The sequential earnings recovery and NIM expansion are encouraging, but the YoY decline in net income and shrinking asset base warrant caution. Watch for loan growth trajectory and deposit trends in Q4 to confirm whether the Q3 improvement is sustainable.
Price Chart
Executive Summary
Oak Valley Bancorp reported Q3 2026 net income of $6.45M ($0.77 diluted EPS), up 26% sequentially from $5.11M ($0.61) but down 3.6% YoY from $6.69M ($0.81). Net interest margin expanded to 4.24% from 4.15% last quarter, and non-interest expense declined due to a one-time benefit in Q2. However, year-to-date net income fell 4% to $16.87M from $17.58M, total assets shrank 1.2% QoQ, and deposits declined YoY. The sequential improvement is positive, but the YoY earnings decline and shrinking balance sheet cap the bullish read.
Key Facts
- Q3 2026 net income $6.45M ($0.77 diluted EPS) vs $5.11M ($0.61) prior quarter and $6.69M ($0.81) year ago
- Net interest margin expanded to 4.24% from 4.15% QoQ and 4.16% YoY
- Non-interest expense fell to $13.42M from $14.16M prior quarter due to one-time benefit expense reversal
- Total assets decreased $25.4M QoQ to $1.98B; deposits essentially flat QoQ at $1.76B but down $12.3M YoY
- Gross loans declined $11.7M QoQ to $1.15B; NPA ratio stable at 0.13%
- YTD net income $16.87M ($2.02 diluted EPS) vs $17.58M ($2.12) for same period last year
- Book value per share fell to $22.70 from $25.80 at June 30 due to dividend and equity decline
Financial Impact
Q3 net income $6.45M; NIM 4.24%; ROAA 1.28%; efficiency ratio improved to 60.15% from 66.46%
Risk Factors
- YoY net income decline for both Q3 and YTD periods signals underlying earnings pressure
- Total assets and deposits shrinking YoY could constrain future lending capacity
- Book value per share dropped 12% QoQ to $22.70, partly due to dividend payments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-033387 |
| Document: ovly20261021_8k.htm | 0001437749-26-033387 |
| Document: 0001437749-26-033387-index-headers.html | 0001437749-26-033387 |
| Document: 0001437749-26-033387-index.html | 0001437749-26-033387 |
| Document: 0001437749-26-033387.txt | 0001437749-26-033387 |
| 8-K Data (Synthetic) | 0001437749-26-033387 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | 8-K | $33.81 | awaiting T+60 | — | $34.11 (+0.89%) |
Oct 21, 2026 4d ago | Press Release | $34.25 | awaiting T+60 | — | $34.11 (−0.41%) |
Jul 23, 2026 13w ago | 8-K | $32.26 $33.55 | ▼ −4.00% | ▲ +0.55% | $34.11 (−5.73%) |
Jul 22, 2026 13w ago | Press Release | $32.26 $33.55 | ▼ −4.00% | ▲ +0.55% | $34.11 (−5.73%) |
May 29, 2026 21w ago | Insider Cluster | $32.88 $34.07 | ▲ +3.62% | ▲ +2.39% | $34.11 (+3.74%) |
May 5, 2026 24w ago | Insider Cluster | $33.09 $33.41 | ▲ +0.97% | ▼ −1.77% | $34.11 (+3.08%) |
Apr 29, 2026 25w ago | Insider Cluster | $33.16 $32.61 | ▼ −1.66% | ▼ −5.77% | $34.11 (+2.86%) |
Apr 23, 2026 26w ago | 8-K | $33.99 $33.08 | ▲ +2.68% | ▲ +7.70% | $34.11 (−0.35%) |
Apr 22, 2026 26w ago | Press Release | $33.99 $33.08 | ▼ −2.68% | ▼ −7.70% | $34.11 (+0.35%) |
US Market Status
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