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]

Financial Performance - Consolidated net income for Q4 2024 was $6,008,000, or $0.73 per diluted share, down 18.0% from $7,324,000, or $0.89 EPS in Q3 2024[2] - Year-to-date consolidated net income for 2024 totaled $24,948,000, representing a decrease of 19.1% compared to $30,848,000 in 2023[2] - Net income for 2024 was $24,948,000, a decrease of 19.4% from $30,848,000 in 2023[17] - Earnings per share (basic) decreased to $3.04 in 2024 from $3.76 in 2023, representing a decline of 19.1%[17] Income and Expenses - Net interest income for Q4 2024 was $17,846,000, an increase from $17,655,000 in Q3 2024, but a decrease from $17,914,000 in Q4 2023[4] - Net interest income fell to $70,034,000 in 2024, down 7.4% from $75,802,000 in 2023[17] - Non-interest income for Q4 2024 was $1,430,000, down from $1,846,000 in Q3 2024 and $1,755,000 in Q4 2023[6] - Non-interest expense increased to $46,017,000, up 11.5% from $41,157,000 in the previous year[17] Assets and Liabilities - Total assets were $1.90 billion as of December 31, 2024, an increase of $58.2 million from December 31, 2023[8] - Total assets grew to $1,900,604,000, an increase of 3.1% from $1,842,422,000 in 2023[17] - Gross loans increased to $1.11 billion as of December 31, 2024, up $90.0 million from the previous year[8] - Total deposits reached $1.70 billion as of December 31, 2024, an increase of $45.2 million from December 31, 2023[8] - Deposits increased to $1,695,690,000, up 2.7% from $1,650,534,000 in the prior year[17] Ratios and Returns - Average cost of funds increased to 0.78% in 2024, compared to 0.28% in 2023, impacting net interest margin which was 4.00% for Q4 2024[4][5] - Return on average equity decreased to 14.39% in 2024 from 21.87% in 2023[17] - The efficiency ratio worsened to 60.08% in 2024 compared to 49.93% in 2023[17] Stock and Dividends - The Board declared a cash dividend of $0.30 per share, amounting to approximately $2,507,000, to be paid on February 14, 2025[10] - The stock price at the end of the period was $29.25, down from $29.95 in the previous year[17] Asset Quality - Non-performing assets remained at zero for all of 2024, with the allowance for credit losses at 1.04% of gross loans as of December 31, 2024[9] - Book value per share rose to $21.95, an increase of 9.6% from $20.03 in 2023[17]

Core Insights - Oak Valley Bancorp reported a consolidated net income of $6,008,000 for Q4 2024, a decrease from $7,324,000 in Q3 2024 and an increase from $5,865,000 in Q4 2023, with a full-year net income of $24,948,000, down 19.1% from $30,848,000 in 2023 [1][17] - The decrease in earnings was attributed to increased deposit interest expenses and general operating expenses, despite a positive variance from the reversal of credit loss provisions [1][3] Financial Performance - Net interest income for Q4 2024 was $17,846,000, slightly up from $17,655,000 in Q3 2024 but down from $17,914,000 in Q4 2023, with a full-year net interest income of $70,034,000, down from $75,802,000 in 2023 [3][17] - The average cost of funds increased to 0.78% in 2024 from 0.28% in 2023, impacting net interest margin, which was 4.00% for Q4 2024 compared to 4.15% in Q4 2023 [3][4] - Non-interest income for Q4 2024 was $1,430,000, down from $1,846,000 in Q3 2024 and $1,755,000 in Q4 2023, with full-year non-interest income totaling $6,555,000, slightly down from $6,631,000 in 2023 [5][17] Expense and Asset Management - Non-interest expenses for Q4 2024 totaled $11,548,000, up from $11,324,000 in Q3 2024 and $10,760,000 in Q4 2023, driven by increases in audit, data processing, and consulting expenses [6][17] - Total assets were $1.90 billion as of December 31, 2024, flat compared to September 30, 2024, but up $58.2 million from December 31, 2023, with gross loans increasing to $1.11 billion [7][17] Credit Quality - Non-performing assets remained at zero for 2024, with the allowance for credit losses as a percentage of gross loans decreasing to 1.04% as of December 31, 2024, from 1.07% a year prior [8][18] - The company has maintained stable credit quality despite industry concerns regarding commercial real estate [8] Shareholder Returns - The Board of Directors declared a cash dividend of $0.30 per share, amounting to approximately $2,507,000, marking the first dividend payment in 2025 [9]

