Oak View Bankshares, Inc. Announces Second Quarter Earnings

WARRENTON, VA / ACCESS Newswire / July 30, 2025 /Oak View Bankshares, Inc. (the "Company ") (OTCID:OAKV), parent company of Oak View National Bank (the "Bank "), reported net income of $1.9 million for the quarter ended June 30, 2025, compared to net income of $1.8 million for the quarter ended June 30, 2024, an increase of 4.9%. Net income for the six months ended June 30, 2025, was $3.4 million, compared to $3.2 million for the six months ended June 30, 2024, an increase of 6.7%.

Basic and diluted earnings per share were $0.55 per share for the quarter ended June 30, 2025, compared to $0.62 for the quarter ended June 30, 2024. Basic and diluted earnings per share for the six months ended June 30, 2025, were $1.05 compared to $1.07 for the six months ended June 30, 2024.

Michael Ewing, CEO and Chairman of the Board, said, "We are pleased with our second quarter results. Your talented and committed team continues to win deposit and lending share and produce compelling, durable returns on the capital entrusted to us. As always, our strong financial performance reflects our unwavering commitment to striking the optimal balance among safety and soundness, profitability, and growth. Your Company 's future is bright. "

Selected Highlights:

• Asset quality continues to be outstanding.

• Liquidity remains strong with cash, unencumbered securities available for sale, and available secured and unsecured borrowing capacity totaling $440.2 million as of June 30, 2025, compared to $384.8 million as of December 31, 2024.

• Regulatory capital remains strong with the Bank 's ratios exceeding the "well capitalized " thresholds in all categories, with total capital ratio at 18.5%, common equity tier 1 capital ratio at 17.6%, tier 1 capital ratio at 15.60% and leverage ratio at 8.5%.

Net Interest Income
The net interest margin was 2.96% for the quarter ended June 30, 2025, compared to 2.99% for the quarter ended June 30, 2024. Net interest income before the provision for credit losses was $5.4 million and $4.5 million for the quarters ended June 30, 2025, and 2024, respectively. Interest income for the quarters ended June 30, 2025, and 2024 was $10.2 million and $8.9 million, respectively, driven by volume in the loan and investment portfolios as well as higher origination and repricing rates in the loan portfolio. The increase in interest income was offset by the increase in interest expense for the quarters ended June 30, 2025, and 2024. Interest expense was $4.8 million and $4.4 million for the quarters ended June 30, 2025, and 2024, respectively and was primarily due to the increased interest expense from higher average balances in each category of interest-bearing deposits. While total interest expense on deposits have increased due to volume, this increase was offset by higher cost time deposits repricing downward.

The net interest margin was 2.93% for the six months ended June 30, 2025, compared to 2.94% for the six months ended June 30, 2024. Net interest income before the provision for credit losses was $10.2 million and $8.8 million for the six months ended June 30, 2025, and 2024, respectively. Interest income was $19.7 million and $17.3 million while interest expense was $9.4 million and $8.5 million for the six months ended June 30, 2025, and 2024, respectively.

Noninterest Income
Noninterest income was $0.7 million and $0.7 million for the quarters ended June 30, 2025, and 2024, respectively, a decrease of 2.96%. Contributing to noninterest income for the quarters ended June 30, 2025, and 2024, were net gains on sales of available for sale securities of $0.1 million and $0.3 million, respectively. Proceeds from the sale of these securities were redeployed into assets with more attractive risk and return characteristics. Noninterest income, excluding gains on sales of securities, was $0.6 million and $0.4 million, an increase of 45.9%, for the quarters ended June 30, 2025, and 2024, respectively.

Noninterest income was $1.1 million and $1.2 million for the six months ended June 30, 2025, and 2024, respectively, a decrease of 4.6%. Contributing to noninterest income for the six months ended June 30, 2025, and 2024, were net gains on sales of available for sale securities of $0.1 million and $0.4 million, respectively. Proceeds from the sale of these securities were redeployed into assets with more attractive risk and return characteristics. Noninterest income, excluding gains on sales of securities, was $1.0 million and $0.7 million, an increase of 33.5%, for the six months ended June 30, 2025, and 2024, respectively.

Other significant changes in noninterest income for the quarter and six months ended June 30, 2025, and 2024 were the increase in interchange fee income of 9.1% and 8.2%, respectively, and an increase in mortgage loan fee income of 206.3% and 210.0%, respectively. The increase in both categories of noninterest income was the result of a higher volume in transactions for the reported periods.

