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]

Financial Performance - The Company reported net income of $7,324,000 and $18,940,000 for the three and nine-month periods ended September 30, 2024, representing decreases of $30,000 and $6,043,000 compared to the same periods in 2023[117]. - The Company experienced a decrease in net income before provisions for income taxes by $8,063,000 for the nine-month period ended September 30, 2024, compared to the same period in 2023[125]. - Non-interest income for Q3 2024 was $1,846,000, an increase of $280,000 or 17.9% compared to Q3 2023[144]. - The Company recorded provisions for income taxes of $5,524,000 for the nine months ended September 30, 2024, reflecting a decrease of $2,020,000 compared to the same period in 2023[159]. Interest Income and Expenses - Net interest income decreased by $1,283,000 and $5,700,000 for the three and nine-month periods ended September 30, 2024, primarily due to increased interest expense on deposit accounts[119]. - For the three months ended September 30, 2024, net interest income was $17,655,000, a decrease of $1,283,000 compared to the same period in 2023[127]. - For the nine months ended September 30, 2024, net interest income was $52,188,000, a decrease of $5,700,000 compared to the same period in 2023[127]. - The net interest margin for the three months ended September 30, 2024, was 4.04%, down from 4.34% in the same period of 2023[128]. - The average cost of funds increased to 0.83% for the three months ended September 30, 2024, compared to 0.33% in the same period of 2023[127]. - The net interest spread for the three months ended September 30, 2024, was 3.54%, down from 4.11% in the same period of 2023[131]. Non-Interest Expenses - Non-interest expense increased by $746,000 and $4,072,000 for the three and nine-month periods ended September 30, 2024, primarily due to staffing increases and overhead related to servicing growing business portfolios[121]. - Total non-interest expense for Q3 2024 was $11,324,000, an increase of $746,000 or 7.1% compared to Q3 2023[153]. - Salaries and employee benefits increased by $672,000 or 10.3% in Q3 2024 compared to Q3 2023, indicating rising labor costs[153]. - Non-interest expenses increased by $4,072,000 or 13.4% for the nine months ended September 30, 2024, compared to the same period in 2023[154]. - Salaries and employee benefits rose by $2,420,000 or 12.6% for the nine months ended September 30, 2024, primarily due to additional staffing expenses[154]. Asset and Deposit Growth - Total assets increased by $58,033,000 or 3.1%, total net loans increased by $57,953,000 or 5.8%, and deposits increased by $39,767,000 or 2.4% from December 31, 2023, to September 30, 2024[122]. - Total deposits as of September 30, 2024, were $1,690,301,000, an increase of $39,767,000 or 2.4% from $1,650,534,000 as of December 31, 2023[175]. - Average deposits decreased by $84,279,000 to $1,640,761,000 for the nine-month period ended September 30, 2024, compared to the same period in 2023[175]. - The increase in deposits is attributed to an advertising campaign launched in January 2024, resulting in an increase in DDA checking accounts[177]. Credit Quality - A credit loss provision reversal of $1,620,000 was recorded during the three and nine months ended September 30, 2024, compared to provisions of $300,000 and a reversal of $160,000 in the comparable periods of 2023[118]. - The company recorded a reversal of provisions for credit losses of $1,620,000 in Q3 2024, compared to provisions of $300,000 in Q3 2023, indicating improved credit quality[142]. - Non-performing assets remained at $0 as of September 30, 2024, indicating strong credit quality within the loan portfolio[163]. - The allowance for credit losses increased to $11,479,000 as of September 30, 2024, due to net loan recoveries of $2,242,000 during the first nine months of 2024[165]. Capital Ratios - Total capital to risk-weighted assets ratio was 15.3% as of September 30, 2024, exceeding the regulatory minimum of 10.5%[185]. - Tier I capital to risk-weighted assets ratio was 14.4% as of September 30, 2024, above the regulatory minimum of 8.5%[185]. - Common equity Tier 1 capital to risk-weighted assets ratio was 14.4% as of September 30, 2024, exceeding the regulatory minimum of 7.0%[185]. Regulatory Compliance - The CFPB finalized a rule to implement Section 1033 of the Dodd-Frank Act, requiring data providers to make consumer financial data available upon request, impacting compliance by April 1, 2029 for certain institutions[193]. - The Company continues to evaluate the potential impacts of the CFPB rule on its operations and compliance requirements[193].

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]

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock OVLY The Nasdaq Stock Market, LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to __________ Commissio ...

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 ...

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 ...