Monitor net interest margin and expense trends in upcoming quarters—while credit quality remains stable, declining profitability and rising costs may pressure valuation. The stock’s P/E expansion to 12.4x despite lower earnings suggests limited near-term upside without margin recovery.
Price Chart
Executive Summary
Oak Valley Bancorp (OVLY) reported Q1 2026 earnings with net income of $5.31M ($0.64 EPS), down from the prior quarter but up slightly year-over-year. Revenue declined due to lower net interest income, while non-interest expenses rose, leading to a narrower net interest margin. The stock reacted to declining profitability despite stable asset quality.
Key Financial Metrics
Key Facts
- Q1 2026 EPS was $0.64, down from $0.77 in the prior quarter and flat YoY ($0.64)
- Net interest income decreased to $18.82M from $19.46M in Q4 2025, though up from $17.81M YoY
- Non-interest expense increased to $13.51M from $12.26M in the prior quarter
- Net interest margin was 4.12%, down from 4.14% in Q4 2025
- Non-performing assets rose to $4.6M (0.23% of total assets) due to one loan placed on non-accrual
- Provision for credit losses was $464K, down from $865K in prior quarter
- Total assets decreased to $2.01B from $2.02B in Q4 2025
Financial Impact
EPS declined 17% sequentially; net interest income down $633K; operating expenses up $1.24M
Risk Factors
- Sustained pressure on net interest margin from deposit pricing and lower earning asset yields
- Rising non-interest expenses outpacing revenue growth
- Potential for further credit deterioration if macro conditions worsen in California
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3279453 |
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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