Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended June 30, 2015, consolidated net income available to common shareholders was $1,510,000, or $0.19 per diluted common share. This compared to consolidated net income of $1,526,000, or $0.19 per diluted common share, for the prior quarter and $2,537,000, or $0.32 per diluted common share for the same period a year ago.
Total assets were $764 million at June 30, 2015, an increase of $10.5 million over March 31, 2015 and $85.7 million over June 30, 2014. Gross loans were $463.5 million as of June 30, 2015, an increase of $10.3 million over March 31, 2015, and an increase of $27.8 million over June 30, 2014. The Company’s total deposits were $683.9 million as of June 30, 2015, an increase of $10.9 million over March 31, 2015, and an increase of $81.0 million over June 30, 2014.
Net interest income was $6,200,000 for the three months ended June 30, 2015, consistent with $6,201,000 for the prior quarter and $6,175,000 for the same period last year. The increase in loan volume, referenced above, has been offset with continued margin compression. The Company’s net interest margin for the three months ended June 30, 2015 was 3.70 percent, compared to 3.74 percent for the prior quarter, and 4.07 percent for the same period last year.
“Solid year over year loan and deposit growth was punctuated by a late second quarter push. We are optimistic that recent activity and the continued strength in the loan pipeline will support continued growth through the remainder of the year,” stated Chris Courtney, President and CEO.
Non-interest expense for the three months ended June 30, 2015 totaled $5,193,000, compared to $5,099,000 during the prior quarter, and $4,989,000 for the same period last year. The increase compared to last quarter is the result of a recovery of impaired loan expense, corresponding to the payoff of a non-performing loan, during the prior quarter. The increase compared to the same period last year corresponds to growth in full time equivalent staff from 144 to 152. Deposit servicing costs associated with deposit growth and transaction activity have also increased.
Non-interest income for the three months ended June 30, 2015 totaled $1,156,000, compared to $1,027,000 during the prior quarter, and $927,000 for the same period last year. The increase compared to the prior periods is primarily the result of gains associated with called securities in the investment portfolio.
The Company recently announced the payment of a cash dividend of $0.11 per share of common stock to its shareholders of record at the close of business on July 20, 2015. In aggregate, the distribution will amount to approximately $888,000, with a payable date of July 30, 2015. This is the second dividend payment made by the Company in 2015.
The Company currently operates through 15 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop. The Company also announced plans to open a second location in Sonora later this year.
For more information, please call 1-866-844-7500 or visit www.ovcb.com.