OAKDALE, CA--(Marketwire - February 11, 2010) - 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, 2009. Net income for 2009 totaled $2.0 million compared to
$2.2 million for 2008. After adjustment for preferred stock dividends and
accretion this comprised net income available to common shareholders of
$1.2 million, or $0.15 per diluted share, compared to net income of $2.1
million, or $0.27 per diluted common share, in 2008.
For the three months ended December 31, 2009, the Bank reported net income
of $735,000. After adjustment for preferred stock dividends and accretion
this represents net income available to common shareholders of $525,000, or
$0.07 per diluted share, compared to net income of $219,000, or $0.03 per
diluted common share, for the three months ended December 31, 2008.
Total assets grew to $524.7 million for the year ended December 31, 2009, a
3.3% increase over the prior year. Gross loans at year end totaled $425.6
million, a decrease of $2.6 million, or 0.6%, during 2009. The Bank's
total deposits increased to $429.2 million, which was an increase of $51.0
million, or 13.5% over December 31, 2008.
"Despite lower earnings per share, revenues for the bank continue to be
strong which has enabled us to improve our already solid capital and
liquidity positions. Strong revenue has also allowed us to record
increased loan loss provisions and continue to address the lending needs of
the communities we serve. While our loan totals were relatively flat, in
2009 the Bank made over $100 million in commercial, small business, and
consumer loans," stated Ron Martin, CEO. "At the same time, our branches
have shown the ability to increase deposits and decrease our cost of funds
throughout the year. It's impossible to have positive results in these
areas, especially in the current environment, unless you are taking great
care of existing customers, attracting new ones, and providing both groups
with a level of service in which they see superior value," Martin
concluded.
The Bank's loan loss provision totaled $5.9 million in 2009, compared to
$2.2 million in loan loss provision for the year ended December 31, 2008.
The increases in loan loss provisions reflect 2009 charge-offs and
increased allocation for economic uncertainty. Net charge-offs totaling
$4.4 million for 2009 primarily relate to construction loans secured by
real property, where the value of the collateral has declined. The
allowance for loan losses as a percentage of loans totaled 1.65% at
December 31, 2009, compared to 1.30% at December 31, 2008.
Non-performing assets totaled $16.6 million, or 3.16% of total assets at
December 31, 2009, compared to $7.5 million, or 1.47% of total assets, at
December 31, 2008. Of the $16.6 million, non-performing loans account for
$14.4 million, all secured by real estate, while the remaining $2.2 million
is comprised of foreclosed properties. Write-downs on OREO properties
totaled $2.4 million during 2009.
"As crucial a part it played in our success in 2009, management and
monitoring of underperforming assets will remain a primary focus in 2010.
We have made sizeable provisions for loan losses in each quarter of this
year and management continues to ensure that all OREO property is written
down appropriately in light of current market values. Our diligence in
these areas and our resolve to adhere to conservative credit practices will
only strengthen in the coming year," stated Chris Courtney, President.
Net interest income of $23.6 million for the year ended December 31, 2009,
increased by $3.1 million, or 15.2%, over the prior year. The Bank's net
interest margin was 4.99% for the year ended December 31, 2009, compared to
4.72% for the year ended December 31, 2008. The increase is a result of
the Bank's ability to reduce its cost of funds, while increasing deposits,
at a more rapid rate than the yield on earning assets is declining.
Non-interest expense of $18.2 million for the year ended December 31, 2009,
increased $353,000, or 2.0%, over the prior year. The primary increases in
non-interest expense were write-downs and expenses associated with
foreclosed properties, which increased by $1.1 million over the prior year;
and, increased regulatory assessments of $652 thousand over the prior year.
These increases were partially offset by decreases in overhead, the
largest being a decrease in salaries and benefits of $912 thousand,
compared to prior year.
"Increased net interest income, corresponding to margin expansion,
solidified our profitability in 2009. An increase in our core deposits,
associated with our growing customer base, was a strong contributor to a
reduction in cost of funds. Diligent expense control has also been
exercised to partially offset increased regulatory and OREO related
expenses," stated Rick McCarty, CFO.
Oak Valley Bancorp operates Oak Valley and Eastern Sierra Community Bank,
through which it offers a variety of loan and deposit products to
individuals and small businesses. The Company currently operates through 12
conveniently located branches: Oakdale, Sonora, Turlock, Stockton,
Patterson, Ripon, Escalon, two branches in Modesto, and three branches in
their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes and
Bishop.
