Oregon Bancorp Announces Fourth Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. reported fourth-quarter 2023 net earnings of $547,000 and $0.22 per common share, with a quarterly return on average assets of 0.6% and return on average equity of 3.0%. Year-to-date net income reached $3.6 million and $1.44 per common share outstanding, with a decline in deposits but an increase in commercial loan balances. The company's net interest margin was 4.2% for the fourth quarter and 4.3% for the 2023 fiscal year, with a $0.26 per share quarterly dividend distributed on January 16, 2024. President and CEO Ryan Dempster mentioned the impact of elevated loan interest rates on residential mortgage loans and expectations for interest rate reductions in 2024.

Fourth quarter 2023 net earnings of $0.5 million, or $0.22 per common share

Quarterly return on average assets of 0.6% and return on average equity of 3.0%

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the fourth quarter of $547,000 and $0.22 per common share. The Company’s quarterly return on average assets and return on average equity was 0.6% and 3.0%, respectively. This compares to $640,000 in net income and $0.26 earnings per common share outstanding for the quarter ending September 30, 2023.

Year-to-date net income reached $3.6 million and $1.44 per common share outstanding compared to $6.9 million and $2.86 per common share during the same period last year. For the fiscal year, the Company’s return on average assets was 0.9% compared to 1.7% in 2022. The Company’s net interest margin was 4.2% for the fourth quarter and 4.3% for the 2023 fiscal year. This compares to 4.6% in the fourth quarter of 2022 and 4.0% for the 2022 fiscal year.

The Company’s balance sheet declined $4.6 million during the prior quarter. This is primarily related to a $4.1 million decrease in deposits. Commercial loan balances increased $16.0 million during the same period. Compared to December 31, 2022, the balance sheet declined $6.1 million primarily due to a decline in deposits of $6.3 million. Commercial loans, however, increased $47.6 million over the last twelve months. Bank asset quality and capital remain good, and the Board of Directors distributed a $0.26 per share quarterly dividend on January 16, 2024.

Ryan Dempster, President and CEO, commented: “Loan interest rates remain elevated compared to recent norms. This has resulted in less demand for residential mortgage loans which has impacted earnings. Despite the higher interest rate environment, we continue to experience a good net interest margin and core deposits remain level from the prior year. Current expectations for interest rate reductions in 2024 are expected to result in lower lending rates and improve loan demand.”

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 nine 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 SHEET (Unaudited)
(Amounts in thousands except per share data)
	December 31,								September 30,
ASSETS	2023				2022				2023
Cash and short term investments	$	24,225			$	78,776			$	30,168
Securities available-for-sale, at fair value		33,763				23,453				30,976
Loans available for sale, at fair value		12,764				23,601				29,077
Loans:
Real estate		299,355				251,629				286,342
Commercial		7,547				6,992				6,263
Other		2,481				2,626				522
Deferred fees and costs		(640	)			(609	)			(613	)
Loan loss reserve		(3,156	)			(2,661	)			(2,960	)
Total net loans		305,587				257,977				289,554
Property and other assets		19,513				18,143				20,720
Total assets	$	395,852			$	401,950			$	400,495
LIABILITIES
Deposits:
Noninterest-bearing demand	$	32,792			$	31,747			$	27,886
Interest-bearing demand		80,589				101,167				92,558
Savings and Money Market		119,075				143,656				119,710
Certificates of deposit		79,897				42,081				76,342
Total deposits		312,353				318,651				316,496
Borrowings		-				-				-
Other liabilities		10,608				10,170				11,392
Total liabilities		322,961				328,821				327,888
SHAREHOLDERS' EQUITY		72,891				73,129				72,607
Total liabilities and shareholders' equity	$	395,852			$	401,950			$	400,495
Book value per common share	$	29.53			$	29.81			$	29.36

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
(Amounts in thousands except per share data)
	Year-to-Date						Three Months Ending
	December 31, 2023			December 31, 2022			December 31, 2023			December 31, 2022
Interest income	$	20,092		$	16,386		$	5,422		$	4,745
Interest expense		4,180			880			1,403			231
Net interest income		15,912			15,506			4,019			4,514
Provision for loan losses		494			-			195			-
Net interest income after provision		15,418			15,506			3,824			4,514
Noninterest income		16,643			31,418			3,126			3,952
Noninterest expense		27,369			38,051			6,236			6,799
Net income before income taxes		4,692			8,873			714			1,667
Provision for income taxes		1,139			1,975			167			242
Net income after income taxes	$	3,553		$	6,898		$	547		$	1,425
Net income per common share, basic	$	1.44		$	2.86		$	0.22		$	0.58

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126263226/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What were Oregon Bancorp, Inc.'s net earnings for the fourth quarter of 2023?

The net earnings for the fourth quarter of 2023 were $547,000.

What was the quarterly return on average assets for Oregon Bancorp, Inc. in the fourth quarter of 2023?

The quarterly return on average assets for the fourth quarter of 2023 was 0.6%.

What did President and CEO Ryan Dempster mention about the impact of elevated loan interest rates?

Ryan Dempster mentioned that elevated loan interest rates resulted in less demand for residential mortgage loans, impacting earnings.

What dividend was distributed by Oregon Bancorp, Inc. on January 16, 2024?

A $0.26 per share quarterly dividend was distributed on January 16, 2024.

How did the balance sheet of Oregon Bancorp, Inc. change during the fourth quarter of 2023?

The balance sheet declined $4.6 million during the fourth quarter, primarily related to a $4.1 million decrease in deposits, while commercial loan balances increased $16.0 million.