EL7.AI
StocksMedium•23 October 2026•
3 min read

Oak Valley Bancorp posts $6.45 million profit as net interest margin widens to 4.24%

Key Facts

1Net income was $6.45 million and diluted earnings per share were $0.77 in the third quarter of 2026.
2Net interest margin rose to 4.24%, from 4.15% in the previous quarter and 4.16% a year earlier.
3Assets were $1.98 billion, gross loans were $1.15 billion and deposits were $1.76 billion on September 30, 2026.

Oak Valley Bancorp reported on October 21 unaudited results for the quarter ended September 30, 2026, posting net income of $6.45 million and diluted earnings of $0.77 per share. Net income was $6.693 million and diluted earnings per share were $0.81 in the year-earlier period in 2025. The figures show a contrast between improvement from the second quarter and a decline from year-earlier levels. In the market, OVLY closed at $34.25 on October 22, compared with a close of $33.24 on October 21.

Net interest income was the main driver of operational improvement, reaching $19.802 million in the third quarter. The company said the income rose from the previous quarter and the same period last year, attributing the increase to growth in average earning assets and higher yields on them. Net interest margin widened to 4.24%, from 4.15% in the previous quarter and 4.16% a year earlier. Chief Executive Rick McCarty said the results featured "stronger interest income and a wider net interest margin." He added that performance reflected the strength of core banking activity and discipline in balance sheet management, according to the company’s statement.

The bank recorded $1.851 million in noninterest income during the quarter. The company attributed the quarterly increase to debit card transaction fees and distributions from the Federal Home Loan Bank. It said the year-over-year decline in this item was tied to a one-time gain in the year-earlier period in 2025, when a life insurance policy was surrendered. Noninterest expenses fell to $13.420 million from the previous quarter, but remained above year-earlier levels. The company attributed the annual increase in expenses to employee and operating costs associated with growth and branch network expansion.

The company said the third-quarter increase in net income from the previous quarter was mainly driven by higher net interest income, lower noninterest expenses and increased noninterest income. The comparison highlights the improvement in the latest quarter, although the cumulative result for the nine months remained below the previous year. The statement did not specify a date for the next earnings announcement.

Oak Valley Bancorp had total assets of about $1.98 billion on September 30, 2026, down $25.404 million from June 30 and $19.242 million from September 30, 2025. Gross loans totaled $1.15 billion, while deposits reached $1.76 billion. These figures put the decline in assets alongside the size of the loan and deposit portfolios at quarter-end. Available share data show a close of $34.25 on October 22, after $33.24 in the previous session; the statement does not include the day’s trading range.