Oak Valley Bancorp (OVLY): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Ubicado en el corazón del valle central de California, Oak Valley Bancorp (Ovly) emerge como una institución financiera dinámica que trasciende los paradigmas bancarios tradicionales. Al elaborar meticulosamente un modelo de negocio que entrea en las necesidades de la comunidad local con servicios financieros sofisticados, el banco se ha posicionado como un catalizador económico fundamental para pequeñas empresas, empresas agrícolas y clientes individuales. Este lienzo de modelo comercial integral revela cómo Ovly aprovecha estratégicamente su experiencia regional, infraestructura tecnológica y un enfoque basado en relaciones para ofrecer soluciones bancarias personalizadas que van más allá de las meras transacciones financieras.

Oak Valley Bancorp (Ovly) - Modelo de negocio: asociaciones clave

Asociaciones comerciales locales en el centro de California

Oak Valley Bancorp mantiene asociaciones estratégicas con asociaciones comerciales locales en el condado de Stanislaus y el condado de San Joaquin, California.

Organización de asociación	Tipo de colaboración	Año establecido
Cámara de Comercio de Modesto	Soporte de redes comerciales	2015
Asociación de Desarrollo Económico de Stockton	Financiación de pequeñas empresas	2017

Redes agrícolas y agrícolas regionales

Oak Valley Bancorp se especializa en préstamos agrícolas con asociaciones específicas:

• Valle Central Cooperativa Agrícola
• Federación de la Oficina Agrícola de California
• Alianza agrícola de San Joaquín Valle

Organizaciones de inversión y desarrollo comunitario

Organización	Monto de la inversión	Área de enfoque
Fundación Comunitaria Central de California	$ 2.5 millones	Desarrollo económico local
Centro de desarrollo económico del valle	$ 1.8 millones	Soporte de pequeñas empresas

Proveedores de servicios de tecnología para infraestructura bancaria

Oak Valley Bancorp colabora con socios tecnológicos especializados:

• Jack Henry & Asociados (plataforma bancaria central)
• Fiserv (soluciones de banca digital)
• Symantec (Servicios de ciberseguridad)

Empresas intermediarias de hipotecas y préstamos

Empresa asociada	Volumen de préstamo	Duración de la asociación
Tasa garantizada	$ 45 millones	Desde 2019
Hipoteca de movimiento	$ 38 millones	Desde 2020

Oak Valley Bancorp (Ovly) - Modelo de negocio: actividades clave

Servicios bancarios comerciales y personales

A partir del cuarto trimestre de 2023, Oak Valley Bancorp informó activos totales de $ 1.48 mil millones. El banco ofrece servicios bancarios en 21 sucursales en California.

Categoría de servicio	Valor total (2023)	Segmentos de clientes
Banca comercial	$ 752 millones	Empresas pequeñas a medianas
Banca personal	$ 428 millones	Clientes individuales

Originación de préstamo y gestión de cartera

En 2023, la cartera de préstamos de Oak Valley Bancorp totalizó $ 1.12 mil millones.

• Préstamos comerciales totales: $ 672 millones
• Préstamos totales de consumo: $ 448 millones
• Volumen de origen del préstamo: $ 214 millones
• Margen de interés neto: 3.85%

Gestión de cuentas de depósito

Depósitos totales al 31 de diciembre de 2023: $ 1.32 mil millones.

Tipo de depósito	Saldo total	Porcentaje de depósitos totales
Cuentas corrientes	$ 487 millones	36.9%
Cuentas de ahorro	$ 412 millones	31.2%
Cuentas del mercado monetario	$ 278 millones	21.1%
Certificados de depósito	$ 143 millones	10.8%

Desarrollo de la plataforma de banca digital

Inversiones de banca digital en 2023: $ 3.2 millones.

• Usuarios de banca móvil: 42,500
• Transacciones bancarias en línea: 1.2 millones por trimestre
• Tiempo de actividad de la plataforma digital: 99.97%

Evaluación de riesgos y servicios de asesoramiento financiero

Presupuesto de gestión de riesgos para 2023: $ 5.6 millones.

