bancorp
Financial Highlights (unaudited)
( in thousands,
except per4th3rd2nd1st4th
share)QuarterQuarterQuarterQuarterQuarter
Selected
Quarterly
Operating Data:20122012201220122011
Net interest
income6,1156,2546,2126,2646,335
Provision for
loan losses250300300300300
Non-interest
income855790672831636
Non-interest
expense4,5134,5274,6124,5974,259
Income before
income taxes2,2072,2171,9722,1982,412
Provision for
income taxes718738620737915
--------------------------------------------------
Net income1,4891,4791,3521,4611,497
Preferred stock
dividends and
accretion(84)(84)(114)(169)(168)
--------------------------------------------------
Net income
available to
common
shareholders1,4051,3951,2381,2921,329
==================================================
Earnings per
common share -
basic0.180.180.160.170.17
Earnings per
common share -
diluted0.180.180.160.170.17
Dividends
declared per
common share-----
Return on
average common
equity8.87%9.02%8.36%8.93%9.34%
Return on
average assets0.91%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
share7.997.857.637.377.37
Credit Quality -
Period End
Nonperforming
assets/ total
assets1.05%1.05%1.20%1.12%1.22%
Loan loss
reserve/ gross
loans2.04%2.05%2.05%1.98%2.17%
Period End
Balance Sheet
( in thousands)
Total assets660,480627,817596,417593,513612,172
Gross loans390,986388,714390,515392,584396,202
Nonperforming
assets6,9236,6117,1856,6567,477
Allowance for
loan losses7,9757,9538,0087,7928,609
Deposits586,993553,333526,407518,727536,204
Common equity63,21962,07560,18558,09256,902
Total capital
(2)69,96968,82566,93571,59270,402
Non-Financial
Data
Full-time
equivalent
staff130123125126128
Number of
banking
offices1414141414
Common Shares
outstanding
Period end7,907,7807,909,2807,890,9057,883,7807,718,469
Period average
- basic7,762,2617,750,7277,728,0247,722,6097,705,164
Period average
- diluted7,793,5237,778,1467,750,9527,743,9417,737,248
Market Ratios
Stock Price7.457.496.967.396.75
Price/Earnings10.3810.4910.8411.019.87
Price/Book0.930.950.911.000.92
(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,
20122011
--------------------
Net interest income24,84525,180
Provision for loan losses1,1501,500
Non-interest income3,1482,751
Non-interest expense18,24917,394
Income before income taxes8,5949,037
Provision for income taxes2,8133,176
--------------------
Net income5,7815,861
Preferred stock dividends and accretion(452)(1,161)
--------------------
Net income available to common shareholders5,3294,700
====================
Earnings per common share - basic0.690.61
Earnings per common share - diluted0.690.61
Dividends declared per common share--
Return on average common equity8.80%8.67%
Return on average assets0.95%1.02%
Net interest margin (1)4.52%4.83%
Efficiency ratio (1)63.83%61.28%
Capital - Period End
Book value per share7.997.37
Credit Quality - Period End
Nonperforming assets/ total assets1.05%1.22%
Loan loss reserve/ gross loans2.04%2.17%
Period End Balance Sheet
( in thousands)
Total assets660,480612,172
Gross loans390,986396,202
Nonperforming assets6,9237,477
Allowance for loan losses7,9758,609
Deposits586,993536,204
Common equity63,21956,902
Total capital (2)69,96970,402
Non-Financial Data
Full-time equivalent staff130128
Number of banking offices1414
Common Shares outstanding
Period end7,907,7807,718,469
Period average - basic7,740,9907,708,853
Period average - diluted7,766,7457,738,999
Market Ratios
Stock Price7.456.75
Price/Earnings10.8511.07
Price/Book0.930.92
(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
http://www.ovcb.com/
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