OAKDALE, Calif., June 18, 2025 (GLOBE NEWSWIRE) -- Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank (the “Bank”) announced the retirement of Thomas A. Haidlen and Danny L. Titus from the Bank and Company’s Boards of Directors, effective June 17, 2025. Concurrently, Erich A. Haidlen accepted his appointment to the Board of Directors of the Company and the Bank. T. Haidlen and Titus joined the board of Oak Valley Community Bank in 1991 and 1992 respecti ...

Financial Performance - The Company recognized net income of $5,297,000 for the three-month period ended March 31, 2025, a decrease of 7.5% compared to $5,727,000 for the same period in 2024[97]. - Non-interest income for the same period was $1,613,000, reflecting a year-over-year increase of $94,000 or 6.2%[113]. - The Company recorded provisions for income taxes of $1,499,000 for the three months ended March 31, 2025, a decrease of $5,000 compared to the same period in 2024, with an effective tax rate of 22.1%[124]. Asset and Loan Management - Total assets increased by $23,761,000 or 1.3% from December 31, 2024, while total net loans decreased by $15,774,000 or 1.4%[97]. - Non-accrual loans totaled $0 as of March 31, 2025, and December 31, 2024, indicating strong credit quality within the loan portfolio[128]. - The allowance for credit losses decreased by $12,000 to $11,448,000 as of March 31, 2025, compared to $11,460,000 as of December 31, 2024[131]. Deposits and Funding - Deposits increased by $23,677,000 or 1.4% for the same period, contributing to a cash and cash equivalent balance increase of $40,548,000 or 24.0%[97]. - Average deposits increased by $60,713,000 to $1,693,130,000 for the three-month period ended March 31, 2025, compared to the same period in 2024[141]. - The Company had no brokered deposits as of March 31, 2025, and December 31, 2024, emphasizing a strategy focused on core deposit growth[143]. Interest Income and Expenses - Net interest income increased by $566,000 to $17,807,000 for the three-month period ended March 31, 2025, primarily due to an increase in earning asset balances[100]. - Non-interest expense increased by $1,095,000, primarily due to staffing increases and overhead related to servicing growing business portfolios[97]. - Total non-interest expenses increased by $1,095,000 or 9.5%, totaling $12,624,000 for the three months ended March 31, 2025[119]. Capital and Liquidity - The Company maintains a common equity Tier 1 capital ratio of at least 4.5% as per U.S. Basel III rules, ensuring compliance with capital standards[146]. - As of March 31, 2025, the Company's total capital to risk-weighted assets ratio was 15.6%, exceeding the minimum requirement of 10.5%[148]. - The liquidity level, measured as the percentage of liquid assets to total assets, was 24.1% as of March 31, 2025, up from 22.7% as of December 31, 2024[152]. Future Outlook and Commitments - The Company anticipates sufficient earnings at the Bank level to provide dividends to meet funding requirements for the next twelve months[151]. - The Company committed an additional $5,000,000 to low-income housing tax credit funds during the three months ended March 31, 2025, bringing total unfunded commitments to $9,490,000[140]. - The Company plans to comply with the CFPB Open Banking Rule, which requires data providers to make consumer financial data available upon request[156].

OAKDALE, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Oak Valley Community Bank, a wholly-owned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY) is pleased to announce that it was named by Best Companies Group as one of 2025 Best Places to Work: Central Valley. At the same time, OVCB was recognized by Opportunity Stanislaus for “Growing the Economy” by increasing their workforce by 10% or more throughout 2024. "Being named one of the Best Places to Work in the Central Valley for the second time is a true honor a ...

Core Insights - Oak Valley Community Bank has promoted Jaime Gonzalez to Assistant Vice President, Branch Manager of the Modesto–Dale Road Branch, reflecting the bank's commitment to leadership development and customer service excellence [1][2]. Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank Division, providing a comprehensive range of loan and deposit services to individuals and small businesses [4]. - The bank currently has 18 branches located in various cities including Oakdale, Turlock, Stockton, and Modesto, with a 19th branch set to open in Lodi later this year [4]. Leadership and Employee Recognition - Jaime Gonzalez has over 20 years of banking experience and has been with Oak Valley Community Bank for more than eight years, previously serving as Customer Service Manager at the Modesto–McHenry Branch [2]. - In 2019, Gonzalez was recognized as Customer Service Manager of the Year, highlighting his exemplary performance and contributions to the bank [3]. Community Engagement - Gonzalez is an active member of St. Jude Catholic Church in Ceres and resides in Modesto with his family, indicating the bank's focus on community involvement and employee engagement [3].

