The California bank holding company reported lower quarterly profit as expenses rose and non-interest income fell, while loan growth, a 4.15% net interest margin and lower non-performing assets helped support results.
Oak Valley Bancorp reported unaudited second-quarter 2026 net income of $5,114,000, or $0.61 per diluted share, down from $5,309,000, or $0.64, in the prior quarter and $5,588,000, or $0.67, a year earlier. For the first six months of 2026, net income totaled $10,423,000, or $1.25 per diluted share, compared with $10,885,000, or $1.31, in the same period of 2025. The company said the quarterly decline mainly reflected higher non-interest expense and lower non-interest income, partly offset by higher net interest income and a lower provision for credit losses. Net interest income rose to $18,944,000 in the quarter, with net interest margin at 4.15%, helped by loan growth and higher loan yield. Gross loans reached $1.17 billion at June 30, 2026, while total assets were $2.00 billion and deposits were $1.76 billion. Non-performing assets fell to $2,631,000 from $4,574,000 at March 31, 2026 after a $1,735,000 charge-off on a collateral-dependent loan and the transfer of the remaining $2,581,000 to OREO (other real estate owned). President and Chief Executive Officer Rick McCarty said the results reflected customer growth, disciplined balance sheet management and a steady margin. The board also declared a cash dividend of $0.375 per common share, payable August 14, 2026, to shareholders of record on August 3, 2026, totaling about $3,155,000.