Oak Valley Bancorp (NASDAQ: OVLY) has reported unaudited financial results for the three and nine months ended September 30, 2026. For the third quarter of 2026, the company reported consolidated net income of $6.45 million, or $0.77 per diluted share. This represents an increase compared to the prior quarter, which saw net income of $5.11 million, or $0.61 per diluted share. However, year-over-year, net income decreased from $6.69 million, or $0.81 per diluted share, reported for the same period in 2025.
The company attributes the increase in third-quarter earnings to a rise in net interest income, a decrease in non-interest expenses, and an increase in non-interest income. Net interest income for the quarter was $19.80 million, compared to $18.94 million in the prior quarter and $19.20 million in the same period last year. This growth was driven by an increase in average earning assets and a rise in the yield on those assets. The net interest margin for the third quarter was 4.24%.
Non-interest income for the quarter totaled $1.85 million, compared to $1.67 million in the prior quarter. The increase was driven by higher debit card transaction fee income and dividends received from the Federal Home Loan Bank. Non-interest expenses decreased to $13.42 million from $14.16 million in the prior quarter, largely due to a one-time benefit expense recorded during the prior quarter related to accelerated vesting of restricted stock awards.
As of September 30, 2026, Oak Valley Bancorp reported total assets of $1.98 billion, a decrease from $2.00 billion at the end of the second quarter. Gross loans stood at $1.15 billion, an increase from $1.17 billion in the prior quarter but up from $1.11 billion a year ago. Total deposits were $1.76 billion, essentially flat from the prior quarter but down from $1.77 billion in the prior year.
The company’s credit quality metrics remained stable. Non-performing assets totaled $2.58 million, or 0.13% of total assets. The allowance for credit losses was $11.21 million, or 0.97% of gross loans. The company recorded a provision for credit losses of $42,000 during the third quarter.
Oak Valley Bancorp operates through Oak Valley Community Bank and its Eastern Sierra Community Bank division, serving customers through 19 branches across California.
