OAKDALE − Oak Valley Community Bank and Eastern Sierra Community Bank’s net income for 2011 totaled $5.9 million compared to $4.6 million for 2010.
After adjustment for preferred stock dividends and accretion, net income available to common shareholders was $4.7 million, or $0.61 per diluted share, compared to net income of $3.8 million, or $0.49 per diluted common share, in 2010. This represents a 24% increase in net income available to common shareholders and marks record earnings for Oak Valley Bancorp.
Total assets grew to $612.4 million as of Dec. 31, 2011, which was an increase of $60 million, or 10.9% over the prior year. Deposits increased to $536.2 million, which was an increase of $59.5 million, or 12.5% over the prior year. Gross loans at year end totaled $396.2 million, reflecting a decrease of $8.0 million, or 2.0%, from December 31, 2010.
“We are pleased to report the results of another successful year. In a year which included our 20 year anniversary and the opening of two new branches, operational growth remained strong. Asset growth driven by core deposits continues to positively impact earnings,” stated Ron Martin, CEO.
Loan loss reserves as a percentage of gross loans increased to 2.17% at Dec. 31, 2011 compared to 2.04% at Dec. 31, 2010. The increased reserve ratio was realized even with a lower annual provision of $1.5 million in 2011, down from $4.0 million in 2010.
Oak Valley continues to experience solid reductions in non-performing assets. Non-performing assets totaled $7.5 million, or 1.22% of total assets at Dec. 31, 2011, compared to $12.3 million, or 2.22% of total assets, at Dec. 31, 2010.
Non-interest expense of $17.4 million for the year ended December 31, 2011, increased $618,000, or 3.7%, from the prior year. This was partially the result of expansion and staffing related expenses associated with opening the new Modesto and Manteca offices.
The Company currently operates through 14 branches in Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop.