/EINPresswire.com/ -- OAKDALE, CA -- (Marketwired) -- 10/21/15 -- Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended September 30, 2015, consolidated net income available to common shareholders was $1,382,000, or $0.17 per diluted common share. This compared to consolidated net income of $1,510,000, or $0.19 per diluted common share, for the prior quarter and $1,535,000, or $0.19 per diluted common share for the same period a year ago. The decrease in net income is attributable to one-time merger related expenses of $133,000, net of taxes, associated with the pending Mother Lode Bank acquisition scheduled to be completed in December 2015.

Year-to-date results for the nine months ended September 30, 2015, include consolidated net income available to common shareholders of $4,418,000, representing a 19.4% decrease from the $5,480,000 recorded during the same period last year. Year-to-date results in 2014 included a $1.88 million reversal of loan loss provisions related to the recovery of a charged off loan which bolstered net income from normal operations.

Total assets were $793.7 million at September 30, 2015, an increase of $29.7 million over June 30, 2015 and $86.9 million over September 30, 2014. Gross loans were $477.3 million as of September 30, 2015, an increase of $13.9 million over June 30, 2015, and an increase of $41.6 million over September 30, 2014. The Company's total deposits were $712.6 million as of September 30, 2015, an increase of $28.6 million over June 30, 2015, and an increase of $82.4 million over September 30, 2014.

Net interest income was $6,354,000 for the three months ended September 30, 2015, a slight decrease of $35,000 from the $6,389,000 for the same period last year. The favorable impact of increased loan volume has been offset by the year-to-date decrease in the yield on the loan portfolio. The Company's net interest margin for the three months ended September 30, 2015 was 3.61%, compared to 3.70% for the prior quarter and 4.13% for the same period last year.

"Solid loan and core deposit growth continue to be fundamental in providing ongoing strength to the Company, yet earnings growth remains muted in this extended period of low rates," stated Chris Courtney, President and CEO of the Company and the Bank. "As we work through the stages of the pending acquisition of Mother Lode Bank, we anticipate related expenses to temporarily moderate earnings, but expect the deal to become accretive to earnings per share beginning in 2016," Courtney concluded.

Non-interest expense for the three months ended September 30, 2015 totaled $5,299,000, compared to $5,193,000 during the prior quarter, and $5,112,000 for the same period last year. The increase compared to the prior period is mainly attributed to one-time merger related expenses of $155,000 associated with the previously noted Mother Lode Bank acquisition. Additionally, the increase compared to the same period last year corresponds to growth in full time equivalent staff from 145 to 150. Deposit servicing costs associated with deposit growth and transaction activity have also increased.

Non-interest income for the three months ended September 30, 2015 totaled $965,000, compared to $1,156,000 during the prior quarter, and $940,000 for the same period last year. The decrease from the prior period is primarily the result of gains associated with called securities in the investment portfolio which were recorded in the second quarter.

Non-performing assets as of September 30, 2015 were $5,123,000, or 0.65% of total assets, compared to $5,197,000, or 0.68% of total assets, as of June 30, 2015, and $4,333,000, or 0.61%, at September 30, 2014. The ratio of loan loss reserves to gross loans decreased to 1.55% as of September 30, 2015, compared to 1.59%, at June 30, 2015, and 1.73% at September 30, 2014. Improvement in economic conditions and noted trends of credit quality, has allowed the Company to maintain its reserve level in spite of recent loan growth. Accordingly, the Company did not record a provision for loan losses in the third quarter.

The Company currently operates through 15 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop. The Company's 16th branch location is expected to open in Sonora, in mid-December.

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          3rd         2nd         1st         4th         3rd
 share)            Quarter     Quarter     Quarter     Quarter     Quarter
Selected
 Quarterly
 Operating Data:    2015        2015        2015        2014        2014

  Net interest
   income        $    6,354  $    6,200  $    6,201  $    6,621  $    6,389
  (Recovery of)
   provision for
   loan losses            -           -        (125)          -           -
  Non-interest
   income               965       1,156       1,027       1,086         940
  Non-interest
   expense            5,299       5,193       5,099       5,252       5,112
                 ----------- ----------- ----------- ----------- -----------
  Net income
   before income
   taxes              2,020       2,163       2,254       2,455       2,217
  Provision for
   income taxes         638         653         728         813         682
                 ----------- ----------- ----------- ----------- -----------
  Net income     $    1,382  $    1,510  $    1,526  $    1,642  $    1,535
                 =========== =========== =========== =========== ===========

