Financial Performance - Consolidated net income for Q3 2025 was $6,693,000, or $0.81 per diluted share, compared to $5,588,000, or $0.67 EPS in the prior quarter, and $7,324,000, or $0.89 EPS a year ago [3][4]. - Net income for the nine months ended September 30, 2025, was $17,578,000, down from $18,940,000 in 2024, reflecting a decrease of 7.2% [18]. - Earnings per share (basic) decreased to $2.13 in 2025 from $2.30 in 2024, a decline of 7.4% [18]. - Return on average equity decreased to 12.71% in 2025 from 14.90% in 2024 [18]. - The return on average common equity improved to 14.30% in Q3 2025 from 12.21% in the prior quarter [15]. Income Sources - Net interest income increased to $19,197,000 in Q3 2025 from $18,154,000 in the prior quarter and $17,655,000 a year ago, attributed to average earning asset growth and rising loan yields [5]. - Non-interest income for Q3 2025 was $1,973,000, up from $1,703,000 in the prior quarter and $1,846,000 a year ago, driven by a one-time gain from a life insurance policy redemption [6]. - Net interest income for the nine months ended September 30, 2025, was $55,158,000, an increase from $52,188,000 in 2024, representing a growth of 3.7% [18]. Assets and Liabilities - Total assets reached $2.00 billion as of September 30, 2025, an increase of $74.5 million from June 30, 2025, and $95.0 million from September 30, 2024 [8]. - Gross loans were $1.11 billion at September 30, 2025, reflecting an increase of $3.0 million from the prior quarter and $37.7 million from a year ago [8]. - Total deposits increased to $1.77 billion as of September 30, 2025, up by $63.6 million from the prior quarter and $84.6 million from the same period last year [8]. - Total assets increased to $1,995,416,000 in 2025 from $1,900,455,000 in 2024, marking a growth of 5.0% [18]. - Deposits rose to $1,774,882,000 in 2025, up from $1,690,301,000 in 2024, indicating an increase of 5.0% [18]. Operational Efficiency - The efficiency ratio increased to 61.00% in 2025 from 58.24% in 2024, suggesting a decline in operational efficiency [18]. - The allowance for credit losses as a percentage of gross loans was 1.03% at September 30, 2025, unchanged from the prior quarter and down from 1.07% a year ago [9]. - Non-performing assets remained at zero as of September 30, 2025, consistent with all of 2025 and 2024 [9]. Growth and Expansion - The company opened its 19th full-service branch in Lodi on October 2, 2025, as part of its growth strategy [7]. - The number of full-time equivalent staff increased to 237 in 2025 from 222 in 2024, indicating a growth of 6.8% [18]. Stock Performance - The stock price at the end of the period was $28.17, up from $26.57 in 2024, reflecting an increase of 6.0% [18]. - Book value per share increased to $23.63 in 2025 from $22.18 in 2024, representing a growth of 6.5% [18].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Oak Valley Community Bank has appointed Shannon Morfoot as Vice President and Branch Manager of the East Sonora branch, focusing on branch operations, client relationships, and community involvement [1][4] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, providing various loan and deposit products to individuals and small businesses through 19 branches [4] Leadership Background - Shannon Morfoot has nearly 30 years of experience in the banking industry, previously serving as Vice President and Financial Center Manager at a large national bank, where she achieved significant business goals and received multiple awards [2] Community Engagement - Morfoot has lived in Sonora for over 35 years and is actively involved in local community initiatives, including the Sonora High Sober Grad and the Sonora High Sports Booster Club [3] Management Perspective - Julie DeHart, Executive Vice President of the Retail Banking Group, expressed confidence in Morfoot's ability to positively impact clients and the East Sonora Branch due to her experience and community ties [4]

Core Points - Oak Valley Community Bank has appointed Hardip Sheena as Vice President and Branch Manager of the Modesto-McHenry branch [1][2] - Sheena has over 12 years of banking experience and will focus on branch operations, business development, and client relationship management [2][3] - The bank operates 19 branches across various locations, providing a range of loan and deposit products to individuals and small businesses [4] Group 1 - Hardip Sheena's role includes overseeing all aspects of branch operations and ensuring exceptional client experiences [2][3] - Sheena's background in branch leadership and commitment to customer service is expected to enhance the McHenry Branch's performance [3] - Oak Valley Bancorp operates through its community bank divisions, emphasizing personalized banking with a community focus [4]

