Oregon Bancorp Announces Second Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported net income of $5.4 million for Q2, reflecting a 5.8% return on average assets and a 33.2% return on average equity. This results represent a drop from $7.5 million in Q2 2020. Residential mortgage loan production fell by 5% to $407.9 million, affecting noninterest income. Total assets increased by $2.3 million, largely due to a $6.5 million rise in deposits. The company announced a $0.26 per share dividend payable on July 15, 2021, and anticipates further growth as the economy recovers.

Positive

• Net income of $5.4 million in Q2, indicating profitability.
• Return on average assets at 5.8% and return on average equity at 33.2%.
• Total assets increased by $2.3 million, showing growth.
• Commercial real estate loan balances rose by $5.1 million.
• Announced a $0.26 per share dividend to be paid on July 15, 2021.

Negative

• Net income decreased from $7.5 million in Q2 2020.
• Residential mortgage loan production fell by 5% compared to 2020.
• Yields on mortgage loan sales declined, impacting noninterest income.
• Reduction of $6.3 million in Paycheck Protection Program loans.

Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the second quarter totaled $5.4 million resulting in an annualized return on average assets of 5.8% and a return on average equity of 33.2%. This compares to $7.5 million and $3.3 million from the second quarters of 2020 and 2019, respectively. Quarterly residential mortgage loan production decreased 5% to $407.9 million compared to the same period in 2020. Yields earned on the sale of mortgage loans decreased which impacted noninterest income.

During the quarter, total assets increased $2.3 million driven by a $6.5 million increase in deposits and the paydown of $6.3 million in borrowings. The Company’s cash and short-term investments increased $19 million to $66.3 million at quarter end. The increase in cash is attributable to a decrease in mortgage loans held for sale and an increase in deposits.

Commercial real estate loan balances increased by $5.1 million during the quarter. This growth was offset by a $6.3 million reduction in Paycheck Protection Program loans that were forgiven by the U.S. Small Business Association. The Company’s capital continues to grow through earnings as evidenced by an 18.1% capital-to-assets ratio. During the quarter, the Board of Directors announced a $0.26 per share dividend payable to shareholders on July 15, 2021.

Ryan Dempster, President and CEO, commented, “Quarterly earnings remain strong and will continue to compare favorably to peer, and year-to-date earnings are well ahead of our results from the first half of last year.” He continued by saying, “We believe the return to normalcy following the lapse in restrictions relating to the pandemic will allow for additional business opportunities for the Company as the economy recovers.”

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)		June 30,								March 31,
Summary Statements of Condition		2021				2020				2021
Cash and short term investments		$	66,338			$	20,044			$	47,018
Loans:
Real estate			207,805				186,978				202,732
Commercial			24,548				37,462				30,947
Other			605				3,316				690
Unearned income			(899	)			(1,103	)			(970	)
Loan loss reserve			(2,601	)			(2,386	)			(2,598	)
Total net loans			229,458				224,267				230,801
Loans available for sale			62,338				90,437				75,596
Property and other assets			18,498				19,050				20,962
Total assets		$	376,632			$	353,798			$	374,377
Deposits:
Noninterest-bearing demand		$	28,921			$	25,509			$	27,130
Interest-bearing demand			80,546				62,843				83,724
Savings and Money Market			118,305				86,736				106,131
Certificates of deposit			68,759				82,005				73,061
Total deposits			296,531				257,093				290,046
Borrowings			-				37,881				6,343
Other liabilities			12,026				14,024				15,231
Shareholders' equity			68,075				44,800				62,756
Total liabilities and shareholders' equity		$	376,632			$	353,798			$	374,377
Book value per common share		$	28.22				18.99				26.36

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
		Six Months Ending						Three Months Ending
(Amounts in thousands except per share data)		June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Interest income		$	7,047		$	6,283		$	3,543		$	3,332
Interest expense			599			1,157			293			548
Net interest income			6,448			5,126			3,250			2,784
Provision for loan losses			113			566			-			176
Net interest income after provision			6,335			4,560			3,250			2,608
Noninterest income			43,025			35,155			19,521			23,271
Noninterest expense			32,090			26,492			15,546			15,732
Net income before income taxes			17,270			13,223			7,225			10,147
Provision for income taxes			4,544			3,338			1,799			2,643
Net income after income taxes		$	12,726		$	9,885		$	5,426		$	7,504
Net income per share, basic		$	5.31		$	4.21		$	2.25		$	3.18

 

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FAQ

What were the earnings results for Oregon Bancorp, Inc. in Q2?

Oregon Bancorp, Inc. reported net income of $5.4 million for the second quarter.

What is the stock symbol for Oregon Bancorp, Inc.?

The stock symbol for Oregon Bancorp, Inc. is ORBN.

What dividend did Oregon Bancorp, Inc. announce?

Oregon Bancorp, Inc. announced a $0.26 per share dividend payable on July 15, 2021.

How did Oregon Bancorp, Inc.'s net income change compared to previous years?

Net income decreased from $7.5 million in Q2 2020 and was $3.3 million in Q2 2019.

What factors affected Oregon Bancorp, Inc.'s noninterest income?

The decrease in yields on the sale of mortgage loans affected noninterest income.