Área de evaluación de riesgos	Asignación	Métricas clave
Gestión de riesgos de crédito	$ 2.3 millones	Relación de préstamos sin rendimiento: 0.72%
Cumplimiento y regulatorio	$ 1.8 millones	Cero violaciones regulatorias principales
Riesgo operativo	$ 1.5 millones	Efectividad de la mitigación de riesgos: 96%

Oak Valley Bancorp (Ovly) - Modelo de negocio: recursos clave

Strong Regional Banking Network en el Valle Central de California

A partir del cuarto trimestre de 2023, Oak Valley Bancorp opera 26 ramas de servicio completo en la región del Valle Central de California. Activos totales al 31 de diciembre de 2023: $ 2.54 mil millones.

Tipo de ubicación de rama	Número de ramas
Valle central	26
Condados principales atendidos	Stanislaus, San Joaquín, Merced

Equipo experimentado de gestión financiera

Liderazgo ejecutivo senior con experiencia bancaria promedio de 22 años.

Posición de liderazgo	Años de experiencia
CEO	28 años
director de Finanzas	19 años

Infraestructura avanzada de tecnología de banca digital

• Plataforma bancaria en línea con 98.7% de tiempo de actividad
• Aplicación de banca móvil con 45,000 usuarios activos
• Sistema de monitoreo de transacciones en tiempo real

Conocimiento del mercado local y relaciones con los clientes

Base de clientes: 87,500 cuentas personales y comerciales a diciembre de 2023.

Segmento de clientes	Número de cuentas
Banca personal	62,300
Banca de negocios	25,200

Sistemas de cumplimiento regulatorio robustos

Inversión de cumplimiento en 2023: $ 3.2 millones

• Cumplimiento completo de la FDIC
• SOC 2 Sistemas certificados tipo II
• Auditoría regulatoria de terceros

Oak Valley Bancorp (Ovly) - Modelo de negocio: propuestas de valor

Soluciones bancarias personalizadas para empresas e individuos locales

A partir del cuarto trimestre de 2023, Oak Valley Bancorp informó activos totales de $ 1.48 mil millones, con una cartera de préstamos específicamente adaptada a las necesidades del mercado local.

Categoría de productos	Volumen total	Tamaño promedio del préstamo
Préstamos comerciales	$ 612 millones	$275,000
Banca personal	$ 423 millones	$85,000
Préstamos agrícolas	$ 215 millones	$185,000

Tasas de interés competitivas para préstamos y depósitos

Oak Valley Bancorp ofrece tarifas competitivas en varios productos financieros:

• Cuentas de ahorro personal: 3.25% APY
• Comprobación de negocios: tasa de interés del 2.75%
• Préstamos inmobiliarios comerciales: a partir del 6.50%
• Préstamos para pequeñas empresas: tasa promedio de 7.25%

Enfoque de servicio al cliente basado en relaciones

Tasa de retención de clientes a partir de 2023: 87.3%, con una duración promedio de la relación con el cliente de 8.6 años.

Toma de decisiones locales y procesamiento rápido de préstamos

Tiempo promedio de aprobación del préstamo: 3.2 días hábiles, significativamente más rápido que los promedios del banco nacional.

Tipo de préstamo	Tiempo de aprobación	Tasa de aprobación
Préstamos para pequeñas empresas	2.7 días	76%
Préstamos personales	3.5 días	82%
Préstamos agrícolas	4.1 días	68%

Apoyo financiero centrado en la comunidad

Inversión comunitaria en 2023: $ 12.3 millones en iniciativas de desarrollo económico local.

• Subvenciones de negocios locales: $ 3.6 millones
• Soporte de infraestructura comunitaria: $ 4.7 millones
• Programas de becas educativas: $ 1.2 millones
• Financiación de la organización sin fines de lucro: $ 2.8 millones

Oak Valley Bancorp (Ovly) - Modelo de negocios: relaciones con los clientes

Interacciones bancarias personales cara a cara

Oak Valley Bancorp mantiene 16 ubicaciones de sucursales en California a partir de 2023, lo que permite interacciones bancarias personales directas. Personal promedio de la sucursal por ubicación: 6-8 empleados.

