Wed, May 14, 7:08 PM (40 days ago)
### Oak Valley Bancorp (OVLY) Q1 2025 Financial Summary **Company Overview:** Oak Valley Bancorp (OVLY) is a bank holding company for Oak Valley Community Bank, operating in California. The bank focuses on commercial banking services for individuals and small to medium-sized businesses in the Central Valley and Eastern Sierras. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Net Income:** $5,297,000 (down 7.6% from $5,727,000 in Q1 2024). - **Earnings per Share (EPS):** $0.64 (down from $0.70 in Q1 2024). - **Return on Average Assets:** 1.13% (down from 1.26%). - **Return on Average Common Equity:** 11.58% (down from 13.86%). **Revenue and Expenses:** - **Net Interest Income:** $17,807,000 (up 3.3% from $17,241,000). - **Non-Interest Income:** $1,613,000 (up 6.2% from $1,519,000). - **Non-Interest Expense:** $12,624,000 (up 9.5% from $11,529,000). **Balance Sheet Highlights:** - **Total Assets:** $1,924,365,000 (up 1.3% from $1,900,604,000). - **Total Loans:** $1,077,740,000 (down 1.4% from $1,093,514,000). - **Investment Securities:** $518,685,000 (down 1.5% from $526,496,000). - **Deposits:** $1,713,592,000 (up 1.1% from $1,695,690,000). **Asset Quality:** - **Non-Performing Assets:** $0 (stable). - **Allowance for Credit Losses:** $11,448,000 (down slightly from $11,460,000). **Liquidity and Capital:** - **Cash and Cash Equivalents:** $209,299,000 (up 24.0% from $168,751,000). - **Capital Ratios:** All ratios exceed regulatory minimums, indicating strong capital position. **Outlook and Risks:** - **Economic Uncertainties:** Potential impacts from economic conditions, interest rates, and regulatory changes. - **Credit Risk:** Monitoring of loan portfolio and economic trends. - **Operational Risks:** Dependence on key personnel and technological infrastructure. **Future Operations:** - **Growth Strategy:** Focus on enhancing shareholder value, expanding retail banking, and efficient capital utilization. - **Risk Management:** Continued emphasis on cost-control and efficiency to manage increasing expenses. **Conclusion:** Oak Valley Bancorp reported a decrease in net income for Q1 2025, primarily due to higher interest rates on deposits and increased operating expenses. Despite these challenges, the bank maintains a strong capital position and liquidity, with a focus on managing credit risks and operational efficiencies. The outlook remains positive with a strategic focus on growth and shareholder value enhancement.