Oak Valley Bancorp

For the period ended Sep 30, 2024. Filed Nov 13, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Nov 13, 2024

OVLY$34.68+1.0%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements

PART II – OTHER INFORMATION
Condensed Consolidated Balance Sheets at September 30, 2024 (Unaudited) and December 31, 2023	1
Condensed Consolidated Statements of Income for the three and nine-month periods ended September 30, 2024 and September 30, 2023 (Unaudited)	2
Condensed Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2024 and September 30, 2023 (Unaudited)	3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine-month periods ended September 30, 2024 and September 30, 2023 (Unaudited)	4
Condensed Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2024 and September 30, 2023 (Unaudited)	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44

PART I–** FINANCIAL STATEMENTS**

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)	September 30,	December 31,
	2024	2023
ASSETS
Cash and due from banks	$166,237	$180,068
Federal funds sold	47,670	36,500
Cash and cash equivalents	213,907	216,568
Securities - available for sale	517,332	518,078
Securities - equity investments	3,274	3,132
Loans, net of allowance for credit losses of $11,479 and $10,896 at September 30, 2024 and December 31, 2023, respectively	1,062,230	1,004,277
Cash surrender value of life insurance	37,270	31,506
Bank premises and equipment, net	15,792	15,865
Goodwill and other intangible assets, net	3,411	3,473
Deferred tax asset	11,728	13,247
Interest receivable and other assets	35,511	36,276
	$1,900,455	$1,842,422
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$1,690,301	$1,650,534
Interest payable and other liabilities	24,761	25,796
Total liabilities	1,715,062	1,676,330
Shareholders’ equity
Common stock, no par value; 50,000,000 shares authorized, 8,358,711 and 8,293,168 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	25,435	25,435
Additional paid-in capital	6,001	5,512
Retained earnings	169,494	154,301
Accumulated other comprehensive loss, net of tax	(15,537)	(19,156)
Total shareholders’ equity	185,393	166,092
	$1,900,455	$1,842,422

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share amounts)	THREE MONTHS ENDED SEPTEMBER 30,		NINE MONTHS ENDED SEPTEMBER 30,
	2024	2023	2024	2023
INTEREST INCOME
Interest and fees on loans	$13,739	$11,489	$39,445	$32,907
Interest on securities	5,098	5,157	15,279	15,442
Interest on federal funds sold	392	335	1,118	910
Interest on deposits with banks	1,917	3,368	5,540	11,189
Total interest income	21,146	20,349	61,382	60,448
INTEREST EXPENSE
Deposits	3,491	1,411	9,194	2,559
Total interest expense	3,491	1,411	9,194	2,559
Net interest income	17,655	18,938	52,188	57,888
(Reversal of) provision for credit losses	(1,620)	300	(1,620)	(160)
Net interest income after (reversal of) provision for credit losses	19,275	18,638	53,808	58,048
NON-INTEREST INCOME
Service charges on deposits	437	488	1,255	1,365
Debit card transaction fee income	436	459	1,297	1,322
Earnings on cash surrender value of life insurance	287	196	764	578
Mortgage commissions	7	6	21	14
Gains on sales and calls of available-for-sale securities	0	13	114	156
Other	679	404	1,674	1,441
Total non-interest income	1,846	1,566	5,125	4,876
NON-INTEREST EXPENSE
Salaries and employee benefits	7,177	6,505	21,700	19,280
Occupancy expenses	1,137	1,149	3,432	3,467
Data processing fees	659	788	2,099	2,018
Regulatory assessments (FDIC & DFPI)	240	305	790	720
Other operating expenses	2,111	1,831	6,448	4,912
Total non-interest expense	11,324	10,578	34,469	30,397
Net income before provision for income taxes	9,797	9,626	24,464	32,527
Total provision for income taxes	2,473	2,272	5,524	7,544
Net Income	$7,324	$7,354	$18,940	$24,983
Net income per share	$0.89	$0.90	$2.30	$3.05
Net income per diluted share	$0.89	$0.89	$2.30	$3.04

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	THREE MONTHS ENDED SEPTEMBER 30,		NINE MONTHS ENDED SEPTEMBER 30,
(dollars in thousands)	2024	2023	2024	2023
Net income	$7,324	$7,354	$18,940	$24,983
Other comprehensive income (loss)
Unrealized holding gain (loss) arising during the period	11,359	(25,756)	5,252	(18,910)
Less: reclassification for net gains included in net income	0	(13)	(114)	(156)
Other comprehensive income (loss), before tax	11,359	(25,769)	5,138	(19,066)
Tax (expense) benefit related to items of other comprehensive income	(3,358)	7,618	(1,519)	5,636
Total other comprehensive income (loss)	8,001	(18,151)	3,619	(13,430)
Comprehensive income (loss)	$15,325	$(10,797)	$22,559	$11,553

