Oak Valley Bancorp: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 23 October 2026: press release. The quarter’s numbers.

Key takeaways

Quarterly net income rose on quarter: Net income was $6,450,000, or $0.77 diluted EPS, against $5,114,000 in the prior quarter and $6,693,000 a year earlier. The company attributed the quarterly increase to higher net interest income, lower expense and higher non-interest income. Source
Net interest income rose on quarter: Net interest income was $19,802,000, up from $18,944,000 in the prior quarter and $19,197,000 a year earlier. Source
Net interest margin widened to 4.24%: Net interest margin was 4.24% for the quarter, against 4.15% in the prior quarter and 4.16% a year earlier. Nine-month margin was 4.17%. Source
Gross loans up year on year: Gross loans were $1.15 billion, down $11,660,000 from June 30, 2026 and up $41,226,000 from September 30, 2025. Source
Expense fell after one-time prior-quarter item: Non-interest expense was $13,420,000, down from $14,157,000, after a one-time item for accelerated vesting of restricted stock awards in the prior quarter. Source
Small provision tied to off-balance-sheet items: The provision for credit losses was $42,000 for the quarter, tied to off-balance-sheet items under the CECL risk model. Source
Nonperforming assets held steady: Nonperforming assets were $2,581,000, or 0.13% of total assets, against $2,631,000 at June 30, 2026 and none a year earlier. Source

“We are pleased with our third-quarter operating results, highlighted by stronger net interest income and expanded net interest margin,”
Rick McCarty, President and Chief Executive Officer

Profit for the quarter

Quarterly net income rose on quarter: Net income was $6,450,000, or $0.77 diluted EPS, against $5,114,000 in the prior quarter and $6,693,000 a year earlier. The company attributed the quarterly increase to higher net interest income, lower expense and higher non-interest income. Source
Nine-month net income declined: Nine-month net income was $16,873,000, or $2.02 diluted EPS, against $17,578,000, or $2.12 a year earlier. Source
Year-to-date expense drove the decline: Year-to-date net income fell, mainly on higher non-interest expense, partly offset by higher net interest income and non-interest income. Source

Net interest income and margin

Net interest income rose on quarter: Net interest income was $19,802,000, up from $18,944,000 in the prior quarter and $19,197,000 a year earlier. Source
Earning assets and yield lifted income: The company attributed the net interest income increase to growth in average earning assets and a higher yield on average earning assets. Source
Net interest margin widened to 4.24%: Net interest margin was 4.24% for the quarter, against 4.15% in the prior quarter and 4.16% a year earlier. Nine-month margin was 4.17%. Source

“These results reflect the strength of our core banking franchise and our team’s disciplined approach to balance sheet management.”
Rick McCarty, President and Chief Executive Officer

Loans, deposits and total assets

Gross loans up year on year: Gross loans were $1.15 billion, down $11,660,000 from June 30, 2026 and up $41,226,000 from September 30, 2025. Source
Deposits flat on quarter: Total deposits were $1.76 billion, essentially unchanged from June 30, 2026 and down $12,299,000 from September 30, 2025. Source
Total assets slightly lower: Total assets were $1.98 billion, down $25,404,000 from June 30, 2026 and $19,242,000 from September 30, 2025. Source

Non-interest income and expense

Non-interest income rose on quarter: Non-interest income was $1,851,000, up from $1,665,000 in the prior quarter, on higher debit card fees and Federal Home Loan Bank dividends. Source
Year-ago income included life insurance gain: Non-interest income was below $1,973,000 a year earlier, which included a one-time gain from redeeming a life insurance policy in 2025. Source
Expense fell after one-time prior-quarter item: Non-interest expense was $13,420,000, down from $14,157,000, after a one-time item for accelerated vesting of restricted stock awards in the prior quarter. Source

“Our liquidity position remains strong, as evidenced by $179,669,000 in cash and cash equivalent balances at September 30, 2026.”
Oak Valley Bancorp, press release

Credit quality and reserves

Small provision tied to off-balance-sheet items: The provision for credit losses was $42,000 for the quarter, tied to off-balance-sheet items under the CECL risk model. Source
Nonperforming assets held steady: Nonperforming assets were $2,581,000, or 0.13% of total assets, against $2,631,000 at June 30, 2026 and none a year earlier. Source
Allowance ratio edged up on quarter: The allowance was 0.97% of gross loans, against 0.96% in June 2026 and 1.03% a year earlier. Management tied the year-on-year decline to the second-quarter charge-off. Source

Liquidity, staff and branches

Cash balances declined on quarter: Cash and cash equivalents were $179,669,000 at September 30, 2026, against $194,803,000 at June 30, 2026. Source
Staffing and branch costs rose: Expense was up from $12,700,000 a year earlier, which management linked to staffing and operating costs supporting growth. Full-time equivalent staff was 247. Source
Network of 19 banking offices: The company operates 19 banking offices, including three branches in the Eastern Sierra division. Source