Core Points - Oak Valley Community Bank has opened its nineteenth full-service branch in Downtown Lodi, enhancing access to personal and commercial banking services for the Central Valley community [1][2] - The new branch aims to introduce new customers to Oak Valley's relationship-focused banking style while serving existing clients [2] - The branch will be managed by a team with strong local ties and extensive banking experience, ensuring personalized service [2][4] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, providing a variety of loan and deposit products to individuals and small businesses [4] - The bank currently operates 19 branches across various locations, including Oakdale, Turlock, Stockton, and Lodi [4] Management and Team - The Lodi branch will be led by Kevin Borges, who has over 12 years of banking experience, supported by a team dedicated to delivering exceptional customer service [2][3] - Commercial and agricultural lending will be managed by Matt Brown and Emma Brandstad, who collectively have two decades of experience in providing tailored financial solutions [3]

Core Viewpoint - Zacks Investment Research has initiated coverage of Oak Valley Bancorp (OVLY) with a Neutral recommendation, highlighting the bank's strong financial position but limited near-term growth potential [1] Company Overview - Oak Valley Bancorp operates as the holding company for Oak Valley Community Bank, serving California's Central Valley and Eastern Sierra regions, benefiting from exceptional asset quality with zero non-performing assets and a conservative credit loss reserve of 1.03% [2] - The bank reported $1.7 billion in deposits as of Q2 2025, with capital ratios of 15.7% Total Capital and 14.8% Tier 1 Capital, indicating strong liquidity and capital strength [3] Market Position and Strategy - The bank is well-positioned in the U.S. commercial banking environment, focusing on well-capitalized regional banks with strong real estate lending platforms, and supports minority-owned small businesses through SBA programs [4] - Gross loans increased by $45.5 million year over year, primarily in stable asset classes like commercial real estate and multifamily housing, reflecting a selective and disciplined loan growth strategy [5] Challenges - Operating expenses rose by 9.2% year over year, driven by salary and benefits costs, leading to efficiency pressures [6] - A deteriorating deposit mix has increased funding costs and squeezed net interest margins, as more customers shift towards higher-cost time deposits [6] - The bank operates in a highly consolidated and technology-driven industry, where its asset size of $1.9 billion limits competitiveness, and earnings per share declined by 5.1% year over year [7] Valuation and Market Sentiment - OVLY's share price has shown modest movement over the past year, with a reasonable valuation compared to peers, reflecting both the strength of its balance sheet and challenges from rising costs and competitive pressures [8] - The bank's solid fundamentals, including strong capital and pristine asset quality, are balanced against headwinds such as rising costs and limited scale, positioning it for stability [9]

Group 1 - Oak Valley Bancorp is the holding company for Oak Valley Community Bank, which began operations in the early 1990s [1] - The bank currently operates 18 branches, with a 19th branch expected to open in Lodi, located in the San Francisco hinterland [1] Group 2 - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [2] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [2]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Oak Valley Bancorp's unaudited condensed consolidated financial statements, covering key financial positions and performance for specified periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (dollars in thousands) | (dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $198,860 | $168,751 | | Securities - available for sale | $503,347 | $526,496 | | Loans, net | $1,096,549 | $1,093,514 | | Total Assets | $1,920,909 | $1,900,604 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Deposits | $1,711,241 | $1,695,690 | | Total liabilities | $1,735,104 | $1,717,168 | | Total shareholders' equity | $185,805 | $183,436 | | Total Liabilities and Shareholders' Equity | $1,920,909 | $1,900,604 