Q3 2025 --12-31 false 0001431567 false false false false 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00014315672025-01-012025-09-30 thunderdome:item iso4217:USDxbrli:shares 00014315672024-01-012024-09-30 xbrli:shares iso4217:USD 00014315672024-07-012024-09-30 00014315672025-07-012025-09-30 xbrli:pure 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberovly:SBAPoolMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-31 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-09-30 0001431567us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-09-30 0001431567us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-09-30 0001431567us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2025-09-30 00014315672024-12-31 00014315672025-09-30 00014315672024-09-30 00014315672023-12-31 00014315672024-06-30 00014315672025-06-30 0001431567ovly:AgricultureMember2025-01-012025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2025-01-012025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2025-01-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2025-01-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2025-01-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2025-01-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-01-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2025-01-012025-09-30 0001431567ovly:AgricultureMember2025-07-012025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2025-07-012025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2025-07-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2025-07-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2025-07-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2025-07-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-07-012025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2025-07-012025-09-30 0001431567ovly:AgricultureMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2024-12-31 0001431567ovly:AgricultureMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2025-09-30 0001431567ovly:AgricultureMember2024-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2024-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2024-09-30 0001431567ovly:AgricultureMember2024-01-012024-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2024-01-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2024-01-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2024-01-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2024-01-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2024-01-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2024-01-012024-09-30 0001431567ovly:AgricultureMember2023-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMember2023-12-31 0001431567us-gaap:CommercialPortfolioSegmentMember2023-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2023-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2023-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2023-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2023-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2023-12-31 0001431567ovly:AgricultureMember2024-07-012024-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2024-07-012024-09-30 0001431567us-gaap:CommercialPortfolioSegmentMember2024-07-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2024-07-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2024-07-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2024-07-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2024-07-012024-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2024-07-012024-09-30 0001431567ovly:AgricultureMember2024-06-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2024-06-30 0001431567us-gaap:CommercialPortfolioSegmentMember2024-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2024-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2024-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2024-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2024-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2024-06-30 0001431567ovly:AgricultureMember2025-06-30 0001431567us-gaap:ConsumerPortfolioSegmentMember2025-06-30 0001431567us-gaap:CommercialPortfolioSegmentMember2025-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMember2025-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMember2025-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMember2025-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-06-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMember2025-06-30 0001431567us-gaap:SubstandardMember2024-12-31 0001431567us-gaap:SpecialMentionMember2024-12-31 0001431567us-gaap:PassMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:SpecialMentionMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:SpecialMentionMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:SpecialMentionMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:SubstandardMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:SpecialMentionMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:MortgageLoansMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:MortgageLoansMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:PassMember2024-12-31 0001431567us-gaap:SubstandardMember2025-09-30 0001431567us-gaap:SpecialMentionMember2025-09-30 0001431567us-gaap:PassMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:SpecialMentionMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:SpecialMentionMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:SpecialMentionMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:SpecialMentionMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:MortgageLoansMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:MortgageLoansMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2025-09-30 0001431567us-gaap:UnlikelyToBeCollectedFinancingReceivableMember2025-09-30 0001431567us-gaap:UnlikelyToBeCollectedFinancingReceivableMember2024-12-31 0001431567ovly:BetterThanAcceptableMembersrt:MaximumMember2025-09-30 0001431567ovly:BetterThanAcceptableMembersrt:MinimumMember2025-09-30 0001431567us-gaap:CollateralPledgedMember2024-12-31 0001431567us-gaap:CollateralPledgedMember2025-09-30 0001431567us-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancialAssetNotPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancialAssetPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-31 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-31 0001431567us-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567ovly:AgricultureMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:FarmlandLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:NonownerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:OwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancialAssetNotPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancialAssetPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMemberovly:ConstructionAndLandMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-09-30 0001431567ovly:ResidentialRealEstateAndOtherConsumerLoansMember2025-09-30 0001431567us-gaap:CommercialRealEstatePortfolioSegmentMember2025-09-30 0001431567us-gaap:AssetPledgedAsCollateralMemberovly:PublicFundsMember2024-12-31 0001431567us-gaap:AssetPledgedAsCollateralMemberovly:PublicFundsMember2025-09-30 0001431567us-gaap:AssetBackedSecuritiesMember2024-12-31 0001431567us-gaap:CorporateDebtSecuritiesMember2024-12-31 0001431567ovly:SBAPoolMember2024-12-31 0001431567us-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-31 0001431567us-gaap:CollateralizedMortgageObligationsMember2024-12-31 0001431567us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-31 0001431567us-gaap:AssetBackedSecuritiesMember2025-09-30 0001431567us-gaap:CorporateDebtSecuritiesMember2025-09-30 0001431567ovly:SBAPoolMember2025-09-30 0001431567us-gaap:USStatesAndPoliticalSubdivisionsMember2025-09-30 0001431567us-gaap:CollateralizedMortgageObligationsMember2025-09-30 0001431567us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-30 0001431567us-gaap:RetainedEarningsMember2024-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2024-09-30 0001431567us-gaap:CommonStockMember2024-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-30 0001431567us-gaap:RetainedEarningsMember2024-01-012024-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-30 0001431567us-gaap:CommonStockMember2024-01-012024-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-31 0001431567us-gaap:RetainedEarningsMember2023-12-31 0001431567us-gaap:AdditionalPaidInCapitalMember2023-12-31 0001431567us-gaap:CommonStockMember2023-12-31 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-30 0001431567us-gaap:RetainedEarningsMember2025-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2025-09-30 0001431567us-gaap:CommonStockMember2025-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-30 0001431567us-gaap:RetainedEarningsMember2025-01-012025-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-30 0001431567us-gaap:CommonStockMember2025-01-012025-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-31 0001431567us-gaap:RetainedEarningsMember2024-12-31 0001431567us-gaap:AdditionalPaidInCapitalMember2024-12-31 0001431567us-gaap:CommonStockMember2024-12-31 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-30 0001431567us-gaap:RetainedEarningsMember2024-07-012024-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-30 0001431567us-gaap:CommonStockMember2024-07-012024-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-30 0001431567us-gaap:RetainedEarningsMember2024-06-30 0001431567us-gaap:AdditionalPaidInCapitalMember2024-06-30 0001431567us-gaap:CommonStockMember2024-06-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-30 0001431567us-gaap:RetainedEarningsMember2025-07-012025-09-30 0001431567us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-30 0001431567us-gaap:CommonStockMember2025-07-012025-09-30 0001431567us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-30 0001431567us-gaap:RetainedEarningsMember2025-06-30 0001431567us-gaap:AdditionalPaidInCapitalMember2025-06-30 0001431567us-gaap:CommonStockMember2025-06-30 0001431567us-gaap:MortgageBankingMember2024-01-012024-09-30 0001431567us-gaap:MortgageBankingMember2025-01-012025-09-30 0001431567us-gaap:MortgageBankingMember2024-07-012024-09-30 0001431567us-gaap:MortgageBankingMember2025-07-012025-09-30 0001431567us-gaap:DebitCardMember2024-01-012024-09-30 0001431567us-gaap:DebitCardMember2025-01-012025-09-30 0001431567us-gaap:DebitCardMember2024-07-012024-09-30 0001431567us-gaap:DebitCardMember2025-07-012025-09-30 0001431567us-gaap:DepositAccountMember2024-01-012024-09-30 0001431567us-gaap:DepositAccountMember2025-01-012025-09-30 0001431567us-gaap:DepositAccountMember2024-07-012024-09-30 0001431567us-gaap:DepositAccountMember2025-07-012025-09-30 00014315672025-11-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to __________