For more information call 1-866-844-7500 or visit us online at
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 Community Bank
Statement of Condition (unaudited)
($ in thousands, 4th 3rd 2nd 1st 4th
except per share) Quarter Quarter Quarter Quarter Quarter
Selected Quarterly
Operating Data: 2009 2009 2009 2009 2008
Net interest
income $ 6,079 $ 6,020 $ 5,887 $ 5,656 $ 5,333
Provision for
loan losses 900 925 2,137 1,900 1,001
Non-interest
income 618 778 647 598 602
Non-interest
expense 4,749 4,745 4,787 3,938 4,712
Income before
income taxes 1,048 1,128 (389) 416 222
Provision for
income taxes 313 249 (344) (14) (61)
--------- --------- --------- --------- ---------
Net income 735 879 (45) 430 283
Preferred
stock
dividends and
accretion (210) (210) (210) (210) (64)
--------- --------- --------- --------- ---------
Net income
available to
common
shareholders 525 669 (255) 220 219
========= ========= ========= ========= =========
Earnings per
common share
- basic 0.07 0.09 (0.03) 0.03 0.03
Earnings per
common share
- diluted 0.07 0.09 (0.03) 0.03 0.03
Dividends
declared per
common share
(1) - - - 0.025 0.025
Return on
average
common equity 4.41% 5.73% -2.23% 1.97% 1.95%
Return on
average
assets 0.56% 0.67% -0.03% 0.34% 0.23%
Net interest
margin (2) 5.10% 5.06% 4.96% 4.86% 4.72%
Efficiency
Ratio (2) 69.52% 68.77% 71.59% 61.97% 78.30%
Capital - Period End
Book value per
share $ 6.14 $ 6.06 $ 5.89 $ 5.91 $ 5.81
Credit Quality -
Period End
Nonperforming
assets/total
assets 3.16% 2.09% 1.94% 2.66% 1.47%
Loan loss
reserve/gross
loans (3) 1.65% 1.50% 1.34% 1.53% 1.30%
Period End Balance
Sheet
($ in thousands)
Total assets $ 524,722 $ 521,179 $ 525,606 $ 523,747 $ 508,203
Gross Loans 425,627 425,374 424,390 430,416 428,177
Nonperforming
assets 16,568 10,904 10,177 13,906 7,467
Allowance for
credit losses
(3) 7,020 6,396 5,701 6,603 5,569
Deposits 429,210 431,533 419,941 410,089 378,248
Common Equity 47,192 46,563 45,130 45,286 44,486
Total Capital
(4) 60,692 60,063 58,630 58,786 57,986
Non-Financial Data
Full-time
equivalent
staff 117 120 111 117 117
Number of
banking
offices,
domestic
and foreign 12 12 12 12 12
Common Shares
outstanding
Period end 7,681,877 7,681,877 7,661,627 7,661,627 7,661,627
Period average
- basic 7,681,877 7,668,891 7,661,627 7,661,627 7,660,526
Period average
- diluted 7,709,076 7,694,058 7,686,800 7,703,892 7,723,711
Market Ratios
Stock Price $ 4.41 $ 4.30 $ 4.25 $ 3.75 $ 6.00
Price/Earnings 16.27 12.43 N/A 32.22 52.82
Price/Book 0.72 0.71 0.72 0.63 1.03
TWELVE MONTHS ENDED
--------------------------
DECEMBER 31, DECEMBER 31,
($ in thousands, except per share) 2009 2008
------------ ------------
Net interest income $ 23,642 $ 20,515
Provision for loan losses 5,862 2,188
Non-interest income 2,641 2,522
Non-interest expense 18,218 17,865
Income before income taxes 2,203 2,984
Provision for income taxes 203 822
------------ ------------
Net income 2,000 2,162
Preferred stock dividends and accretion (842) (64)
------------ ------------
Net income available to common
shareholders 1,158 2,098
============ ============
Earnings per common share - basic 0.15 0.27
Earnings per common share - diluted 0.15 0.27
Dividends declared per common share (1) 0.025 0.075
Return on average common equity 2.51% 4.77%
Return on average assets 0.38% 0.46%
Net interest margin (2) 4.99% 4.72%
Efficiency Ratio (2) 68.04% 76.55%
Capital - Period End
Book value per share $ 6.14 $ 5.81
Credit Quality - Period End
Nonperforming assets/total assets 3.16% 1.47%
Loan loss reserve/gross loans (3) 1.65% 1.30%
Period End Balance Sheet
($ in thousands)
Total assets $ 524,722 $ 508,203
Gross Loans 425,627 428,177
Nonperforming assets 16,568 7,467
Allowance for credit losses (3) 7,020 5,569
Deposits 429,210 378,248
Common Equity 47,192 44,486
Total Capital (4) 60,692 57,986
Non-Financial Data
Full-time equivalent staff 117 117
Number of banking offices, domestic
and foreign 12 12
Common Shares outstanding
Period end 7,681,877 7,661,627
Period average - basic 7,668,562 7,642,775
Period average - diluted 7,696,822 7,738,604
Market Ratios
Stock Price $ 4.41 $ 6.00
Price/Earnings 29.20 21.86
Price/Book 0.72 1.03
(1) Cash dividends of $191,542, $382,943 and $191,542 paid in the Q1 2009,
Q4 2008 and Q3 2008, respectively.
(2) Ratio computed on a fully tax equivalent basis using a marginal
federal tax rate of 34%.
(3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
(4) Includes $13.5 million in preferred stock issued to the U.S. Treasury
under the TARP Capital Purchase Program.
Contact Information: Contact:
Ron Martin/Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com