Oak Valley Bancorp Q1 Net Income Falls 16% to $5.3M, NIM at 4.12%
Oak Valley Bancorp posted Q1 net income of $5.3M ($0.64 EPS), down from $6.3M ($0.77) in Q4 and flat year-over-year. Net interest income declined to $18.8M, net interest margin slipped to 4.12%, while non-interest income rose 7% and credit loss provision dropped to $464K.
1. Q1 Earnings Overview
Oak Valley Bancorp reported consolidated net income of $5.309 million ($0.64 EPS) for Q1 2026, down from $6.335 million ($0.77) in Q4 2025 and flat year-over-year versus $5.297 million. The decline versus the prior quarter reflected higher operating expenses and reduced net interest income.
2. Net Interest Performance
Net interest income fell to $18.824 million from $19.457 million in Q4, driven by lower yields on cash balances, reduced earning assets and higher deposit costs. Net interest margin narrowed to 4.12% from 4.14% last quarter, though it remained above 4% year-over-year.
3. Non-Interest Items and Expenses
Non-interest income rose 7% quarter-over-quarter to $1.952 million, propelled by a $181,000 special dividend from the Federal Home Loan Bank. Non-interest expense climbed to $13.506 million, driven by staffing increases and operating costs tied to expanded loan and deposit portfolios.
4. Balance Sheet and Credit Quality
Total assets stood at $2.01 billion, gross loans at $1.15 billion and deposits at $1.78 billion on March 31, 2026. Non-performing assets totaled $4.6 million (0.23% of assets) with a provision for credit losses of $464,000 and an allowance for credit losses at 1.13% of loans.