Oregon Bancorp Announces Quarterly Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (ORBN) reported first-quarter 2024 net earnings of $0.6 million, or $0.26 per common share, with a quarterly return on average assets of 0.6% and return on average equity of 3.0%. The Company's net income increased from the previous quarter, with a strong balance sheet, stable net interest margin, and improved residential mortgage loan origination volume. The Board of Directors also distributed a $0.26 per share quarterly dividend. CEO Ryan Dempster highlighted cost-cutting measures to boost profitability amid high interest rates.

Positive

• Oregon Bancorp reported strong first-quarter 2024 financial results, with net earnings of $0.6 million and $0.26 per common share.
• The Company achieved a quarterly return on average assets of 0.6% and return on average equity of 3.0%.
• Comparing to the previous quarter, net income increased to $634,000, with a stable net interest margin of 4.2%.
• Residential mortgage loan origination volume improved to $71 million, a 13% increase from the prior quarter.
• The Company's balance sheet showed marginal adjustments to loans and deposits, with strong asset quality and capital.
• The Board of Directors distributed a $0.26 per share quarterly dividend on April 15, 2024.
• CEO Ryan Dempster highlighted efforts to reduce overhead expenses in the mortgage department to enhance profitability amid decreased mortgage loan demand due to high interest rates.

Negative

• None.

First quarter 2024 net earnings of $0.6 million, or $0.26 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 first quarter of $634,000 and $0.26 per common share. The Company’s quarterly return on average assets and return on average equity were 0.6% and 3.5%, respectively. This compares to $547,000 in net income and $0.22 earnings per common share outstanding for the quarter ending December 31, 2023. The Company’s net interest margin measured 4.2% for the first quarter, which is the same reading as the prior quarter.

The Company’s balance sheet remained relatively unchanged during the quarter with marginal adjustments to loans and deposits. Residential mortgage loan origination volume for the quarter improved to $71 million, which is 13% greater than the prior quarter. Bank asset quality and capital remain strong, and the Board of Directors distributed a $0.26 per share quarterly dividend on April 15, 2024.

Ryan Dempster, President and CEO, commented “We are pleased to see earnings and residential loan origination volume improve during the first quarter which is normally the slowest time of year. We have taken measures to reduce overhead expenses in our mortgage department to improve profitability as elevated interest rates continue to dampen mortgage 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 five Home Loan Centers located in Oregon 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.

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands except per share data)
									(Audited)
	March 31,								December 31,
ASSETS		2024				2023				2023
Cash and short term investments	$	19,591			$	57,208			$	24,225
Securities available-for-sale, at fair value		32,516				29,666				33,390
Loans available for sale, at fair value		18,387				19,017				12,764
Loans:
Real estate		303,247				264,558				299,355
Commercial		6,634				6,495				7,547
Other		2,028				1,051				2,481
Unearned income		(781	)			(651	)			(640	)
Loan loss reserve		(3,275	)			(2,661	)			(3,156	)
Total net loans		307,853				268,792				305,587
Property and other assets		19,289				20,438				19,456
Total assets	$	397,636			$	395,121			$	395,422
LIABILITIES
Deposits:
Noninterest-bearing demand	$	32,503			$	30,966			$	32,792
Interest-bearing demand		78,089				105,493				80,589
Savings and Money Market		116,665				116,621				119,075
Certificates of deposit		85,219				57,860				79,898
Total deposits		312,476				310,940				312,354
Borrowings		4,000				-				-
Other liabilities		8,244				11,128				10,084
Total Liabilities		324,720				322,068				322,438
SHAREHOLDER'S EQUITY		72,916				73,053				72,984
Total liabilities and shareholders' equity	$	397,636			$	395,121			$	395,422
Book value per common share	$	29.55			$	29.67			$	29.57

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
(Amounts in thousands except per share data)
	Three Months Ending
	March 31, 2024				March 31, 2023
Interest income	$	5,372			$	4,793
Interest expense		1,495				500
Net interest income		3,877				4,293
Provision for loan losses		119				-
Net interest income after provision		3,758				4,293
Noninterest income		3,010				4,355
Noninterest expense		5,905				6,854
Net income before income taxes		863				1,794
Provision for income taxes		229				452
Net income after income taxes	$	634			$	1,342
Net income per common share, basic	$	0.26			$	0.55

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240419512662/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What were Oregon Bancorp's first-quarter 2024 net earnings?

Oregon Bancorp reported first-quarter 2024 net earnings of $0.6 million.

What was the quarterly return on average assets for Oregon Bancorp in the first quarter?

Oregon Bancorp achieved a quarterly return on average assets of 0.6%.

How did the residential mortgage loan origination volume change in the first quarter for Oregon Bancorp?

Residential mortgage loan origination volume for Oregon Bancorp improved to $71 million, a 13% increase from the prior quarter.

When did the Board of Directors distribute a quarterly dividend for Oregon Bancorp?

The Board of Directors distributed a $0.26 per share quarterly dividend on April 15, 2024 for Oregon Bancorp.

What measures did CEO Ryan Dempster highlight to improve profitability for Oregon Bancorp?

CEO Ryan Dempster highlighted efforts to reduce overhead expenses in the mortgage department to boost profitability amid decreased mortgage loan demand due to high interest rates for Oregon Bancorp.