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $21,421 | $20,245 | $42,537 | $40,237 | | Total interest expense | $3,267 | $2,953 | $6,576 | $5,704 | | Net interest income | $18,154 | $17,292 | $35,961 | $34,533 | | Total non-interest income | $1,703 | $1,760 | $3,316 | $3,279 | | Total non-interest expense | $12,688 | $11,616 | $25,312 | $23,145 | | Net Income | $5,588 | $5,889 | $10,885 | $11,616 | | Net income per share | $0.68 | $0.72 | $1.32 | $1.41 | | Net income per diluted share | $0.67 | $0.71 | $1.31 | $1.41 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (dollars in thousands) | (dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $5,588 | $5,889 | $10,885 | $11,616 | | Total other comprehensive loss | $(3,537) | $(1,210) | $(6,204) | $(4,382) | | Comprehensive income | $2,051 | $4,679 | $4,681 | $7,234 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Condensed Consolidated Statements of Changes in Shareholders' Equity (dollars in thousands) | (dollars in thousands) | Balances, June 30, 2025 | Balances, June 30, 2024 | Balances, January 1, 2025 | Balances, January 1, 2024 | | :--------------------- | :---------------------- | :---------------------- | :------------------------ | :------------------------ | | Common Stock (Amount) | $25,435 | $25,435 | $25,435 | $25,435 | | Additional Paid-in Capital | $6,394 | $5,851 | $6,199 | $5,512 | | Retained Earnings | $183,880 | $164,051 | $175,502 | $154,301 | | Accumulated Other Comprehensive Income (Loss) | $(29,904) | $(23,538) | $(23,700) | $(19,156) | | Total Shareholders' Equity | $185,805 | $171,799 | $183,436 | $166,092 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (dollars in thousands) | (dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $13,552 | $12,451 | | Net cash provided by (used in) investing activities | $3,753 | $(40,960) | | Net cash provided by (used in) in financing activities | $12,804 | $(7,759) | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $30,109 | $(36,268) | | CASH AND CASH EQUIVALENTS, end of period | $198,860 | $180,300 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures and explanations for the condensed consolidated financial statements, covering basis of presentation, accounting, securities, loans, financial instruments, and earnings per share [Note 1 – Basis of Presentation](index=10&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) This note clarifies Oak Valley Bancorp's structure, its primary revenue source, and significant accounting estimates - Oak Valley Bancorp is the parent holding company for Oak Valley Community Bank, operating branches across California, including the Eastern Sierra Community Bank division[17](index=17&type=chunk)[18](index=18&type=chunk) - The company's primary source of revenue is providing loans to predominantly middle-market businesses[18](index=18&type=chunk) - Significant accounting estimates include the allowance for credit losses and fair value measurements, which are subject to change based on new events and operating environment shifts[19](index=19&type=chunk) [Note 2 – Recent Accounting Pronouncements](index=10&type=section&id=Note%202%20%E2%80%93%20Recent%20Accounting%20Pronouncements) This note discusses the adoption and anticipated impact of recent FASB Accounting Standards Updates (ASUs) - ASU 2023-02 (Investments in Tax Credit Structures) became effective January 1, 2024, allowing proportional amortization for various tax equity investments; it did not have a material impact[20](index=20&type=chunk) - ASU 2023-07 (Segment Reporting) became effective January 1, 2024, for annual periods and January 1, 2025, for interim periods; it did not have a material impact as the Company operates as a single segment[21](index=21&type=chunk) - ASU 2023-09 (Income Tax Disclosures) is effective January 1, 2025, and is not anticipated to have a material impact[22](index=22&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective after December 15, 2026, for annual periods and December 15, 2027, for interim periods, and is not anticipated to have a material impact[23](index=23&type=chunk) [Note 3 – Securities](index=12&type=section&id=Note%203%20%E2%80%93%20Securities) This note details the company's equity and debt securities portfolio, highlighting unrealized losses on available-for-sale debt securities Equity Securities (dollars in thousands) | (dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Equity securities (fair value) | $3,292 | $3,169 | | Gains on equity securities (six months ended June 30) | $64 | $(81) | Available-for-sale securities (dollars in thousands) | (dollars in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Gross Unrealized Losses (June 30, 2025) | | :--------------------- | :----------------------------- | :------------------------- | :-------------------------------------- | | Available-for-sale securities (Total) | $545,803 | $503,347 | $(43,010) | - Unrealized losses on available-for-sale debt securities are primarily due to rising market yields, not credit deterioration, and no allowance for credit loss has been established. The Company does

