0001437749-26-009757
SEC filingOak Valley Bancorp (OVLY) reported solid performance in FY 2025, with total assets reaching $2.02B, up 6.4% from $1.90B in 2024. Deposits grew 5.7% to $1.79B from $1.70B, while net loans increased 3.3% to $1.13B from $1.09B. Net interest income rose 6.5% to $74.6M from $70.0M, driven by earning asset growth including interest and fees on loans at $58.3M and interest on securities at $21.4M. Total non-interest income increased 8.5% to $7.1M, supported by earnings on cash surrender value of life insurance at $1.2M. Non-interest expense climbed to $50.3M from $46.0M due to staffing and operating costs for growth. Net income was $23.9M, down from $24.9M in 2024, with diluted EPS at $2.88 versus $3.02 prior year. Provision for credit losses was $805K versus a $1.62M reversal in 2024. Cash from operations was $28.7M, with net cash increase of $63.4M. Shareholders' equity stood at $208.0M. Management focuses on loan and deposit growth amid moderating interest rates, emphasizing relationship-based expansion in Central Valley and Eastern Sierras.
Oak Valley Bancorp delivered balanced growth in FY 2025, with total assets at $2.02B, a 6.4% increase from $1.90B at year-end 2024. Deposits expanded 5.7% to $1.79B from $1.70B, funding net loan growth of 3.3% to $1.13B from $1.09B. Net interest income improved 6.5% to $74.6M from $70.0M, bolstered by higher interest income of $87.9M. Non-interest income rose 8.5% to $7.1M, while non-interest expense increased to $50.3M from $46.0M due to support for expanded operations. Net income totaled $23.9M, a decline from $24.9M in 2024, reflecting a $805K provision for credit losses versus a $1.62M reversal prior year. Diluted EPS was $2.88, down from $3.02. Non-performing loans to total loans ratio was 0.40% versus 0.00% in 2024.
As a single operating segment community bank, revenue primarily stems from net interest income of $74.6M, up 6.5% YoY, driven by interest and fees on loans ($58.3M), securities ($21.4M), federal funds sold ($1.3M), and deposits with banks ($6.8M), totaling $87.9M interest income. Interest expense on deposits was $13.3M. Non-interest income contributed $7.1M, including $1.2M from life insurance earnings and $2.4M other, up 8.5% from $6.56M. Growth concentrated in Central Valley (99% loans, 90% deposits), with 19 branches. No geographic or product segment breakdowns beyond real estate loans at 91% of portfolio.
Net interest income after provision was $73.8M. Pre-tax income reached $30.6M, with tax provision $6.7M yielding net $23.9M. Non-interest expense rose to $50.3M, including salaries $30.8M (61%), occupancy $4.7M, data processing $3.0M, assessments $1.1M, and other $10.5M, up from $46.0M due to staffing for growth. No explicit gross or operating margins disclosed, but efficiency reflected in controlled provision amid 3.3% loan growth.
Operating cash flow was $28.7M, driven by $23.9M net income and adjustments like $1.4M depreciation. Investing used $57.2M, including $37.3M net loan increase and $59.4M securities purchases. Financing provided $92.0M from $75.6M demand/savings and $21.7M time deposits, offset by $5.0M dividends. Net cash rose $63.4M to $216.6M equivalents (note: XBRL shows $232.2M cash equivalents on BS). Balance sheet: Assets $2.02B, loans net $1.13B (allowance $12.4M), securities AFS $543.5M, deposits $1.79B, equity $208.0M.
Management plans continued loan and deposit growth to support net interest margin amid Fed funds rate cuts in 2024-2025 and flat deposit rates in 2026. Focus on relationship-based expansion via branches/loan offices in Central Valley/Eastern Sierras. Risks include interest rate sensitivity (asset-sensitive balance sheet), CRE concentration (91% loans), economic conditions, credit losses, and competition. 2026 emphasizes expense control and low credit losses.