Financial Performance - Consolidated net income for Q1 2025 was $5,297,000, or $0.64 per diluted share, down from $6,008,000, or $0.73 EPS in the prior quarter [3]. - Net interest income for Q1 2025 was $17,807,000, slightly down from $17,846,000 in the previous quarter, while the net interest margin increased to 4.09% from 4.00% [4]. - Non-interest income rose to $1,613,000 in Q1 2025, compared to $1,430,000 in the prior quarter, driven by positive changes in the fair value of equity securities [5]. - Non-interest expenses increased to $12,624,000 in Q1 2025, up from $11,548,000 in the previous quarter, primarily due to staffing and operating costs [6]. Asset and Loan Management - Total assets reached $1.92 billion as of March 31, 2025, an increase of $23.8 million from December 31, 2024 [7]. - Gross loans were $1.09 billion at March 31, 2025, a decrease of $15.6 million from the previous quarter, but an increase of $51.4 million year-over-year [7]. - The allowance for credit losses as a percentage of gross loans was 1.05% as of March 31, 2025, stable compared to 1.04% in the previous quarter [8]. Deposits and Branch Expansion - Total deposits increased to $1.71 billion, up $17.9 million from December 31, 2024, and $101.2 million year-over-year [7]. - The company plans to open its 19th branch location in Lodi later this year, expanding its presence in the market [9]. Stock Performance - The stock price was $24.96 at the end of Q1 2025, with a price-to-earnings ratio of 9.56 [13].

Core Viewpoint - Oak Valley Bancorp reported a decrease in net income for Q1 2025 primarily due to increased operating expenses, despite a stable net interest margin and growth in total assets and deposits [1][2][6]. Financial Performance - Consolidated net income for Q1 2025 was $5,297,000, or $0.64 per diluted share, down from $6,008,000, or $0.73 EPS in the previous quarter and $5,727,000, or $0.69 EPS a year ago [1]. - Net interest income for Q1 2025 was $17,807,000, slightly down from $17,846,000 in the prior quarter but up from $17,241,000 a year ago [3]. - Non-interest income increased to $1,613,000 in Q1 2025 from $1,430,000 in the previous quarter and $1,519,000 a year ago, driven by positive changes in the fair value of equity securities [4]. - Non-interest expenses rose to $12,624,000 in Q1 2025 from $11,548,000 in the previous quarter and $11,529,000 a year ago, mainly due to staffing and operational costs [5]. Balance Sheet Highlights - Total assets reached $1.92 billion as of March 31, 2025, an increase of $23.8 million from December 31, 2024, and $118.6 million from March 31, 2024 [6]. - Gross loans were $1.09 billion, a decrease of $15.6 million from December 31, 2024, but an increase of $51.4 million from March 31, 2024 [6]. - Total deposits increased to $1.71 billion, up by $17.9 million from December 31, 2024, and $101.2 million from March 31, 2024 [6]. - The liquidity position remained strong with cash and cash equivalents of $209.3 million, an increase of $40.5 million from December 31, 2024 [6]. Credit Quality - Non-performing assets remained at zero as of March 31, 2025, consistent with previous periods [7]. - The allowance for credit losses as a percentage of gross loans was 1.05%, stable compared to 1.04% at the end of the previous quarter and 1.05% a year ago [7]. Operational Overview - Oak Valley Bancorp operates through 18 branches and plans to open a 19th branch in Lodi later this year [8].

Core Insights - Oak Valley Community Bank has announced the promotions of Greg Mulder to Vice President, Commercial Banking Officer, and John Westberg to Assistant Vice President, Commercial Banking Officer [1][4] Group 1: Promotions and Roles - Greg Mulder has been with the bank for nearly 11 years, progressing from Credit Analyst to AVP Commercial Credit Officer, and will now oversee a significant C&I loan portfolio [2] - John Westberg joined the bank seven years ago and will focus on portfolio management, client growth, and strategic projects in his new role [3] Group 2: Background and Contributions - Mulder is recognized for managing complex C&I relationships and reflects the bank's core values through customer service [2] - Westberg has played key roles in initiatives like the Paycheck Protection Program and contributes across departments [3] Group 3: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, offering various loan and deposit products through 18 branches [4] - The company plans to open its 19th branch location in Lodi later this year [4]