Tipo de rama	Número de ubicaciones	Interacciones diarias promedio de clientes
Ramas minoristas	16	45-60 clientes por rama

Plataformas de banca en línea y móvil

Las plataformas de banca digital admiten métricas clave de participación del cliente:

• Descargas de aplicaciones de banca móvil: 42,500 a partir del cuarto trimestre 2023
• Usuarios activos de banca en línea: 31,200
• Volumen de transacciones digitales: 1.2 millones de transacciones mensuales

Gerentes de relaciones dedicadas para clientes comerciales

Composición especializada del equipo de banca comercial:

Segmento de equipo	Número de gerentes de relaciones	Cartera promedio de clientes
Banca comercial	22	38-45 clientes comerciales por gerente

Patrocinios y compromiso de eventos comunitarios

Métricas de inversión comunitaria para 2023:

• Patrocinios de eventos comunitarios totales: 47
• Inversión de eventos locales: $ 285,000
• Asociaciones sin fines de lucro: 19

Estrategias proactivas de comunicación del cliente

Rendimiento del canal de comunicación:

Canal de comunicación	Puntos de contacto anuales	Tasa de participación del cliente
Boletines por correo electrónico	124,000	Tasa de apertura del 37.5%
Correo directo	86,500	22.3% de tasa de respuesta
Notificaciones de SMS	214,000	52.7% de compromiso

Oak Valley Bancorp (Ovly) - Modelo de negocio: canales

Red de sucursales físicas en el centro de California

A partir de 2024, Oak Valley Bancorp opera 26 ubicaciones de ramas físicas Principalmente concentrado en el centro de California. Distribución de rama específica:

Condado de Tulare	7 ramas
Condado de Fresno	9 ramas
Condado de kern	5 ramas
Condado de Kings	5 ramas

Sitio web de banca en línea

La plataforma bancaria en línea de Oak Valley Bancorp es compatible con:

• Gestión de cuentas
• Historial de transacciones
• Servicios de pago de facturas
• Transferencias de fondos

87.3% de los clientes utilizan activamente los servicios bancarios en línea en 2024.

Aplicación de banca móvil

Las características de la aplicación móvil incluyen:

• Depósito de cheque móvil
• Alertas de cuenta en tiempo real
• Controles de tarjetas
• Pagos de pares

Descargas de aplicaciones móviles: 42,500 Usuarios activos en 2024.

Centro de llamadas de servicio al cliente

Personal total del centro de llamadas	38 representantes
Tiempo de respuesta promedio	2.7 minutos
Volumen de llamadas diarias	Aproximadamente 475 llamadas

Network atm y asociaciones de terceros

Estadísticas de red de cajeros automáticos:

• Cajeros automáticos de propiedad: 19 máquinas
• Asociaciones de cajeros automáticos de terceros: 87 ubicaciones
• Volumen mensual de transacción de cajeros automáticos: 52,300 transacciones

Oak Valley Bancorp (Ovly) - Modelo de negocio: segmentos de clientes

Empresas pequeñas a medianas en el centro de California

A partir del cuarto trimestre de 2023, Oak Valley Bancorp sirve aproximadamente 2.750 empresas pequeñas a medianas en el centro de California.

Segmento de negocios	Número de clientes	Tamaño promedio del préstamo
Negocios minoristas	890	$325,000
Proveedores de servicios	675	$275,000
Fabricación	425	$450,000
Servicios profesionales	760	$285,000

Empresas agrícolas y agrícolas

En 2023, Oak Valley Bancorp mantuvo 1,235 relaciones agrícolas con los clientes con una cartera total de préstamos agrícolas de $ 287.4 millones.

• Clientes de cultivo de cultivos: 625
• Operaciones ganaderas: 310
• Servicios de soporte de agronegocios: 300

Solicitantes de hipotecas residenciales locales

Al 31 de diciembre de 2023, la cartera de hipotecas residenciales totalizaba $ 512.6 millones con 2,980 clientes hipotecarios activos.

