•
Jun 30, 2022

Oak Valley Q2 2022 Earnings Report

Reported solid results driven by loan and investment portfolio growth and higher yields.

Key Takeaways

Oak Valley Bancorp reported a net income of $4,258,000, or $0.52 per diluted share, for the second quarter of 2022, compared to $3,960,000, or $0.48 EPS, for the same period a year ago. The increase in net income was primarily due to strong growth in loan and investment portfolios, combined with higher yields on earning assets.

Net income increased to $4,258,000, or $0.52 EPS.

Net interest income rose to $13,233,000 due to loan and investment portfolio growth.

Total assets reached $1.99 billion, marking an increase of $45.2 million over the prior quarter.

Non-performing assets remained at zero.

Total Revenue
$14.6M
Previous year: $13.4M
+9.0%
EPS
$0.52
Previous year: $0.48
+8.3%
Net Interest Margin
2.98%
Previous year: 3.09%
-3.6%
Gross Profit
$14.6M
Cash and Equivalents
$500M
Previous year: $526M
-4.9%
Free Cash Flow
$4.16M
Previous year: $1.93M
+115.7%
Total Assets
$1.99B
Previous year: $1.76B
+12.8%

Oak Valley

Oak Valley

Forward Guidance

The company did not provide specific forward guidance but expressed optimism about maintaining core loan growth and surpassing the $2.0 billion asset mark.

Positive Outlook

  • Continued core loan growth.
  • Potential to surpass $2.0 billion in assets.
  • Relationship banking business model.
  • Strategy of deploying excess cash into investments and loans.
  • Yield curve had steepened, providing a substantial boost to our net interest margin

Challenges Ahead

  • Fluctuations in interest rates.
  • Government policies and regulations.
  • Economic conditions, including increased energy costs in California.
  • Credit quality of borrowers.
  • Competition in the geographic and business areas.