Oak Valley Bancorp announced its unaudited consolidated financial results for the third quarter ended September 30, 2024. Consolidated net income for the quarter was $7,324,000, or $0.89 per diluted share, an increase from $5,889,000, or $0.71 EPS, in the prior quarter. This increase was primarily driven by loan recoveries that resulted in a $1,620,000 reversal of allowance for credit losses.
Net interest income for the third quarter of 2024 stood at $17,655,000, an increase from $17,292,000 in the previous quarter, attributed to earning asset growth and a 3 basis point increase in the average earning asset yield. However, the net interest margin for the quarter was 4.04%, a decrease from 4.11% in the prior quarter and 4.34% in the same period a year ago, due to increased deposit interest expense.
The company maintained strong asset quality, reporting zero non-performing assets as of September 30, 2024. Gross loans increased by $5.1 million over the prior quarter to $1.08 billion, and total deposits grew by $45.6 million to $1.69 billion. The allowance for credit losses as a percentage of gross loans increased to 1.07%, reflecting macro-economic forecasts and other credit-risk factors.
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