Oak Valley Community Bank strengthens Central Valley presence with new branch

TAGS

Oak Valley Community Bank, a wholly owned subsidiary of , is expanding its footprint in with the launch of a new full-service branch in downtown Lodi. The expansion, which has received regulatory approval, marks a significant step in the bank’s long-term strategy to enhance accessibility for customers in California’s Central Valley.

The upcoming branch, set to open in mid-2025 at 31 South School Street, will provide a comprehensive range of personal and commercial banking services. The office will feature traditional banking facilities, including a walk-up ATM and night deposit service, along with dedicated spaces for commercial lending and administrative operations.

Rick McCarty, President and Chief Operating Officer of Oak Valley Bancorp, underscored the importance of this expansion in reinforcing the bank’s community banking expansion strategy. “This new location will not only enhance convenience for our existing customers but also introduce our relationship-based banking approach to new clients in northern San Joaquin County,” McCarty stated.

With this addition, Oak Valley Bancorp will operate 19 full-service branches across California, solidifying its presence in the region. The Lodi branch will become the bank’s sixth location in San Joaquin County, reinforcing its commitment to serving both individuals and businesses in growing communities.

See also  Gladstone Investment acquires rugged instruments maker Nielsen-Kellerman

How Did Oak Valley Bancorp Perform in Q4 2024?

In addition to its community banking expansion, Oak Valley Bancorp has reported its financial performance report for the fourth quarter of 2024, reflecting steady growth despite rising operational costs. The company’s indicate strong loan growth, stable credit quality, and a strategic approach to .

For the three months ending December 31, 2024, Oak Valley Bancorp recorded a net income of $6.01 million, translating to $0.73 per diluted share. While this figure represents a decline from the $7.32 million reported in the previous quarter, it marks a slight increase from the $5.87 million posted during the same period in 2023.

Annual earnings for 2024 totaled $24.95 million, or $3.02 per share, reflecting a 19.1% year-over-year decline from the $30.85 million earned in 2023. The decrease was primarily driven by higher deposit interest expenses and increased general operating costs, despite solid loan portfolio growth.

What Are the Key Financial Metrics Driving Oak Valley Bancorp’s Growth?

  • Net interest income rose to $17.85 million in Q4 2024, a slight increase from $17.66 million in the previous quarter.
  • Total assets reached $1.90 billion as of December 31, 2024, reflecting a $58.2 million increase from the previous year.
  • Gross loans expanded to $1.11 billion, showing a $90.0 million year-over-year growth.
  • Total deposits climbed to $1.70 billion, marking a $45.2 million increase over December 31, 2023.
See also  Galileo Financial Technologies to be acquired by SoFi for $1.2bn

Despite an increase in net interest income, the bank’s net interest margin declined slightly due to rising deposit interest costs. The net interest margin stood at 4.00% in Q4 2024 and 4.07% for the full year, compared to 4.33% in 2023.

How Is Oak Valley Bancorp Managing Credit Risk?

Maintaining strong credit quality remains a cornerstone of Oak Valley Bancorp’s financial strategy. The allowance for credit losses (ACL) as a percentage of gross loans decreased to 1.04% as of December 31, 2024, down from 1.07% in Q3 2024.

Chris Courtney, CEO of Oak Valley Bancorp, emphasized the bank’s disciplined approach. “We continue to prioritize sound credit quality standards, ensuring that our financial stability remains strong even in a fluctuating economic environment,” Courtney stated.

Despite industry-wide concerns over commercial real estate loans, Oak Valley Bancorp has maintained zero non-performing assets (NPA) throughout 2024 and 2023. A thorough internal analysis concluded that the bank’s credit reserves remain at acceptable levels, reinforcing risk mitigation strategies that align with market trends.

See also  Duravant acquires electronic fruit and vegetable sorters manufacturer WECO

What Does the Recent Dividend Announcement Mean for Shareholders?

As part of its commitment to delivering shareholder value, Oak Valley Bancorp has declared a cash dividend of $0.30 per share, payable on February 14, 2025, to shareholders of record as of February 3, 2025. The dividend payout, totaling approximately $2.51 million, signals the bank’s confidence in its long-term financial stability despite the challenges of rising interest expenses.

What’s Next for Oak Valley Bancorp?

With a strong financial performance report and a growing community banking expansion strategy, Oak Valley Bancorp is poised for sustained growth in 2025. The upcoming Lodi branch reflects the bank’s customer-centric approach, focusing on personalized banking services and enhanced financial accessibility.

As Oak Valley Bancorp continues to navigate evolving market conditions, its strategic investments in branch expansion, loan portfolio growth, and credit risk management are expected to drive its success in the coming years.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

CATEGORIES
TAGS
Share This