OAKDALE, CA -- (Marketwired) -- 04/18/14

Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, recently reported consolidated financial results. For the three months ended March 31, 2014 consolidated net income available to common shareholders was $1,408,000, or $0.18 per diluted common share. This compared to consolidated net income of $1,300,000 and net income available to common shareholders of $1,232,000, or $0.16 per diluted common share for the same period a year ago.

Total assets were $687.6 million at March 31, 2014, an increase of $39.2 million, or 6.0%, over March 31, 2013. Gross loans increased by $32.5 million to $422.5 million as of March 31, 2014, an increase of 8.3% over March 31, 2013. The Bank's total deposits were $616.0 million as of March 31, 2014, an increase of $35.8 million, or 6.2% over March 31, 2013.

Net interest income for the three months ended March 31, 2014 was $6.1 million, an increase of $255,000, or 4.4% over net interest income of $5.8 million for the same period last year. The net interest margin for the three months ended March 31, 2014 was 4.04%, compared to 4.05% for the same period last year.

"We are pleased to report another strong quarter of earnings and are excited about the momentum we've maintained with regard to lending activity following the strong finish in 2013. Our confidence in the growth potential and future opportunities in the communities we serve grows stronger every day," stated Chris Courtney, President and CEO.

Non-interest expense for the quarter ended March 31, 2014 totaled $4.9 million, an increase of $242,000 or 5.2% over the same period of 2013. This was due in part to a modest increase in salaries and benefits, as full time equivalent staffing rose from 134 employees to 142, as of March 31, 2014 compared to March 31, 2013, as we added staff to support continued deposit and loan growth. Deposit servicing costs related to year-over-year increases in deposit accounts and corresponding transaction volume also contributed to the increase in non-interest expense. Non-interest income increased by $25,000 or 3.2% during the first quarter as compared to prior year, primarily due to service charge income from the increased volume of deposit accounts.

As of March 31, 2014 non-performing assets were $6.2 million or 0.90% of total assets, compared to $6.4 million or 0.99% of total assets as of March 31, 2013. There was no provision for loan losses during the three months ended March 31, 2014, compared to $100,000 during the same period last year. The allowance for loan losses totaled 1.80% of gross loans at March 31, 2014 compared to 1.99% at March 31, 2013.

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.

For more information, please call 1-866-844-7500 or visit www.ovcb.com.

This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the corporation's possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

                             Oak Valley Bancorp
                      Financial Highlights (unaudited)

($ in thousands,
 except per
 share)
Selected             1st         4th         3rd         2nd         1st
 Quarterly         Quarter     Quarter     Quarter     Quarter     Quarter
 Operating Data:    2014        2013        2013        2013        2013

  Net interest
   income        $    6,104  $    6,372  $    6,030  $    6,024  $    5,849
  Provision for
   loan losses            -           -         100         100         100
  Non-interest
   income               810         812         866         818         785
  Non-interest
   expense            4,881       4,668       4,619       4,734       4,639
  Net income
   before income
   taxes              2,033       2,516       2,177       2,008       1,895
  Provision for
   income taxes         625         809         672         634         595
                 ----------  ----------  ----------  ----------  ----------
  Net income          1,408       1,707       1,505       1,374       1,300
  Preferred
   stock
   dividends              -           -           -           -          68
                 ----------  ----------  ----------  ----------  ----------
  Net income
   available to
   common
   shareholders  $    1,408  $    1,707  $    1,505  $    1,374  $    1,232
                 ==========  ==========  ==========  ==========  ==========

  Earnings per
   common share
   - basic       $     0.18  $     0.22  $     0.19  $     0.18  $     0.16
  Earnings per
   common share
   - diluted     $     0.18  $     0.22  $     0.19  $     0.18  $     0.16
  Dividends paid
   per common
   share         $     0.10  $        -           -           -           -
  Return on
   average
   common equity       8.59%      10.47%       9.45%       8.48%       7.82%
  Return on
   average
   assets              0.84%       1.01%       0.92%       0.86%       0.81%
  Net interest
   margin (1)          4.04%       4.19%       4.12%       4.18%       4.05%
  Efficiency
   ratio (2)          68.29%      63.05%      64.65%      67.17%      67.95%

Capital - Period
 End
  Book value per
   common share  $     8.40  $     8.14  $     7.99  $     8.01  $     8.10

Credit Quality -
 Period End
  Nonperforming
   assets/ total
   assets              0.90%       0.48%       0.68%       0.65%       0.99%
  Loan loss
   reserve/
   gross loans         1.80%       1.83%       1.85%       1.94%       1.99%

Period End
 Balance Sheet
($ in thousands)
  Total assets   $  687,591  $  671,853  $  659,192  $  644,230  $  648,418
  Gross loans       422,510     419,438     413,856     390,647     389,992
  Nonperforming
   assets             6,164       3,256       4,495       4,189       6,439
  Allowance for
   loan losses        7,615       7,659       7,669       7,570       7,743
  Deposits          615,997     602,633     591,642     577,129     580,215
  Common equity      67,824      64,517      63,379      63,457      64,098

Non-Financial
 Data
  Full-time
   equivalent
   staff                142         136         135         134         134
  Number of
   banking
   offices               14          14          14          14          14

Common Shares
 outstanding
  Period end      8,071,355   7,929,730   7,929,730   7,924,730   7,914,730
  Period average
   - basic        7,878,152   7,803,247   7,802,705   7,802,012   7,778,333
  Period average
   - diluted      7,941,456   7,859,380   7,851,157   7,842,964   7,830,439

Market Ratios
  Stock Price    $     9.41  $     8.37  $     7.96  $     7.67  $     8.14
  Price/Earnings      12.98        9.64       10.40       10.86       12.67
  Price/Book           1.12        1.03        1.00        0.96        1.01

(1) Ratio computed on a fully tax equivalent basis using a marginal federal
 tax rate of 34%.
(2) Ratio computed on a fully tax equivalent basis using a marginal federal
 tax rate of 34%, and a marginal federal/state combined tax rate of 41.15%
 for applicable revenue.

Contact:
Chris Courtney/Rick McCarty
Phone: (209) 848-2265
www.ovcb.com