Financial Position and Capital - As of December 31, 2024, the Bank's primary capital plus allowance for credit losses totaled $214.9 million[30]. - The Bank's authorized legal lending limits were $32.2 million for unsecured loans and an additional $21.5 million for specific secured loans[30]. - The company owned $5,531,000 in Federal Home Loan Bank stock as of December 31, 2024[54]. - The borrowing limit with the Federal Home Loan Bank was approximately $364 million as of December 31, 2024[55]. - The company has a net deferred tax asset of $15.5 million as of December 31, 2024, which may or may not be fully realized[207]. - The Company is subject to a common equity Tier 1 minimum capital requirement of 4.5% of risk-weighted assets and a minimum Tier 1 risk-based capital requirement of 6.0% of risk-weighted assets under the Basel III framework[202]. - The Company may face limitations on capital distributions if it does not maintain a capital conservation buffer exceeding 2.5% of common equity tier 1 capital[202]. - Increases in deposit insurance premiums and special FDIC assessments will negatively impact the Company's earnings[206]. - The Company could incur a goodwill impairment charge if estimates of the fair value of reporting units change[208]. Loan Portfolio and Real Estate Exposure - Approximately 99% of the Bank's loans and 90% of its deposits are generated from the Central Valley, which has a total population of over 5 million[24]. - As of December 31, 2024, consumer and commercial real estate loans constituted 90% of the Bank's loan portfolio, with 97% being commercial real estate loans[32]. - The aggregate loan-to-value of the entire commercial real estate portfolio was 45.3% as of December 31, 2024[41]. - Non-owner occupied commercial real estate comprised 66.5% of the Bank's total commercial real estate commitments as of December 31, 2024[41]. - The highest concentration by product type in the commercial real estate segment was retail, comprising 27.1% of total CRE loan commitments as of December 31, 2024[41]. - Approximately 90% of the company's loan portfolio held for investment consisted of real estate-related loans as of December 31, 2024[69]. - The company’s commercial real estate loans involve higher principal amounts and repayment is dependent on factors outside its control[160]. - The company is exposed to risks associated with environmental liabilities for properties acquired through foreclosure, which could adversely affect financial condition and results of operations[164]. Regulatory Environment and Compliance - The Dodd-Frank Act, enacted in 2010, has significantly impacted the financial services industry by mandating higher capital and liquidity requirements, including a minimum common equity Tier 1 ratio of 4.5% of risk-weighted assets[85]. - Federal regulators have adopted regulations to increase capital requirements on banks and bank holding companies pursuant to Basel III, which includes a minimum Tier 1 risk-based capital requirement of 6.0% of risk-weighted assets[86]. - The Volcker Rule restricts certain activities by banking entities, including prohibiting short-term proprietary trading and imposing limits on investments in hedge funds or private equity funds[91]. - Capital adequacy guidelines require banks to maintain a minimum leverage ratio of at least 4% to 5%, depending on their rating and growth expectations[97]. - The Community Reinvestment Act requires banks to meet the credit needs of their communities, with penalties for non-compliance potentially including denials of applications for branches or mergers[83]. - Federal banking regulators may impose higher capital requirements for institutions experiencing significant growth, necessitating capital positions above minimum supervisory levels[98]. - The assessment base for federal deposit insurance was changed to consolidated assets less tangible capital, generally increasing insurance fees for larger banks[88]. - The regulatory capital rules implementing Basel III include an additional capital conservation buffer of 2.5% of risk-weighted assets to avoid limitations on dividend payments and share repurchases[96]. - Enforcement actions may include cease and desist orders and directives to increase capital for banks found to be operating in an unsafe or unsound manner[101]. - The Company is subject to extensive anti-money laundering regulations, including the Bank Secrecy Act and the USA Patriot Act, to prevent illicit financial activities[111]. - The beneficial ownership information reporting requirement under the Corporate Transparency Act is set to take effect on January 1, 2025, but is currently under litigation[112]. - The Company is subject to the disclosure and regulatory requirements of the 1933 Act and the 1934 Act, administered by the SEC, and must comply with Nasdaq listing standards[131]. - Non-compliance with fair lending laws could result in material penalties and negatively impact the Company's reputation and financial condition[204]. Business Strategy and Growth - The Bank intends to continue its growth strategy by opening additional branches and loan production offices as demand dictates[22]. - The company intends to pursue an organic growth strategy and may engage in selected acquisitions of financial institutions and branch acquisitions[140]. - The company’s growth initiatives may require recruiting experienced personnel, and failure to do so could limit the execution of its growth strategy[142]. - The company does not currently have plans to develop new lines of business requiring significant capital investment[61]. Economic and Market Conditions - The company’s financial condition and results of operations are dependent on the economy, particularly in the Central Valley and Eastern Sierras, where adverse economic conditions could reduce growth rates[144]. - Recent bank failures have caused significant market volatility and decreased confidence in the U.S. banking system, potentially leading to deposit outflows[151]. - Economic downturns could lead to increased loan delinquencies and a decline in net interest income, adversely impacting financial results[145]. - Rising interest rates may reduce net interest income and the value of assets if interest on liabilities increases more quickly than interest on assets[165]. - The company may experience increased regulatory scrutiny and changes in capital requirements as a response to recent bank failures and market conditions[153]. - Competition in the banking and financial services industry is intense, which may limit growth and profitability[170]. Operational Risks and Challenges - The company faces significant operational risks, including fraud, incorrect transactions, and technology errors[172]. - The company relies heavily on third-party vendors for essential services, and any failure in these relationships could negatively impact operations[180]. - The company is exposed to cybersecurity risks, and breaches could lead to significant reputational damage and financial losses[185]. - The company must comply with various federal and state privacy laws, which may increase operational costs and complexity[190]. - The enterprise risk management framework may not effectively mitigate risks, potentially leading to unexpected losses[173]. - The company maintains an allowance for credit losses, which is periodically reviewed and may prove insufficient to absorb actual incurred losses in the loan portfolio[155]. - The company’s underwriting practices may not fully protect against losses in the loan portfolio, leading to potential higher-than-expected losses[158]. - New lines of business and strategic initiatives may subject the company to additional risks and uncertainties[167]. Environmental and Climate Risks - Climate change poses physical and transition risks that could disrupt operations and increase expenses, impacting the company's financial condition[184]. - The company may face significant environmental liabilities related to properties it forecloses on, which could materially affect its financial condition[134]. - The SEC adopted new rules requiring public companies to disclose substantial information about the material impacts of climate-related risks on their business, which are currently being challenged in court[135]. Ratings and Market Perception - The company’s ratings are subject to adjustments based on financial strength and industry conditions, with recent downgrades affecting several large U.S. banks[152]. - The Company received an "Outstanding" CRA Assessment Rating from the FRB in January 2023, reflecting strong performance in meeting community credit needs[109]. - The Company anticipates sufficient earnings to provide dividends to the Company to meet cash requirements for 2025[104].

