Oregon Bancorp Announces Third Quarter Earnings

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported a net income of $1.4 million for Q3 2022, down from $5.7 million in Q3 2021. This led to a return on average assets of 1.3% and a return on average equity of 7.8%. Year-to-date net income reached $5.5 million, with a return on average assets of 1.8% and equity of 10.4%. Total assets rose by $6.1 million (1.5%), driven by a $7.8 million (3.1%) increase in commercial loans. Non-performing assets totaled $1.3 million (1.7% of total capital). A quarterly dividend of $0.52 per share was distributed on October 14, 2022.

Positive

• Year-to-date net income of $5.5 million.
• Total assets increased by $6.1 million (1.5%).
• Commercial loans rose by $7.8 million (3.1%).
• Strong capital allows for a quarterly dividend of $0.52 per share.

Negative

• Net income decreased from $5.7 million in Q3 2021 to $1.4 million in Q3 2022.
• Return on average assets declined to 1.3%.
• Return on average equity dropped to 7.8%.
• Three loans totaling $884 thousand were past due at quarter end.

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $1.4 million for the third quarter of 2022 compared to $5.7 million during the third quarter of 2021. This results in a quarterly return on average assets of 1.3% and a quarterly return on average equity of 7.8%. Year-to-date net income through the third quarter reached $5.5 million resulting in a return on average assets of 1.8% and a return on average equity of 10.4%.

The Company’s balance sheet expanded modestly during the quarter. Total assets increased by $6.1 million, or 1.5%, from June 30, 2022. The largest quarterly balance sheet change is attributed to an increase in commercial loans of $7.8 million, or 3.1%. Three loans representing $884 thousand were past due at quarter end and non-performing assets measured $1.3 million, or 1.7% of total capital. Capital remains very strong which permitted the Board of Directors to distribute a $0.52 per share quarterly dividend on October 14, 2022.

Ryan Dempster, President and CEO, commented: “The Federal Reserve increased their benchmark interest rate 1.5% during the quarter. Although this has led to fewer customers seeking mortgage financing, the Bank’s net interest margin has been positively impacted.”

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 14 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,
ASSETS		2022				2021				2022
Cash and short term investments		$	99,272			$	65,380			$	103,722
Securities available-for-sale, at fair value			16,146				8,383				15,903
Loans available for sale			33,890				75,192				33,039
Loans:
Real estate			250,041				216,621				235,885
Commercial			7,467				19,254				11,271
Other			277				1,428				2,838
Unearned income			(616	)			(777	)			(581	)
Loan loss reserve			(2,613	)			(2,603	)			(2,611	)
Total net loans			254,556				233,923				246,802
Property and other assets			18,530				17,857				16,803
Total assets		$	422,394			$	400,735			$	416,269
LIABILITIES
Deposits:
Noninterest-bearing demand		$	35,063			$	29,256			$	33,334
Interest-bearing demand			108,764				91,874				102,907
Savings and Money Market			153,811				128,833				150,366
Certificates of deposit			43,783				66,966				46,715
Total deposits			341,421				316,929				333,322
Borrowings			-				-				-
Other liabilities			8,044				11,092				10,206
Total liabilities			349,465				328,021				343,528
SHAREHOLDER'S EQUITY			72,929				72,714				72,741
Total liabilities and shareholders' equity		$	422,394			$	400,735			$	416,269
Book value per common share		$	29.70			$	30.13			$	29.62

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
(Amounts in thousands except per share data)
		Nine Months Ending								Three Months Ending
(Amounts in thousands except per share data)		September 30, 2022				September 30, 2021				September 30,2022				September 30,2021
Interest income		$	11,643			$	10,484			$	4,392			$	3,437
Interest expense			649				866				211				267
Net interest income			10,994				9,618				4,181				3,170
Provision for loan losses			-				113				-				-
Net interest income after provision			10,994				9,505				4,181				3,170
Noninterest income			27,442				62,244				6,616				19,219
Noninterest expense			31,230				46,826				8,867				14,736
Net income before income taxes			7,206				24,923				1,930				7,653
Provision for income taxes			1,733				6,515				513				1,971
Net income after income taxes		$	5,473			$	18,408			$	1,417			$	5,682
Net income per common share, basic		$	2.24			$	7.67			$	0.58			$	2.35

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221021005037/en/

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

Source: Oregon Bancorp, Inc.

FAQ

What are the Q3 2022 earnings results for ORBN?

Oregon Bancorp reported a net income of $1.4 million for Q3 2022.

What is the return on average assets for ORBN in Q3 2022?

The return on average assets for Q3 2022 was 1.3%.

When was the quarterly dividend paid for ORBN?

The quarterly dividend of $0.52 per share was distributed on October 14, 2022.

How have commercial loans changed for ORBN?

Commercial loans increased by $7.8 million, or 3.1%, during the quarter.

What is the reason for the decline in net income for ORBN?

Net income decreased due to fewer customers seeking mortgage financing amid rising interest rates.