Core Insights - Oak Valley Community Bank has appointed Twyla Brooks as Vice President, Regional Branch Manager, who will oversee the new Lodi Branch set to open this fall [1][2] - Brooks brings 20 years of banking experience, including 14 years as VP Retail Branch Manager at her previous employer, and will support the bank's retail branches [2][3] - The addition of Brooks is expected to enhance client relationships and contribute to the success of the bank's branches, according to Julie DeHart, Executive Vice President of the Retail Banking Group [3] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, offering various loan and deposit products to individuals and small businesses [4] - The bank currently has 18 branches across multiple locations, and the Lodi Branch will be its 19th location [4]

[Executive Summary & Key Announcements](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Announcements) This section outlines Oak Valley Bancorp's second quarter 2025 financial performance, including net income, diluted EPS, and a cash dividend declaration [Contact Information](index=1&type=section&id=Contact%20Information) This section provides the contact details for media inquiries regarding the press release - Contact: Chris Courtney/Rick McCarty, Phone: (209) 848-2265, Website: www.ovcb.com[2](index=2&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Oak Valley Bancorp reported consolidated net income of **$5.588 million**, or **$0.67** per diluted share (EPS), for the second quarter of 2025, showing an increase from the prior quarter but a decrease year-over-year, with year-to-date net income also slightly down Consolidated Net Income and Diluted EPS | Period | Net Income | Diluted EPS | | :----- | :--------- | :---------- | | Q2 2025 | $5.588 million | $0.67 | | Q1 2025 | $5.297 million | $0.64 | | Q2 2024 | $5.889 million | $0.71 | | YTD 2025 | $10.885 million | $1.31 | | YTD 2024 | $11.616 million | $1.41 | [Cash Dividend Announcement](index=2&type=section&id=Cash%20Dividend%20Announcement) The Board of Directors declared a cash dividend of **$0.30** per share of common stock, payable on August 8, 2025, marking the second dividend payment in 2025 Q2 2025 Cash Dividend Details | Detail | Value | | :----- | :---- | | Dividend per share | $0.30 | | Record Date | July 28, 2025 | | Payment Date | August 8, 2025 | | Total Amount | Approximately $2.515 million | | Payment Count in 2025 | Second dividend payment | [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) This section details the drivers behind changes in net income, net interest income, and non-interest income and expense, along with management's perspectives on performance [Drivers of Net Income Change](index=1&type=section&id=Drivers%20of%20Net%20Income%20Change) The sequential increase in Q2 2025 net income was driven by loan growth and rising loan portfolio yields, while year-over-year decreases were due to higher deposit interest and general operating expenses - QoQ Increase (Q2 2025 vs Q1 2025): Result of loan growth, a rise in the yield of the loan portfolio, and corresponding increase in interest income - YoY Decrease (Q2 2025 vs Q2 2024 & YTD 2025 vs YTD 2024): Related to an increase in deposit interest expense and general operating expenses[4](index=4&type=chunk) [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income for Q2 2025 reached **$18.154 million**, increasing over prior periods due to higher average earning asset balances and rising loan yields, with the cost of funds declining slightly to **0.77%** and net interest margin stable at **4.11%** Net Interest Income and Related Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Net Interest Income | $18.154 million | $17.807 million | $17.292 million | | Gross Loans Growth (QoQ) | $18.903 million | N/A | N/A | | Gross Loans Growth (YoY) | $39.820 million | N/A | N/A | | Cost of Funds | 0.77% | 0.79% | 0.73% | | Net Interest Margin | 4.11% | 4.09% | 4.11% | - Increase in net interest income over prior periods attributed to an increase in average