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 |

Core Points - Oak Valley Community Bank has received approval for three Affordable Housing Program grants totaling $5.346 million to support housing initiatives in Stanislaus and Tuolumne counties [1][2][3] - The grants will fund projects that provide transitional housing and supportive services for vulnerable populations, including renovations and new constructions [2][3] - The Federal Home Loan Bank of San Francisco awarded a total of $49.7 million in AHP grants to 31 affordable housing projects in 2025, emphasizing the importance of community partnerships [4] Company Overview - Oak Valley Community Bank is a wholly-owned subsidiary of Oak Valley Bancorp, operating 18 branches across California and offering various loan and deposit products [8] - The bank is actively involved in community investment programs and advocates for affordable housing solutions [4][8] Industry Context - The Affordable Housing Program grants aim to address urgent housing needs for low- and moderate-income individuals in Arizona, California, and Nevada [4] - The FHLBank San Francisco plays a crucial role in supporting local lenders and enhancing community development through funding and resources [9]

Core Points - Oak Valley Bancorp announced the retirement of Thomas A. Haidlen and Danny L. Titus from the Board of Directors, effective June 17, 2025, and appointed Erich A. Haidlen to the Board [1][2][3] Group 1: Board Changes - Thomas A. Haidlen and Danny L. Titus have been board members since 1991 and 1992 respectively, contributing significantly to the establishment and growth of Oak Valley Community Bank [2][3] - Erich A. Haidlen, the new board member, has extensive experience as General Manager and President of Haidlen Ford Inc. and a background in financial analysis [4][6] Group 2: Contributions and Expertise - The retiring members played crucial roles in cultivating investor interest and providing guidance for nearly 35 years [3] - Erich A. Haidlen brings valuable business and financial expertise, along with deep local knowledge as a fifth-generation resident of Stanislaus County [5][6] Group 3: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank, offering a full range of loan and deposit services through 18 branches and plans to open a 19th branch in Lodi later this year [7]

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].

Company Recognition - Oak Valley Community Bank has been named one of the 2025 Best Places to Work in the Central Valley by Best Companies Group, marking the second consecutive year for this recognition [1][2] - The bank was also recognized by Opportunity Stanislaus for "Growing the Economy" by increasing its workforce by 10% or more throughout 2024 [1] Company Culture - The recognition reflects the organization's commitment to creating a positive work environment that prioritizes growth, values individuals, and fosters a culture of excellence [2] - The CEO emphasized the importance of a deep-rooted service culture, where the team goes beyond expectations to build trust and strengthen customer relationships [2] Evaluation Process - The Best Places to Work program involves a survey and evaluation of companies based on employee perspectives, examining practices, programs, and benefits [3] - Participating companies receive an in-depth evaluation that identifies strengths and weaknesses, which can be used to enhance employee retention and recruitment programs [3] Other Recognized Companies - Other recipients of the Best Places to Work recognition include Black Water Consulting Engineers, DeHart Plumbing, Heating & Air, E- Technologies Group, and several others [4] Economic Development Organization - Opportunity Stanislaus is focused on improving the economic vitality of Stanislaus County by supporting local entrepreneurs and attracting innovative companies [6]

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].