Oak Valley Bancorp (OVLY): history, ownership, mission, how it works & makes money

A Brief History of Oak Valley Bancorp (OVLY)

Foundation and Early Years

Oak Valley Bancorp was established in 1990 and is headquartered in Oakdale, California. The company operates as a bank holding company for Oak Valley Community Bank, offering a range of financial services. In 1990, it opened its first branch, marking the beginning of its commitment to community banking.

Growth and Expansion

Throughout the 1990s and 2000s, Oak Valley Bancorp expanded its branch network to meet the growing demand in the Central Valley region of California.

• 1993: 1st branch opened in Oakdale
• 2004: Acquisition of local bank in Turlock
• 2006: Expansion into Modesto and surrounding areas
• 2010: New branches opened in Riverbank and Escalon

Public Offering

In 2007, Oak Valley Bancorp went public, trading on the NASDAQ under the ticker symbol "OVLY". This move provided the bank with additional capital for growth and investments.

At the time of the IPO, the company raised approximately $10 million in the offering.

Financial Performance

As of the end of 2022, Oak Valley Bancorp reported the following key financial metrics:

Recent Developments

In 2021, Oak Valley Bancorp announced a strategic partnership with various digital banking platforms to enhance customer experience and create more efficient banking services.

In 2023, the bank reported that its loan portfolio had grown by 6%, reflecting a strong demand for residential and commercial loans in the Central Valley.

Community Engagement and CSR

Oak Valley Bancorp is also known for its community engagement initiatives. The bank dedicated over $300,000 in 2022 to various local charities and community projects.

• Educational programs: $100,000
• Local health initiatives: $150,000
• Environmental sustainability projects: $50,000

Conclusion of Financial Data

In summary, Oak Valley Bancorp has demonstrated significant growth over the years, both in terms of assets and community involvement. The bank aims to continue its expansion while maintaining a strong presence in the regions it serves.

A Who Owns Oak Valley Bancorp (OVLY)

Ownership Structure

The ownership structure of Oak Valley Bancorp (Ticker: OVLY) is divided among institutional investors, individual shareholders, and company insiders. The following table details the ownership distribution as of the latest available data.

Institutional Investors

Institutional investors play a significant role in the ownership of Oak Valley Bancorp. Key institutional shareholders include:

• BlackRock, Inc. - Owns approximately 8.5% of the company with around 220,000 shares.
• Vanguard Group, Inc. - Holds about 7.1% with an estimated 185,000 shares.
• Renaissance Technologies LLC - Owns around 5.6%, totaling about 147,000 shares.
• Dimensional Fund Advisors LP - Possesses approximately 4.9%, equating to around 127,000 shares.

Insider Ownership

Insider ownership is critical for understanding the alignment of interests between management and shareholders. The notable insiders include:

• Charles A. O'Reilly (CEO) - Owns 4.2% of the company with about 110,000 shares.
• Steven P. Sutherland (CFO) - Holds 2.1% of the company, estimated at 55,000 shares.
• Board Members - Collectively own around 18.6%, which includes various board members and their direct family holdings.

Share Price Performance

The share price of Oak Valley Bancorp has seen fluctuations over the past year. As of the latest trading day in October 2023, the share price stands at:

Recent Financials

The financial performance of Oak Valley Bancorp is critical for investors. The following table summarizes key financial metrics from the most recent quarterly report:

Market Context

The market context in which Oak Valley Bancorp operates is characterized by specific regional economic factors. The bank primarily services the California region, with a significant focus on small to medium-sized businesses and individual accounts.

Key competitors in the area include:

• Tri Counties Bank
• Westamerica Bank
• Hanmi Bank
• First California Bank

As of October 2023, the overall banking sector in California is experiencing modest growth, with an increase in demand for both commercial and consumer loans.

Oak Valley Bancorp (OVLY) Mission Statement

Overview

Oak Valley Bancorp is committed to maintaining a strong focus on delivering personalized banking solutions that meet the diverse needs of their community. The mission statement encapsulates their dedication to superior customer service, community involvement, and financial stability.

Core Values

• Integrity: Upholding the highest standards of honesty and accountability.
• Customer Focus: Prioritizing the needs of customers in every decision.
• Community Commitment: Investing in the local community through active participation and support.
• Excellence: Striving for excellence in all aspects of operations.

Current Financial Performance

As of Q3 2023, Oak Valley Bancorp reported total assets amounting to $1.3 billion. Furthermore, the company’s net income for the same period was approximately $10.5 million, reflecting a strong performance compared to the previous year.

Community Engagement

Oak Valley Bancorp actively participates in community initiatives, supporting local events and charities. They allocate approximately $150,000 annually towards various community development programs.

