Form 4: Oak Valley Bancorp Executive Richard A. McCarty Reports Changes in Beneficial Ownership

Richard A. McCarty, President & COO of Oak Valley Bancorp, reports transactions involving common stock, including acquisitions through a 401k plan and restricted stock awards, as well as disposals to cover tax liabilities.

Summary

• Richard A. McCarty, President & COO of Oak Valley Bancorp, filed a Form 4 detailing changes in his beneficial ownership of the company's common stock.
• On December 31, 2024, McCarty acquired 1,427 shares through the company's 401k plan.
• On February 28, 2025, he was awarded 5,770 shares of restricted stock that vest 20% annually over five years, starting February 28, 2026.
• Also on February 28, 2025, McCarty disposed of shares to satisfy tax liabilities related to restricted stock that vested on that date.
• These disposals included 174, 215, 217, 192, and 249 shares, respectively, related to restricted stock issued in 2020, 2021, 2022, 2023 and 2024.
• Following these transactions, McCarty's total beneficial ownership of Oak Valley Bancorp common stock is 56,715 shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The executive is increasing their stake in the company through 401k purchases and restricted stock awards, which is a positive sign. The disposals are for tax purposes, which is a normal occurrence.

Positives

• The acquisition of shares through the 401k plan and the award of restricted stock indicate continued investment and alignment with the company's success.
• The vesting schedule of the restricted stock (20% annually over five years) incentivizes long-term performance.

Negatives

• The disposal of shares to cover tax liabilities, while a normal occurrence, slightly reduces McCarty's overall holdings.

Risks

• The vesting of restricted stock is contingent upon continued employment and may be subject to forfeiture under certain circumstances.

Future Outlook

The restricted stock award vests over a five-year period, suggesting a long-term commitment by the executive to the company's success.

Industry Context

Form 4 filings are a standard part of regulatory compliance for publicly traded companies, providing transparency into the transactions of company insiders.

Comparison to Industry Standards

• Stock ownership and compensation structures for executives at community banks like Oak Valley Bancorp are typically designed to align management's interests with those of shareholders.
• Restricted stock awards are a common component of executive compensation packages in the banking industry, often vesting over several years to incentivize long-term performance.
• Comparable companies such as Farmers National Banc Corp. and West Bancorporation also utilize restricted stock and other equity-based compensation for their executives.

Stakeholder Impact

• The reported transactions provide transparency to shareholders regarding the executive's stock ownership.
• The vesting schedule of the restricted stock aligns the executive's interests with the long-term performance of the company, potentially benefiting shareholders.

Key Dates