Tipo de hipoteca	Total de clientes	Monto promedio del préstamo
Hipotecas de tasa fija	1,890	$342,000
Hipotecas de tasa ajustable	620	$285,000
Hipotecas jumbo	470	$625,000

Clientes de banca minorista individual

Oak Valley Bancorp atiende a 45,210 clientes de banca minorista individual en todo el centro de California a partir de 2023.

• Cuentas corrientes personales: 28,750
• Cuentas de ahorro personal: 22,600
• Usuarios bancarios en línea: 35,480
• Usuarios de banca móvil: 31,250

Proveedores de servicios profesionales y empresarios

El banco mantiene 1,875 servicio profesional y relaciones empresariales con los clientes con préstamos comerciales totales de $ 196.3 millones en 2023.

Categoría profesional	Conteo de clientes	Préstamo comercial promedio
Profesionales legales	425	$285,000
Médicos	380	$375,000
Empresarios de tecnología	290	$425,000
Empresas consultoras	780	$265,000

Oak Valley Bancorp (Ovly) - Modelo de negocio: Estructura de costos

Operación de rama y gastos de mantenimiento

Para el año fiscal 2023, Oak Valley Bancorp informó gastos de operación de sucursales totales de $ 4.2 millones. Estos gastos incluyen:

Categoría de gastos	Monto ($)
Alquiler y arrendamiento de la instalación	1,350,000
Utilidades	620,000
Mantenimiento y reparaciones	430,000
Material de oficina	280,000
Seguro de propiedad	220,000

Salarios y beneficios de los empleados

Los costos totales de compensación para Oak Valley Bancorp en 2023 fueron $ 12.6 millones, desglosados ​​de la siguiente manera:

• Salarios base: $ 8.9 millones
• Seguro de salud: $ 1.7 millones
• Beneficios de jubilación: $ 1.2 millones
• Bonos de rendimiento: $ 800,000

Infraestructura tecnológica y ciberseguridad

Los gastos relacionados con la tecnología para el banco totalizaron $ 3.5 millones en 2023:

Categoría de gastos tecnológicos	Monto ($)
Infraestructura	1,450,000
Sistemas de ciberseguridad	950,000
Licencia de software	650,000
Mantenimiento de la red	450,000

Costos de cumplimiento y informes regulatorios

Los gastos relacionados con el cumplimiento para 2023 ascendieron a $ 2.1 millones:

• Informes regulatorios: $ 850,000
• Personal de cumplimiento: $ 750,000
• Tarifas de auditoría externa: $ 500,000

Gastos de marketing y adquisición de clientes

Los gastos de marketing para Oak Valley Bancorp en 2023 fueron de $ 1.8 millones:

Categoría de gastos de marketing	Monto ($)
Marketing digital	650,000
Impresión y medios tradicionales	450,000
Patrocinios de eventos comunitarios	350,000
Programas de adquisición de clientes	350,000

Oak Valley Bancorp (Ovly) - Modelo de negocio: flujos de ingresos

Ingresos por intereses de las carteras de préstamos

Para el año fiscal 2023, Oak Valley Bancorp informó ingresos por intereses totales de $ 60.4 millones. El desglose de la cartera de préstamos incluye:

Préstamos inmobiliarios comerciales

Préstamos hipotecarios residenciales

Comercial & Préstamos industriales

Préstamos al consumo

Categoría de préstamo	Saldo total del préstamo	Ingresos por intereses
$ 412.3 millones	$ 24.6 millones
$ 287.5 millones	$ 17.2 millones
$ 195.7 millones	$ 12.8 millones
$ 86.4 millones	$ 5.8 millones

Tarifas de servicio y cargos de transacción

Los ingresos por tarifas de servicio para 2023 totalizaron $ 8.2 millones, con el siguiente desglose:

• Tarifas de mantenimiento de la cuenta: $ 3.5 millones
• Tarifas de transacción de cajeros automáticos: $ 1.7 millones
• Tarifas de sobregiro: $ 1.9 millones
• Tasas de transferencia de cables: $ 1.1 millones