earning asset balances and loan yields - Loan yields continue to trend upward - Cost of funds increased throughout 2024 but began to decline during the first six months of 2025[5](index=5&type=chunk) [Non-Interest Income and Expense](index=1&type=section&id=Non-Interest%20Income%20and%20Expense) Non-interest income for Q2 2025 was **$1.703 million**, increasing sequentially due to fair value adjustments and investment advisory services, but decreasing year-over-year, while non-interest expenses totaled **$12.688 million**, rising due to general operating costs for growing portfolios Non-Interest Income and Expense | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Non-interest income | $1.703 million | $1.613 million | $1.760 million | | Non-interest expense | $12.688 million | $12.624 million | $11.616 million | - Non-interest income: Increased QoQ due to fair value adjustments on a limited partner equity investment and increased production from investment advisory service. Decreased YoY due to the same investment advisory service fee income[7](index=7&type=chunk)[8](index=8&type=chunk) - Non-interest expense: Increased QoQ and YoY due to general operating costs related to servicing the growing loan and deposit portfolios[7](index=7&type=chunk)[8](index=8&type=chunk) [Management Perspectives on Performance](index=1&type=section&id=Management%20Perspectives%20on%20Performance) Rick McCarty, President and COO, highlighted solid earnings from a cautious business approach, emphasizing increased net interest income from loan growth and stable interest margins as proof of the company's ability to manage profitability through relationship-based deposit growth - Rick McCarty, President and COO, stated: - Solid earnings reflect a steady and cautious approach to business management - Increase in net interest income due to loan growth and stable interest margins demonstrates ability to navigate changing market conditions - Commitment to relationship-based deposit growth remains strong, enabling competitive lending strategy and profitability management[6](index=6&type=chunk) [Balance Sheet and Credit Quality](index=2&type=section&id=Balance%20Sheet%20and%20Credit%20Quality) This section provides an overview of the balance sheet, including total assets, gross loans, and deposits, along with an assessment of asset quality and credit loss allowance [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, total assets were **$1.92 billion**, with gross loans growing to **$1.11 billion** and total deposits at **$1.71 billion**, demonstrating strong liquidity with **$198.9 million** in cash and cash equivalents Key Balance Sheet Figures | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----- | :------------ | :------------- | :------------ | | Total Assets | $1.92 billion | $1.924 billion | $1.84 billion | | Gross Loans | $1.11 billion | $1.091 billion | $1.07 billion | | Total Deposits | $1.71 billion | $1.714 billion | $1.645 billion | | Cash & Cash Equivalents | $198.9 million | N/A | N/A | - Total assets decreased by **$3.5 million** QoQ but increased by **$80.4 million** YoY - Gross loans increased by **$18.9 million** QoQ and **$39.8 million** YoY - Total deposits decreased by **$2.4 million** QoQ but increased by **$66.5 million** YoY - Liquidity position remains strong[9](index=9&type=chunk) [Asset Quality and Credit Loss Allowance](index=2&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Allowance) Non-performing assets remained at **zero** as of June 30, 2025, with the allowance for credit losses (ACL) as a percentage of gross loans slightly decreasing to **1.03%** due to loan portfolio growth, and no provision for credit losses recorded Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----- | :------------ | :------------- | :------------ | | Non-performing assets (NPA) | $0 | $0 | $0 | | ACL as % of Gross Loans | 1.03% | 1.05% | 1.04% | - Non-performing assets remained at **zero** for all of 2025 and 2024 - The decrease in ACL as a percentage of gross loans from prior periods is mainly due to the growth in the loan portfolio - Management concluded that credit loss reserves relative to gross loans remain at acceptable levels, and credit quality remains stable - No provision for credit losses was recorded during the second quarter[10](index=10&type=chunk) [Management Perspectives on Balance Sheet](index=2&type=section&id=Management%20Perspectives%20on%20Balance%20Sheet) Chris Courtney, CEO, expressed satisfaction with the continued expansion of the loan portfolio and the overall strength of