Oregon Bancorp Reports Quarterly and Annual Results

Rhea-AI Summary

Oregon Bancorp, Inc. (OTCBB: ORBN) reported a net income of $8.0 million for Q4 2020, up from $3.1 million in Q4 2019. Earnings per share increased to $3.37 from $1.32. Year-to-date net income rose to $28.3 million, marking a 146% increase compared to the previous year. Total assets grew to $395.9 million, up from $269.5 million. The company also raised its quarterly cash dividend from $0.11 to $0.26 per share.

Asset quality is solid with past due loans at 0.14% and non-performing loans at 0.38%.

Positive

• Net income increased by 146% year-over-year to $28.3 million.
• Earnings per share surged to $3.37 from $1.32 in the previous year.
• Total assets rose from $269.5 million to $395.9 million.
• Quarterly cash dividend increased from $0.11 to $0.26 per share.
• Return on average assets improved to 8.55% from 4.47%.

Negative

• Noninterest expense increased significantly to $62.77 million from $39.90 million.

Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $8.0 million for the fourth quarter of 2020 compared to $3.1 million during the fourth quarter of 2019. Earnings per share for the quarter were $3.37 compared to $1.32 for the same quarter a year ago. The Company also increased its quarterly cash dividend from $0.11 to $0.26 per share during December.

Year-to-date net income rose to $28.3 million in 2020, an increase of 146% from last year and representing a new high for the Company. Return on average assets for the year reached 8.55% compared to 4.47% in 2019 and return on average equity for the year was 60.72% compared to 35.63% in the prior year. Total assets improved from $269.5 million on December 31, 2019 to $395.9 million on December 31, 2020.

Asset quality remains solid with past due loans equaling 0.14% of total loans and non-performing loans as a percentage of total loans measuring 0.38%. Strong earnings have increased the Company’s ratio of equity to total assets to 15.85%.

“We are pleased with the financial success that occurred during an unprecedented time in history that included significant economic distress caused by the COVID-19 pandemic,” stated Ryan Dempster, President and Chief Executive Officer. “There were many financial highlights during the year, including record earnings and mortgage originations, and good commercial loan and deposit growth. An equally rewarding achievement, however, was our ability to inject $25.9 million into our economy by participating in the U.S. Small Business Administration’s Paycheck Protection Program, which helped save thousands of jobs and aid our economy during this challenging time in history.”

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.

CONSOLIDATED BALANCE SHEETS
Unaudited
	December 31,									September 30,
Summary Statements of Condition	2020				2019					2020
Cash and short term investments	$	27,875,749			$	17,613,486				$	22,088,990
Investments		-				-					-
Loans:
Commercial		32,319,726				12,424,690					36,933,533
Commercial real estate		190,211,867				164,792,981					191,328,447
Other		1,628,336				4,216,716					3,576,022
Unearned income		(729,309	)			(172,180	)				(913,132	)
Loan and lease loss reserve		(2,482,430	)			(1,814,818	)				(2,434,858	)
Total net loans		220,948,190				179,447,389					228,490,012
Loans available for sale		125,738,282				58,751,727					113,322,565
Property and other assets		21,327,032				13,669,164					20,442,443
Total assets	$	395,889,253			$	269,481,766				$	384,344,010
Deposits:
Noninterest-bearing demand	$	26,880,774			$	39,435,130				$	26,843,325
Interest-bearing demand		72,519,591				26,855,835					64,416,006
Savings and Money Market		97,177,179				54,654,082					91,600,189
Certificates of deposit		72,109,879				100,894,321					73,520,599
Total deposits		268,687,423				221,839,368					256,380,119
Borrowings		48,500,316				840,924					57,830,155
Other liabilities		15,972,396				8,405,847					14,934,249
Shareholders' equity		62,729,118				38,395,627					55,199,487
Total liabilities and shareholders' equity	$	395,889,253			$	269,481,766				$	384,344,010
Book value per share	$	26.55			$	16.54				$	23.37

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
	Year-to-Date							Three Months Ending
	December 31, 2020			December 31, 2019				December 31, 2020			December 31, 2019
Interest income	$	13,570,987		$	12,134,009			$	3,765,735		$	3,064,676
Interest expense		1,903,011			2,376,925				371,615			619,677
Net interest income		11,667,976			9,757,084				3,394,120			2,444,999
Less Provision for loan losses		657,321			328,000				45,000			138,000
Net interest income after provision		11,010,655			9,429,084				3,349,120			2,306,999
Noninterest income		89,722,584			45,839,886				25,343,622			12,399,571
Noninterest expense		62,771,336			39,902,657				18,050,006			10,623,829
Net income before income taxes		37,961,903			15,366,313				10,642,736			4,082,741
Provision for income taxes		9,670,191			3,859,118				2,691,815			1,013,571
Net income after income taxes	$	28,291,712		$	11,507,195			$	7,950,921		$	3,069,170
Net income per share, basic	$	12.00		$	4.98			$	3.37		$	1.32

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.

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FAQ

What was Oregon Bancorp's net income for Q4 2020?

Oregon Bancorp reported a net income of $8.0 million for Q4 2020.

How much did Oregon Bancorp increase its dividend in December 2020?

The quarterly cash dividend was increased from $0.11 to $0.26 per share.

What is Oregon Bancorp's earnings per share for the fourth quarter of 2020?

Earnings per share for Q4 2020 were $3.37.

How much did total assets grow for Oregon Bancorp in 2020?

Total assets grew from $269.5 million at the end of 2019 to $395.9 million at the end of 2020.

What was the year-to-date net income increase percentage for Oregon Bancorp in 2020?

The year-to-date net income increased by 146% in 2020.