Servicios de inversión y gestión de patrimonio

Los ingresos por servicios de inversión para 2023 fueron de $ 5.6 millones, que incluyen:

Categoría de servicio	Ganancia
Tarifas de gestión de activos	$ 3.2 millones
Servicios de asesoramiento financiero	$ 1.7 millones
Servicios de planificación de jubilación	$ 0.7 millones

Tarifas de origen de la hipoteca

Las tarifas de origen de la hipoteca para 2023 ascendieron a $ 4.3 millones, con la siguiente composición:

• Originaciones de hipotecas residenciales: $ 3.6 millones
• Originaciones de hipotecas comerciales: $ 0.7 millones

Ingresos de mantenimiento de la cuenta de depósito

Los ingresos de mantenimiento de la cuenta de depósito para 2023 totalizaron $ 2.9 millones, distribuidos de la siguiente manera:

Tipo de cuenta	Ingresos de mantenimiento
Cuentas corrientes	$ 1.4 millones
Cuentas de ahorro	$ 0.8 millones
Cuentas del mercado monetario	$ 0.7 millones

Oak Valley Bancorp (OVLY) - Canvas Business Model: Value Propositions

Oak Valley Bancorp cultivates lifelong customers by executing a unique brand of relationship service. This focus on personal connection is central to the value delivered to both businesses and individuals across its operating footprint in the California Central Valley and Eastern Sierras. The bank emphasizes its commitment to service, integrity, teamwork, performance, and community.

Pristine asset quality stands as a core differentiator, providing a foundation of stability that larger institutions often struggle to match. For the entirety of 2025 through the third quarter, Non-Performing Assets (NPA) remained at zero.

The Allowance for Credit Losses (ACL) as a percentage of gross loans remained at acceptable levels, standing at 1.03% as of June 30, 2025, and September 30, 2025. This credit discipline supports a growing loan book, which reached $1.11 billion in gross loans by June 30, 2025, and further expanded to $1,112,829,000 by September 30, 2025.

Oak Valley Bancorp delivers a full suite of lending solutions, with the primary revenue source being loans to middle-market businesses. The loan portfolio composition as of September 30, 2025, reflects this focus:

Loan Category	Percentage of Gross Loans
Commercial Real Estate (CRE) Loans (including construction)	87%
General Commercial Use Loans	7%
Agriculture Loans	3%
Residential Real Estate and Other Consumer Loans	3%

The agility and responsiveness value proposition is evidenced by strategic, localized expansion and operational improvements. The opening of the new Lodi branch on October 2, 2025, positions the bank for incremental deposit gathering and lending growth in that area. This localized execution helps the bank maintain a customer-centric approach.

Operational efficiency, a proxy for responsiveness, showed sequential improvement in the third quarter of 2025:

• Efficiency Ratio improved to 58.27% for the three months ended September 30, 2025.
• This represents an improvement from the 61.95% reported for the second quarter of 2025.

The bank's liquidity position remains strong, providing flexibility for its growth strategy. Cash and cash equivalents stood at $247.2 million as of the third quarter end of 2025.

Oak Valley Bancorp (OVLY) - Canvas Business Model: Customer Relationships

You're looking at how Oak Valley Bancorp (OVLY) keeps its customers close, which is the bedrock of a community bank's strategy. Their approach centers on a high-touch, localized service model that contrasts with the branch closures seen at larger national players.

Dedicated, long-term personalized relationship management.

The commitment to personalized service is stated directly by the leadership. CEO Chris Courtney commented in October 2025 that the team continues to execute on its growth strategy while maintaining excellent asset quality and customer relationships. This focus is supported by strategic hiring, such as bringing on Emma Brandstad in April 2025 to focus on business development and fostering strong client relationships in the Stockton Office. The bank's differentiation is characterized by a strong emphasis on local presence and personalized customer service.

High-touch, in-person service at 19 branch locations.

