The bank holding company for Oak Valley Community Bank and its Eastern Sierra Community Bank division, Oak Valley Bancorp, recently reported unaudited consolidated financial results. For the three months ended June 30, 2025, consolidated net income was $5,588,000, or $0.67 per diluted share (EPS), as compared to $5,297,000, or $0.64 EPS, for the prior quarter and $5,889,000, or $0.71 EPS, for the same period a year ago. Consolidated net income for the six months ended June 30, 2025 was $10,885,000, or $1.31 EPS, compared to $11,616,000 or $1.41 EPS for the same period of 2024.
The increase in second quarter net income compared to the prior quarter was the result of loan growth, a rise in the yield of the loan portfolio, and the corresponding increase in interest income. The QTD and YTD decreases compared to the same periods of 2024 were related to an increase in deposit interest expense and general operating expenses.
Net interest income for the three months ended June 30, 2025 was $18,154,000, compared to $17,807,000 in the prior quarter, and $17,292,000 in the same period a year ago. The increase in net interest income over the prior periods is attributed to an increase in average earning asset balances and loan yields. Gross loans grew by $18,903,000 and $39,820,000 during the second quarter and prior 12 months, respectively, while loans yields continue to trend upward. The cost of funds increased throughout 2024, but began to decline during the first six months of 2025, ending at 0.77 percent during the second quarter of 2025, as compared to 0.79 percent for the prior quarter, and 0.73 percent for the same period of 2024. Net interest margin for the three months ended June 30, 2025 was 4.11 percent, compared to 4.09 percent for the prior quarter and 4.11 percent for the same period last year.
“Our solid earnings results reflect our steady and cautious approach to managing our business. The increase in net interest income due to loan growth and stable interest margins demonstrates our ability to navigate changing market conditions. Our commitment to relationship-based deposit growth remains strong, enabling us to maintain a competitive lending strategy and manage profitability,” stated Rick McCarty, President and Chief Operating Officer.
Non-interest income was $1,703,000 for the three months ended June 30, 2025, compared to $1,613,000 for the prior quarter and $1,760,000 for the same period last year. The increase over the prior period was mainly due to fair value adjustments on a limited partner equity investment and increased production from the investment advisory service and related fee income. The decrease compared to the same period a year ago was the result of the same investment advisory service fee income. Non-interest expense totaled $12,688,000 for the three months ended June 30, 2025, compared to $12,624,000 in the prior quarter and $11,616,000 in the same quarter a year ago. The increases compared to prior periods are due to general operating costs related to servicing the growing loan and deposit portfolios.
Total assets were $1.92 billion at June 30, 2025, a decrease of $3.5 million from March 31, 2025 and an increase of $80.4 million over June 30, 2024. Gross loans were $1.11 billion at June 30, 2025, an increase of $18.9 million over March 31, 2025 and $39.8 million over June 30, 2024. The Company’s total deposits were $1.71 billion as of June 30, 2025, a decrease of $2.4 million from March 31, 2025 and an increase of $66.5 million over June 30, 2024. The liquidity position remains strong, as evidenced by $198.9 million in cash and cash equivalents balances at June 30, 2025.
“We are pleased with the continued expansion of our loan portfolio and the overall strength of our balance sheet. While deposits declined marginally from the previous quarter, our year-over-year deposit trajectory remains on an upward trend,” stated Chris Courtney, CEO. “Our growth is a testament to the unwavering dedication and collaboration of our team members. Their commitment to providing outstanding service to our clients has been instrumental in driving our steady growth and ability to exceed client expectations.”
The Board of Directors of Oak Valley Bancorp at their July 15, 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 July 28, 2025. The payment date will be Aug. 8, 2025 and will amount to approximately $2,515,000. This is the second dividend payment made by the Company in 2025.
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. The company will open its 19th branch location later this year in Lodi.
For more information, call 1-866-844-7500 or visit www.ovcb.com.
