Oak Valley Community Bank Reports 2007 Results

OAKDALE, CA--(Marketwire - January 30, 2008) - Oak Valley Community Bank, traded as OVYB (OTCBB: OVYB) on the bulletin board, reported financial results for the fiscal year ended December 31, 2007. Net income increased by 3.6% to $3,968,000, or $0.53 per diluted share, compared to $3,831,000, or $0.52 per diluted share for the same period in 2006. For the three months ended December 31, 2007, net income decreased to $950,000, or $0.12 per diluted share, a 17.7% decrease in net income from the $1,154,000, for the same period last year.

Total assets decreased slightly to $454.4 million at year-end, a 0.2% decrease from the year ended 2006. While gross loans increased by $9.4 million to $387.8 million as of December 31, 2007, an increase of 2.5%, over December 31, 2006. Total deposits were $377.3 million at year-end 2007, which is a decrease of $1.2 million or 0.3% from December 31, 2006. Although, during the same period, low-cost core deposits increased by $11.6 million, or 10.4%, over the previous year, as the Bank continues to broaden its customer base and restructure overall deposit mix.

"Taking the volatile interest rate environment and other economic factors into consideration, we are generally satisfied with our performance in 2007. Many of our peers have seen their bottom lines much more adversely affected as a result of aggressive lending practices and the decline in the housing market," stated Ron Martin, CEO. "Though we are not entirely unaffected by it, our strong commercial loan focus has insulated us from some of our competitors' concerns," he added. "As we approach 2008, we will maintain our conservative credit standards; the backbone supporting our commercial portfolio's strength," he concluded.

Established in 1991, Oak Valley Community Bank offers a variety of loan and deposit products dedicated to serving the needs of individuals and small businesses. The Bank currently operates through 12 convenient locations: Oakdale, Sonora, Turlock, Stockton, Patterson, Ripon, Escalon, two branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes and Bishop. They recently opened a new full-service branch on West March Lane in Stockton.

For more information on Oak Valley Community Bank, call 1-866-844-7500 or visit us online at www.ovcb.com.

This press release includes forward-looking statements about the corporation for which the corporation claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the corporation's possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, including increased energy costs in California, credit quality of borrowers, operational factors and competition in the geographic and business areas in which the company conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

                        Oak Valley Community Bank
                    Statement of Condition (unaudited)




Profitability           4th        3rd        2nd        1st        4th
($ in thousands,      Quarter    Quarter    Quarter    Quarter    Quarter
 except per share)      2007       2007       2007       2007       2006
Selected Quarterly
 Operating Data:
   Net interest
    income           $   4,792  $   4,859  $   4,653  $   4,602  $   4,515
   Provision for
    loan losses            120        145        120        170         50
   Non-interest
    income                 562        506        552        540        541
   Non-interest
    expense              3,897      3,540      3,452      3,320      3,135
   Income before
    income taxes         1,337      1,680      1,633      1,652      1,871
   Provision for
    income taxes           387        667        630        650        717
   Net income              950      1,013      1,003      1,002      1,154
   Earnings per
    common share
    - basic               0.12       0.13       0.14       0.14       0.16
   Earnings per
    common share
    - diluted             0.12       0.13       0.14       0.14       0.16
   Dividends
    declared per
    common share (1)         -       0.19          -          -          -
   Return on average
    common equity
    (5)                   8.93%      9.75%     11.04%     11.50%     13.48%
   Return on average
    assets                0.83%      0.91%      0.90%      0.92%      1.05%
   Net interest
    margin (2)            4.50%      4.67%      4.47%      4.49%      4.45%
   Efficiency Ratio (2)  72.00%     65.24%     65.49%     63.75%     61.23%

Capital - Period End
   Tier 1 risk-based
    capital ratio (4)    10.08%      9.86%      9.57%      8.47%      8.42%
   Book value per
    share (5)         $    5.60  $    5.45  $    5.32  $    5.01  $    4.85

Credit Quality -
 Period End
   Nonperforming
    assets/assets         2.00%      0.27%      0.00%      0.00%      0.00%
   Loan loss reserve
    /loans (3)            1.16%      1.23%      1.22%      1.16%      1.15%

