Is Oak Valley Bancorp OVLY stock halal to invest in?

No, as of August 2026, Oak Valley Bancorp stock (OVLY) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Oak Valley Bancorp currently does not meet the threshold for the non-permissible income and interest-bearing investments screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Oak Valley Bancorp and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Oak Valley Bancorp OVLY reviewed for Shariah compliance?

Tabadulat reviews Oak Valley Bancorp OVLY for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Oak Valley Bancorp reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Oak Valley Bancorp OVLY pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Oak Valley Bancorp stock (OVLY) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Oak Valley Bancorp's income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Oak Valley Bancorp OVLY pass the AAOIFI Interest Bearing Investments criteria?

No, as of August 2026, Oak Valley Bancorp stock (OVLY) does not pass the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. Oak Valley Bancorp's interest-bearing investments currently exceed this 30% limit, meaning too large a share of the company's value derives from riba-based instruments for the stock to qualify as halal on this criterion. The ratio moves with both the balance sheet and the share price, and is reassessed monthly.

Does Oak Valley Bancorp OVLY pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Oak Valley Bancorp stock (OVLY) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Oak Valley Bancorp's interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Oak Valley Bancorp OVLY stock?

Oak Valley Bancorp (OVLY) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Oak Valley Bancorp returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Oak Valley Bancorp OVLY pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Oak Valley Bancorp stock (OVLY) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Oak Valley Bancorp has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Oak Valley Bancorp

NASDAQ

Shariah-Compliant

Not Shariah

OVLY

About

Oak Valley Bancorp

OVLY

Oak Valley Bancorp is a financial services company that operates as the holding entity for Oak Valley Community Bank. Its primary function is to serve as a community-oriented bank, focusing on providing a wide range of financial products and services tailored to meet the needs of individuals, families, and businesses within its local market area. The bank offers traditional savings and checking accounts, commercial and consumer loans, mortgage products, and various business banking solutions, such as cash management and remote deposit capture. Oak Valley Bancorp plays a significant role in the regional economic landscape by facilitating local commerce and supporting community development. Its commitment to personalized customer service and community involvement distinguishes it in the financial sector. The company is primarily concentrated in California's Central Valley and Eastern Sierra regions, where it has established a significant presence over the years. In the broader market context, Oak Valley Bancorp represents a stable banking entity with roots deep in the community banking tradition, offering a blend of personal connection and financial expertise that supports the economic vitality of the areas it serves.

Sector:

Financial Services

Industry:

Banks - Regional

Employees:

237

Website:

https://www.ovcb.com

OVLY

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Oak Valley Bancorp

About

Oak Valley Bancorp

OVLY

Frequently asked questions

Is Oak Valley Bancorp OVLY stock halal to invest in?

How often is Oak Valley Bancorp OVLY reviewed for Shariah compliance?

Does Oak Valley Bancorp OVLY pass the AAOIFI Non Permissible Income criteria?

Does Oak Valley Bancorp OVLY pass the AAOIFI Interest Bearing Investments criteria?

Does Oak Valley Bancorp OVLY pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Oak Valley Bancorp OVLY stock?

Does Oak Valley Bancorp OVLY pass the AAOIFI Preference Share screen?

Can I buy Oak Valley Bancorp (OVLY) stock on Tabadulat?

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