$0.61 per diluted share is what Oak Valley Bancorp (NASDAQ: OVLY) posted for the three months ended June 30, 2026, per an 8-K filed July 22, 2026. Net income totaled $5,114,000, down from $0.64 in Q1 2026 and $0.67 in Q2 2025. A 13.8% year-over-year rise in non-interest expense, to $14,157,000, was the controlling drag, outrunning a 4-basis-point NIM expansion and $790,000 in incremental net interest income.
Five-quarter income summary
| Quarter | NII ($K) | Non-int income ($K) | Non-int expense ($K) | Net income ($K) | Diluted EPS |
|---|---|---|---|---|---|
| Q2 2026 | 18,944 | 1,665 | 14,157 | 5,114 | $0.61 |
| Q1 2026 | 18,824 | 1,952 | 13,506 | 5,309 | $0.64 |
| Q4 2025 | 19,457 | 1,825 | 12,262 | 6,335 | nr |
| Q3 2025 | 19,197 | 1,973 | 12,700 | 6,693 | nr |
| Q2 2025 | 18,154 | 1,703 | 12,443 | 5,588 | $0.67 |
nr: not reported in this filing.
Margin and loan growth
Net interest margin was 4.15% in Q2 2026, 3 basis points above Q1 2026 and 4 basis points above Q2 2025. Average earning assets grew 4.0% year-over-year. Gross loans reached $1.17 billion at June 30, 2026, gaining $18,264,000 in the quarter and $55,859,000 over the trailing twelve months.
Non-interest income fell to $1,665,000 from $1,952,000 in Q1 2026. The sequential drop reflects the absence of a $181,000 Federal Home Loan Bank special dividend that landed in Q1, plus adverse fair value changes in a limited partnership investment. Against Q2 2025, the line fell $38,000.
The derived efficiency ratio for Q2 2026 comes to 68.7%: $14,157,000 in non-interest expense divided by combined NII and non-interest income of $20,609,000. One year earlier the same calculation yielded 62.7% ($12,443,000 against $19,857,000). That is a 600-basis-point deterioration in twelve months.
Balance sheet and credit quality
Total assets reached $2.00 billion at June 30, 2026, up $80,669,000 year-over-year but down $8,721,000 from March 31, 2026. Total deposits were $1.76 billion, adding $52,310,000 year-over-year while contracting $17,445,000 in the quarter. Cash and cash equivalents were $194,803,000.
Non-performing assets fell to $2,631,000, or 0.13% of total assets, from $4,574,000 (0.23%) at March 31, 2026. One collateral-dependent loan drove the move: a $1,735,000 charge-off hit the income statement in Q2 and the remaining $2,581,000 was transferred to other real estate owned. That single event pulled the allowance for credit losses as a percentage of gross loans to 0.96% from 1.13% at March 31, 2026, and from 1.03% at June 30, 2025. The Q2 provision for credit losses was $21,000.
For the first half of 2026, consolidated net income was $10,423,000 ($1.25 EPS), against $10,885,000 ($1.31 EPS) in H1 2025. The board on July 21, 2026, declared a $0.375 per share cash dividend payable August 14, 2026, to shareholders of record August 3, 2026, totaling approximately $3,155,000.