Commission file number: 001-34142

OAK VALLEY BANCORP

(Exact name of registrant as specified in its charter)

California	26-2326676
State or other jurisdiction of	I.R.S. Employer
incorporation or organization	Identification No.

125 N. Third Ave., Oakdale, CA 95361

(Address of principal executive offices, zip code)

(209) 848-2265

Registrant’s telephone number, including area code

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	OVLY	The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 8,388,221 shares of common stock outstanding as of November 6, 2025.

Table of Contents

Oak Valley Bancorp

September 30, 2025

Table of Contents

		Page
PART I – FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

Condensed Consolidated Balance Sheets at September 30, 2025 (Unaudited) and December 31, 2024		1

Condensed Consolidated Statements of Income for the three and nine-month periods ended September 30, 2025 and September 30, 2024 (Unaudited)		2

Condensed Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2025 and September 30, 2024 (Unaudited)		3

Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine-month periods ended September 30, 2025 and September 30, 2024 (Unaudited)		4

Condensed Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2025 and September 30, 2024 (Unaudited)		5

Notes to Condensed Consolidated Financial Statements (Unaudited)		6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4.	Controls and Procedures	41

PART II – OTHER INFORMATION		42

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	42

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3.	Defaults Upon Senior Securities	42

Item 4.	Mine Safety Disclosures	42

Item 5.	Other Information	42

Item 6.	Exhibits	43

Table of Contents

PART I – FINANCIAL STATEMENTS

Item 1. Financial Statements

OAK VALLEY BANCORP

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)	September 30,			December 31,
	2025			2024
ASSETS
Cash and due from banks	$	225,470		$	138,481
Federal funds sold		21,685			30,270
Cash and cash equivalents		247,155			168,751

Securities - available for sale		530,661			526,496
Securities - equity investments		3,364			3,169
Loans, net of allowance for credit losses of $11,420 and $11,460 at September 30, 2025 and December 31, 2024, respectively		1,099,576			1,093,514
Cash surrender value of life insurance		36,783			37,558
Bank premises and equipment, net		18,879			16,319
Goodwill and other intangible assets, net		3,332			3,390
Deferred tax asset		14,701			15,501
Interest receivable and other assets		40,965			35,906
	$	1,995,416		$	1,900,604

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits	$	1,774,882		$	1,695,690
Interest payable and other liabilities		22,254			21,478
Total liabilities		1,797,136			1,717,168

Shareholders’ equity
Common stock, no par value; 50,000,000 shares authorized, 8,390,621 and 8,357,211 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively		25,435			25,435
Additional paid-in capital		6,581			6,199
Retained earnings		188,058			175,502
Accumulated other comprehensive loss, net of tax		(21,794	)		(23,700	)
Total shareholders’ equity		198,280			183,436

	$	1,995,416		$	1,900,604

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

OAK VALLEY BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(dollars in thousands, except per share amounts)	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2025			2024			2025			2024
INTEREST INCOME
Interest and fees on loans	$	14,881		$	13,739		$	43,187		$	39,445
Interest on securities		5,395			5,098			16,049			15,279
Interest on federal funds sold		346			392			985			1,118
Interest on deposits with banks		1,895			1,917			4,833			5,540
Total interest income		22,517			21,146			65,054			61,382

INTEREST EXPENSE
Deposits		3,320			3,491			9,896			9,194
Total interest expense		3,320			3,491			9,896			9,194

Net interest income		19,197			17,655			55,158			52,188
Reversal of provision for credit losses		(60	)		(1,620	)		(60	)		(1,620	)
Net interest income after provision for credit losses		19,257			19,275			55,218			53,808

NON-INTEREST INCOME
Service charges on deposits		457			437			1,330			1,255
Debit card transaction fee income		415			436			1,247			1,297
Earnings on cash surrender value of life insurance		299			287			886			764
Mortgage commissions		17			7			33			21
(Loss) gain on sales and calls of available-for-sale securities		(2	)		0			0			114
Other		787			679			1,793			1,674
Total non-interest income		1,973			1,846			5,289			5,125

NON-INTEREST EXPENSE
Salaries and employee benefits		7,857			7,177			23,299			21,700
Occupancy expenses		1,263			1,137			3,512			3,432
Data processing fees		745			659			2,209			2,099
Regulatory assessments		270			240			835			790
Other operating expenses		2,565			2,111			8,157			6,448
Total non-interest expense		12,700			11,324			38,012			34,469

Net income before provision for income taxes		8,530			9,797			22,495			24,464

Total provision for income taxes		1,837			2,473			4,917			5,524

Net Income	$	6,693		$	7,324		$	17,578		$	18,940

Net income per share	$	0.81		$	0.89		$	2.13		$	2.30

Net income per diluted share	$	0.81		$	0.89		$	2.12		$	2.30

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

OAK VALLEY BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
(dollars in thousands)	2025			2024			2025			2024

Net income	$	6,693		$	7,324		$	17,578		$	18,940
Other comprehensive income
Unrealized holding gain arising during the period		11,513			11,359			2,706			5,252
Less: reclassification for net losses (gains) included in net income		2			0			0			(114	)
Other comprehensive income, before tax		11,515			11,359			2,706			5,138
Tax expense related to items of other comprehensive income		(3,405	)		(3,358	)		(800	)		(1,519	)
Total other comprehensive income		8,110			8,001			1,906			3,619
Comprehensive income	$	14,803		$	15,325		$	19,484		$	22,559

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

OAK VALLEY BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

	THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
												Accumulated
						Additional						Other			Total
	Common Stock					Paid-in			Retained			Comprehensive			Shareholders'
(dollars in thousands)	Shares			Amount		Capital			Earnings			Income (Loss)			Equity

