OVLYMEDIUM SIGNALRISK10-K

Oak Valley Bancorp added comprehensive cybersecurity risk management framework disclosures while substantially reducing its provision for credit losses.

The addition of detailed cybersecurity risk management language suggests heightened regulatory focus on information security risks in the banking sector, indicating OVLY is proactively addressing emerging compliance requirements. The substantial reduction in credit loss provisions signals improved asset quality expectations, though investors should monitor whether this reflects genuine credit improvement or overly optimistic underwriting assumptions.

Comparing 2026-03-25 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

Oak Valley Bancorp's financial position strengthened across key metrics, with cash and equivalents growing to $232.2M and stockholders' equity expanding to $208.0M. Operating cash flow grew modestly to $28.7M, while the provision for credit losses declined substantially from -$1.9M to -$125K, suggesting management's increased confidence in loan portfolio quality. The overall picture reflects a community bank building liquidity and capital while reducing credit risk provisioning.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
+93.3%
-$1.9M→-$125K

Credit loss provisions surged 93.3% — management flagging significant deterioration in loan quality ahead.

Cash & Equivalents
Balance Sheet
+37.6%
$168.8M→$232.2M

Cash position surged 37.6% — strong cash generation or capital raise providing significant financial cushion.

Stockholders Equity
Balance Sheet
+13.4%
$183.4M→$208.0M

Equity base grew 13.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
+11.8%
$25.6M→$28.7M

Operating cash flow grew 11.8% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-25
PRIOR — 2025-03-31
ADDED
Cybersecurity and risks associated with information security are operational risks included in the Company s Enterprise Risk Management ( ERM ) Framework.
Under the ERM Framework, the Company s Information Technology department and all employees are the first line of defense ( First Line ).
Those in the First Line are each responsible for identifying and managing the information security risk associated with their activities.
The Company s IT Steering Committee is part of the independent risk oversight of information security risk along with the Company s Compliance and ERM Committees, both of which are management risk oversight committees.
As of March 13, 2026, there were 8,413,458 shares of common stock outstanding.
The three branches in the Eastern Sierras operate as Eastern Sierra Community Bank, a division of the Bank.
As of December 31, 2025, the Bank s authorized legal lending limits were $35.4 million for unsecured loans plus an additional $23.6 million for specific secured loans.
The Bank s primary capital plus allowance for credit losses as of December 31, 2025 totaled $236.0 million.
As of December 31, 2025, consumer and commercial real estate loans constituted 91% of our loan portfolio, of which 97% were commercial real estate loans.
As of December 31, 2025, the aggregate loan-to-value of the entire commercial real estate portfolio was 44.9%, based on the most recent appraisals as of the time of origination or renewal.
REMOVED
As of December 31, 2024, there were 8,357,211 shares of common stock outstanding.
BUSINESS OF OAK VALLEY BANCORP Overview of the Business Oak Valley Bancorp.
As of December 31, 2024, the Bank s authorized legal lending limits were $32.2 million for unsecured loans plus an additional $21.5 million for specific secured loans.
The Bank s primary capital plus allowance for credit losses as of December 31, 2024 totaled $214.9 million.
As of December 31, 2024, consumer and commercial real estate loans constituted 90% of our loan portfolio, of which 97% were commercial real estate loans.
As of December 31, 2024, the aggregate loan-to-value of the entire commercial real estate portfolio was 45.3%, based on the most recent appraisals as of the time of origination or renewal.
The loan-to-value on the non-owner occupied CRE segment was 46.5%, as of December 31, 2024.
The highest concentration by product type is CRE Retail, which comprised 27.1% of total CRE loan commitments, as of December 31, 2024.
We regularly make use of Federal Home Loan Bank advances as part of our interest rate risk management, primarily to extend the duration of funding to match the longer-term fixed rate loans held in the loan portfolio as part of our growth strategy.
As a member of the Federal Home Loan Bank system, we are required to invest in Federal Home Loan Bank stock based on a predetermined formula.
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