Oak View National Bank Announces 29.1% Increase in Earnings for 2016

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Oak View National Bank reported net income for the year ended December 31, 2016 of $1,062,762.

Oak View National Bank (OTC Pink: OAKV) reported net income for the year ended December 31, 2016 of $1,062,762, an increase of $239,62, or 29.1%, as compared to the net income of $823,136 reported for the year ended December 31, 2015. Basic and diluted earnings per share for 2016 were $0.37 compared with $0.30 per share for 2015. Return on average assets (ROAA) was .56% and return on average equity (ROAE) was 5.62% for the year ended December 31, 2016 compared to.47% and 4.83% respectively for the year ended December 31, 2015.

Michael Ewing, Vice Chairman of the Board and CEO said, “The Bank has continued to see solid loan demand in 2016 and we are optimistic that it will continue into the new year. We have added to our stellar loan team with the addition of Jeff Sisson, a seasoned loan executive with 30 years experience in our market.”

At December 31, 2016, total assets were $199.97 million, an increase of $20.3 million or 11.3% over total assets from the prior year. Gross loans increased 11.6% to $160.4 million at the end of 2016 compared to $143.8 million at December 31, 2015. Total deposits ended the year at $161.7 million, representing an increase of 13.3% compared to $142.6 million at December 31, 2015.

Credit quality remained outstanding as the bank only had one non-performing loan at December 31, 2016 totaling $64,425. The year ending December 31, 2016 had a loan loss provision of $155,472 compared to a loan loss recovery of $20,204 for the year ending December 31, 2015. The allowance for loan losses was $1.64 million or 1.024% of total loans at December 31, 2016 compared to $1.49 million or 1.35% of total loans at December 31, 2014

For the fourth quarter of 2016, the Bank reported net income of $235,102 versus $197,644 reported for the fourth quarter of 2015 an increase of $37,458, or 18.95%. Net operating income before tax for the quarter ending December 31, 2016 was $397,115 compared to net operating income before tax of $282,854 for the quarter ending December 31, 2015 an increase of $114,261. The higher pre-tax income was a result of increased net interest income from the higher loan outstandings and higher levels, of non-interest income which were partially offset by higher personnel expense, volume related increases in data processing cost and higher other operating expenses from a one-time $79,343 (net) charge related to the granting of stock options to the Board of Directors.

The quarter ending December 31, 2016 had a loan loss provision of $36,282 compared to a loan loss provision of $68,197 for the quarter ending December 31, 2015.

The net interest margin improved to 3.76% for the quarter ended December 31, 2016 from 3.74% for the quarter ending December 31, 2015 The average yield on earning assets decreased 2 basis points to 4.31% in the quarter ending December 31, 2016 and the cost of funds declined by 2 basis points to .71% from the fourth quarter of 2015. The ratio of average interest earning assets to interest bearing liabilities increased to 130.1% in the December 2016 quarter from 125.8% in the December 2015 quarter.

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

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