Oregon Bancorp Announces Third Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported net earnings of $5.7 million for Q3 2021, translating to $2.35 per share, with a return on average assets of 5.8% and return on average equity of 32.0%. This is a decrease from $10.4 million in Q3 2020. Residential mortgage loan production fell to $400.4 million from $500.0 million in the previous year. Total assets grew by $24.1 million, supported by a $20.3 million rise in deposits. The quarterly dividend was increased from $0.26 to $0.52 per share.

Positive

• Net earnings of $5.7 million with a strong EPS of $2.35.
• Return on average assets at 5.8% and return on average equity at 32.0%.
• Total assets increased by $24.1 million, driven by a $20.3 million increase in deposits.
• Quarterly dividend increased from $0.26 to $0.52 per share.

Negative

• Net income decreased from $10.4 million in Q3 2020.
• Residential mortgage loan production decreased by $99.6 million compared to last year.
• Reduction of $4.5 million in Paycheck Protection Program Loans.

Third quarter 2021 net earnings of $5.7 million, or $2.35 per common share

Quarterly return on average assets of 5.8% and return on average equity of 32.0%

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the third quarter totaled $5.7 million resulting in an annualized return on average assets of 5.8% and a return on average equity of 32.0%. This compares to $10.4 million and $3.5 million from the third quarters of 2020 and 2019, respectively. Quarterly residential mortgage loan production was $400.4 million compared to $500.0 million during the third quarter last year and $301.6 million in the third quarter of 2019.

The Company’s balance sheet continues to expand as we emphasize commercial banking growth. During the quarter, total assets increased $24.1 million driven by a $20.3 million increase in deposits and $4.6 million increase in capital. The Company’s cash and investments also increased $7.4 million to $73.7 million at quarter end. Commercial loan balances increased $9.0 million during the quarter. This growth, however, was offset by a $4.5 million reduction in Paycheck Protection Program Loans that were forgiven by the U.S. Small Business Association.

The Company’s capital continues to broaden through earnings as evidenced by an 18.2% capital-to-assets ratio. During the quarter, the Board of Directors announced an increase to the quarterly dividend from $0.26 to $0.52 per share. This payment was distributed to shareholders on October 15, 2021.

Ryan Dempster, President and CEO, commented, “Although revenues are less than our record quarter last year, earnings ratios remain strong and will compare very well against peer institutions.” He further stated, “We continue to focus on growing and expanding our presence within the local communities we serve, and this is leading to good commercial loan activity and new customer deposit relationships.”

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)	September 30,								June 30,
Summary Statements of Condition	2021				2020				2021
Cash and short term investments	$	65,380			$	22,089			$	66,338
Securities available-for-sale, at fair value		8,383				-				-
Loans:
Real estate		216,621				191,328				207,805
Commercial		19,254				36,934				24,548
Other		1,428				3,576				605
Unearned income		(777	)			(913	)			(899	)
Loan loss reserve		(2,603	)			(2,435	)			(2,601	)
Total net loans		233,923				228,490				229,458
Loans available for sale		75,192				113,323				62,338
Property and other assets		26,240				20,442				18,498
Total assets	$	400,735			$	384,344			$	376,632
Deposits:
Noninterest-bearing demand	$	29,256			$	26,843			$	28,921
Interest-bearing demand		91,874				64,416				80,546
Savings and Money Market		128,833				91,600				118,305
Certificates of deposit		66,966				73,522				68,759
Total deposits		316,929				256,381				296,531
Borrowings		-				57,830				-
Other liabilities		11,092				14,934				12,026
Shareholders' equity		72,714				55,199				68,075
Total liabilities and shareholders' equity	$	400,735			$	384,344			$	376,632
Book value per common share	$	30.13				23.37				28.22

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
	Nine Months Ending						Three Months Ending
(Amounts in thousands except per share data)	September 30, 2021			September 30, 2020			September 30,2021			September 30, 2020
Interest income	$	10,484		$	9,805		$	3,437		$	3,522
Interest expense		866			1,531			267			374
Net interest income		9,618			8,274			3,170			3,148
Provision for loan losses		113			612			-			46
Net interest income after provision		9,505			7,662			3,170			3,102
Noninterest income		62,244			64,379			19,219			29,224
Noninterest expense		46,826			44,722			14,736			18,229
Net income before income taxes		24,923			27,319			7,653			14,097
Provision for income taxes		6,515			6,978			1,971			3,641
Net income after income taxes	$	18,408		$	20,341		$	5,682		$	10,456
Net income per common share, basic	$	7.67		$	8.65		$	2.35		$	4.43

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211022005495/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What were Oregon Bancorp's earnings for Q3 2021?

Oregon Bancorp reported net earnings of $5.7 million for Q3 2021.

What is the dividend payout for Oregon Bancorp in Q3 2021?

The quarterly dividend was increased to $0.52 per share.

How did Oregon Bancorp's earnings compare to previous quarters?

Earnings decreased from $10.4 million in Q3 2020.

What was the return on average equity for Oregon Bancorp in Q3 2021?

The return on average equity was 32.0%.

What was the total assets growth for Oregon Bancorp in Q3 2021?

Total assets increased by $24.1 million during the quarter.