For the three months ended Dec. 31, 2024, consolidated net income for Oak Valley Bancorp was $6,008,000 or $0.73 per diluted share (EPS), as compared to $7,324,000, or $0.89 EPS, for the prior quarter and $5,865,000, or $0.71 EPS for the same period a year ago. Oak Valley Bancorp, the bank holding company for Oak Valley Community Bank and its Eastern Sierra Community Bank division, recently reported the unaudited consolidated financial results.
Consolidated net income for the year ended Dec. 31, 2024, totaled $24,948,000, or $3.02 EPS, representing a decrease of 19.1 percent compared to $30,848,000, or $3.75 EPS for 2023. The decrease in QTD earnings compared to the prior quarter is related to loan recoveries which resulted in the reversal of credit loss provision of $1,620,000 recorded during the third quarter of 2024. The increase over the same period a year ago is related to a credit loss provision of $1,130,000 recorded during the fourth quarter of 2023, corresponding to macro-economic conditions and loan growth of $100.8 million during the fourth quarter of 2023. Despite the positive variance related to the reversal of credit loss provisions, 2024 YTD earnings decreased compared to 2023 due to an increase in deposit interest expense and general operating expenses.
“We are pleased to report another solid year of earnings and commend our team on their commitment to a culture of relationship banking built on a foundation of sound credit quality standards,” stated Chris Courtney, Chief Executive Officer.
The Board of Directors of Oak Valley Bancorp at their Jan. 21, 2025 meeting, declared the payment of a cash dividend of $0.30 per share of common stock to its shareholders of record at the close of business on Feb. 3, 2025. The payment date will be Feb. 14, 2025 and will amount to approximately $2,507,000. This is the first dividend payment made by the company in 2025.
Net interest income was $17,846,000 and $70,034,000 for the fourth quarter and year ended Dec. 31, 2024, respectively, compared to $17,655,000 during the prior quarter, $17,914,000 for the fourth quarter of 2023, and $75,802,000 for the year ended Dec. 31, 2023. The QTD increase compared to prior quarter is due to an increase of $39.6 million in average earning assets. The QTD and YTD decreases compared to 2023 is due to an increase in deposit interest expense.
Non-interest income for the fourth quarter and year ended Dec. 31, 2024, totaled $1,430,000 and $6,555,000, respectively, compared to $1,846,000 during the prior quarter, $1,755,000 for the fourth quarter of 2023, and $6,631,000 for the year ended Dec. 31, 2023. The QTD and YTD decreases from prior periods was primarily due to unrealized market value changes on equity securities.
Non-interest expense for the fourth quarter and year ended Dec. 31, 2024, totaled $11,548,000 and $46,017,000, respectively, compared to $11,324,000 during the prior quarter, $10,760,000 for the fourth quarter of 2023 and $41,157,000 for the year ended Dec. 31, 2023. The fourth quarter increases are related to audit, data processing, and consulting among other general operating expense increases. The year-to-date increase compared to 2023 corresponds to staffing expense and general operating costs, including advertising, audit and software licensing, related to servicing the loan and deposit portfolios. Total assets were $1.90 billion at Dec. 31, 2024, essentially flat compared to Sept. 30, 2024, and an increase of $58.2 million over Dec. 31, 2023.
Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, 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.
