Oak View National Bank Announces 89.5% Increase in Earnings

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Oak View National Bank (OTC Pink: OAKV) reported net income for the quarter ended September 30, 2016 of $335,333, compared to net income of $176,955 for the third quarter of 2015, an increase of 89.5%.

Oak View National Bank (OTC Pink: OAKV) reported net income for the quarter ended September 30, 2016 of $335,333, compared to net income of $176,955 for the third quarter of 2015, an increase of 89.5%. Basic and diluted earnings per share for the third quarter of 2016 were $0.12 compared with $0.07 per share in the third quarter of 2015. Return on average assets (ROAA) was .71% and return on average equity (ROAE) was 7.15% for the third quarter of 2016 compared to .41% and 4.26% respectively for the third quarter of 2015. For the nine months ended September 30, 2016, the Bank reported net income of $827,660 compared to net income of $625,492 reported for the nine months ending September 30, 2015, an increase of 32.3%. Basic and diluted earnings per share for the nine months ending September 30, 2016 were $0.29 versus $0.24 for the nine months ending September 30, 2015.

Michael Ewing, Vice Chairman of the Board and CEO said, “The Bank has enjoyed solid loan demand in 2016 allowing us to increase our loan outstandings and the corresponding net interest income while still maintaining our stellar credit quality. The higher net interest income combined with tight control over our non-interest expenses has driven the improvement in our operating results. We are beginning to grow into the infrastructure we built when we established the bank, and the expected results are starting to be realized.”

The Bank is considered “well capitalized” according to regulatory guidelines. Regulatory capital ratios at September 30, 2016 were 9.96% Tier 1 leverage ratio and 14.12% Tier 1 capital ratio compared to 10.22% Tier 1 leverage ratio and 14.86% Tier 1 capital ratio at September 30, 2015. Capital ratios declined as capital was deployed to fund growth in loans and deposits.

Net interest margin was 3.76% for the quarter ended September 30, 2016 compared to 3.54% for the quarter ending September 30, 2015. The average yield on earning assets increased to 4.32% for the quarter ending September 30, 2016 from 4.16% for the quarter ending September 30, 2015 and the cost of funds declined by 5 basis points to .71% in the third quarter of 2016 from .76% for third quarter of 2015. The ratio of average interest-earning assets to interest bearing liabilities increased to 129.21% for the quarter ending September 30, 2016 from 123.58% for the quarter ending September 30. 2015.

Loans, net of unearned interest and deferred costs, increased 13.0% to $156.7 million at the end of the third quarter 2016 compared to $138.8 million at September 30, 2015. Credit quality remained sound as the bank only had one non-performing loan at September 30, 2016 totaling $64,425. For the quarter ending September 30, 2016 there was a loan loss provision of $28,242 compared to a loan loss provision of $21,462 for the quarter ending September 30, 2015. The allowance for loan losses was $1.60 million or 1.023% of total loans at September 30, 2016 compared to $1.42 million or 1.025% of total loans at September 30, 2015.

Total deposits ended the quarter at $152.1 million, representing an increase of 7.9% compared to $141.0 million at the end of the third quarter of 2015. Total bank assets ended the quarter at $196.0 million, representing an annual growth rate of 13.4% compared to the same period last year.

Noninterest income increased by $25,290 or 19.28% to $156,447 for the quarter ending September 30, 2016 from higher levels of card fee income, fees on secondary market mortgage loans and income from bank owned life insurance.

Noninterest expenses increased by $59,428 or 4.6% for the quarter ending September 30, 2016, the majority of which was attributable to increases in personnel costs and volume driven increases in data processing costs partially offset by reductions in marketing, occupancy, and professional service costs.

Oak View National Bank is a locally owned and managed community bank offering a full range of financial services for commercial and retail customers, as well as not-for-profit entities. Oak View National Bank serves Fauquier, Culpeper and surrounding counties with offices in Warrenton, Marshall and Culpeper. Visit us at http://www.oakviewbank.com. Member FDIC.

Oak View National Bank was awarded a 5-star rating by BauerFinancial in January 2016, and as such is recognized as one of the strongest financial institutions in the country. BauerFinancial, Inc. is the nation’s leading independent bank and credit union rating firm. http://www.bauerfinancial.com 800.388.6686.

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Jennifer Knighting

Jennifer Knighting
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