  Earnings per
   common share
   - basic       $     0.17  $     0.19  $     0.19  $     0.21  $     0.19
  Earnings per
   common share
   - diluted     $     0.17  $     0.19  $     0.19  $     0.20  $     0.19
  Dividends paid
   per common
   share         $     0.11  $        -  $     0.10  $        -  $    0.065
  Return on
   average
   common equity       7.17%       7.94%       8.22%       8.80%       8.44%
  Return on
   average
   assets              0.70%       0.81%       0.82%       0.91%       0.88%
  Net interest
   margin (1)          3.61%       3.70%       3.74%       4.19%       4.13%
  Efficiency
   ratio (2)          67.14%      68.38%      68.75%      67.01%      66.76%

Capital - Period
 End
  Book value per
   common share  $     9.55  $     9.43  $     9.39  $     9.29  $     9.01

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets              0.65%       0.68%       0.70%       0.74%       0.61%
  Loan loss
   reserve/
   gross loans         1.55%       1.59%       1.63%       1.66%       1.73%

Period End
 Balance Sheet
($ in thousands)
  Total assets   $  793,723  $  764,008  $  753,552  $  749,665  $  706,821
  Gross loans       477,327     463,463     453,165     454,471     435,776
  Nonperforming
   assets             5,123       5,197       5,246       5,584       4,333
  Allowance for
   loan losses        7,389       7,390       7,409       7,534       7,541
  Deposits          712,577     683,937     672,991     669,581     630,178
  Common equity      77,147      76,165      75,816      75,041      72,793

Non-Financial
 Data
  Full-time
   equivalent
   staff                150         152         148         148         145
  Number of
   banking
   offices               15          15          15          15          14

Common Shares
 outstanding
  Period end      8,078,155   8,072,655   8,075,355   8,074,855   8,074,855
  Period average
   - basic        7,994,857   7,992,296   7,972,225   7,960,108   7,959,316
  Period average
   - diluted      8,040,577   8,036,691   8,024,756   8,015,511   8,011,125

Market Ratios
  Stock Price    $     9.46  $     9.86  $     9.86  $    10.16  $    10.03
  Price/Earnings      13.79       13.01       12.70       12.41       13.11
  Price/Book           0.99        1.05        1.05        1.09        1.11



                           NINE MONTHS ENDED
                             SEPTEMBER 30,
                          2015          2014
                      ------------  ------------
  Net interest income $     18,755  $     18,668
  (Recovery of)
   provision for loan
   losses                     (125)       (1,877)
  Non-interest income        3,148         2,677
  Non-interest
   expense                  15,591        14,982
                      ------------  ------------
  Net income before
   income taxes              6,437         8,240
  Provision for
   income taxes              2,019         2,760
                      ------------  ------------
  Net income          $      4,418  $      5,480
                      ============  ============

  Earnings per common
   share - basic      $       0.55  $       0.69
  Earnings per common
   share - diluted    $       0.55  $       0.69
  Dividends paid per
   common share       $       0.21  $       0.17
  Return on average
   common equity              7.77%        10.53%
  Return on average
   assets                     0.77%         1.07%
  Net interest margin
   (1)                        3.68%         4.08%
  Efficiency ratio
   (2)                       68.08%        67.52%

Capital - Period End
  Book value per
   common share       $       9.55  $       9.01

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets                     0.65%         0.61%
  Loan loss reserve/
   gross loans                1.55%         1.73%

Period End Balance
 Sheet
($ in thousands)
  Total assets        $    793,723  $    706,821
  Gross loans              477,327       435,776
  Nonperforming
   assets                    5,123         4,333
  Allowance for loan
   losses                    7,389         7,541
  Deposits                 712,577       630,178
  Common equity             77,147        72,793

Non-Financial Data
  Full-time
   equivalent staff            150           145
  Number of banking
   offices                      15            14

Common Shares
 outstanding
  Period end             8,078,155     8,074,855
  Period average -
   basic                 7,986,542     7,930,620
  Period average -
   diluted               8,034,066     7,985,054

Market Ratios
  Stock Price         $       9.46  $      10.03
  Price/Earnings             12.79         10.86
  Price/Book                  0.99          1.11

(1) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%.
(2) Ratio computed on a fully tax equivalent basis using a marginal federal
tax rate of 34%, and a marginal federal/state combined tax rate of 41.15%
for applicable revenue.

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

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