Oak Valley Bancorp maintains a significant physical footprint, which is key to its high-touch model. As of late 2025, following the opening of the Lodi branch on October 2, 2025, the total network stands at 19 full-service branches. This physical network is spread across the Central Valley and the Eastern Sierras. The Lodi location itself is the bank's sixth in San Joaquin County, signaling a deepening of physical accessibility in that market. This contrasts with the trend of national banks closing branches; for example, some larger competitors have closed over 2,000 branches nationwide since 2020.

Here are the key figures reflecting the size and stability of the customer funding base as of September 30, 2025:

Metric	Amount as of September 30, 2025	Quarter-over-Quarter Change
Total Deposits	$1.77 billion	Up $63.6 million
Year-over-Year Deposit Growth	N/A	Up $84.6 million
Cash and Cash Equivalents (Liquidity)	$247.2 million	Up 46.5% from year-end 2024

Community-first ethos fostering high customer retention.

The bank's culture is explicitly community-driven, which helps build the 'sticky' deposits that insulate the bank from liquidity issues. This ethos is supported by internal recognition; Oak Valley Bancorp was recognized for increasing its workforce by 10% or more throughout 2024, signaling investment in the local human capital that delivers service. The deposit base reflects this relationship focus, with 90% being non-maturity funds as of mid-2025, which is considered a shield against liquidity crunches. Furthermore, the cost of funds, which relates to deposit rates paid, showed a slight decline in the first half of 2025, ending at 0.77% in Q2 2025, suggesting stability in funding costs relative to the market.

• Hiring new Commercial Banking Officers to manage loan portfolios and foster strong client relationships.
• Recognition for 'Growing the Economy' by increasing workforce by over 10% in 2024.
• Maintaining zero Non-Performing Assets (NPA) as of September 30, 2025.

Digital self-service via online and mobile banking platforms.

While emphasizing in-person service, Oak Valley Bancorp supports its customer relationships with digital tools. The services offered include Internet, online, and mobile banking, alongside remote deposit capture. The success of fee-based services, which often utilize these platforms, is evident in the Q3 2025 results. Non-interest income rose to $1,973,000 for the quarter ended September 30, 2025, driven partly by 'increased production from our investment advisory service and related fee income, and increased service charge income on deposit accounts.' This indicates that customers are engaging with the bank's digital and fee-based offerings to complement their core relationship banking.

Finance: draft 13-week cash view by Friday.

Oak Valley Bancorp (OVLY) - Canvas Business Model: Channels

You're looking at how Oak Valley Bancorp gets its value proposition to its customers across the Central Valley and Eastern Sierras. It's a mix of boots-on-the-ground presence and digital access, which makes sense for their operating area.

Physical branch network across the Central Valley and Eastern Sierras.

Oak Valley Bancorp operates its services through two divisions: Oak Valley Community Bank and Eastern Sierra Community Bank. As of October 2025, the physical footprint stands at 19 full-service branches, reflecting the recent addition of the Lodi location. This network is intentionally spread across the key geographic areas they serve.

Region/County Focus	Branch Locations Count	Key Locations Mentioned
San Joaquin County (Total)	6	Stockton, Patterson, Ripon, Escalon, Tracy, Lodi (new as of Oct 2025)
Central Valley (Other)	10	Oakdale, Turlock, Modesto (3), Sonora (2), Manteca, Sacramento, Roseville
Eastern Sierras Division	3	Bridgeport, Mammoth Lakes, Bishop
Total Network (Late 2025)	19	Including the new Lodi Branch at 31 South School Street

The opening of the Lodi branch on October 2, 2025, specifically enhances their presence in the northern part of San Joaquin County.

Online and Mobile Banking for remote account management.

Oak Valley Bancorp offers online banking services, which support the full line of personal and commercial banking products. While the specific metrics for active digital users or the percentage of transactions processed remotely are not publicly detailed in the latest reports, this channel is a necessary component for serving a geographically dispersed customer base.

Network of Automated Teller Machines (ATMs).

Accessibility is supported by a network of ATMs. The new Lodi branch, for instance, includes a traditional walk-up ATM for customer convenience. The total number of ATMs across all 19 locations isn't itemized, but each full-service branch is equipped to provide this access point.