Balances, July 1, 2025		8,382,062		$	25,435	$	6,394		$	183,880		$	(29,904	)	$	185,805
Restricted stock issued		14,000			0		0			0			0			0
Restricted stock forfeited		(3,900	)		0		0			0			0			0
Restricted stock surrendered for tax withholding		(1,541	)		0		(43	)		0			0			(43	)
Cash dividends declared $0.30 per share of common stock		0			0		0			(2,515	)		0			(2,515	)
Stock based compensation		0			0		230			0			0			230
Other comprehensive gain		0			0		0			0			8,110			8,110
Net income		0			0		0			6,693			0			6,693
Balances, September 30, 2025		8,390,621		$	25,435	$	6,581		$	188,058		$	(21,794	)	$	198,280

Balances, July 1, 2024		8,359,556		$	25,435	$	5,851		$	164,051		$	(23,538	)	$	171,799
Restricted stock issued		1,500			0		0			0			0			0
Restricted stock forfeited		(450	)		0		0			0			0			0
Restricted stock surrendered for tax withholding		(1,895	)		0		(51	)		0			0			(51	)
Cash dividends declared $0.225 per share of common stock		0			0		0			(1,881	)		0			(1,881	)
Stock based compensation		0			0		201			0			0			201
Other comprehensive gain		0			0		0			0			8,001			8,001
Net income		0			0		0			7,324			0			7,324
Balances, September 30, 2024		8,358,711		$	25,435	$	6,001		$	169,494		$	(15,537	)	$	185,393

	NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
												Accumulated
						Additional						Other			Total
	Common Stock					Paid-in			Retained			Comprehensive			Shareholders'
(dollars in thousands)	Shares			Amount		Capital			Earnings			Income (Loss)			Equity
Balances, January 1, 2025		8,357,211		$	25,435	$	6,199		$	175,502		$	(23,700	)	$	183,436
Restricted stock issued		48,883			0		0			0			0			0
Restricted stock forfeited		(5,100	)		0		0			0			0			0
Restricted stock surrendered for tax withholding		(10,373	)		0		(284	)		0			0			(284	)
Cash dividends declared $0.60 per share of common stock		0			0		0			(5,022	)		0			(5,022	)
Stock based compensation		0			0		666			0			0			666
Other comprehensive gain		0			0		0			0			1,906			1,906
Net income		0			0		0			17,578			0			17,578
Balances, September 30, 2025		8,390,621		$	25,435	$	6,581		$	188,058		$	(21,794	)	$	198,280

Balances, January 1, 2024		8,293,168		$	25,435	$	5,512		$	154,301		$	(19,156	)	$	166,092
Restricted stock issued		72,269			0		0			0			0			0
Restricted stock forfeited		(450	)		0		0			0			0			0
Restricted stock surrendered for tax withholding		(6,276	)		0		(158	)		0			0			(158	)
Cash dividends declared $0.45 per share of common stock		0			0		0			(3,747	)		0			(3,747	)
Stock based compensation		0			0		647			0			0			647
Other comprehensive gain		0			0		0			0			3,619			3,619
Net income		0			0		0			18,940			0			18,940
Balances, September 30, 2024		8,358,711		$	25,435	$	6,001		$	169,494		$	(15,537	)	$	185,393

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

OAK VALLEY BANCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)	NINE MONTHS ENDED SEPTEMBER 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	17,578		$	18,940
Adjustments to reconcile net income to net cash provided by operating activities:
Reversal of provision for credit losses		(60	)		(1,620	)
Increase in deferred fees/costs, net		271			23
Depreciation		993			984
Amortization of investment securities, net		625			606
Unrealized gain on equity securities		(107	)		(60	)
Amortization of operating lease right-of-use asset		(181	)		(170	)
Stock based compensation		666			647
Gain on sales and calls of available-for-sale securities		0			(114	)
Earnings on cash surrender value of life insurance		(886	)		(764	)
Decrease in deferred tax asset		800			1,519
Gain on BOLI death benefit		(207	)		0
Increase in interest payable and other liabilities		245			2,696
(Increase) decrease in interest receivable		(386	)		301
Decrease (increase) in other assets		1,339			(1,607	)
Net cash provided by operating activities		20,690			21,381

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities		(35,564	)		(63,683	)
Purchases of equity securities		(89	)		(83	)
Proceeds from the sale of available-for-sale securities		0			28,258
Proceeds from maturities, calls, and principal paydowns of available-for-sale securities		33,481			40,818
Investment in LIHTC		(5,274	)		(2,618	)
Net increase in loans		(6,273	)		(56,356	)
Purchase of FHLB Stock		(776	)		(329	)
Purchase of BOLI policies		0			(5,000	)
Proceeds from redemption of BOLI policies		1,876			0
Purchases of premises and equipment		(3,553	)		(911	)
Net cash used in investing activities		(16,172	)		(59,904	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder cash dividends paid		(5,022	)		(3,747	)
Net increase in demand deposits and savings accounts		67,210			9,140
Net increase in time deposits		11,982			30,627
Tax withholding payments on vested restricted shares surrendered		(284	)		(158	)
Net cash provided by in financing activities		73,886			35,862

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		78,404			(2,661	)

CASH AND CASH EQUIVALENTS, beginning of period		168,751			216,568

CASH AND CASH EQUIVALENTS, end of period	$	247,155		$	213,907

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	9,895		$	9,134
Operating leases	$	1,174		$	1,121
Income taxes	$	3,510		$	3,835

NON-CASH INVESTING ACTIVITIES:
Change in unrealized gain on securities	$	2,706		$	5,138
Change in contributions payable to LIHTC limited partner investment	$	5,000		$	0
Right-of-use asset obtained in exchange for new operating lease liability	$	(805	)	$	(1,113	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

OAK VALLEY BANCORP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

Oak Valley Bancorp (the “Company”, “us”, “our”) is the parent holding company for Oak Valley Community Bank (the “Bank”), a California state-chartered bank. Eastern Sierra Community Bank operates as a division within Oak Valley Community Bank for select branches. The consolidated financial statements include the accounts of the parent company and its wholly-owned bank subsidiary. Unless otherwise stated, the “Company” refers to the consolidated entity, Oak Valley Bancorp, while the “Bank” refers to Oak Valley Community Bank. All material intercompany transactions have been eliminated. The interim consolidated financial statements included in this Quarterly Report on Form 10-Q are unaudited but reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three and nine-month periods ended September 30, 2025 are not necessarily indicative of the results of a full year’s operations. For further information, refer to the audited consolidated financial statements and footnotes included in the Company’s Form 10-K for the year ended December 31, 2024.

