Warrenton, Virginia (PRWEB) May 05, 2017 -- Oak View National Bank (OTC Pink: OAKV) reported net income for the quarter ended March 31, 2017 of $211,774, compared to net income of $231,606 for the first quarter of 2016. Basic and diluted earnings per share for the first quarter of 2017 were $0.07 compared with $0.08 per share in the first quarter of 2016. Return on average assets (ROAA) was .42% and return on average equity (ROAE) was 4.38% for the first quarter of 2017 compared to .51% and 5.03% respectively for the first quarter of 2016.
Michael Ewing, Vice Chairman of the Board and CEO said, “As previously announced, we have invested significantly in lenders and support personnel necessary to increase our rate of growth. Although the additional personnel expense has negatively impacted short term results, we hope to see the benefits for the remainder of the year and beyond.”
The net interest margin was 3.71% for the quarter ended March 31, 2017 compared to 3.79% for the quarter ending March 31, 2016. The average yield on earning assets decreased by 11 basis points to 4.26% for the quarter ended March 31, 2017 compared 4.37% for the quarter ending March 31, 2016 and the cost of funds declined by 2 basis points to .70% in the first quarter of 2017 from .72% for first quarter of 2016.
Loans, net of unearned interest, deferred costs and allowance for loan losses, increased 11.95% to $164.2 million at the end of the first quarter 2017 compared to $146.6 million at March 31, 2016. Credit quality remained outstanding as the bank had just two non-performing assets at March 31, 2017 totaling $87,890. For the quarter ending March 31, 2017 there was a loan loss provision of $63,659 compared to a loan loss provision of $41,878 for the quarter ending March 31, 2016. The allowance for loan losses was $1.71 million or 1.03% of total loans at March 31, 2017 compared to $1.64 million or 1.03% of total loans at March 31, 2016.
Total deposits ended the quarter at $161.7 million, representing an increase of 10.0% compared to $146.9 million at the end of the first quarter of 2016. Total bank assets ended the quarter at $200.4 million, representing an annual growth rate of 9.4% compared to the same period last year.
Noninterest income decreased by $5,383 or 3.9% to $133,782 for the quarter ending March 31, 2017 due to lower levels of rental income partially offset by higher levels of service charges on deposit accounts and card fee income.
Noninterest expenses increased by $179,437 or 13.4% for the quarter ending March 31, 2017, the majority of the increase was attributable to higher personnel costs due to the additional staff hired to facilitate an increase in the Bank’s rate of growth; however, the Bank also had a volume driven increase in data processing 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.
For additional information, contact Jennifer Knighting, Senior Vice President/Director of Sales & Marketing, Oak View National Bank, at 540-825-2570.
Jennifer Knighting, Oak View National Bank, http://www.oakviewbank.com, +1 540-825-2570, [email protected]
SOURCE Oak View National Bank