Oregon Bancorp Announces Fourth Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported a net income of $4.0 million for Q4 2021, translating to $1.65 per common share and resulting in a return on average assets of 3.9% and return on average equity of 21.3%. This reflects a decrease from $8.0 million in Q4 2020. The bank's residential mortgage loan production totaled $348 million, down from $509 million a year ago. Total assets rose by $7.3 million, attributed to a $6.0 million increase in deposits. Commercial loans grew 23.1% annually, excluding PPP loan effects, while expectations of rising interest rates could affect mortgage refinancing.

Positive

• Net income of $4.0 million for Q4 2021.
• Return on average assets at 3.9% and return on average equity at 21.3%.
• Commercial loan balances increased by $13.2 million or 23.1% on an annualized basis.

Negative

• Net income decreased from $8.0 million in Q4 2020.
• Residential mortgage loan production fell to $348 million from $509 million last year.

Fourth quarter 2021 net earnings of $4.0 million, or $1.65 per common share

Quarterly return on average assets of 3.9% and return on average equity of 21.3%

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the fourth quarter totaled $4.0 million resulting in an annualized return on average assets of 3.9% and a return on average equity of 21.3%. This compares to net income of $8.0 million and $3.1 million from the fourth quarters of 2020 and 2019, respectively. Quarterly residential mortgage loan production was $348 million compared to $509 million during the fourth quarter last year and $274 million in the fourth quarter of 2019.

During the quarter, total assets increased $7.3 million driven by a $6.0 million increase in deposits. Commercial loan balances grew $13.2 million, or 23.1% on an annualized basis, when removing the impact of Paycheck Protection Program loan payoffs. At December 31, 2021, the Bank had $4.8 million in Paycheck Protection Program Loans that are expected to be forgiven by the U.S. Small Business Association during 2022.

Ryan Dempster, President and CEO, commented, “Although annual financial results did not surpass record results from 2020, they remain very strong and rank as our second best financial performance on record.” He further stated, “Improving economic conditions have led to an expectation the Federal Reserve will soon increase benchmark interest rates. Although we expect increasing rates will result in a decline of mortgage refinance activity, we anticipate loan demand for the purpose of purchasing homes and commercial real estate will continue to be good compared to historical norms.”

About Oregon Bancorp, Inc.
Oregon Bancorp, Inc. is the parent company of Willamette Valley Bank (Bank), a community bank headquartered in Salem, Oregon. The Bank conducts commercial and retail banking activities at four full-service branch locations in Salem, Keizer, Silverton, and Albany, Oregon. The Bank also operates 13 Home Loan Centers located in Oregon, Washington, and Idaho. For more information about Oregon Bancorp, Inc. or its subsidiary, Willamette Valley Bank, please call (503) 485-2222 or visit our website at www.willamettevalleybank.com.

Forward Looking Statements
Certain statements in this release may be deemed “forward-looking statements.” Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.

CONSOLIDATED BALANCE SHEETS
Unaudited
(Amounts in thousands except per share data)		December 31,								September 30,
Summary Statements of Condition		2021				2020				2021
Cash and short term investments		$	65,096			$	27,876			$	65,380
Securities available-for-sale, at fair value			13,758				-				8,383
Loans:
Real estate			231,953				190,212				216,621
Commercial			14,403				32,320				19,254
Other			1,011				1,628				1,428
Unearned income			(758	)			(729	)			(777	)
Loan loss reserve			(2,606	)			(2,482	)			(2,603	)
Total net loans			244,003				220,949				233,923
Loans available for sale, at fair value			60,974				125,738				75,192
Property and other assets			37,933				21,326				26,240
Total assets		$	408,006			$	395,889			$	400,735
Deposits:
Noninterest-bearing demand		$	34,423			$	26,881			$	29,256
Interest-bearing demand			91,035				72,520				91,874
Savings and Money Market			136,751				97,177				128,833
Certificates of deposit			60,715				72,110				66,966
Total deposits			322,924				268,688				316,929
Borrowings			-				48,500				-
Other liabilities			9,528				15,972				11,092
Shareholders' equity			75,554				62,729				72,714
Total liabilities and shareholders' equity		$	408,006			$	395,889			$	400,735
Book value per common share		$	31.31			$	26.55			$	30.13

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
		Year-to-Date						Three Months Ending
(Amounts in thousands except per share data)		December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Interest income		$	14,010		$	13,571		$	3,526		$	3,766
Interest expense			1,118			1,903			252			372
Net interest income			12,892			11,668			3,274			3,394
Provision for loan losses			113			657			-			45
Net interest income after provision			12,779			11,011			3,274			3,349
Noninterest income			77,460			89,723			15,216			25,344
Noninterest expense			60,707			62,772			13,881			18,050
Net income before income taxes			29,532			37,962			4,609			10,643
Provision for income taxes			7,143			9,670			628			2,692
Net income after income taxes		$	22,389		$	28,292		$	3,981		$	7,951
Net income per common share, basic		$	9.32		$	12.00		$	1.65		$	3.37

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005158/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What were Oregon Bancorp's earnings results for Q4 2021?

Oregon Bancorp reported a net income of $4.0 million for Q4 2021, which is $1.65 per common share.

How did Oregon Bancorp's loan production change in Q4 2021?

The residential mortgage loan production was $348 million in Q4 2021, down from $509 million in Q4 2020.

What is Oregon Bancorp's return on average equity for Q4 2021?

The return on average equity for Oregon Bancorp in Q4 2021 was 21.3%.

How did Oregon Bancorp perform compared to previous years?

Oregon Bancorp's net income in Q4 2021 decreased from $8.0 million in Q4 2020 and $3.1 million in Q4 2019.

What is the outlook for loan demand at Oregon Bancorp?

Oregon Bancorp anticipates continued strong loan demand for purchasing homes and commercial real estate despite expected declines in mortgage refinance activity due to rising interest rates.