The Company was incorporated under the laws of the State of California on May 31, 1990, and began operations in Oakdale, California on May 28, 1991. The Company operates branches in Oakdale, Sonora, Bridgeport, Bishop, Mammoth Lakes, Modesto, Manteca, Patterson, Turlock, Ripon, Stockton, Escalon, Roseville, Lodi and Sacramento, California. The Bridgeport, Mammoth Lakes, and Bishop branches operate as a separate division, Eastern Sierra Community Bank. The Company’s primary source of revenue is providing loans to customers who are predominantly middle-market businesses.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowance for credit losses and fair value measurements. The estimates and assumptions may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates due to the uncertainty of various qualitative factors. Descriptions of our significant accounting policies are included in Note 1. Summary of Accounting Policies in the Notes to Consolidated Financial Statements in the 2024 Annual Report on Form 10-K.

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). The update requires enhanced disclosures about significant segment expenses, enhanced interim disclosure requirements, clarification for when multiple segment measures of profit or loss can be disclosed and other requirements intended to improve overall reportable segment disclosures in annual and interim periods. ASU 2023-07 became effective in the annual period beginning on January 1, 2024 and becomes effective for interim periods beginning on January 1, 2025 with retrospective application to all prior periods presented. ASU 2023-07 did not have a material impact on disclosures, as the Company operates as a single segment and reporting unit.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires additional annual disclosures including further disaggregation of information in the rate reconciliation, additional information for reconciling items meeting a quantitative threshold, further disaggregation of income taxes paid and other required disclosures. ASU 2023-09 is effective for the Company in the annual period beginning on January 1, 2025 and applied on a prospective basis with both early adoption and retrospective application permitted. The Company does not anticipate ASU 2023-09 will have a material impact on the Company’s income tax disclosures or financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement–Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, to provide investors with more decision-useful information about a public business entity’s expense by improving disclosures on income statement expenses. The amendments in the ASU are effective for public business entities only for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027. The Company does not anticipate this ASU will have a material impact on its financial statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). ASU 2025-06 removes all references to project stages and requires entities to capitalize costs associated with internal-use software based on a new methodology, which focuses on management’s authorization and commitment to funding the project and the probability that the software will be completed and used to perform the function intended. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and for interim reporting periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. The guidance can be applied prospectively, retrospectively, or by a modified transition approach. The Company is currently evaluating the impact this ASU will have on its financial statements.

Table of Contents

NOTE 3 – SECURITIES

Equity Securities

The Company held equity securities with fair values of $3,364,000 and $3,169,000 as of September 30, 2025 and December 31, 2024, respectively. There were no sales of equity securities during the three and nine-month periods ended September 30, 2025 and 2024. Consistent with ASC 321, Equity Securities, these securities are carried at fair value with the changes in fair value recognized in the condensed consolidated statements of income. Accordingly, the Company recognized gains of $43,000 and $107,000 during the three and nine-month periods ended September 30, 2025, respectively, as compared to gains of $141,000 and $60,000 during the same periods of 2024.

Debt Securities

Debt securities have been classified in the financial statements as available for sale. The amortized cost and estimated fair values of debt securities as of September 30, 2025 are as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
U.S. agencies	$	101,922	$	325	$	(3,832	)	$	98,415
Collateralized mortgage obligations		33,266		142		(353	)		33,055
Municipalities		346,628		942		(26,170	)		321,400
SBA pools		709		1		(3	)		707
Corporate debt		43,500		8		(1,540	)		41,968
Asset backed securities		35,577		83		(544	)		35,116
	$	561,602	$	1,501	$	(32,442	)	$	530,661

Table of Contents

The following table details the gross unrealized losses and fair values of debt securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2025.

(dollars in thousands)			Less than 12 months					12 months or more					Total
Description of Securities	Number of Securities		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. agencies		37	$	7,212	$	(259	)	$	58,487	$	(3,573	)	$	65,699	$	(3,832	)
Collateralized mortgage obligations		7		3,392		(6	)		12,830		(347	)		16,222		(353	)
Municipalities		119		83,497		(2,453	)		211,055		(23,717	)		294,552		(26,170	)
SBA pools		5		438		(2	)		131		(1	)		569		(3	)
Corporate debt		11		0		0			39,960		(1,540	)		39,960		(1,540	)
Asset backed securities		10		4,842		(5	)		8,553		(539	)		13,395		(544	)
Total temporarily impaired securities		189	$	99,381	$	(2,725	)	$	331,016	$	(29,717	)	$	430,397	$	(32,442	)

For available-for-sale debt securities in an unrealized loss position, management evaluates whether the decline in fair value is a reflection of credit deterioration or other factors. In performing this evaluation, management considers the extent which fair value has fallen below amortized cost, changes in ratings by rating agencies, and other information indicating a deterioration in repayment capacity of either the underlying issuer or the borrowers providing repayment capacity in a securitization. If management’s evaluation indicates that a credit loss exists then a present value of the expected cash flows is calculated and compared to the amortized cost basis of the security in question and, to the degree that the amortized cost basis exceeds the present value, an allowance for credit loss (“ACL”) is established, with the caveat that the maximum amount of the reserve on any individual security is the difference between the fair value and amortized cost balance of the security in question. Any unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Accrued interest receivable on available-for-sale securities was $4,593,000 and $4,888,000 as of September 30, 2025 and December 31, 2024, respectively, and is not included in the tables within this footnote.

The unrealized losses are due primarily to rising market yields and not due to credit deterioration. As such, no ACL on available-for-sale securities has been established as of September 30, 2025 and December 31, 2024. The Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before the earlier of the forecasted recovery or the maturity of the underlying investment security.

The amortized cost and estimated fair value of debt securities as of September 30, 2025, segregated by contractual maturity or call date, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(dollars in thousands)	Amortized		Fair
	Cost		Value
Available-for-sale securities:
Due in one year or less	$	91,342	$	88,929
Due after one year through five years		177,854		166,600
Due after five years through ten years		152,729		139,277
Due after ten years		29,491		28,916
Subtotal		451,416		423,722
Mortgage-backed securities and collateralized mortgage obligations		110,186		106,939
Total	$	561,602	$	530,661

Table of Contents

The amortized cost and estimated fair values of debt securities as of December 31, 2024 are as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
U.S. agencies	$	92,659	$	20	$	(5,605	)	$	87,074
Collateralized mortgage obligations		29,105		0		(606	)		28,499
Municipalities		347,051		900		(25,459	)		322,492
SBA pools		882		0		(3	)		879
Corporate debt		43,500		6		(2,294	)		41,212
Asset backed securities		46,946		66		(672	)		46,340
	$	560,143	$	992	$	(34,639	)	$	526,496

The following tables detail the gross unrealized losses and fair values of debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024.

