Oak Valley Bancorp (NASDAQ: OVLY) (the “Company”), the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division, recently reported unaudited consolidated financial results. For the three months ended June 30, 2022, consolidated net income was $4,258,000, or $0.52 per diluted share (EPS), as compared to $2,369,000, or $0.29 EPS, for the prior quarter and $3,960,000, or $0.48 EPS, for the same period a year ago. Consolidated net income for the six months ended June 30, 2022 was $6,627,000, or $0.81 EPS, compared to $8,316,000 or $1.02 EPS for the same period of 2021. The increase in second quarter net income compared to the prior quarters was due to an increase in net interest income driven by strong growth in loan and investment portfolios, combined with higher yields on earning assets. The decrease in year-to-date results is attributable to a reduction in Paycheck Protection Program (“PPP”) loan interest and fee income from $4,793,000 in 2021 to $749,000 in 2022.
Net interest income for the three months ended June 30, 2022 was $13,233,000, compared to $10,958,000 in the prior quarter, and $11,988,000 in the same period a year ago. The increase over the prior quarters is attributable to $48.9 million and $152.3 million in loan and investment portfolio growth, respectively, during the second quarter. Additionally, the recent FOMC rate hikes have increased yields on all earning assets, while cost of funds have remained at historic lows. These increases were offset in part by the decrease in PPP loan interest and fees, as outstanding balances have been paid down to $9.5 million as of June 30, 2022, a year-over-year reduction of $141.9 million due to SBA forgiveness payments.
Oak Valley Bancorp operates Oak Valley Community Bank & their 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 17 branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, 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 received regulatory approval to open a new office in Roseville, which is currently operating as a Loan Production Office and is expected to open as a full-service branch in the second half of the year.
For more information, call 1-866-844-7500 or visit www.ovcb.com.
The Board of Directors of Oak Valley Bancorp at the July 19, 2022 meeting declared the payment of a cash dividend of $0.15 per share of common stock to its shareholders of record at the close of business on Aug. 1, 2022. The payment date will be Aug.12, 2022 and will amount to approximately $1,238,000. This is the second dividend payment made by the Company in 2022.