Oak Valley Bancorp's Business Segments

Oak Valley Bancorp. Oak Valley Bancorp was incorporated on April 1, 2008 in California for the purpose of becoming Oak Valley Community Bank’s parent bank holding company. Effective July 3, 2008, Oak Valley Bancorp acquired all of the outstanding capital stock of Oak Valley Community Bank (the “Bank”). The principal office of Oak Valley Bancorp is located at 125 North Third Avenue, Oakdale, California 95361 and its principal telephone is (209) 848-2265.

The Company is authorized to issue 50,000,000 shares of common stock, without par value, of which 8,078,155 are issued and outstanding at December 31, 2015, and 10,000,000 shares of preferred stock, without par value, of which no shares are issued and outstanding.

The Company is the holding company of the Bank, and its only assets are the outstanding capital stock of the Bank, which the Company wholly owns, cash and income tax benefits receivable classified as other assets.

Oak Valley Community Bank. The Bank commenced operations in May 1991. The Bank is an insured bank under the Federal Deposit Insurance Act and is a member of the Federal Reserve. The Bank is subject to regulation, supervision and regular examination by the California Department of Business Oversight (DBO), the Federal Deposit Insurance Commission (FDIC) and the Federal Reserve Board (FRB). Since its formation, the Bank has provided basic banking services to individuals and business enterprises in Oakdale, California and the surrounding areas. The focus of the Bank is to offer a range of commercial banking services designed for both individuals and small to medium-sized businesses in the two main areas of service of the Bank: the Central Valley and the Eastern Sierras.

The Bank offers a complement of business checking and savings accounts for its business customers. The Bank also offers commercial and real estate loans, as well as lines of credit. Real estate loans are generally of a short-term nature for both residential and commercial lending purposes. Longer-term real estate loans are generally made with adjustable interest rates and contain customary provisions for acceleration. Traditional residential mortgages are available to Bank customers through a third party.

The Bank offers other services for both individuals and businesses including online banking, remote deposit capture, mobile banking, merchant services, night depository, extended hours, wire transfer of funds, note collection, and automated teller machines in a national network. The Bank does not currently offer international banking or trust services although the Bank may make such services available to the Bank’s customers through financial institutions with which the Bank has correspondent banking relationships. The Bank does not offer stock transfer services nor does it directly issue credit cards.

The Bank operates in two primary lines of business: Retail Banking and Commercial Banking, as described in additional detail below. These business lines do not meet the quantitative thresholds for reporting as separate segments and are therefore considered one segment for financial reporting purposes.

Oak Valley Bancorp: Comprehensive Overview of Segments, Products, and Services

Retail Banking

Oak Valley Bancorp offers a diverse array of retail banking products designed to meet the unique financial needs of its individual customers. The primary offerings in this segment include:

1. Deposit Accounts:
- Checking Accounts: Various checking account options catering to different customer preferences, including basic accounts with low fees and interest-bearing accounts.
- Savings Accounts: High-yield savings accounts designed to help customers save effectively while earning interest on deposits.
- NOW Accounts: Negotiable Order of Withdrawal (NOW) accounts that offer interest-earning potential while allowing for check-writing privileges.
- Money Market Accounts: These accounts provide higher interest rates than standard savings accounts, coupled with check-writing capabilities, aimed at customers looking for liquidity and good returns.
- Health Savings Accounts (HSAs): Tax-advantaged accounts designed for individuals with high-deductible health plans, enabling them to save for qualified medical expenses.
- Certificates of Deposit (CDs): Fixed-term deposit accounts with competitive interest rates, allowing customers to invest their money for a specific period in exchange for higher returns.
- Individual Retirement Accounts (IRAs): Retirement savings accounts offering tax advantages, helping customers plan for their long-term financial future.

2. Lending Products: Oak Valley Bancorp provides a suite of lending solutions to facilitate individuals financial needs:
- Real Estate Loans: Mortgage products designed for purchasing residential properties or refinancing existing mortgages.
- Home Equity Financing: Loans and lines of credit that allow homeowners to borrow against the equity of their home for various personal needs.
- Consumer Loans: Unsecured personal loans to assist with various personal expenses, such as education, travel, or debt consolidation.
- Automobile Loans: Financing options for purchasing new or used vehicles, with competitive rates and flexible terms.
- Home Improvement Loans: Secured or unsecured loans tailored for funding home renovation projects, allowing homeowners to enhance their property value.

Commercial Banking

In the commercial banking segment, Oak Valley Bancorp caters to the financial needs of businesses in its service areas, particularly in Californias San Joaquin, Stanislaus, Tuolumne, Inyo, and Mono Counties. The offerings include:

1. Deposit Services for Businesses:
- Business checking accounts with tailored features such as online banking, transaction capabilities, and cash management services.
- Business savings and investment accounts designed to help businesses grow their funds while maintaining liquidity.

2. Commercial Lending Solutions:
- Business Loans: A variety of loan products tailored for small to medium-sized enterprises covering needs such as short-term working capital, equipment purchases, and leasehold improvements.
- Operating Lines of Credit: Flexible credit lines for businesses to manage day-to-day expenses and cash flow fluctuations efficiently.
- Commercial Real Estate Loans: Financing options for purchasing, refinancing, or improving commercial properties, including both owner-occupied and investment properties.
- Construction Loans: Loans specifically designed for financing the construction of new commercial buildings or renovation projects, offering construction financing solutions for developers and builders.

3. Agricultural Lending: Products tailored to meet the unique needs of farming and agricultural businesses, including loans for the purchase of equipment, land acquisitions, and operational costs.

Additional Services

In addition to the core banking products, Oak Valley Bancorp may offer additional services that enhance customer experience and support financial literacy, which may include:

- Financial Advisory Services: Guidance on wealth management, retirement planning, and investment strategies tailored to individual or business needs.
- Online and Mobile Banking: Convenient digital banking platforms providing account access, transaction management, and mobile deposit capabilities, ensuring customers can manage their finances efficiently from anywhere.
- Customer Support and Education: Resources aimed at educating customers on personal finance, investment strategies, and effective budgeting skills through workshops, seminars, or personalized consultations.

Overall, Oak Valley Bancorps comprehensive range of retail and commercial banking products and services positions it well to meet the diverse financial needs of both individual and business customers within its operational regions.