Sec­ond Quar­ter Re­port Re­leased By Oak Val­ley Com­mu­nity Bank

Escalon Times - - NEWS -

Oak Val­ley Ban­corp (NAS­DAQ: OVLY) (the “Com­pany”), the bank hold­ing com­pany for Oak Val­ley Com­mu­nity Bank and its East­ern Sierra Com­mu­nity Bank divi­sion, re­cently re­ported unau­dited con­sol­i­dated fi­nan­cial re­sults. For the three months ended June 30, 2018, con­sol­i­dated net in­come was $2,591,000, or $0.32 per di­luted share (EPS), com­pared to $2,802,000, or $0.35 EPS, for the prior quar­ter and $2,830,000, or $0.35 EPS, for the same pe­riod a year ago. The de­crease of $211,000 com­pared to the prior quar­ter is mainly due to non-re­cur­ring gains on the sale of an OREO prop­erty and in­vest­ment se­cu­ri­ties recorded dur­ing the first quar­ter of 2018. Com­pared to the sec­ond quar­ter of 2017, the net in­come de­crease of $239,000 is at­trib­ut­able to the $938,000 one-time merger-re­lated set­tle­ment pay­ments that were recorded in the sec­ond quar­ter of 2017, which were off­set in part by strong core earn­ings and the lower fed­eral in­come tax rate in 2018 cor­re­spond­ing to the Tax Cuts and Jobs Act of 2017.

Con­sol­i­dated net in­come for the six months ended June 30, 2018 to­taled $5,393,000, or $0.67 EPS, rep­re­sent­ing an in­crease of 7.1 per­cent com­pared to $5,037,000, or $0.62 EPS for the six months ended June 30, 2017. In spite of the non­re­cur­ring rev­enue items recorded in the prior year, the Com­pany has ben­e­fited from year-over-year earn­ing as­set growth, a higher in­ter­est rate environment and a lower fed­eral in­come tax rate, as the main con­trib­u­tors to the year-to-date net in­come in­crease of $356,000.

Net in­ter­est in­come was $9,327,000 for the three months ended June 30, 2018, com­pared to $9,117,000 for the prior quar­ter and $8,455,000 for the same pe­riod last year. The in­crease is at­trib­ut­able to the growth of the in­vest­ment port­fo­lio, com­bined with the pos­i­tive im­pact of re­cent FOMC rate hikes on earn­ing as­sets. As a re­sult, the Com­pany’s net in­ter­est mar­gin for the three months ended June 30, 2018 in­creased to 3.83 per­cent, com­pared to 3.80 per­cent for the prior quar­ter, and 3.74 per­cent for the same pe­riod last year.

Non-in­ter­est in­come for the three months ended June 30, 2018 to­taled $1,011,000, com­pared to $1,332,000 dur­ing the prior quar­ter, and $2,036,000 for the same pe­riod last year.

Non-in­ter­est ex­pense for the three months ended June 30, 2018 to­taled $6,905,000, com­pared to $6,732,000 dur­ing the prior quar­ter, and $6,076,000 for the same pe­riod last year. These in­creases com­pared to prior pe­ri­ods cor­re­spond to staffing in­creases par­tially re­lated to the Com­pany’s up­com­ing Sacra­mento ex­pan­sion, as well as, de­posit and loan ser­vic­ing costs as­so­ci­ated with the grow­ing cus­tomer base. Ad­di­tion­ally, the Com­pany rec­og­nized the ex­pense from the re­main­ing con­trac­tual lease obli­ga­tion on a branch premises that was va­cated and re­lo­cated dur­ing the sec­ond quar­ter.

To­tal as­sets were $1.07 bil­lion as of June 30, 2018, an in­crease of $16.8 mil­lion over March 31, 2018 and $49.1 mil­lion over June 30, 2017. Gross loans were $654.6 mil­lion as of June 30, 2018, an in­crease of $6.2 mil­lion over March 31, 2018, and an in­crease of $30.8 mil­lion over June 30, 2017.

“We are pleased to re­port another quar­ter of strong core op­er­at­ing re­sults. Net in­ter­est in­come con­tin­ues to in­crease and drive prof­itabil­ity,” stated Chris Court­ney, Pres­i­dent and CEO. “Mov­ing to the sec­ond half of the year, we are ex­cited about our ex­pan­sion into Sacra­mento and the up­com­ing open­ing of our new Capi­tol Mall Branch. We are proud of the re­la­tion­ship team we have as­sem­bled for the mar­ket, and the re­sponse from the busi­ness com­mu­nity has been ex­tremely pos­i­tive.”

The Board of Di­rec­tors of Oak Val­ley Ban­corp at their July 17, 2018 meet­ing, de­clared the pay­ment of a cash div­i­dend of $0.13 per share of com­mon stock to its share­hold­ers of record at the close of busi­ness on July 30, 2018. The pay­ment date will be Aug. 10and will amount to ap­prox­i­mately $1,064,000. This is the sec­ond div­i­dend pay­ment made by the Com­pany in 2018.

Oak Val­ley Ban­corp op­er­ates Oak Val­ley Com­mu­nity Bank & East­ern Sierra Com­mu­nity Bank, through which it of­fers a va­ri­ety of loan and de­posit prod­ucts to in­di­vid­u­als and small busi­nesses. They cur­rently op­er­ate through 16 branches: Oak­dale, Tur­lock, Stock­ton, Patterson, Ripon, Escalon, Man­teca, Tracy, two branches in Sonora, three branches in Modesto, a loan pro­duc­tion of­fice (LPO) in Downtown Sacra­mento, and three branches in their East­ern Sierra divi­sion, which in­cludes Bridge­port, Mam­moth Lakes and Bishop. The Com­pany has an­nounced plans to el­e­vate its LPO in Sacra­mento to a full-ser­vice branch in Au­gust 2018.

For more in­for­ma­tion, call 1-866-844-7500 or visit www.ovcb.com.

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