(dollars in thousands)			Less than 12 months					12 months or more					Total
Description of Securities	Number of Securities		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. agencies		45	$	29,489	$	(777	)	$	54,568	$	(4,828	)	$	84,057	$	(5,605	)
Collateralized mortgage obligations		9		25,092		(189	)		3,408		(417	)		28,500		(606	)
Municipalities		123		113,936		(2,280	)		179,223		(23,179	)		293,159		(25,459	)
SBA pools		6		720		(1	)		159		(2	)		879		(3	)
Corporate debt		11		0		0			39,206		(2,294	)		39,206		(2,294	)
Asset backed securities		13		7,948		(15	)		15,912		(657	)		23,860		(672	)
		207	$	177,185	$	(3,262	)	$	292,476	$	(31,377	)	$	469,661	$	(34,639	)

There were no sales of available-for-sale securities during the three and nine-months ended September 30, 2025. There were no sales of available-for-sale securities sold during the three-months ended September 30, 2024, and 18 available-for-sale securities sold during the nine-months ended September 30, 2024 with a book value of $28,258,000, resulting in gross gains of $105,000. In addition, the Company recognized losses of $2,000 and $0 on called securities during the three and nine-month periods ended September 30, 2025, respectively, as compared to gains of $8,000 and $9,000 during the comparable 2024 periods, respectively.

Debt securities carried at $349,605,000 and $288,199,000 as of September 30, 2025 and December 31, 2024, respectively, were pledged to secure deposits of public funds.

Table of Contents

NOTE 4 – LOANS

The Company’s customers are primarily located in Stanislaus, San Joaquin, Tuolumne, Inyo, and Mono Counties. As of September 30, 2025, approximately 87% of the Company’s loans are commercial real estate loans, which include construction loans. Approximately 7% of the Company’s loans are for general commercial use including professional, retail, and small business. Additionally, 3% of the Company’s loans are for residential real estate and other consumer loans. The remaining 3% are agriculture loans. Accrued interest receivable on loans was $4,025,000 and $3,268,000 as of September 30, 2025 and December 31, 2024, respectively, and is not included in the tables within this footnote. Loan totals were as follows:

(in thousands)	September 30, 2025			December 31, 2024
Commercial real estate:
Construction & land	$	38,509		$	17,812
Multi-family		86,522			87,768
Owner occupied		223,093			229,961
Non-owner occupied		528,336			528,769
Farmland		90,997			95,348
Commercial and industrial		80,300			83,572
Consumer		33,775			33,969
Agriculture		31,297			29,336
Total loans		1,112,829			1,106,535

Less:
Deferred loan fees and costs, net		(1,833	)		(1,561	)
Allowance for credit losses		(11,420	)		(11,460	)
Net loans	$	1,099,576		$	1,093,514

Loan Origination/Risk Management. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans. As of September 30, 2025 and December 31, 2024, approximately 32% and 24%, respectively, of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties.

Table of Contents

With respect to loans to developers and builders that are secured by non-owner-occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success.

Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

Consumer loans are originated utilizing a computer-based credit scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans follow bank policy, which include, but are not limited to, a maximum loan-to-value percentage of 80%, a maximum housing and total debt ratio of 36% and 42%, respectively and other specified credit and documentation requirements.

Agricultural loans largely consist of real estate loans, development loans, and operating facilities to support crop production, livestock, dairy, and other agricultural interests. Agricultural loans are especially vulnerable to two risk factors that are largely outside the control of the Company and borrowers: commodity prices and weather conditions. Other environmental factors such as the availability of water will also affect the production of crops. Underwriting practices include estimating future repayment sources based on information taken from the customer, peer reports, or appraisals. With the cyclicality of agricultural operations, increased focus is placed on access to liquidity and equity to support the operations when faced with unfavorable industry trends as well as the sponsor’s industry experience.

The Company maintains an independent loan review function that validates the credit risk program on a periodic basis. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Non-Accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

No loans were on non-accrual status as of September 30, 2025, December 31, 2024, and September 30, 2024.

Table of Contents

The following table analyzes past due loans including any past due non-accrual loans, segregated by class of loans, as of September 30, 2025 (in thousands):

September 30, 2025	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		90 Days or More Past Due and Still Accruing
Commercial real estate:
Construction & land	$	0	$	0	$	0	$	0	$	38,509	$	38,509	$	0
Multi-family		0		0		0		0		86,522		86,522		0
Owner occupied		0		0		0		0		223,093		223,093		0
Non-owner occupied		0		0		0		0		528,336		528,336		0
Farmland		0		0		0		0		90,997		90,997		0
Commercial and industrial		0		0		0		0		80,300		80,300		0
Consumer		0		0		0		0		33,775		33,775		0
Agriculture		0		0		0		0		31,297		31,297		0
Total	$	0	$	0	$	0	$	0	$	1,112,829	$	1,112,829	$	0

The following table analyzes past due loans including any past due non-accrual loans, segregated by class of loans, as of December 31, 2024 (in thousands):

December 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		90 Days or More Past Due and Still Accruing
Commercial real estate:
Construction & land	$	0	$	0	$	0	$	0	$	17,812	$	17,812	$	0
Multi-family		0		0		0		0		87,768		87,768		0
Owner occupied		0		0		0		0		229,961		229,961		0
Non-owner occupied		0		0		0		0		528,769		528,769		0
Farmland		0		0		0		0		95,348		95,348		0
Commercial and industrial		0		0		0		0		83,572		83,572		0
Consumer		0		0		0		0		33,969		33,969		0
Agriculture		0		0		0		0		29,336		29,336		0
Total	$	0	$	0	$	0	$	0	$	1,106,535	$	1,106,535	$	0

Collateral Dependent Loans. Management’s evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Under the Current Expected Credit Losses (“CECL”) accounting standard, loans can be determined to be collateral dependent if foreclosure of the loan’s underlying collateral is probable or as a practical expedient if the borrower is experiencing financial difficulties and the repayment is expected to be provided mainly through the operation or sale of the collateral. Loans are written down to the lesser of cost or fair value of underlying collateral, less estimated costs to sell. The Company had no collateral dependent loans as of September 30, 2025 and December 31, 2024.

Loan Modification Disclosures Pursuant to ASU 2022-02 - The Company may agree to different types of concessions when modifying a loan. There were no loan modifications to borrowers experiencing financial difficulty, including principal forgiveness, rate reductions, payment deferral or term extension, during the three and nine-months ended September 30, 2025 and 2024.