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’** EQUITY (UNAUDITED)**

Accumulated
Additional · Other · Total
Common Stock · Paid-in · Retained · Comprehensive · Shareholders'
(dollars in thousands)	Shares	Amount	Capital	Earnings	Income (Loss)	Equity
Balances, July 1, 2024	8,359,556	$25,435	$5,851	$164,051	$(23,538)	$171,799
Restricted stock issued	1,500	0	0	0	0	0
Restricted stock forfeited	(450)	0	0	0	0	0
Restricted stock surrendered for tax withholding	(1,895)	0	(51)	0	0	(51)
Cash dividends declared $0.225 per share of common stock	0	0	0	(1,881)	0	(1,881)
Stock based compensation	0	0	201	0	0	201
Other comprehensive gain	0	0	0	0	8,001	8,001
Net income	0	0	0	7,324	0	7,324
Balances, September 30, 2024	8,358,711	$25,435	$6,001	$169,494	$(15,537)	$185,393
Balances, July 1, 2023	8,281,661	25,435	$5,286	$142,407	$(26,006)	$147,122
Restricted stock issued	13,250	0	0	0	0	0
Restricted stock surrendered for tax withholding	(1,443)	0	(36)	0	0	(36)
Cash dividends declared $0.16 per share of common stock	0	0	0	(1,325)	0	(1,325)
Stock based compensation	0	0	131	0	0	131
Other comprehensive loss	0	0	0	0	(18,151)	(18,151)
Net income	0	0	0	7,354	0	7,354
Balances, September 30, 2023	8,293,468	$25,435	$5,381	$148,436	$(44,157)	$135,095

Accumulated
Additional · Other · Total
Common Stock · Paid-in · Retained · Comprehensive · Shareholders'
(dollars in thousands)	Shares	Amount	Capital	Earnings	Income (Loss)	Equity
Balances, January 1, 2024	8,293,168	$25,435	$5,512	$154,301	$(19,156)	$166,092
Restricted stock issued	72,269	0	0	0	0	0
Restricted stock forfeited	(450)	0	0	0	0	0
Restricted stock surrendered for tax withholding	(6,276)	0	(158)	0	0	(158)
Cash dividends declared $0.45 per share of common stock	0	0	0	(3,747)	0	(3,747)
Stock based compensation	0	0	647	0	0	647
Other comprehensive gain	0	0	0	0	3,619	3,619
Net income	0	0	0	18,940	0	18,940
Balances, September 30, 2024	8,358,711	$25,435	$6,001	$169,494	$(15,537)	$185,393
Balances, January 1, 2023	8,257,894	$25,435	$5,190	$126,728	$(30,727)	$126,626
Restricted stock issued	43,446	0	0	0	0	0
Restricted stock surrendered for tax withholding	(7,872)	0	(211)	0	0	(211)
Cash dividends declared $0.32 per share of common stock	0	0	0	(2,646)	0	(2,646)
Stock based compensation	0	0	402	0	0	402
Other comprehensive loss	0	0	0	0	(13,430)	(13,430)
CECL adoption adjustments	0	0	0	(629)	0	(629)
Net income	0	0	0	24,983	0	24,983
Balances, September 30, 2023	8,293,468	$25,435	$5,381	$148,436	$(44,157)	$135,095

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)	NINE MONTHS ENDED SEPTEMBER 30,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$18,940	$24,983
Adjustments to reconcile net income to net cash provided by operating activities:
Reversal of provision for credit losses	(1,620)	(160)
Decrease in deferred fees/costs, net	23	37
Depreciation	984	1,003
Amortization of investment securities, net	606	858
Unrealized (gain) loss on equity securities	(60)	141
Amortization of operating lease right-of-use asset	(170)	(173)
Stock based compensation	647	402
Gain on sales and calls of available-for-sale securities	(114)	(156)
Earnings on cash surrender value of life insurance	(764)	(578)
Decrease (increase) in deferred tax asset	1,519	(5,901)
Increase in interest payable and other liabilities	2,696	6,179
Decrease in interest receivable	301	299
Increase in other assets	(1,607)	(2,397)
Net cash provided by operating activities	21,381	24,537
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(63,683)	(40,660)
Purchases of equity securities	(83)	(74)
Proceeds from the sale of available-for-sale securities	28,258	43,791
Proceeds from maturities, calls, and principal paydowns of available-for-sale-securities	40,818	19,614
Investment in LIHTC	(2,618)	0
Net increase in loans	(56,356)	(55,401)
Purchase of FHLB Stock	(329)	(720)
Purchase of BOLI policies	(5,000)	(500)
Purchases of premises and equipment	(911)	(1,641)
Net cash used in investing activities	(59,904)	(35,591)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder cash dividends paid	(3,747)	(2,646)
Net increase (decrease) in demand deposits and savings accounts	9,140	(153,910)
Net increase in time deposits	30,627	6,161
Tax withholding payments on vested restricted shares surrendered	(158)	(211)
Net cash provided by (used in) in financing activities	35,862	(150,606)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,661)	(161,660)
CASH AND CASH EQUIVALENTS, beginning of period	216,568	429,633
CASH AND CASH EQUIVALENTS, end of period	$213,907	$267,973
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$9,134	$2,557
Operating leases	$1,121	$1,142
Income taxes	$3,835	$0
NON-CASH INVESTING ACTIVITIES:
Change in unrealized gain (loss) on securities	$5,138	$(19,066)
Right-of-use asset obtained in exchange for new operating lease liability	$(1,113)	$(390)

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.