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].
Oak Valley Bancorp(OVLY) - 2025 Q1 - Quarterly Report