Oak Valley Bancorp: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. The quarter’s numbers.

Key takeaways

Net income fell from prior quarter: Net income was $5,309,000, or $0.64 diluted EPS, against $6,335,000 or $0.76 in the prior quarter and $5,297,000 or $0.64 a year earlier. The company attributed the quarter-on-quarter decrease to higher operating expenses and lower net interest income. Source
Net interest income declined from prior quarter: Net interest income was $18,824,000, against $19,457,000 in the prior quarter and $17,807,000 a year earlier. Management cited lower cash yields, lower average earning assets, a slight rise in deposit rates and two fewer days of accruals. Source
Net interest margin slipped to 4.12%: Net interest margin was 4.12%, compared with 4.14% in the prior quarter and 4.09% a year earlier. Source
Non-interest expense rose to $13.5 million: Non-interest expense was $13,506,000, against $12,262,000 in the prior quarter and $12,624,000 a year earlier. The company linked the increase to staffing and operating costs for servicing larger loan and deposit portfolios. Source
Provision fell from prior quarter: Provision for credit losses was $464,000, against $865,000 in the prior quarter and zero a year earlier. Management said the amount resulted from the CECL model output. Source
One non-accrual loan drives NPAs: Nonperforming assets were $4.6 million, or 0.23% of total assets, unchanged from year-end and up from zero a year earlier. The company attributed this to one collateral-dependent loan placed on non-accrual in December 2025. Source

“Our balance sheet remains strong and we continue to see stable performance across our core business lines,”
Chris Courtney, CEO

Earnings and growth drivers

Net income fell from prior quarter: Net income was $5,309,000, or $0.64 diluted EPS, against $6,335,000 or $0.76 in the prior quarter and $5,297,000 or $0.64 a year earlier. The company attributed the quarter-on-quarter decrease to higher operating expenses and lower net interest income. Source
Net income rose year over year: Management attributed the year-over-year increase in net income to higher net interest income from earning asset growth. Average earning assets were $1,905,874 thousand, against $1,814,338 thousand a year earlier. Source
Return on equity and assets fell: Return on average common equity was 10.23% and return on average assets 1.07%, against 12.32% and 1.25% in the prior quarter. Source

Net interest income and margin

Net interest income declined from prior quarter: Net interest income was $18,824,000, against $19,457,000 in the prior quarter and $17,807,000 a year earlier. Management cited lower cash yields, lower average earning assets, a slight rise in deposit rates and two fewer days of accruals. Source
Net interest margin slipped to 4.12%: Net interest margin was 4.12%, compared with 4.14% in the prior quarter and 4.09% a year earlier. Source

“We remain committed to disciplined growth while maintaining a conservative approach to risk management.”
Chris Courtney, CEO

Non-interest income and expenses

Non-interest income lifted by FHLB dividend: Non-interest income was $1,952,000, against $1,825,000 in the prior quarter. The company said the increase was mainly due to a special dividend of $181,000 from the Federal Home Loan Bank. Source
Non-interest expense rose to $13.5 million: Non-interest expense was $13,506,000, against $12,262,000 in the prior quarter and $12,624,000 a year earlier. The company linked the increase to staffing and operating costs for servicing larger loan and deposit portfolios. Source
Efficiency ratio rose to 62.99%: Efficiency ratio was 62.99%, against 55.94% in the prior quarter and 63.00% a year earlier. Source

Credit quality and reserves

Provision fell from prior quarter: Provision for credit losses was $464,000, against $865,000 in the prior quarter and zero a year earlier. Management said the amount resulted from the CECL model output. Source
One non-accrual loan drives NPAs: Nonperforming assets were $4.6 million, or 0.23% of total assets, unchanged from year-end and up from zero a year earlier. The company attributed this to one collateral-dependent loan placed on non-accrual in December 2025. Source
Allowance ratio rose to 1.13%: The allowance for credit losses was 1.13% of gross loans, against 1.08% at December 31, 2025 and 1.05% a year earlier. Management concluded the reserve relative to gross loans remains at acceptable levels. Source

Loan and deposit balances

Gross loans grew modestly: Gross loans were $1.15 billion, up $3.5 million from year-end and $56.5 million from a year earlier. Source
Deposits eased from year-end: Total deposits were $1.78 billion, down $12.0 million from year-end and up $67.4 million from a year earlier. Source
Total assets dipped from year-end: Total assets were $2.01 billion, down $12.8 million from December 31, 2025 and up $85.9 million from March 31, 2025. Source