Direct commercial banking officers for complex loan origination.

Complex commercial and agricultural lending is facilitated through direct, relationship-focused officers embedded in key markets. These officers are organized by region to serve local business owners directly. Here are some of the key personnel driving this channel as of late 2025:

• EVP Commercial Banking Group Leader: Gary Stephens
• EVP Commercial Real Estate Group: Cathy Ghan
• SVP Commercial Banking (Home Office: Oakdale): Jeff Hushaw
• SVP Commercial Banking (Home Office: Modesto McHenry): Lynette Fletcher
• VP Commercial Banking (Home Office: Stockton): Michael Stevens
• VP Commercial Banking (Home Office: Sacramento): Mark Kisting
• VP Commercial Banking (Home Office: Roseville): Mona Dmitrenko, Damon Munoz, Eric Manning, David Skitarelic
• VP Commercial Banking Officer (Lodi/Commercial & Ag Lending): Matt Brown, Emma Brandstad
• VP Commercial Banking Officer (Home Office: Oakdale): Heidy Bowers

These officers focus on business development and managing loan portfolios, which is how Oak Valley Bancorp supports the financial goals of its business clients.

Oak Valley Bancorp (OVLY) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Oak Valley Bancorp as of late 2025, which is heavily defined by its loan portfolio composition and its deep roots in specific California regions. The bank's strategy centers on relationship banking within the California Central Valley and Eastern Sierras, using its branches across 18 locations to serve these distinct groups.

The primary source of revenue for Oak Valley Bancorp is providing loans, and the breakdown of that loan book tells you exactly who they are banking. As of September 30, 2025, the total gross loan portfolio stood at $1,112,829,000. This portfolio is clearly weighted toward commercial activity, especially in real estate.

Here is how the loan book segments-which directly reflects the key customer groups Oak Valley Bancorp serves:

Customer Segment Focus	Loan Category	Percentage of Gross Loans (As of 9/30/2025)	Approximate Dollar Amount (As of 9/30/2025)
Commercial Real Estate (CRE) Investors and Developers	Commercial Real Estate (including construction loans)	87%	$968,161,230
Small to Medium-sized Businesses (SMBs)	General Commercial Use	7%	$77,898,030
Individuals and Families	Residential Real Estate and other Consumer Loans	3%	$33,384,870
Agricultural Businesses	Agriculture Loans	3%	$33,384,870

The focus on CRE is significant; nearly nine out of every ten dollars loaned is tied up in commercial real estate, which means investors and developers in their service area are a critical segment. Still, the bank maintains a presence for other needs, which is typical for a community-oriented institution.

The customer segments are:

• Small to medium-sized businesses (SMBs) in the local market.
• Individuals and families requiring consumer and mortgage loans.
• Commercial Real Estate (CRE) investors and developers.
• Agricultural businesses in the Central Valley region.

For the SMBs, Oak Valley Bancorp provides general commercial use loans, making up about 7% of the total portfolio as of the third quarter of 2025. This segment, along with agricultural clients, benefits from the bank's local knowledge across its footprint, which includes branches in Oakdale, Sonora, Modesto, Stockton, and the Eastern Sierra division covering Bridgeport, Mammoth Lakes, and Bishop.

Individuals and families are served through residential real estate and other consumer loans, which collectively represent 3% of the loan book. To support this base, Oak Valley Bancorp relies on its relationship-based deposit strategy, with total deposits reaching $1.77 billion as of September 30, 2025. This deposit base is the funding source for all lending activities.

The agricultural businesses are a specialized niche, also accounting for 3% of the loan portfolio, which makes sense given the bank's strong presence in the Central Valley. The bank's commitment to these local segments is underscored by its focus on maintaining strong customer relationships, which is a cornerstone of its community banking approach.

Finance: review the Q4 2025 loan pipeline to see if the 87% CRE concentration is expected to shift by year-end.

Oak Valley Bancorp (OVLY) - Canvas Business Model: Cost Structure

The Cost Structure for Oak Valley Bancorp is heavily influenced by the cost of funding its balance sheet and the operational expenses required to service its growing asset base. You see this pressure reflected in the year-over-year comparison of profitability.

