Oak Valley Bancorp reported a total asset increase of 3.2% to approximately $1.90 billion as of December 31, 2024, compared to $1.84 billion in the previous year. The bank's total deposits rose by 2.7% to $1.70 billion, up from $1.65 billion in 2023. However, net income decreased to $24.9 million, or $3.02 per diluted share, down from $30.8 million, or $3.75 per diluted share, in 2023. This decline in profitability was primarily attributed to a decrease in net interest income, which fell by 7.6% to $70 million, largely due to rising interest rates on deposit accounts.
In terms of operational developments, Oak Valley Bancorp's loan portfolio grew by 8.9% to $1.11 billion, with significant increases in commercial real estate loans and commercial and industrial loans. The bank maintained a strong credit quality, with a non-performing loans ratio of 0.00% for both 2024 and 2023. The allowance for credit losses increased to $11.46 million, representing 1.04% of total loans, reflecting the bank's proactive approach to managing credit risk amid changing economic conditions.
Strategically, Oak Valley Bancorp has expanded its branch network to 18 full-service locations across California, with plans for further growth in response to market demand. The bank's focus on relationship-based banking has been a key driver of its loan and deposit growth. Additionally, the bank has implemented a new fee structure for non-sufficient funds (NSF) that has impacted non-interest income, which decreased slightly to $6.56 million in 2024.
Looking ahead, Oak Valley Bancorp anticipates continued challenges in managing net interest income due to competitive pressures on deposit rates and potential economic fluctuations. The bank's management remains committed to controlling expenses and credit losses while pursuing growth opportunities in its existing markets. The outlook for 2025 includes a focus on expanding the loan and deposit portfolios to mitigate the impact of rising interest rates on profitability.
About Oak Valley Bancorp
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