Liquidity, capital and shareholder returns

Cash balances fell from year-end: Cash and cash equivalents were $201.6 million at March 31, 2026, against $232.2 million at December 31, 2025 according to the prior release. Source
Book value per share slipped: Book value per common share was $24.50 at March 31, 2026, against $24.79 at December 31, 2025 and $21.89 a year earlier. Source
Dividend paid at $0.375: Dividends paid per common share were $0.375 in the first quarter, against nothing in the prior quarter and $0.300 a year earlier. Source

Branches and staffing

Full-time staff rose to 244: Full-time equivalent staff was 244, up from 238 in the prior quarter and 225 a year earlier. Banking offices stayed at 19. Source
Eastern Sierra division within network: The company operates 19 branches through Oak Valley Community Bank and its Eastern Sierra Community Bank division, including three Eastern Sierra division branches in Bridgeport, Mammoth Lakes, and Bishop. Source

Figures management reported

Figure	Reported
Net interest margin Source	4.12%
Net interest income Source	$18,824,000
Gross loans Source	$1.15 billion
Deposits Source	$1.78 billion
Provision for credit losses Source	$464,000
Nonperforming assets Source	$4.6 million, 0.23% of total assets
Efficiency ratio Source	62.99%

Risks management discussed

External: Management said it continues to monitor macro-economic conditions and credit factors used for pooled loans in the CECL model. Source
Financial: Deposit rates rose slightly while yields on cash balances fell, which the company cited as reducing net interest income. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Date:

April 22, 2026

OAK VALLEY BANCORP REPORTS 1 QUARTER RESULTS

OAKDALE, CA - Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results for the first quarter of 2026. For the three months ended March 31, 2026, consolidated net income was $5,309,000, or $0.64 per diluted share (EPS). This compares to consolidated net income of $6,335,000, or $0.77 EPS, for the prior quarter and $5,297,000, or $0.64 EPS, for the same period a year ago. The net income decrease compared to the prior period was primarily due to an increase in operating expenses and a decrease in net interest income. The net income increase compared to the prior year was due to an increase in net interest income driven by earning asset growth.

Net interest income for the three months ended March 31, 2026 was $18,824,000, compared to $19,457,000 in the prior quarter, and $17,807,000 in the same period a year ago. The decrease from the prior quarter is due to lower yields on cash balances, lower average earning assets, a slight increase in the interest rate paid on deposit accounts and two less days of interest accruals, while the year-over-year increase is due to growth in earning assets and loan yields. As a result, net interest margin for the three months ended March 31, 2026 was 4.12%, compared to 4.14% for the prior quarter and 4.09% for the same period last year.

Non-interest income was $1,952,000 for the quarter ended March 31, 2026, compared to $1,825,000 for the prior quarter and $1,613,000 for the same period last year. The increase compared to prior periods was mainly due to a special dividend of $181,000 received from the Federal Home Loan Bank.

Non-interest expense totaled $13,506,000 for the quarter ended March 31, 2026, compared to $12,262,000 in the previous quarter and $12,624,000 in the same quarter a year ago. The increase in non-interest expense corresponds primarily to staffing expenses and general operating costs related to servicing the growing loan and deposit portfolios.

Total assets were $2.01 billion at March 31, 2026, a decrease of $12.8 million and an increase of $85.9 million from December 31, 2025 and March 31, 2025, respectively. Gross loans were $1.15 billion at March 31, 2026, an increase of $3.5 million and $56.5 million over December 31, 2025 and March 31, 2025, respectively. The Company’s total deposits were $1.78 billion at March 31, 2026, a decrease of $12.0 million and an increase of $67.4 million from December 31, 2025 and March 31, 2025, respectively. Our liquidity position remains strong, as evidenced by $201.6 million in cash and cash equivalents balances at March 31, 2026.

“Our balance sheet remains strong and we continue to see stable performance across our core business lines,” stated Chris Courtney, CEO. “We remain committed to disciplined growth while maintaining a conservative approach to risk management.”