Loan Risk Grades– Quality ratings (Risk Grades) are assigned to all commitments and stand-alone notes. Risk grades define the basic characteristics of commitments or stand-alone note in relation to their risk. All loans are graded using a system that maximizes the loan quality information contained in loan review grades, while ensuring that the system is compatible with the grades used by bank examiners.

Table of Contents

The Company grades loans using the following letter system:

1 Exceptional Loan

2 Quality Loan

3A Better Than Acceptable Loan

3B Acceptable Loan

3C Marginally Acceptable Loan

4 (W) Watch Acceptable Loan

5 Special Mention Loan

6 Substandard Loan

7 Doubtful Loan

8 Loss

1. Exceptional Loan - Loans that contain no risk or minimal risk. Grade 1 loans are considered Pass. To qualify for this rating, the following characteristics must be present:

●

A high level of liquidity and whose debt-servicing capacity exceeds expected obligations by a substantial margin.

●

Leverage is below average for the industry and earnings are consistent or growing without severe vulnerability to economic cycles.

●

Also included in this rating (but not mandatory unless one or more of the preceding characteristics are missing) are loans that are fully secured and properly margined by our own time instruments or U.S. blue chip securities. To be properly margined, cash collateral must be equal to, or greater than, 110% of the loan amount.

2. Quality Loan - Loans with excellent sources of repayment that conform in all respects to bank policy and regulatory requirements. These are also loans for which little repayment risk has been identified. No credit or collateral exceptions. Grade 2 loans are considered Pass. Other factors include:

●

Unquestionable debt-servicing capacity to cover all obligations in the ordinary course of business from well-defined primary and secondary sources.

●

Consistent strong earnings.

●

A solid equity base.

3A. Better than Acceptable Loan - In the interest of better delineating the loan portfolio’s true credit risk for reserve allocation, further granularity has been sought by splitting the grade 3 category into three classifications. The distinction between the three are bank-defined guidelines and represent a further refinement of the regulatory definition of a pass, or grade 3 loan. Grade 3A is characterized by:

●

Strong earnings with no losses in the prior three years and ample cash flow to service all debt well above policy guidelines.

●

Long term experienced management with depth and defined management succession.

●

The loan has no exceptions to policy.

●

Loan-to-value on real estate secured transactions is 10% to 20% less than policy guidelines.

●

Highly liquid balance sheet that may have cash available to pay off our loan completely.

●

Little to no debt on balance sheet.

3B. Acceptable Loan - 3B loans are simply defined as all loans that are less qualified than 3A loans and are stronger than 3C loans. These loans are characterized by acceptable sources of repayment that conform to bank policy and regulatory requirements. Repayment risks are acceptable for these loans. Credit or collateral exceptions are minimal, are in the process of correction, and do not represent repayment risk. These loans:

●

Are those where the borrower has average financial strengths, a history of profitable operations and experienced management.

●

Are those where the borrower can be expected to handle normal credit needs in a satisfactory manner.

3C. Marginally Acceptable Loan - 3C loans have similar characteristics as that of 3Bs with the following additional characteristics:

●

Requires collateral.

●

A credit facility where the borrower’s financial condition is average and usually lacks reliable secondary sources of repayment other than the subject collateral.

●

Other common characteristics can include some or all of the following: minimal background experience of management, lacking continuity of management, a start-up operation, erratic historical profitability (acceptable reasons-well identified), lack of or marginal sponsorship of guarantor, and government guaranteed loans.

4(W). Watch Acceptable Loan - Watch grade will be assigned to any credit that is adequately secured and performing but monitored for a number of indicators. These characteristics may include:

●

Any unexpected short-term adverse financial performance from budgeted projections or a prior period’s results (i.e., declining profits, sales, margins, cash flow, or increased reliance on leverage, including adverse balance sheet ratios, trade debt issues, etc.).

Table of Contents

●

Any managerial or personal problems with company management, decline in the entire industry or local economic conditions, or failure to provide financial information or other documentation as requested.

●

Issues regarding delinquency, overdrafts, or renewals.

●

Any other issues that cause concern for the company.

●

Loans to individuals or loans supported by guarantors with marginal net worth and/or marginal collateral.

●

Weaknesses that are identified are short-term in nature.

●

Loans in this category are usually accounts the Bank would retain provided a positive turnaround is expected within a reasonable time frame. Grade 4(W) loans are considered Pass.

5. Special Mention Loan - A special mention extension of credit is defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Extensions of credit that might be detailed in this category include the following:

●

The lending officer may be unable to properly supervise the credit because of an inadequate loan or credit agreement.

●

Questions exist regarding the condition of and/or control over collateral.

●

Economic or market conditions may unfavorably affect the obligor in the future.

●

A declining trend in the obligor’s operations or an imbalanced position in the balance sheet exists, but not to the point that repayment is jeopardized.

6. Substandard Loan - A “substandard” extension of credit is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified as substandard.

7. Doubtful Loan - An extension of credit classified as “doubtful” has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high but because of certain important and reasonably specific pending factors that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceedings, capital injection, and perfection of liens on additional collateral or refinancing plans. The entire loan need not be classified as doubtful when collection of a specific portion appears highly probable.

8. Loss - Extensions of credit classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather that it is not practical to defer writing off, even though partial recovery may be affected in the future. It is not the Company’s practice to attempt long-term recoveries while the credit remains on the books. Losses are taken in the period in which they are determined to be uncollectible.

As of September 30, 2025 and December 31, 2024, there are no loans that are classified with risk grades of 8- Loss.

The risk grades are reviewed every month, at a minimum and on an as-needed basis depending on the specific circumstances of the loan.

Table of Contents

The following table summarizes loan risk grade totals by class and year of origination as of September 30, 2025. Risk grades 1 through 4(W) have been aggregated in the “Pass” line.

