Oregon Bancorp Announces Fourth Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported fourth quarter 2022 net earnings of $1.3 million, equating to $0.52 per common share, a decline from $4.0 million in Q4 2021. The annual earnings totaled $6.7 million with a return on average assets of 1.2% and return on average equity of 6.9%. Total assets fell 4.9%, primarily due to a $22.8 million drop in deposits, although commercial loans increased by $3.4 million. The Board declared a $0.52 quarterly dividend on January 17, 2023. CEO Ryan Dempster noted that rising interest rates have affected mortgage financing demand, but net interest margins improved.

Positive

• Annual net earnings of $6.7 million.
• Quarterly dividend of $0.52 per share declared.
• Increase in commercial loan balances by $3.4 million.

Negative

• Fourth quarter earnings decreased from $4.0 million in Q4 2021.
• Total assets decreased by $20.4 million, or 4.9%.
• Decline in deposits of $22.8 million.

Fourth quarter 2022 net earnings of $1.3 million, or $0.52 per common share

Quarterly return on average assets of 1.2% and return on average equity of 6.9%

Annual net earnings of $6.7 million, or $2.75 per common share

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 $1.3 million resulting in an annualized return on average assets of 1.2% and a return on average equity of 6.9%. This compares to net income of $4.0 million from the fourth quarter of 2021. Annual earnings totaled $6.7 million which resulted in a return on average assets of 1.6% and return on average equity of 9.3%.

Total assets decreased $20.4 million, or 4.9%, during the quarter. Although a decrease in deposits of $22.8 million was the primary reason for the decline, commercial loan balances increased $3.4 million. Bank asset quality and capital remain good which permitted the Board of Directors to distribute a $0.52 per share quarterly dividend on January 17, 2023.

Ryan Dempster, President and CEO, commented, “The Federal Reserve’s decisions to rapidly increase interest rates to reduce inflation have negatively impacted the number of borrowers seeking mortgage financing.” He further stated, “Although we have experienced a decline in mortgage banking revenue, the increasing rate environment has led to improved net interest margins.”

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,
ASSETS		2022				2021				2022
Cash and short term investments	$	78,776			$	65,096			$	99,272
Securities available-for-sale, at fair value		23,663				13,758				16,146
Loans:										33,890
Real estate		251,629				231,953
Commercial		6,992				14,403				250,041
Other		2,626				1,011				7,467
Unearned income		(609	)			(758	)			277
Loan loss reserve		(2,661	)			(2,606	)			(616	)
Total net loans		257,977				244,003				(2,613	)
Loans available for sale, at fair value		23,601				60,974				254,556
Property and other assets		41,568				37,933				18,530
Total assets	$	401,922			$	408,006			$	422,394
LIABILITIES
Deposits:
Noninterest-bearing demand	$	31,747			$	34,423			$	35,063
Interest-bearing demand		101,167				91,035				108,764
Savings and Money Market		143,656				136,751				153,811
Certificates of deposit		42,081				60,715				43,783
Total deposits		318,651				322,924				341,421
Borrowings		-				-				-
Other liabilities		10,138				9,528				8,044
Total Liabilities		328,789				332,452				349,465
SHAREHOLDER'S EQUITY		73,133				75,554				72,929
Total liabilities and shareholders' equity	$	401,922			$	408,006			$	422,394
Book value per common share	$	29.82			$	31.31			$	29.70

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
(Amounts in thousands except per share data)
	Year-to-Date						Three Months Ending
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Interest income	$	16,388		$	14,010		$	4,745		$	3,526
Interest expense		880			1,118			231			252
Net interest income		15,508			12,892			4,514			3,274
Provision for loan losses		-			113			-			-
Net interest income afer provision		15,508			12,779			4,514			3,274
Noninterest income		31,394			77,460			3,952			15,216
Noninterest expense		38,029			60,707			6,799			13,881
Net income before income taxes		8,873			29,532			1,667			4,609
Provision for income taxes		2,131			7,143			398			628
Net income after income taxes	$	6,742		$	22,389		$	1,269		$	3,981
Net income per common share, basic	$	2.75		$	9.32		$	0.52		$	1.65

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005365/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What were Oregon Bancorp's net earnings for the fourth quarter of 2022?

Oregon Bancorp reported net earnings of $1.3 million for the fourth quarter of 2022.

What was the annual net earnings for Oregon Bancorp in 2022?

The annual net earnings for Oregon Bancorp in 2022 totaled $6.7 million.

What is the dividend per share declared by Oregon Bancorp in January 2023?

Oregon Bancorp declared a quarterly dividend of $0.52 per share on January 17, 2023.

How did total assets change for Oregon Bancorp in the fourth quarter of 2022?

Total assets decreased by $20.4 million, or 4.9%, during the fourth quarter of 2022.

What factors impacted Oregon Bancorp’s mortgage banking revenue?

The increase in interest rates by the Federal Reserve negatively impacted the demand for mortgage financing.