Group 1 - Oak Valley Community Bank was recognized as the "2024 SBA 504 Most Active Bank" by Success Capital, highlighting its significant lending activity in several counties [1] - Rob Gildea, Vice President and Commercial Banking Officer, received the title of "2024 SBA 504 Most Active Loan Officer," reflecting his expertise and commitment to supporting small businesses [1] - The 504 Program, which Oak Valley participates in, provides loans for small business development, offering low down payment, fixed-rate financing for purchasing or building business facilities [1][4] Group 2 - The award presentation by Success Capital took place in November, with representation from various Commercial Banking Officers and executives from Oak Valley Community Bank [2] - Oak Valley Community Bank operates 18 branches across California, providing a range of loan and deposit products to individuals and small businesses [3] - Success Capital has been assisting small businesses in California since 1986, facilitating access to favorable fixed-rate financing through various loan programs, including the SBA 504 [4]

Core Insights - Oak Valley Community Bank has appointed David Skitarelic as Vice President, Commercial Banking Officer, enhancing its leadership team in the Greater Sacramento region [1][2] Group 1: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, providing a range of loan and deposit products to individuals and small businesses [3] - The bank has 18 branches located in various cities including Oakdale, Turlock, Stockton, and Sacramento, among others [3] Group 2: Leadership Appointment - David Skitarelic brings 30 years of commercial banking experience in the Sacramento area to his new role, focusing on commercial lending and business development [2] - His local connections and community involvement are expected to facilitate a smooth transition and effective performance in his new position [2]

Group 1 - Oak Valley Community Bank has received approval for two AHEAD grants totaling $125,000 to support Turlock Gospel Mission and Habitat for Humanity of Tuolumne County [1][2] - The $100,000 grant will aid Turlock Gospel Mission in job creation and equipment purchase for their workforce development program, while the $25,000 grant will enhance Habitat for Humanity's communication infrastructure [2][3] - The AHEAD grants are part of a $7.3 million disbursement awarded to 84 economic development projects across Arizona, California, and Nevada, aimed at addressing community needs and providing opportunities for underserved populations [3] Group 2 - Turlock Gospel Mission, founded in 2007, provides essential services including meals, emergency shelter, and job training programs [4] - Habitat for Humanity of Tuolumne County, established in 1999, focuses on eliminating substandard housing and supporting families in becoming self-reliant homeowners [5] - Oak Valley Community Bank operates 18 branches and offers a variety of financial products to individuals and small businesses [6]

Financial Performance - Consolidated net income for Q3 2024 was $7,324,000, or $0.89 per diluted share, compared to $5,889,000, or $0.71 EPS in the prior quarter[1] - Net income for September 2024 was $18,940,000, a decrease of 24.5% from $24,983,000 in September 2023[11] - Earnings per share (EPS) - basic and diluted both stood at $2.30, down from $3.05 and $3.04 respectively in the previous year[11] - Return on average equity decreased to 14.90% from 23.71% year-over-year[11] Asset and Loan Growth - Total assets reached $1.90 billion as of September 30, 2024, an increase of $59.9 million from June 30, 2024[6] - Gross loans amounted to $1.08 billion, reflecting a $103.9 million increase year-over-year[6] - Total assets increased to $1,900,455,000 from $1,835,402,000, reflecting a growth of 3.5%[11] - Gross loans rose to $1,075,138,000, up from $971,243,000, marking an increase of 10.7%[11] Deposits and Liquidity - Total deposits were $1.69 billion, up $45.6 million from June 30, 2024[6] - Deposits grew to $1,690,301,000 compared to $1,666,548,000, indicating a rise of 1.4%[11] - The company maintains a strong liquidity position with $213.9 million in cash and cash equivalents as of September 30, 2024[6] Income and Expenses - Non-interest income for Q3 2024 was $1,846,000, an increase from $1,760,000 in the prior quarter, mainly due to unrealized gains on equity securities[5] - Non-interest income was $5,125,000, up from $4,876,000, showing an increase of 5.1%[11] - Non-interest expense decreased to $11,324,000 from $11,616,000 in the prior quarter, primarily due to lower charitable contributions and data processing expenses[5] Credit Quality - The allowance for credit losses as a percentage of gross loans increased to 1.07% at September 30, 2024, from 1.04% at June 30, 2024[7] Efficiency and Stock Performance - The efficiency ratio worsened to 58.55% from 47.48%, indicating increased operational costs[11] - Stock price at the end of the period was $26.57, up from $25.08, reflecting a growth of 5.9%[11] Interest Income and Margin - Net interest income increased to $17,655,000 in Q3 2024 from $17,292,000 in the prior quarter, attributed to earning asset growth and a 3 basis point increase in average earning asset yield[3] - The net interest margin for Q3 2024 was 4.04%, down from 4.11% in the prior quarter[3] Book Value - Book value per share increased to $22.18 from $16.29, representing a growth of 36.5%[11]

OAKDALE, Calif., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Oak Valley Community Bank (OVCB), a whollyowned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY), announced that the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) has awarded Modesto Gospel Mission (MGM) with a 2024 AHP grant for two-million dollars. This significant funding will propel MGM's efforts to provide emergency shelter and other vital services to the neediest residents of Modesto. MGM worked collaboratively with OVCB to apply for ...