the balance sheet, attributing the company's growth to team dedication and client service despite a marginal quarterly decline in deposits - Chris Courtney, CEO, stated: - Pleased with the continued expansion of the loan portfolio and overall strength of the balance sheet - While deposits declined marginally from the previous quarter, the year-over-year deposit trajectory remains on an upward trend - Growth is a testament to the unwavering dedication and collaboration of team members and their commitment to outstanding client service[10](index=10&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Oak Valley Bancorp's business operations, branch network, and a disclaimer regarding forward-looking statements [Business Operations and Branch Network](index=2&type=section&id=Business%20Operations%20and%20Branch%20Network) Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, offering diverse loan and deposit products through **18 branches** across California, with plans to open its **19th branch** in Lodi - Operates Oak Valley Community Bank & Eastern Sierra Community Bank division - Offers a variety of loan and deposit products to individuals and small businesses - Currently operates through **18 branches** in various California locations (Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, Sonora (2), Modesto (3), Eastern Sierra division (Bridgeport, Mammoth Lakes, Bishop)) - Will open its **19th branch** location later this year in Lodi[12](index=12&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, subject to risks like interest rate fluctuations, government policies, economic conditions, credit quality, operational factors, and competition, with no obligation for the Company to update them - Includes forward-looking statements claiming protection of safe harbor provisions in the Private Securities Litigation Reform Act of 1995 - Statements are based on management's knowledge and belief and concern possible future financial condition, results of operations, and business - Subject to risks and uncertainties, including fluctuations in interest rates, government policies, economic conditions (e.g., increased energy costs in California), credit quality, operational factors, and competition - Company assumes no obligation to update any forward-looking statement[14](index=14&type=chunk)[15](index=15&type=chunk) [Unaudited Financial Highlights Tables](index=4&type=section&id=Unaudited%20Financial%20Highlights%20Tables) This section presents comprehensive unaudited financial data, including selected quarterly operating data and six-month financial data, offering a detailed view of the company's performance and financial health [Selected Quarterly Operating Data](index=4&type=section&id=Selected%20Quarterly%20Operating%20Data) This section provides a comprehensive table of selected unaudited quarterly operating data for Oak Valley Bancorp, covering Q2 2025, Q1 2025, Q4 2024, Q3 2024, and Q2 2024, including key financial metrics, ratios, capital, credit quality, and balance sheet figures Selected Quarterly Operating Data (Unaudited) | Selected Quarterly Operating Data: | 2nd Quarter | | | 1st Quarter | | 4th Quarter | | 3rd Quarter | | 2nd Quarter | | :------------------------------- | :---------- | :- | :- | :---------- | :- | :---------- | :- | :---------- | :- | :---------- | | ($ in thousands, except per share) | 2025 | | | 2025 | | 2024 | | 2024 | | 2024 | | Net interest income | $ 18,154 | | | $ 17,807 | | $ 17,846 | | $ 17,655 | | $ 17,292 | | (Reversal of) provision for credit losses | - | | | - | | - | | (1,620) | | - | | Non-interest income | 1,703 | | | 1,613 | | 1,430 | | 1,846 | | 1,760 | | Non-interest expense | 12,688 | | | 12,624 | | 11,548 | | 11,324 | | 11,616 | | Net income before income taxes | 7,169 | | | 6,796 | | 7,728 | | 9,797 | | 7,436 | | Provision for income taxes | 1,581 | | | 1,499 | | 1,720 | | 2,473 | | 1,547 | | Net income | $ 5,588 | | | $ 5,297 | | $ 6,008 | | $ 7,324 | | $ 5,889 | | Earnings per common share - basic | $ 0.68 | | | $ 0.64 | | $ 0.73 | | $ 0.89 | | $ 0.72 | | Earnings per common share - diluted | $ 0.67 | | | $ 0.64 | | $ 0.73 | | $ 0.89 | | $ 0.71 | | Dividends paid per common share | $ - | | | $ 0.300 | | $ - | | $ 0.225 | | $ - | | Return on average common equity | 12.21% | | | 11.58% | | 12.86% | | 16.54% | | 14.19% | | Return on average assets | 1.18% | | | 1.13% | | 1.25% | | 1.56% | | 1.30% | | Net interest margin (1) | 4.11% | | | 4.09% | | 4.00% | | 4.04% | | 4.11% | | Efficiency ratio (2) | 63.90% | | | 65.01% | | 59.91% | | 58.07% | | 