Non-performing assets (“NPA”) were $4.6 million, or 0.23% of total assets as of March 31, 2026 and December 31, 2025, compared to zero at March 31, 2025. The increase compared to the same period a year ago is due to one collateral-dependent loan that was placed on non-accrual status in December 2025. The company individually evaluated this loan and recognized a specific allowance for credit loss (“ACL”) reserve as part of its current expected credit loss (“CECL”) calculation. Management continues to monitor macro-economic conditions and other credit-related factors utilized for pooled loans within the CECL risk model. As a result of the model output, a provision for credit losses of $464,000 was recorded during the first quarter, as compared to $865,000 in the prior quarter, and zero in the same period of the prior year. The ACL as a percentage of gross loans increased to 1.13% at March 31, 2026, compared to 1.08% at December 31, 2025 and 1.05% at March 31, 2025. Management concluded that the ACL reserve relative to gross loans remains at acceptable levels, and credit quality remains stable.

Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 19 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, Lodi, two branches in Sonora, three branches in Modesto, and three branches in the Eastern Sierra division which includes Bridgeport, Mammoth Lakes, and Bishop. For more information, call 1-866-844-7500 or visit www.ovcb.com.

This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the corporation's possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

Oak Valley Bancorp

Financial Highlights (unaudited)

Selected Quarterly Operating Data:	1st Quarter	4th Quarter	3rd Quarter	2nd Quarter	1st Quarter
($ in thousands, except per share)	2026	2025	2025	2025	2025
Net interest income	$18,824	$19,457	$19,197	$18,154	$17,807
Provision for (reversal of) credit losses	464	865	(60)	-	-
Non-interest income	1,952	1,825	1,973	1,703	1,613
Non-interest expense	13,506	12,262	12,700	12,688	12,624
Net income before income taxes	6,806	8,155	8,530	7,169	6,796
Provision for income taxes	1,497	1,820	1,837	1,581	1,499
Net income	$5,309	$6,335	$6,693	$5,588	$5,297
Earnings per common share - basic	$0.64	$0.77	$0.81	$0.68	$0.64
Earnings per common share - diluted	$0.64	$0.76	$0.81	$0.67	$0.64
Dividends paid per common share	$0.375	$-	$0.300	$-	$0.300
Return on average common equity	10.23%	12.32%	14.30%	12.21%	11.58%
Return on average assets	1.07%	1.25%	1.35%	1.18%	1.13%
Net interest margin (1)	4.12%	4.14%	4.16%	4.11%	4.09%
Efficiency ratio (2)	62.99%	55.94%	58.27%	61.95%	63.00%
Capital - Period End
Book value per common share	$24.50	$24.79	$23.63	$22.17	$21.89
Credit Quality - Period End
Nonperforming assets / total assets	0.23%	0.23%	0.00%	0.00%	0.00%
Credit loss reserve / gross loans	1.13%	1.08%	1.03%	1.03%	1.05%
Balance Sheet - Period End (in thousands)
Total assets	$2,010,299	$2,023,116	$1,995,416	$1,920,909	$1,924,365
Gross loans	1,147,451	1,143,930	1,112,829	1,109,856	1,090,953
Nonperforming assets	4,574	4,587	-	-	-
Allowance for credit losses	12,910	12,381	11,420	11,430	11,448
Deposits	1,780,996	1,792,962	1,774,882	1,711,241	1,713,592
Common equity	206,154	207,975	198,280	185,805	183,520
Balance Sheet - Average (in thousands)
Average assets	$2,006,175	$2,013,766	$1,961,374	$1,903,741	$1,903,585
Average earning assets	1,905,874	1,914,907	1,876,588	1,818,430	1,814,338
Average equity	210,562	203,994	185,638	183,612	185,592
Non-Financial Data
Full-time equivalent staff	244	238	237	231	225
Number of banking offices	19	19	18	18	18
Common Shares outstanding
Period end	8,413,458	8,388,221	8,390,621	8,382,062	8,382,062
Period average - basic	8,257,567	8,249,256	8,246,666	8,245,147	8,231,844
Period average - diluted	8,322,124	8,304,597	8,299,039	8,285,299	8,278,301
Market Ratios
Stock Price	$32.43	$30.06	$28.17	$27.24	$24.96
Price/Earnings	12.44	9.87	8.75	10.02	9.56
Price/Book	1.32	1.21	1.19	1.23	1.14

This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%. The resulting adjustment to net interest income is $539 thousand, $509 thousand, $501 thousand, $498 thousand, and $497 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
This is a non-GAAP measure that is computed on a fully tax equivalent basis using a federal tax rate of 21%, and a federal/state combined tax rate of 29.56%. The resulting adjustment to pre-tax income is $666 thousand, $639 thousand, $626 thousand, $624 thousand, and $618 thousand for the three-months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.

Contacts
Chris Courtney/Rick McCarty
(209) 848-2265 www.ovcb.com