Oak Valley Bancorp (OVLY) investor relations material

Executive summary

• Q3 net income was $6.450 million, or $0.77 diluted EPS, versus $5.114 million and $0.61 in Q2, but below Q3 2025’s $6.693 million and $0.81.

• Q3 results improved QoQ on higher net interest and non-interest income and lower expenses; 9M net income fell YoY, mainly on higher expenses.

• 9M net income was $16.873 million versus $17.578 million; higher operating expenses were the primary drag.

• Net interest income grew in Q3 and 9M on earning-asset growth and higher loan yields; credit quality was described as stable.

Financial highlights

• Q3 net interest income was $19.802 million, up $605,000 YoY; 9M was $57.570 million, up $2.412 million.

• Q3 non-interest income was $1.851 million, up from $1.665 million QoQ and down from $1.973 million YoY; prior-year income included a one-time life insurance redemption gain.

• Q3 non-interest expense was $13.420 million, down from $14.157 million QoQ and up 5.7% YoY; 9M expense rose 9.6% to $41.083 million, largely on staffing and growth costs.

• Total assets were $1.976 billion; net loans were $1.141 billion, up 1.0% since Dec. 31, 2025, and deposits were $1.763 billion, down 1.7%.

• Gross loans fell $11.660 million QoQ but rose $41.226 million YoY; deposits were essentially unchanged QoQ and down $12.299 million YoY.

Key financial ratios and metrics

• Q3 net interest margin was 4.24% versus 4.15% in Q2 and 4.16% in Q3 2025; 9M margin was 4.17% versus 4.12%.

• Q3 return on average assets was 1.28% and return on average common equity was 12.16%; 9M figures were 1.13% and 10.72%, versus 1.22% and 12.71% in 2025.

• Average cost of funds was 0.80% in Q3 and 9M 2026, versus 0.75% and 0.77% in the comparable 2025 periods.

• Q3 efficiency ratio was 60.15%; 9M ratio was 63.15% versus 60.17% in 2025.

• Bank capital ratios at Sept. 30, 2026: total capital 16.47%, Tier 1 and CET1 15.68%, and Tier 1 leverage 11.51%; qualified as well capitalized.