OAKDALE, Calif., April 18, 2025 (GLOBE NEWSWIRE) -- Oak Valley Bancorp (NASDAQ: OVLY), the parent company of Oak Valley Community Bank and its Eastern Sierra Community Bank division, has released its unaudited consolidated financial results for the first quarter of 2025. The reporting period ended on March 31, 2025, and the figures reveal a consolidated net income of $5,297,000, which translates to $0.64 per diluted share (EPS). This is a decline compared to a consolidated net income of $6,008,000, or $0.73 EPS, recorded in the previous quarter, as well as a drop from $5,727,000, or $0.69 EPS, reported for the same quarter last year.

The decrease in net income is primarily attributed to an increase in operating expenses, which have impacted overall profitability.

For the three months ending March 31, 2025, net interest income stood at $17,807,000, slightly down from $17,846,000 in the prior quarter and up from $17,241,000 for the same period last year. This marginal reduction from the previous quarter is linked to a Federal Open Market Committee (FOMC) rate cut in December 2024, which lowered the yield on certain variable rate assets along with the occurrence of 2 fewer days of interest accruals. Despite this rate cut, the net interest margin increased to 4.09% for the first quarter of 2025, up from 4.00% in the previous quarter and maintaining the same level as last year. This improvement can be credited to a decline in deposit interest expense.

The average cost of funds as of March 31, 2025 has decreased to 0.79%, compared to 0.86% for the prior quarter, although it is higher than the 0.68% recorded in the first quarter of 2024. Contributing factors to the increased earning asset yield and improved net interest margin include a higher average gross loan balance and upward repricing of loan yields.

In terms of non-interest income, the company reported $1,613,000 for the quarter ending March 31, 2025, which is an increase from $1,430,000 in the previous quarter and $1,519,000 from the same quarter last year. This rise in non-interest income is primarily attributed to favorable changes in the fair value of equity securities.

On the operating expense side, total non-interest expenses reached $12,624,000 for the first quarter of 2025. This reflects an increase compared to $11,548,000 in the previous quarter and $11,529,000 a year prior. The rising non-interest expenses are closely linked to heightened staffing costs and general operating expenses related to the management of expanding loan and deposit portfolios.

As of March 31, 2025, total assets amounted to $1.92 billion, marking an increase of $23.8 million from December 31, 2024, and $118.6 million from March 31, 2024. Gross loans registered at $1.09 billion, showing a decrease of $15.6 million compared to December 31, 2024, but an increase of $51.4 million compared to March 31, 2024. The companys total deposits grew to $1.71 billion as of March 31, 2025, reflecting an increase of $17.9 million from the end of the previous year and $101.2 million from the same date a year earlier. Oak Valley Bancorp's liquidity position remains robust, characterized by $209.3 million in cash and cash equivalents as of March 31, 2025, an increase of $40.5 million over the last quarter of 2024.

CEO Chris Courtney expressed confidence in the companys financial standing, stating, Our balance sheet remains strong, and although weve experienced modest loan paydowns this quarter, this represents a very small reduction in gross loans that aligns with our typical expectations for the start of the year. We are committed to fostering steady growth while adopting a prudent approach to risk management.

Importantly, non-performing assets (NPA) were reported to remain at zero as of March 31, 2025, consistent with the figures from both December 31, 2024, and March 31, 2024. The allowance for credit losses (ACL) as a percentage of gross loans stood at 1.05% as of March 31, 2025, showing a slight increase from 1.04% on December 31, 2024, and remaining stable compared to 1.05% a year earlier. Given the industry's growing concerns surrounding credit risk, specifically in commercial real estate, management conducted a comprehensive analysis of this sector as part of the CECL credit risk models ACL computation. They concluded that the current credit loss reserve in relation to gross loans is acceptable, with credit quality remaining stable.

Oak Valley Bancorp operates through its Oak Valley Community Bank and Eastern Sierra Community Bank divisions, providing a diverse range of loan and deposit products tailored for individuals and small businesses. The bank boasts a network of 18 conveniently located branches across California, including cities such as Oakdale, Turlock, Stockton, and Sacramento. Notably, the company is set to expand its reach with the opening of a 19th branch in Lodi later this year.

For those seeking additional information, please contact Oak Valley Bancorp at 1-866-844-7500 or visit their website at