Figures management reported

Figure	Reported
Net interest margin Source	4.24%
Net interest income Source	$19,802,000
Gross loans Source	$1.15 billion
Deposits Source	$1.76 billion
Provision for credit losses Source	$42,000
Nonperforming assets Source	0.13% of total assets

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

OAK VALLEY BANCORP REPORTS 3rd 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 three months ended September 30, 2026, consolidated net income was $6,450,000, or $0.77 per diluted share (EPS), as compared to $5,114,000, or $0.61 EPS, for the prior quarter and $6,693,000, or $0.81 EPS, for the same period a year ago. Consolidated net income for the nine months ended September 30, 2026 was $16,873,000, or $2.02 EPS, compared to $17,578,000, or $2.12 EPS, for the same period of 2025.

The increase in third quarter net income compared to the prior quarter was primarily due to an increase in net interest income, a decrease in non-interest expense, and an increase in non-interest income. Year-to-date net income decreased compared to 2025 primarily due to an increase in non-interest expense, partially offset by increases in net interest income and non-interest income.

Net interest income for the three months ended September 30, 2026 was $19,802,000, compared to $18,944,000 in the prior quarter and $19,197,000 in the same period a year ago. The increase in net interest income over the prior periods was driven by growth in average earning assets and an increase in the yield on average earning assets. Net interest margin for the three months ended September 30, 2026 was 4.24%, compared to 4.15% for the prior quarter and 4.16% for the same period last year.

Non-interest income was $1,851,000 for the quarter ended September 30, 2026, compared to $1,665,000 for the prior quarter and $1,973,000 for the same period last year. The increase compared to the prior period was primarily due to an increase in debit card transaction fee income, and dividends received from the Federal Home Loan Bank. The decrease compared to the same period of 2025 was mainly due to a one-time gain from the redemption of a life insurance policy recorded in 2025.

Non-interest expense totaled $13,420,000 for the quarter ended September 30, 2026, compared to $14,157,000 in the prior quarter and $12,700,000 in the same quarter a year ago. The decrease compared to the prior quarter is due to a one-time benefit expense recorded during the prior quarter for accelerated vesting of certain restricted stock awards. The increase over the same period a year ago reflects staffing expenses and general operating costs related to supporting the Company's growth and expanded branch network.

“We are pleased with our third-quarter operating results, highlighted by stronger net interest income and expanded net interest margin,” stated Rick McCarty, President and Chief Executive Officer. “These results reflect the strength of our core banking franchise and our team’s disciplined approach to balance sheet management.”

Total assets were $1.98 billion at September 30, 2026, a decrease of $25,404,000 from June 30, 2026 and $19,242,000 from September 30, 2025. Gross loans were $1.15 billion at September 30, 2026, a decrease of $11,660,000 from June 30, 2026 and an increase of $41,226,000 over September 30, 2025. The Company's total deposits were $1.76 billion as of September 30, 2026, essentially unchanged from June 30, 2026 and a decrease of $12,299,000 from September 30, 2025. Our liquidity position remains strong, as evidenced by $179,669,000 in cash and cash equivalent balances at September 30, 2026.

Non-performing assets ("NPA") totaled $2,581,000 as of September 30, 2026, compared to $2,631,000 at June 30, 2026 and no NPA at September 30, 2025. The Company recorded a provision for credit losses of $42,000 during the third quarter related to off-balance-sheet-items as determined by macro-economic conditions and other credit-related factors within our current expected credit loss (“CECL”) risk model. Non-performing assets were 0.13% of total assets at September 30, 2026, consistent with June 30, 2026. The allowance for credit losses ("ACL") as a percentage of gross loans was 0.97% at September 30, 2026, compared to 0.96% at June 30, 2026 and 1.03% at September 30, 2025. The ACL decrease compared to the prior year is a result of the $1,735,000 loan charge-off during the second quarter of 2026.

