Oak Valley Bancorp, the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended June 30, 2016, consolidated net income was $1,904,000, or $0.24 per diluted common share, compared to $1,509,000, or $0.19 per diluted common share, for the prior quarter and $1,510,000, or $0.19 per diluted common share for the same period a year ago. The increase compared to prior periods is mainly due to accretion of fair value discounts on loans acquired from Mother Lode Bank.
Net interest income was $8,106,000 for the three months ended June 30, 2016, compared to $7,542,000 for the prior quarter and $6,200,000 for the same period last year. The increase is the result of strong organic loan growth over the past 12 months combined with the acquisition of Mother Lode Bank. The Company’s net interest margin for the three months ended June 30, 2016 was 4.03 percent, compared to 3.76 percent for the prior quarter, and 3.70 percent for the same period last year. The increase in net interest margin is mainly attributable to the loan discount accretion. In addition, strong loan demand has allowed Oak Valley Bancorp to deploy low-yielding cash balances into higher yielding commercial loans and investment securities.
Concurrent with the earnings announcement, the Board of Directors of Oak Valley Bancorp declared the payment of a cash dividend of $0.12 per share of common stock to its shareholders of record at the close of business on Aug. 1, 2016. In aggregate, the distribution will amount to approximately $971,000. The payment date will be Aug. 11, 2016. This is the second dividend payment made by the Company in 2016.
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 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, two branches in Sonora, three branches in Modesto, and three branches in the Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes and Bishop.