Period End Balance
 Sheet
($ in thousands)
Total assets         $ 454,401  $ 453,882  $ 441,334  $ 452,520  $ 455,213
   Gross Loans         387,809    385,901    376,671    387,580    378,393
   Nonperforming
    assets               9,087      1,216          -          -          -
   Allowance for
    credit losses (3)    4,507      4,757      4,600      4,480      4,341
   Deposits            377,348    386,158    364,164    352,086    378,530
   Common Equity (5)    42,640     41,462     39,287     35,665     34,424
Non-Financial Data
   Full-time equivalent
    staff                  125        119        120        115        112
   Number of banking
    offices, domestic
    and foreign             12         12         12         12         12
Common Shares
 outstanding
   Period end (5)    7,607,780  7,606,068  7,379,613  7,122,171  7,103,243
   Period average
    - basic (5)      7,606,506  7,567,719  7,167,879  7,108,923  7,095,114
   Period average
    - diluted (5)    7,727,570  7,717,768  7,341,990  7,293,827  7,358,875
Market Ratios
   Stock Price       $    8.25  $    9.94  $   10.95  $   11.10  $   13.03
   Price/Earnings        16.64      18.72      19.50      19.43      20.18
   Price/Book (5)         1.47       1.82       2.06       2.22       2.69





 Profitability
($ in thousands,
except per share)
Selected Quarterly       YEAR TO DATE
Operating Data:     12/31/2007 12/31/2006

   Net interest
    income           $  18,906  $  17,334
   Provision for
    loan losses            555        595
   Non-interest
    income               2,160      1,724
   Non-interest
    expense             14,209     12,220
   Income before
    income taxes         6,302      6,244
   Provision for
    income taxes         2,334      2,413
   Net income            3,968      3,831
   Earnings per
    common share
    - basic               0.54       0.54
   Earnings per
    common share
    - diluted             0.53       0.52
   Dividends declared
    per common
    share (1)             0.19       0.19
   Return on average
    common equity (5)    10.22%     11.64%
   Return on average
    assets                0.89%      0.93%
   Net interest
    margin (2)            4.53%      4.50%
   Efficiency Ratio (2)  66.65%     64.12%
Capital - Period End
   Tier 1 risk-based
    capital ratio (4)    10.08%      8.42%
   Book value per
    share (5)        $    5.60  $    4.85

Credit Quality -
 Period End
   Nonperforming
    assets/assets         2.00%      0.00%
   Loan loss
    reserve/loans (3)     1.16%      1.15%

Period End Balance
 Sheet
($ in thousands)
Total assets         $ 454,401  $ 455,213
   Gross Loans         387,809    378,393
   Nonperforming
    assets               9,087          -
   Allowance for
    credit losses (3)    4,507      4,341
   Deposits            377,348    378,530
   Common Equity (5)    42,640     34,424
Non-Financial Data
   Full-time
    equivalent staff       125        112
   Number of banking
    offices, domestic
    and foreign             12         12
Common Shares
 outstanding
   Period end (5)    7,607,780  7,103,243
   Period average
    - basic (5)      7,364,681  7,062,841
   Period average
    - diluted (5)    7,524,505  7,304,725
Market Ratios
   Stock Price       $    8.25  $   13.03
   Price/Earnings        15.31      17.97
   Price/Book (5)         1.47       2.69


(1) Cash dividend of $1,444,697 paid in August 2007 and $1,345,072 in
    August 2006.
(2) Ratio computed on a fully tax equivalent basis using a marginal tax
    rate of 35%.
(3) Adjusted for Allowance for Off-Balance Sheet Credit Exposure.
(4) 4th Quarter 2007 is estimated.
(5) Includes 256,142 shares issued on June 15, 2007 for the Rights
    Subscription stock offering and 200,289 shares issued on July 16, 2007
    for the Remaining shares stock offering, totaling $5,020,739 in
    additional capital.

Contact Information: Contact: Rick McCarty / Ron Martin Phone: (209) 848-2265 www.ovcb.com