Noninterest Expense
Noninterest expense was $3.6 million and $2.9 million for the quarters ended June 30, 2025, and 2024, respectively, an increase of 24.2%. Contributing to the increase in noninterest expense for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, were salaries and employee benefits of 21.2% due to increased staffing levels as well as normal annual increases in salaries and increases in employee healthcare and other benefits, occupancy and equipment of 35.1%, data processing of 18.9%, advertising and marketing of 144.8%, and other taxes of 50.00% primarily due to the relocation of one branch to a newly constructed facility in April 2025 and the addition of a branch in September 2024.

Noninterest income was $6.9 million and $5.8 million for the six months ended June 30, 2025, and 2024, respectively, an increase of 19.4%. Components of this increase included salaries and employee benefits of 16.4%, occupancy and equipment of 23.5%, data processing of 18.4%, advertising and marketing of 96.3%, and other taxes of 25.6%.

Liquidity
Liquidity remains exceptionally strong with $440.2 million of liquid assets available which included cash, unencumbered securities available for sale, and secured and unsecured borrowing capacity as of June 30, 2025, compared to $326.9 million as of June 30, 2024.

The Company 's deposits proved to be stable with core deposits, which are defined as total deposits excluding brokered deposits, of $540.3 million as of June 30, 2025, compared to $505.7 million as of December 31, 2024. Uninsured deposits, those deposits that exceed FDIC insurance limits, were $117.7 million as of June 30, 2025, or 18.3% of total deposits, which management believes is within industry averages.

Asset Quality
The allowance for credit losses related to the loan portfolio was $3.1 million as of June 30, 2025, compared to $3.0 million as of December 31, 2024, or 0.94% and 0.94% of total loans outstanding, net of unearned income, respectively.

The provision for credit losses for the quarter ended June 30, 2025, and 2024 was $0.08 million and $0.06 million, respectively. The provision for credit losses for the quarter ended June 30, 2025, was primarily attributable to the $7.1 million increase in the loan portfolio during the current quarter.

The provision for credit losses for the six months ended June 30, 2025, and 2024 was $0.16 million and $0.13 million, respectively. The provision for credit losses for the six months ended June 30, 2025, was primarily attributable to the year-to-date increase of $13.8 million in the loan portfolio.

Shareholders ' Equity
Shareholders ' equity was $47.5 million as of June 30, 2025, compared to $38.3 million as of December 31, 2024. Accumulated other comprehensive loss was $3.6 million as of June 30, 2025, compared to $2.5 million as of December 31, 2024. The unrealized losses reflected therein are primarily related to mark-to-market adjustments on U.S. Treasury bonds within the available for sale securities portfolio, which are the result of changes in market interest rates since they were acquired.

About Oak View Bankshares, Inc. and Oak View National Bank
Oak View Bankshares, Inc. is the parent bank holding company for Oak View National Bank, a locally owned and managed community bank serving Fauquier, Culpeper, Rappahannock, and surrounding Counties. For more information about Oak View Bankshares, Inc. and Oak View National Bank, please visit our website at www.oakviewbank.com. Member FDIC.

For additional information, contact Tammy Frazier, Executive Vice President & Chief Financial Officer, Oak View Bankshares, Inc., at 540-359-7155.

Cautionary Note Regarding Forward-Looking Statements
Any statements in this release about expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may, " "should, " "could, " "would, " "predict, " "potential, " "believe, " "likely, " "expect, " "anticipate, " "seek, " "estimate, " "intend, " "plan, " "project " and similar expressions. Accordingly, these statements involve estimates, assumptions, and uncertainties, and actual results may differ materially from those expressed in such statements. The following factors could cause the Company 's actual results to differ materially from those projected in the forward-looking statements made in this document: changes in assumptions underlying the establishment of allowances for credit losses, and other estimates; the risks of changes in interest rates on levels, composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities; the effects of future economic, business and market conditions; legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations and their application by our regulators; the Company 's ability to maintain adequate liquidity by retaining deposit customers and secondary funding sources, especially if the Company 's or banking industry 's reputation becomes damaged; computer systems and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance, or other disruptions despite security measures implemented by the Company; risks inherent in making loans, such as repayment risks and fluctuating collateral values; governmental monetary and fiscal policies; changes in accounting policies, rules and practices; competition with other banks and financial institutions, and companies outside of the banking industry, including companies that have substantially greater access to capital and other resources; demand, development and acceptance of new products and services; problems with technology utilized by the Company; changing trends in customer profiles and behavior; success of acquisitions and operating initiatives, changes in business strategy or development of plans, and management of growth; reliance on senior management, including the ability to attract and retain key personnel; and inadequate design or circumvention of disclosure controls and procedures or internal controls. These factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by the Company, and you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and the Company does not undertake any obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on the Company 's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

SOURCE:Oak View Bankshares, Inc.

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