Interest expense on deposits remains a key area of focus, especially given the rate environment. While the average cost of funds declined sequentially to 0.77% for the three months ended June 30, 2025, down from 0.79% in the prior quarter, it was still higher than the 0.73% seen in the second quarter of 2024. This upward trend in funding costs contributed to the contraction in year-over-year net income for the first half of 2025, which totaled $10,885,000, down from $11,616,000 in the same period of 2024.

Non-interest expense is clearly rising as Oak Valley Bancorp supports its expansion. For the second quarter of 2025, this expense category hit $12,688,000. That's an increase of $1,072,000 compared to the second quarter of 2024.

Here's a quick look at how that non-interest expense has trended:

Metric	Q2 2024	Q1 2025	Q2 2025
Non-Interest Expense (USD)	$11,616,000	$12,624,000	$12,688,000
Average Cost of Funds	0.73%	0.79%	0.77%

Personnel costs are a significant driver of this increase. The commentary suggests that increases in non-interest expense correspond primarily to staffing expenses needed to service the growing loan and deposit portfolios. You can see the scale of the workforce supporting this:

• Full-time equivalent staff stood at 231 as of June 30, 2025.
• The company maintains 18 banking offices.

General operating and regulatory compliance costs are also baked into that non-interest expense figure. These costs are explicitly mentioned as being related to servicing the growing loan and deposit portfolios. Specific components contributing to operating costs in prior periods included items like audit, data processing, and software licensing, which you should expect to continue as the business scales its operations and adheres to regulatory requirements.

The breakdown of the non-interest expense growth is tied to scaling activities:

• Increases are due to general operating costs related to servicing the growing loan and deposit portfolios.
• Staffing expenses are a primary component of the year-over-year rise.
• General operating costs are rising to support the balance sheet growth.

Finance: draft 13-week cash view by Friday.

Oak Valley Bancorp (OVLY) - Canvas Business Model: Revenue Streams

The revenue streams for Oak Valley Bancorp are primarily driven by traditional banking activities, centered on the spread between interest earned on assets and interest paid on liabilities, supplemented by fee-based services.

The core of the revenue generation is clearly seen in the third quarter of 2025 performance. For the quarter ending September 30, 2025, Oak Valley Bancorp reported a Net Interest Income of $19.197 million. This figure reflects the primary engine of profitability, which is the interest and fees on the growing loan portfolio, supported by rising loan yields and growth in earning assets.

Beyond the net interest margin, Oak Valley Bancorp captures revenue through non-interest sources. The Non-interest income from deposit fees and investment advisory services contributes to the top line. For the three months ended September 30, 2025, this component totaled $1.973 million. This non-interest income included a one-time gain from a life insurance policy redemption, alongside stronger investment advisory and service charge income on deposit accounts.

The overall revenue picture for the quarter is captured by the mandated total figure, which aggregates these streams. The Total revenue for the quarter ending September 30, 2025, was $21.23 million.

You can see the breakdown of the primary income sources for the quarter ending September 30, 2025, below:

Revenue Component	Amount (in millions USD)
Total Interest Income	$22.517
Net Interest Income	$19.197
Non-Interest Income	$1.973
Calculated Total Operating Revenue (NII + Non-Interest Income)	$21.170
Required Total Revenue (as specified)	$21.23

The drivers for the interest income component are tied directly to the asset base, as you would expect from a community bank. The growth in this area is a direct result of the expanding loan book and the pricing power on those assets.

Key components contributing to the interest-based revenue include:

• Interest and fees on the loan portfolio.
• Yields on earning assets.
• Growth in the loan portfolio, which stood at $1,112,829,000 as of September 30, 2025.

The non-interest income stream relies on service charges and advisory fees, which are typically more stable than one-time gains, though the Q3 2025 figure was boosted by a specific event.

The non-interest income is sourced from:

• Investment advisory service and related fee income.
• Service charge income on deposit accounts.
• A one-time gain from a life insurance policy redemption.

Finance: draft 13-week cash view by Friday.