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For Immediate Release Date : Contact : Phone : July 22 , 2021 Chris Courtney / Rick McCarty ( 209 ) 848-2265 www.ovcb.com PRESS RELEASE Exhibit 99.1 OAK VALLEY BANCORP REPORTS 2nd QUARTER RESULTS AND ANNOUNCES CASH DIVIDEND 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 three months ended June 30 , 2021 , consolidated net income was $ 3,960,000 , or $ 0.48 per diluted share ( EPS ) , as compared to $ 4,357,000 , or $ 0.53 EPS , for the prior quarter and $ 2,581,000 , or $ 0.32 EPS , for the same period a year ago . Consolidated net income for the six months ended June 30 , 2021 was $ 8,316,000 , or $ 1.02 EPS , representing an increase of 57.2 % compared to $ 5,290,000 or $ 0.65 EPS for the same period of 2020 . The decrease in second quarter net income compared to the prior quarter was partially due to a decrease in loan interest and fees on Paycheck Protection Program ( “ PPP " ) loans . $ 2,202,000 in PPP loan interest and fee income was recorded during the second quarter of 2021 , compared to $ 2,590,000 during the prior quarter , and $ 1,092,000 during the second quarter of 2020. Year - to - date PPP loan interest and fee income totaled $ 4,793,000 in 2021 , as compared to $ 1,092,000 for the same period of last year . The bank has funded a total of $ 345 million since the commencement of the PPP loan program , of which $ 194 million has been paid down through SBA forgiveness payments , leaving an outstanding balance of $ 151 million as of June 30 , 2021 . Net interest income for the three months ended June 30 , 2021 was $ 11,988,000 , compared to $ 12,242,000 in the prior quarter , and $ 11,146,000 in the same period a year ago . The decrease compared to the prior quarter is attributable to interest and fees on PPP loans as described above . Year - over - year core loan growth , excluding PPP loans , totaled $ 24.2 million as of June 30 , 2021 , which partially offset the decreases related to PPP and FOMC rate cuts in March 2020 . Net interest margin for the three months ended June 30 , 2021 was 3.09 % , compared to 3.43 % for the prior quarter and 3.55 % for the same period last year . The interest margin compression was attributable to the increase in low - yielding cash balances , the infusion of short - term PPP loans which yield 1 % , and the FOMC rate cuts in March 2020 , which have had an on - going adverse impact on earning asset yields as they reprice or mature .