	As of September 30, 2025
(in thousands)	Term Loans Amortized Cost Basis by Origination Year
Risk Grade Ratings	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Commercial real estate - construction & land
Pass	$	21,252	$	12,966	$	1,650	$	1,655	$	0	$	986	$	0	$	38,509
Total commercial real estate - construction & land		21,252		12,966		1,650		1,655		0		986		0		38,509

Commercial real estate - multi-family
Pass		0		28,134		4,630		13,637		7,597		32,524		0		86,522
Total commercial real estate - multi-family		0		28,134		4,630		13,637		7,597		32,524		0		86,522

Commercial real estate - owner occupied
Pass		16,217		28,243		9,473		43,475		43,087		75,155		0		215,650
Special mention		0		0		0		0		7,174		269		0		7,443
Total commercial real estate - owner occupied		16,217		28,243		9,473		43,475		50,261		75,424		0		223,093

Commercial real estate - non-owner occupied
Pass		37,374		37,996		91,786		88,384		67,632		199,441		1,449		524,062
Special mention		0		0		0		0		0		4,274		0		4,274
Total commercial real estate - non-owner occupied		37,374		37,996		91,786		88,384		67,632		203,715		1,449		528,336

Commercial real estate - Farmland
Pass		845		7,840		12,431		9,800		16,190		36,476		0		83,582
Special mention		0		0		0		0		0		7,415		0		7,415
Total commercial real estate - farmland		845		7,840		12,431		9,800		16,190		43,891		0		90,997

Commercial and Industrial
Pass		3,177		26,687		9,115		8,052		5,395		5,130		22,638		80,194
Substandard		0		0		0		86		0		20		0		106
Total commercial and industrial		3,177		26,687		9,115		8,138		5,395		5,150		22,638		80,300

Consumer
Pass		2,346		3,986		949		4,885		2,589		9,730		9,252		33,737
Substandard		1		0		0		0		0		37		0		38
Total consumer		2,347		3,986		949		4,885		2,589		9,767		9,252		33,775

Agriculture
Pass		0		248		1,652		716		1,111		296		22,438		26,461
Special mention		0		0		1,656		0		0		0		3,180		4,836
Total agriculture		0		248		3,308		716		1,111		296		25,618		31,297

Total by Risk Category
Pass		81,211		146,100		131,686		170,604		143,601		359,738		55,777		1,088,717
Special mention		0		0		1,656		0		7,174		11,958		3,180		23,968
Substandard		1		0		0		86		0		57		0		144
Total	$	81,212	$	146,100	$	133,342	$	170,690	$	150,775	$	371,753	$	58,957	$	1,112,829

Table of Contents

The following table summarizes loan risk grade totals by class and year of origination as of December 31, 2024. Risk grades 1 through 4(W) have been aggregated in the “Pass” line.

	As of December 31, 2024
(in thousands)	Term Loans Amortized Cost Basis by Origination Year
Risk Grade Ratings	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - construction & land
Pass	$	8,228	$	3,828	$	3,287	$	923	$	0	$	1,546	$	0	$	17,812
Total commercial real estate - construction & land		8,228		3,828		3,287		923		0		1,546		0		17,812

Commercial real estate - multi-family
Pass		28,222		4,706		13,827		7,682		3,352		29,979		0		87,768
Total commercial real estate - multi-family		28,222		4,706		13,827		7,682		3,352		29,979		0		87,768

Commercial real estate - owner occupied
Pass		28,828		9,762		48,427		46,107		23,390		63,747		198		220,459
Special mention		0		0		0		7,398		0		278		0		7,676
Substandard		0		0		0		0		0		1,826		0		1,826
Total commercial real estate - owner occupied		28,828		9,762		48,427		53,505		23,390		65,851		198		229,961

Commercial real estate - non-owner occupied
Pass		39,520		103,156		90,702		78,029		38,928		170,059		1,670		522,064
Special mention		0		0		0		0		0		6,705		0		6,705
Total commercial real estate - non-owner occupied		39,520		103,156		90,702		78,029		38,928		176,764		1,670		528,769

Commercial real estate - Farmland
Pass		7,853		12,925		10,050		16,706		12,165		27,888		0		87,587
Special mention		0		0		0		0		2,301		5,460		0		7,761
Total commercial real estate - farmland		7,853		12,925		10,050		16,706		14,466		33,348		0		95,348

Commercial and Industrial
Pass		25,781		11,200		9,055		6,779		3,032		4,221		23,343		83,411
Substandard		0		0		111		0		0		50		0		161
Total commercial and industrial		25,781		11,200		9,166		6,779		3,032		4,271		23,343		83,572

Consumer
Pass		4,190		1,050		4,782		3,516		2,088		8,723		9,576		33,925
Substandard		3		0		0		0		0		41		0		44
Total consumer		4,193		1,050		4,782		3,516		2,088		8,764		9,576		33,969

Agriculture
Pass		28		1,859		1,009		1,271		0		467		17,936		22,570
Special mention		0		1,570		0		0		0		0		5,196		6,766
Total agriculture		28		3,429		1,009		1,271		0		467		23,132		29,336

Total by Risk Category
Pass		142,650		148,486		181,139		161,013		82,955		306,630		52,723		1,075,596
Special mention		0		1,570		0		7,398		2,301		12,443		5,196		28,908
Substandard		3		0		111		0		0		1,917		0		2,031
Total	$	142,653	$	150,056	$	181,250	$	168,411	$	85,256	$	320,990	$	57,919	$	1,106,535

Table of Contents

Allowance for Credit Losses (“ACL”). Under ASC Topic 326, the allowance for credit losses is a valuation account that is deducted from the related loan’s amortized cost basis to present the net amount expected to be collected on the loans. The measurement of expected credit losses utilizes a CECL model and is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company’s ACL is calculated monthly, with any difference in the calculated ACL and the recorded ACL trued-up through an entry to the provision for credit losses. Management calculates the quantitative portion of collectively evaluated reserves for all loan categories, using a discounted cash flow (“DCF”) methodology. Management generally evaluates collectively evaluated loans by Federal Call code in order to group loans with similar risk characteristics together, however management has grouped loans in selected call codes together in determining portfolio segments, due to similar risk characteristics and reserve methodologies used for certain call code classifications.

The DCF quantitative reserve methodology incorporates the consideration of probability of default (“PD”) and loss given default (“LGD”) estimates to estimate periodic losses. The PD estimates are derived through the application of reasonable and supportable economic forecasts to call code specific regression models, derived from the consideration of historical bank-specific and peer loss-rate data. The loss rate data has been regressed against benchmark economic indicators, for which reasonable and supportable forecasts exist, in the development of the call-code specific regression models. Regression models are generally refreshed on an annual basis, in order to pull in more recent loss rate data. Reasonable and supportable forecasts of the selected economic metric are then input into the regression model to calculate an expected default rate. The expected default rates are then applied to expected monthly loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The Company utilizes a four-quarter forecast period, after which the expected default rates revert to the historical average for each call code, over a four-quarter reversion period, on a straight-line basis. The prepayment assumptions applied to expected cash flow over the contractual life of the loans are estimated based on historical, bank-specific experience, peer data and the consideration of current and expected conditions and circumstances including the level of interest rates. The prepayment assumptions may be updated by Management in the event that changing conditions impact Management’s estimate or additional historical data gathered has resulted in the need for a reevaluation. LGD utilized in the DCF is derived from the application of the Frye-Jacobs theory which relates LGD to PD based on historical peer data, as calculated by a third-party. The call code regression models utilized upon implementation of CECL on January 1, 2023, and as of September 30, 2025, were identical, and relied upon reasonable and supportable forecasts of the National Unemployment Rate. Some of the call code regression models also use the Real Gross Domestic Product. Management selected the National Unemployment Rate and the Real Gross Domestic Product as the drivers of quantitative portion of collectively reserves on loan classes reliant upon the DCF methodology, primarily as a result of high correlation coefficients identified in regression modeling, the availability of forecasts including the quarterly FOMC forecast, and given the widespread familiarity of stakeholders with this economic metric.