Strategic Goals

• Expand Digital Banking: Enhance online and mobile banking services to improve customer experience.
• Increase Local Branch Presence: Open two additional branches by the end of 2024.
• Enhance Customer Relationships: Implement customer relationship management (CRM) systems to better serve clients.

Recent Developments

In 2023, Oak Valley Bancorp launched a new financial literacy program aimed at educating community members about personal finance and investment strategies. This initiative has already impacted over 1,000 participants since its inception.

Conclusion of Mission Statement Analysis

The mission statement of Oak Valley Bancorp not only reflects their operational goals but also illustrates their commitment to the community, emphasizing integrity, customer service, and financial performance.

How Oak Valley Bancorp (OVLY) Works

Company Overview

Oak Valley Bancorp, headquartered in Oakdale, California, operates as the bank holding company for Oak Valley Community Bank. The bank provides various financial services, focusing on commercial and retail banking. As of Q3 2023, the total assets of the company were approximately $1.2 billion.

Financial Performance

For the fiscal year ending December 31, 2022, Oak Valley Bancorp reported the following financial metrics:

Banking Services Offered

• Commercial Banking
• Consumer Banking
• Real Estate Lending
• Small Business Loans
• Personal Checking and Savings Accounts
• Online Banking Services

Market Position and Strategy

As of Q3 2023, Oak Valley Bancorp has positioned itself as a community-focused bank with an emphasis on local market engagement. They have expanded their footprint with six branch locations throughout California, primarily in the Central Valley.

Recent Developments

In October 2023, Oak Valley Bancorp announced the launch of a new mobile banking application aimed at enhancing user experience and accessibility for customers.

Stock Performance

As of October 2023, Oak Valley Bancorp (OVLY) traded at approximately $21.25 per share. The stock has experienced a 12% increase year-to-date, highlighting investor confidence in the bank's performance and strategic initiatives.

Regulatory Environment

Oak Valley Bancorp operates under regulations imposed by the Federal Reserve and the California Department of Financial Protection and Innovation. Compliance with these regulations is vital for maintaining its banking charter and operational integrity.

Risk Management and Compliance

The bank employs a comprehensive risk management framework that includes credit risk assessment, market risk analysis, and operational risk management. As of Q3 2023, the non-performing loans ratio stood at 0.45%, indicating strong credit quality.

Community Engagement

Oak Valley Bancorp is committed to community engagement, contributing over $300,000 in donations to local charities and organizations in 2022.

Future Outlook

The bank anticipates continued growth in assets and deposits, projecting an annual growth rate of 8-10% for the next three years, fueled by its strategic focus and resilient local economy.

How Oak Valley Bancorp (OVLY) Makes Money

Interest Income

Oak Valley Bancorp primarily generates revenue through interest income from loans and investment securities. For the year ended December 31, 2022, the bank reported a total interest income of approximately $40.0 million.

Loan Portfolio

The loan portfolio is a significant contributor to the bank's income. As of the end of 2022, Oak Valley Bancorp's total loans amounted to approximately $460.0 million, with key categories including:

• Commercial loans: $230.0 million
• Residential real estate loans: $150.0 million
• Consumer loans: $80.0 million

The average yield on loans was approximately 4.50%.

Investment Securities

Oak Valley Bancorp also invests in securities that provide additional interest income. As of December 31, 2022, the bank held investment securities totaling $150.0 million with an average yield of 2.50%.

Non-Interest Income

In addition to interest income, Oak Valley Bancorp generates income through non-interest sources, which amounted to approximately $10.0 million in 2022. Key components include:

• Service charges on deposit accounts: $3.0 million
• ATM and interchange fees: $1.5 million
• Trust and investment advisory fees: $2.5 million
• Other non-interest income: $3.0 million

Expense Management

Effective management of operating expenses is crucial for profitability. For the year ended December 31, 2022, Oak Valley Bancorp had total non-interest expenses of approximately $30.0 million, broken down as follows:

Net Interest Margin

Net interest margin is a critical metric for Oak Valley Bancorp's performance. For the fiscal year 2022, the bank reported a net interest margin of approximately 3.25%.

Return on Assets and Equity

Key profitability ratios for Oak Valley Bancorp include:

• Return on Assets (ROA): 1.25%
• Return on Equity (ROE): 10.00%

Capital Position

As of the end of 2022, Oak Valley Bancorp maintained a solid capital position, with a total risk-based capital ratio of approximately 12.5%, which is above the regulatory minimum requirements.

Market Presence

Oak Valley Bancorp operates primarily in California, with a network of 13 branches. The bank's total assets as of December 31, 2022, were approximately $600.0 million.