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 businesses and individuals. 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:	3rd Quarter	2nd Quarter	1st Quarter	4th Quarter	3rd Quarter
($ in thousands, except per share)	2026	2026	2026	2025	2025
Net interest income	$19,802	$18,944	$18,824	$19,457	$19,197
Provision for (reversal of) credit losses	42	21	464	865	(60)
Non-interest income	1,851	1,665	1,952	1,825	1,973
Non-interest expense	13,420	14,157	13,506	12,262	12,700
Net income before income taxes	8,191	6,431	6,806	8,155	8,530
Provision for income taxes	1,741	1,317	1,497	1,820	1,837
Net income	$6,450	$5,114	$5,309	$6,335	$6,693
Earnings per common share - basic	$0.78	$0.62	$0.64	$0.77	$0.81
Earnings per common share - diluted	$0.77	$0.61	$0.64	$0.76	$0.81
Dividends paid per common share	$0.375	$-	$0.375	$-	$0.300
Return on average common equity	12.16%	9.74%	10.23%	12.32%	14.30%
Return on average assets	1.28%	1.04%	1.07%	1.25%	1.35%
Net interest margin (1)	4.24%	4.15%	4.12%	4.14%	4.16%
Efficiency ratio (2)	60.15%	66.46%	62.99%	55.94%	58.27%
Capital - Period End
Book value per common share	$22.70	$25.80	$24.50	$24.79	$23.63
Credit Quality - Period End
Nonperforming assets / total assets	0.13%	0.13%	0.23%	0.23%	0.00%
Credit loss reserve / gross loans	0.97%	0.96%	1.13%	1.08%	1.03%
Balance Sheet - Period End (in thousands)
Total assets	$1,976,174	$2,001,578	$2,010,299	$2,023,116	$1,995,416
Gross loans	1,154,055	1,165,715	1,147,451	1,143,930	1,112,829
Nonperforming assets	2,581	2,631	4,574	4,587	-
Allowance for credit losses	11,214	11,172	12,910	12,381	11,420
Deposits	1,762,583	1,763,551	1,780,996	1,792,962	1,774,882
Common equity	191,099	217,034	206,154	207,975	198,280
Balance Sheet - Average (in thousands)
Average assets	$1,999,329	$1,980,142	$2,006,175	$2,013,766	$1,961,374
Average earning assets	1,902,124	1,884,736	1,905,874	1,914,907	1,876,588
Average equity	210,369	210,662	210,562	203,994	185,638
Non-Financial Data
Full-time equivalent staff	247	246	244	238	237
Number of banking offices	19	19	19	19	18
Common Shares outstanding
Period end	8,419,978	8,413,458	8,413,458	8,388,221	8,390,621
Period average - basic	8,290,685	8,272,810	8,257,567	8,249,256	8,246,666
Period average - diluted	8,348,220	8,333,393	8,322,124	8,304,597	8,299,039
Market Ratios
Stock Price	$33.67	$33.75	$32.43	$30.06	$28.17
Price/Earnings	10.91	13.61	12.44	9.87	8.75
Price/Book	1.48	1.31	1.32	1.21	1.19

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 $536 thousand, $546 thousand, $539 thousand, $509 thousand, and $501 thousand for the three-months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 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 $659 thousand, $694 thousand, $666 thousand, $639 thousand, and $626 thousand for the three-months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.

Profitability	NINE MONTHS ENDED SEPTEMBER 30,
($ in thousands, except per share)	2026	2025
Net interest income	$57,570	$55,158
Provision for (reversal of) credit losses	527	459
Non-interest income	5,468	5,289
Non-interest expense	41,083	37,493
Net income before income taxes	21,428	22,495
Provision for income taxes	4,555	4,917
Net income	$16,873	$17,578
Earnings per share - basic	$2.04	$2.13
Earnings per share - diluted	$2.02	$2.12
Dividends paid per share	$0.750	$0.600
Return on average equity	10.72%	12.71%
Return on average assets	1.13%	1.22%
Net interest margin (3)	4.17%	4.12%
Efficiency ratio (4)	63.15%	60.17%
Capital - Period End
Book value per share	$22.70	$23.63
Credit Quality - Period End
Nonperforming assets/ total assets	0.13%	0.00%
Credit loss reserve/ gross loans	0.97%	1.03%
Balance Sheet - Period End (in thousands)
Total assets	$1,976,174	$1,995,416
Gross loans	1,154,055	1,112,829
Nonperforming assets	2,581	-
Allowance for credit losses	11,214	11,420
Deposits	1,762,583	1,774,882
Stockholders' equity	191,099	198,280
Balance Sheet - Average (in thousands)
Average assets	$1,995,190	$1,923,112
Average earning assets	1,897,564	1,836,679
Average equity	210,530	184,947
Non-Financial Data
Full-time equivalent staff	247	237
Number of banking offices	19	18
Common Shares outstanding
Period end	8,419,978	8,390,621
Period average - basic	8,273,809	8,241,273
Period average - diluted	8,334,675	8,287,622
Market Ratios
Stock Price	$33.67	$28.17
Price/Earnings	12.35	9.88
Price/Book	1.48	1.19

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 $1.621 million and $1.496 million for the nine months ended September 30, 2026 and 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 $2.018 million and $1.868 million for the nine months ended September 30, 2026 and 2025, respectively.

Contacts
Date: Contact: Phone:
October 21, 2026 · Rick McCarty/Jeff Gall · (209) 848-2265 · www.ovcb.com