Oak Valley Bancorp (OVLY) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $5.31 million, nearly flat year-over-year but down from $6.34 million in the prior quarter, driven by higher operating expenses and lower net interest income; growth in earning assets and loan yields supported results.

• Total assets decreased by $12.8 million (0.6%) to $2.01 billion from December 31, 2025 to March 31, 2026.

• Net loans increased by $3.1 million (0.3%), and investment securities rose by $11.5 million (2.1%) over the same period.

• Deposits declined by $12.0 million (0.7%), and cash/cash equivalents fell by $30.6 million (13.2%) sequentially, with liquidity position at $201.6 million.

• Management emphasizes a strong balance sheet and stable performance across core business lines.

Financial highlights

• Net interest income for Q1 2026 was $18.82 million, up from $17.81 million a year ago but down from $19.46 million in Q4 2025, with a net interest margin of 4.12%.

• Provision for credit losses was $464,000, up from $274,000 in Q1 2025 but down from $865,000 in Q4 2025.

• Non-interest income increased to $2.0 million, mainly due to a non-recurring $181,000 FHLB dividend.

• Non-interest expense rose to $13.51 million, primarily from higher staffing and overhead.

• Book value per share increased to $24.50 at March 31, 2026.

Outlook and guidance

• Management expects non-interest expense to continue rising with business growth but remains committed to cost control and disciplined, conservative growth.

• Liquidity and capital resources are expected to be sufficient for at least the next twelve months.

• Forward-looking statements caution about risks from interest rates, regulations, economic conditions, and competition.