Oregon Bancorp Announces Second Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported a net income of $1.5 million for Q2 2022, declining from $5.4 million in Q2 2021. The company maintained a return on average assets of 1.4% and an average equity return of 8.0%. Total assets rose by $8.9 million (2.1%) from the previous quarter, driven by a $21.9 million increase in cash and short-term investments. Non-performing assets accounted for 1.72% of total capital. Despite rising mortgage rates affecting lending, $228 million in mortgage loans were funded, and a quarterly dividend of $0.52 per share was declared.

Positive

• Total assets increased by $8.9 million (2.1% since Q1 2022).
• $228 million funded in mortgage loans during the quarter.
• Quarterly dividend of $0.52 per share declared.

Negative

• Net income decreased from $5.4 million in Q2 2021 to $1.5 million in Q2 2022.
• Non-performing assets are $1.3 million, or 1.72% of total capital.
• Reduced mortgage lending due to rising interest rates.

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $1.5 million for the second quarter of 2022 compared to $5.4 million during the second quarter of 2021. This results in a quarterly return on average assets of 1.4% and a quarterly return on average equity of 8.0%.

The Company’s balance sheet continues to exhibit exceptional asset quality, good liquidity, and strong capital. Total assets increased by $8.9 million, or 2.1% since March 31, 2022. The largest quarterly balance sheet changes are attributable to a $21.9 million increase in cash and short-term investments, $6.2 million increase in deposits, and $8.9 million decrease in mortgage loans held for sale. There was one loan of $272 thousand that was past due at quarter end, and non-performing assets measured at $1.3 million, or 1.72% of total capital. Capital remains very strong which permitted the Board of Directors to distribute a $0.52 per share quarterly dividend on July 15, 2022.

Ryan Dempster, President and CEO, commented, “Financial results over the last two years benefitted from historically low mortgage rates. With the recent Federal Reserve actions to curb inflation, mortgage rates have increased which has led to less mortgage lending. Despite these adjustments, we funded $228 million in mortgage loans during the quarter and look forward to assisting more customers finance their homes.”

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 15 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,
ASSETS	2022				2021				2022
Cash and short term investments	$	103,722			$	66,338			$	81,800
Securities available-for-sale, at fair value		15,903				-				16,554
Loans available for sale, at fair value		33,039				62,338				41,988
Loans:
Real estate		235,885				207,805				239,749
Commercial		11,271				24,548				10,906
Other		2,838				605				569
Unearned income		(581	)			(899	)			(688	)
Loan loss reserve		(2,611	)			(2,601	)			(2,608	)
Total net loans		246,802				229,458				247,928
Property and other assets		16,803				18,498				19,070
Total assets	$	416,269			$	376,632			$	407,340
LIABILITIES
Deposits:
Noninterest-bearing demand	$	33,334			$	28,921			$	35,557
Interest-bearing demand		102,907				80,546				96,263
Savings and Money Market		150,366				118,605				145,520
Certificates of deposit		46,715				68,759				49,832
Total deposits		333,322				296,831				327,172
Borrowings		-				-				-
Other liabilities		10,206				12,026				7,307
Total liabilities		343,528				308,857				334,479
SHAREHOLDERS' EQUITY		72,741				68,075				72,861
Total liabilities and shareholders' equity	$	416,269			$	376,932			$	407,340
Book value per common share	$	29.62			$	28.22			$	29.75

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
(Amounts in thousands except per share data)	Six Months Ending						Three Months Ending
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Interest income	$	7,251		$	7,047		$	3,820		$	3,543
Interest expense		438			599			213			293
Net interest income		6,813			6,448			3,607			3,250
Provision for loan losses		-			113			-			-
Net interest income after provision		6,813			6,335			3,607			3,250
Noninterest income		20,826			43,025			9,019			19,521
Noninterest expense		22,363			32,090			10,795			15,546
Net income before income taxes		5,276			17,270			1,831			7,225
Provision for income taxes		1,220			4,544			378			1,799
Net income after income taxes	$	4,056		$	12,726		$	1,453		$	5,426
Net income per common share, basic	$	1.66		$	5.31		$	0.59		$	2.25

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220722005083/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What was Oregon Bancorp's net income for Q2 2022?

Oregon Bancorp reported a net income of $1.5 million for Q2 2022.

How did the net income compare to Q2 2021?

The net income decreased from $5.4 million in Q2 2021.

What is the dividend declared by Oregon Bancorp in July 2022?

Oregon Bancorp declared a quarterly dividend of $0.52 per share.

What were the total assets for Oregon Bancorp as of Q2 2022?

Total assets increased by $8.9 million, totaling an undisclosed amount as of Q2 2022.

How much in mortgage loans did Oregon Bancorp fund in Q2 2022?

Oregon Bancorp funded $228 million in mortgage loans during Q2 2022.