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PRESS RELEASE For Immediate Release Date : Contact : Phone : April 22 , 2021 Chris Courtney / Rick McCarty ( 209 ) 848-2265 www.ovcb.com Exhibit 99.1 OAK VALLEY BANCORP REPORTS 1st QUARTER RESULTS OAKDALE , CA - Oak Valley Bancorp ( NASDAQ : OVLY ) ( the “ Company ” ) , the bank holding company for Oak Valley Community Bank and their Eastern Sierra Community Bank division , recently reported unaudited consolidated financial results for the first quarter of 2021. For the three months ended March 31 , 2021 , consolidated net income was $ 4,357,000 , or $ 0.53 per diluted share ( EPS ) . This compared to consolidated net income of $ 4,649,000 , or $ 0.57 EPS , for the prior quarter and $ 2,709,000 , or $ 0.33 EPS , for the same period a year ago . The decrease in net income compared to the prior period was partially due to a reversal of loan loss provision of $ 338,000 recorded in the fourth quarter of 2020 attributable to a non - accrual loan that was placed back on accrual status , leaving zero non - performing assets at the end of the fourth quarter . Additionally , the income tax provision and effective tax rates increased compared to the prior quarter , mainly due to routine year - end adjustments recorded in the fourth quarter for tax - free income and tax benefits on certain deductible expenses . Loan interest and fees on Paycheck Protection Program ( “ PPP ” ) loans totaled $ 2,590,000 during the first quarter of 2021 , compared to $ 2,150,000 during the prior quarter , and no PPP income recorded during the first quarter of 2020 , as the PPP did not begin until April 2020. The first quarter PPP income corresponds to new loans funded under the PPP Second Draw loan program of $ 87 million and First Draw loan forgiveness payments of $ 62 million during the quarter . The ending balance of PPP loans as of March 31 , 2021 was $ 235 million . Net interest income for the three months ended March 31 , 2021 was $ 12,242,000 , compared to $ 12,128,000 in the prior quarter , and $ 10,228,000 in the same period a year ago . The increase compared to prior periods is attributable to interest and fees on PPP loans as described above and organic average loan growth . Year - over - year loan growth totaled $ 268.7 million as of March 31 , 2021 , of which $ 234.9 million came from PPP loans and the remaining $ 33.8 million was organic growth . Net interest margin for the three months ended March 31 , 2021 was 3.43 % , compared to 3.49 % for the prior quarter and 3.93 % for the same period last year . Interest margin compression was attributable to the FOMC rate cuts in March 2020 , which adversely impacted earning asset yields , and the infusion of short - term PPP loans which yield 1 % .