Oak Valley Bancorp Reports Q3 Net Income of $6.7 Million, Down from $7.3 Million Last Year

Oak Valley Bancorp reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a net income of $6.7 million for the quarter, down from $7.3 million in the same period last year. For the nine-month period, net income was $17.6 million, compared to $18.9 million in 2024. The decrease in profitability was attributed primarily to increased operating expenses, despite a rise in net interest income, which grew by $1.5 million and $3 million for the three and nine-month periods, respectively. The company’s net interest income reached $19.2 million for the quarter and $55.2 million year-to-date, driven by higher earning asset balances.

Total assets for Oak Valley Bancorp increased by 5% to $1.995 billion as of September 30, 2025, compared to $1.901 billion at the end of 2024. The growth was supported by a 4.7% rise in total deposits, which reached $1.775 billion, and a slight increase in net loans, which rose to $1.100 billion. The company’s cash and cash equivalents also saw a significant increase of 46.5%, totaling $247.2 million, reflecting a strong liquidity position. The allowance for credit losses decreased slightly to $11.4 million, representing 1.03% of total loans, indicating stable credit quality.

In terms of operational developments, Oak Valley Bancorp has focused on enhancing its service offerings and expanding its customer base. The bank has seen an increase in service charges on deposits, which rose by 6.9% for the quarter, primarily due to growth in consumer demand deposit accounts. However, debit card transaction fee income declined, reflecting increased costs associated with debit card networks. The company also reported a one-time gain from a life insurance policy redemption, contributing to the increase in non-interest income, which totaled $2 million for the quarter.

Looking ahead, Oak Valley Bancorp remains optimistic about its growth trajectory, although management acknowledges the potential challenges posed by economic conditions and rising operational costs. The company plans to continue monitoring its credit risk and maintaining adequate capital levels to support its lending activities. With a strong capital position, as evidenced by a total capital ratio of 16.1%, Oak Valley Bancorp is well-positioned to navigate the evolving financial landscape while pursuing its strategic objectives.