60.97% | | **Capital - Period End** | | | | | | | | | | | | Book value per common share | $ 22.17 | | | $ 21.89 | | $ 21.95 | | $ 22.18 | | $ 20.55 | | **Credit Quality - Period End** | | | | | | | | | | | | Nonperforming assets / total assets | 0.00% | | | 0.00% | | 0.00% | | 0.00% | | 0.00% | | Credit loss reserve / gross loans | 1.03% | | | 1.05% | | 1.04% | | 1.07% | | 1.04% | | **Balance Sheet - Period End (in thousands)** | | | | | | | | | | | | Total assets | $ 1,920,909 | | | $ 1,924,365 | | $ 1,900,604 | | $ 1,900,455 | | $ 1,840,521 | | Gross loans | 1,109,856 | | | 1,090,953 | | 1,106,535 | | 1,075,138 | | 1,070,036 | | Nonperforming assets | - | | | - | | - | | - | | - | | Allowance for credit losses | 11,430 | | | 11,448 | | 11,460 | | 11,479 | | 11,121 | | Deposits | 1,711,241 | | | 1,713,592 | | 1,695,690 | | 1,690,301 | | 1,644,748 | | Common equity | 185,805 | | | 183,520 | | 183,436 | | 185,393 | | 171,799 | | **Balance Sheet - Average (in thousands)** | | | | | | | | | | | | Average assets | $ 1,903,741 | | | $ 1,903,585 | | $ 1,909,691 | | $ 1,863,983 | | $ 1,814,643 | | Average earning assets | 1,818,430 | | | 1,814,338 | | 1,819,649 | | 1,780,056 | | 1,737,270 | | Average equity | 183,612 | | | 185,592 | | 185,345 | | 175,693 | | 166,429 | | **Non-Financial Data** | | | | | | | | | | | | Full-time equivalent staff | 231 | | | 225 | | 223 | | 222 | | 223 | | Number of banking offices | 18 | | | 18 | | 18 | | 18 | | 18 | | **Common Shares outstanding** | | | | | | | | | | | | Period end | 8,382,062 | | | 8,382,062 | | 8,357,211 | | 8,358,711 | | 8,359,556 | | Period average - basic | 8,245,147 | | | 8,231,844 | | 8,224,504 | | 8,221,475 | | 8,219,699 | | Period average - diluted | 8,285,299 | | | 8,278,301 | | 8,278,427 | | 8,263,790 | | 8,248,295 | | **Market Ratios** | | | | | | | | | | | | Stock Price | $ 27.24 | | | $ 24.96 | | $ 29.25 | | $ 26.57 | | $ 24.97 | | Price/Earnings | 10.02 | | | 9.56 | | 10.09 | | 7.52 | | 8.69 | | Price/Book | 1.23 | | | 1.14 | | 1.33 | | 1.20 | | 1.22 | [Six Months Ended Financial Data](index=5&type=section&id=Six%20Months%20Ended%20Financial%20Data) This section presents detailed unaudited financial data for the six months ended June 30, 2025, compared to June 30, 2024, including profitability metrics, capital figures, credit quality indicators, period-end and average balance sheet data, non-financial data, and market ratios Six Months Ended Financial Data (Unaudited) | Profitability | | | SIX MONTHS ENDED | | | :------------------------------- | :- | :---------- | :--------------- | :- | | ($ in thousands, except per share) | | 2025 | | 2024 | | Net interest income | $ | 35,961 | $ | 34,533 | | (Reversal of) provision for credit losses | | - | | - | | Non-interest income | | 3,316 | | 3,279 | | Non-interest expense | | 25,312 | | 23,145 | | Net income before income taxes | | 13,965 | | 14,667 | | Provision for income taxes | | 3,080 | | 3,051 | | Net income | $ | 10,885 | $ | 11,616 | | Earnings per share - basic | $ | 1.32 | $ | 1.41 | | Earnings per share - diluted | $ | 1.31 | $ | 1.41 | | Dividends paid per share | $ | 0.30 | $ | 0.225 | | Return on average equity | | 11.89% | | 14.03% | | Return on average assets | | 1.15% | | 1.28% | | Net interest margin (1) | | 4.10% | | 4.10% | | Efficiency ratio (2) | | 64.44% | | 59.36% | | **Capital - Period End** | | | | | | Book value per share | $ | 22.17 | $ | 20.55 | | **Credit Quality - Period End** | | | | | | Nonperforming assets/ total assets | | 0.00% | | 0.00% | | Credit loss reserve/ gross loans | | 1.03% | | 1.04% | | **Balance Sheet - Period End (in thousands)** | | | | | | Total assets | $ | 1,920,909 | $ | 1,840,521 | | Gross loans | | 1,109,856 | | 1,070,036 | | Nonperforming assets | | - | | - | | Allowance for credit losses | | 11,430 | | 11,121 | | Deposits | | 1,711,241 | | 1,644,748 | | Stockholders' equity | | 185,805 | | 171,799 | | **Balance Sheet - Average (in thousands)** | | | | | | Average assets | $ | 1,903,663 | $ | 1,819,426 | | Average earning assets | | 1,816,395 | | 1,740,898 | | Average equity | | 184,596 | | 166,071 | | **Non-Financial Data** | | | | | | Full-time equivalent staff | | 231 | | 223 | | Number of banking offices | | 18 | | 18 | | **Common Shares outstanding** | | | | | | Period end | | 8,382,062 | | 8,359,556 | | Period average - basic | | 8,238,532 | | 8,214,658 | | Period average - diluted | | 8,281,819 | | 8,246,472 | | **Market Ratios** | | | | | | Stock Price | $ | 27.24 | $ | 24.97 | | Price/Earnings | | 10.22 | | 8.81 | | Price/Book | | 1.23 | | 1.22 |