Oregon Bancorp Announces Second Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN), parent company of Willamette Valley Bank, reported second quarter 2023 net earnings of $1.02 million, or $0.41 per common share. The quarterly return on average assets was 1.1% and the return on average equity was 5.6%. Year-to-date net income is $2.4 million and $0.96 per common share. The company's balance sheet declined by $11.8 million, primarily due to a decline in deposits. Commercial loan balances increased by $11.4 million. The board of directors declared a $0.52 per share quarterly dividend.

Second quarter 2023 net earnings of $1.02 million, or $0.41 per common share

Quarterly return on average assets of 1.1% and return on average equity of 5.6%

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the second quarter totaled $1.02 million resulting in an annualized return on average assets of 1.1% and a return on average equity of 5.6%. This compares to $1.34 million in net income and $0.55 earnings per common share outstanding for the quarter ending March 31, 2023. Year-to-date net income has reached $2.4 million and $0.96 per common share outstanding compared to $4.1 million and $1.66 per common share during the same period last year.

The Company’s balance sheet declined by $11.8 million from the quarter ending March 31, 2023. This is largely related to a decline in deposits as customers are using funds to make asset purchases and absorb greater expenses. Commercial loan balances have increased $11.4 million during the same period. Bank asset quality and capital remain good which permitted the Board of Directors to distribute a $0.52 per share quarterly dividend on July 17, 2023.

Ryan Dempster, President and CEO, commented, “The inverted yield curve and increased deposit competition are challenges facing all banks. Although we are not immune to these headwinds, we remain well positioned to respond to these challenges.”

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,
ASSETS		2023				2022				2023
Cash and short term investments	$	15,373			$	103,722			$	57,208
Securities available-for-sale, at fair value		30,075				15,903				29,666
Loans available for sale, at fair value		37,080				33,039				19,017
Loans:
Real estate		276,665				235,885				264,558
Commercial		6,109				11,271				6,495
Other		777				2,838				1,051
Deferred fees and costs		(625	)			(581	)			(651	)
Loan loss reserve		(2,773	)			(2,611	)			(2,661	)
Total net loans		280,153				246,802				268,792
Property and other assets		20,595				16,803				20,438
Total assets	$	383,276			$	416,269			$	395,121
LIABILITIES
Deposits:
Noninterest-bearing demand	$	32,484			$	33,334			$	30,966
Interest-bearing demand		92,033				102,907				105,493
Savings and Money Market		106,525				150,366				116,621
Certificates of deposit		62,705				46,715				57,860
Total deposits		293,747				333,322				310,940
Borrowings		5,000				-				-
Other liabilities		11,664				10,206				11,128
Total liabilities		310,411				343,528				322,068
SHAREHOLDERS EQUITY		72,865				72,741				73,053
Total liabilities and shareholders' equity	$	383,276			$	416,269			$	395,121
Book value per common share	$	29.46			$	29.62			$	29.67

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
(Amounts in thousands except per share data)	Six Months Ending								Three Months Ending
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Interest income	$	9,581			$	7,251			$	4,788			$	3,820
Interest expense		1,475				438				975				213
Net interest income		8,106				6,813				3,813				3,607
Provision for loan losses		112				-				112				-
Net interest income after provision		7,994				6,813				3,701				3,607
Noninterest income		9,674				20,826				5,319				9,019
Noninterest expense		14,517				22,363				7,663				10,795
Net income before income taxes		3,151				5,276				1,357				1,831
Provision for income taxes		786				1,220				334				378
Net income after income taxes	$	2,365			$	4,056			$	1,023			$	1,453
Net income per common share, basic	$	0.96			$	1.66			$	0.41			$	0.59

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230721792120/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What is the net earnings of Oregon Bancorp, Inc. for the second quarter of 2023?

The net earnings of Oregon Bancorp, Inc. for the second quarter of 2023 were $1.02 million.

What is the return on average assets for the second quarter of 2023?

The return on average assets for the second quarter of 2023 was 1.1%.

What is the return on average equity for the second quarter of 2023?

The return on average equity for the second quarter of 2023 was 5.6%.

What is the year-to-date net income of Oregon Bancorp, Inc.?

The year-to-date net income of Oregon Bancorp, Inc. is $2.4 million.

What is the year-to-date earnings per common share of Oregon Bancorp, Inc.?

The year-to-date earnings per common share of Oregon Bancorp, Inc. is $0.96.

Why did the company's balance sheet decline?

The company's balance sheet declined by $11.8 million due to a decline in deposits as customers used funds for asset purchases and absorbed greater expenses.

How much did commercial loan balances increase by?

Commercial loan balances increased by $11.4 million.

What dividend was declared by the board of directors?

The board of directors declared a $0.52 per share quarterly dividend.