Core Insights - Oak Valley Community Bank has appointed Jean Turpen as Vice President, Commercial Credit Officer, enhancing its leadership in commercial lending [1][2] - Turpen brings 21 years of banking experience, specializing in commercial credit and lending, which will support the bank's growth objectives [2][3] - The bank operates 18 branches and plans to open a 19th location in Lodi later this year, indicating ongoing expansion efforts [5] Company Overview - Oak Valley Bancorp is the parent company of Oak Valley Community Bank, which offers a variety of loan and deposit products to individuals and small businesses [5] - The bank's current branch locations include cities such as Oakdale, Turlock, Stockton, and Sacramento, among others [5] Leadership and Expertise - Jean Turpen's responsibilities will include client relationship management, portfolio management, and credit analysis, focusing on sustainable growth [2] - Her educational background includes a bachelor's degree in mathematics from the University of Alaska Anchorage, and she is a member of the Construction Financial Management Association [4]

Core Points - Oak Valley Community Bank has received regulatory approval to establish its 19th full-service branch in downtown Lodi, scheduled to open in mid-2025 [1] - The Lodi Branch will be the bank's sixth location in San Joaquin County, offering a full range of personal and commercial banking services, including a traditional walk-up ATM and night deposit service [2] - The expansion into Lodi aims to enhance accessibility for clients and introduce the bank's services to a new audience, particularly in the northern part of San Joaquin County [3] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, providing various loan and deposit products to individuals and small businesses [4] - The bank currently operates 18 branches across multiple locations, including Oakdale, Turlock, Stockton, and several others in the Eastern Sierra division [4]