Management recognizes that there are additional factors impacting risk of loss in the loan portfolio beyond what is captured in the quantitative portion of reserves on collectively evaluated loans. As current and expected conditions change compared to conditions over the historical lookback period, which is utilized in the calculation of quantitative reserves, management considers whether additional or reduced reserve levels on collectively evaluated loans may be warranted given the consideration of a variety of qualitative factors. Several of the following qualitative factors (“Q-factors”) considered by management reflect the legacy regulatory guidance on Q-factors, whereas several others represent factors unique to the Company or unique to the current time period.

● Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices

● Changes in international, regional and local economic and business conditions, and developments that affect the collectability of the portfolio, as reflected in forecasts of the California unemployment rate

● Changes in the nature and volume of the loan portfolio

● Changes in the experience, ability, and depth of lending management and other relevant staff

● Changes in the volume and severity of past due, watch loans and classified loans

● Changes in the quality of the Bank’s loan review processes

● Changes in the value of underlying collateral for loans not identified as collateral dependent

● Changes in loan categorization concentrations

● Other external factors, including the regulatory risk ratings.

The qualitative portion of the Company’s reserves on collectively evaluated loans are calculated using a combination of numeric frameworks and management judgement, to determine risk categorizations in each of the Q-factors presented above. The amount of qualitative reserves is also contingent upon the relative weighting of Q-factors according to management’s judgement.

Loans identified as losses by management, internal loan review and/or bank examiners are charged-off. Furthermore, consumer loan accounts are charged-off automatically based on regulatory requirements.

Table of Contents

Accrued interest receivable for loans is included in the “Interest receivable and other assets” line item on the Company’s Consolidated Balance Sheet. The Company elected not to measure an allowance for accrued interest receivable and instead elected to reverse accrued interest income on loans that are placed on nonaccrual status. The Company believes this policy results in the timely reversal of uncollectible interest.

The following table details activity in the ACL by portfolio segment for the three and nine-month periods ended September 30, 2025 and 2024. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Allowance for Credit Losses
For the Three and Nine Months Ended September 30, 2025 and 2024

(in thousands)
		CRE Construction & Land			CRE Multi- family			CRE Owner occupied			CRE Non-owner occupied			CRE Farmland			Commercial and Industrial			Consumer			Agriculture			Total
Three Months Ended September 30, 2025
Beginning balance		$	633		$	699		$	1,396		$	6,245		$	1,546		$	599		$	172		$	140		$	11,430
Charge-offs			0			0			0			0			0			0			(16	)		0			(16	)
Recoveries			0			0			0			0			0			0			6			0			6
Provision for (reversal of) credit losses	(1)		168			(91	)		121			(288	)		61			(10	)		59			(20	)		0
Ending balance		$	801		$	608		$	1,517		$	5,957		$	1,607		$	589		$	221		$	120		$	11,420

Nine Months Ended September 30, 2025
Beginning balance		$	258		$	737		$	1,503		$	6,401		$	1,665		$	645		$	175		$	76		$	11,460
Charge-offs			0			0			0			0			0			0			(52	)		0			(52	)
Recoveries			0			0			0			0			0			0			12			0			12
Provision for (reversal of) credit losses	(1)		543			(129	)		14			(444	)		(58	)		(56	)		86			44			0
Ending balance		$	801		$	608		$	1,517		$	5,957		$	1,607		$	589		$	221		$	120		$	11,420

Three Months Ended September 30, 2024
Beginning balance		$	909		$	666		$	1,856		$	4,764		$	1,409		$	1,177		$	239		$	101		$	11,121
Charge-offs			0			0			0			0			0			0			(14	)		0			(14	)
Recoveries			1,988			0			0			0			0			0			4			0			1,992
(Reversal of) provision for credit losses			(2,294	)		(219	)		(347	)		1,282			300			(282	)		(64	)		4			(1,620	)
Ending balance		$	603		$	447		$	1,509		$	6,046		$	1,709		$	895		$	165		$	105		$	11,479

Nine Months Ended September 30, 2024
Beginning balance		$	1,227		$	667		$	1,805		$	4,805		$	1,468		$	650		$	227		$	47		$	10,896
Charge-offs			0			0			0			0			0			0			(39	)		0			(39	)
Recoveries			2,230			0			0			0			0			0			12			0			2,242
(Reversal of) provision for credit losses			(2,854	)		(220	)		(296	)		1,241			241			245			(35	)		58			(1,620	)
Ending balance		$	603		$	447		$	1,509		$	6,046		$	1,709		$	895		$	165		$	105		$	11,479

(1)

The total provision amount reported in this table of $0 does not agree to the reversal of $60 thousand reported on the income statement because that reversal was related to off balance sheet commitments and is recorded in other liabilities on the balance sheet. See the changes in reserve for off balance sheet commitments table within this footnote.

Table of Contents

The following table details the ACL and ending gross loan balances as of September 30, 2025 and December 31, 2024, summarized by collective and individual evaluation methods of impairment.

(in thousands)
	CRE Construction & Land		CRE Multi- family		CRE Owner occupied		CRE Non-owner occupied		CRE Farmland		Commercial and Industrial		Consumer		Agriculture		Total
September 30, 2025
Allowance for credit losses for loans:
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Collectively evaluated for impairment		801		608		1,517		5,957		1,607		589		221		120		11,420
	$	801	$	608	$	1,517	$	5,957	$	1,607	$	589	$	221	$	120	$	11,420

Ending gross loan balances:
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Collectively evaluated for impairment		38,509		86,522		223,093		528,336		90,997		80,300		33,775		31,297		1,112,829
	$	38,509	$	86,522	$	223,093	$	528,336	$	90,997	$	80,300	$	33,775	$	31,297	$	1,112,829

December 31, 2024
Allowance for credit losses for loans:
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Collectively evaluated for impairment		258		737		1,503		6,401		1,665		645		175		76		11,460
	$	258	$	737	$	1,503	$	6,401	$	1,665	$	645	$	175	$	76	$	11,460

Oak Valley Bancorp 10-Q