Oak Valley Bancorp has announced its financial results for the third quarter of 2026, showcasing a robust performance that highlights the bank's operational strength. The results, released on October 21, 2026, reveal a significant increase in net income, which is likely to bolster investor confidence in the company's future prospects.
For the three months ending September 30, 2026, Oak Valley Bancorp reported a consolidated net income of $6.45 million, or $0.77 per diluted share. This marks an increase from $5.11 million, or $0.61 per share, in the previous quarter. However, it represents a slight decline compared to $6.69 million, or $0.81 per share, for the same period last year. The bank's year-to-date net income for the first nine months of 2026 totaled $16.87 million, or $2.02 per share, down from $17.58 million, or $2.12 per share, in 2025.
The increase in net income for the third quarter compared to the previous quarter was attributed to a rise in net interest income, a reduction in non-interest expenses, and an uptick in non-interest income. Specifically, net interest income for the quarter was $19.80 million, up from $18.94 million in the prior quarter and $19.20 million a year ago. The net interest margin also improved to 4.24%, compared to 4.15% in the previous quarter.
Non-interest income rose to $1.85 million for the quarter, compared to $1.67 million in the prior quarter, driven by increased debit card transaction fees and dividends from the Federal Home Loan Bank. However, this figure is lower than the $1.97 million reported for the same quarter last year, primarily due to a one-time gain from a life insurance policy redemption recorded in 2025.
Non-interest expenses decreased to $13.42 million from $14.16 million in the prior quarter, reflecting a one-time benefit expense recorded previously. However, this is an increase compared to $12.70 million in the same quarter last year, attributed to staffing and operational costs associated with the bank's growth.
Rick McCarty, President and Chief Executive Officer of Oak Valley Bancorp, expressed satisfaction with the third-quarter results, emphasizing the strength of the bank's core banking franchise and the disciplined approach to balance sheet management. He stated, "We are pleased with our third-quarter operating results, highlighted by stronger net interest income and expanded net interest margin. These results reflect the strength of our core banking franchise and our team’s disciplined approach to balance sheet management."
As of September 30, 2026, Oak Valley Bancorp reported total assets of $1.98 billion, a decrease of $25.40 million from June 30, 2026, and $19.24 million from September 30, 2025. Gross loans stood at $1.15 billion, down $11.66 million from the previous quarter but up $41.23 million year-over-year. Total deposits were $1.76 billion, essentially unchanged from the previous quarter but down $12.30 million from the same period last year. The bank's liquidity position remains strong, with cash and cash equivalents totaling $179.67 million as of September 30, 2026.
This financial update from Oak Valley Bancorp is significant for the state commercial banking sector, where the bank competes with various regional institutions. The strong results may influence investor sentiment and highlight the bank's ability to navigate a challenging economic landscape effectively. Moving forward, stakeholders will be keen to see how the bank continues to manage its growth and operational efficiency in the coming quarters.