Oregon Bancorp Announces Fourth Quarter Earnings

By: Oregon Bancorp, Inc. via Business Wire

January 26, 2024 at 16:30 PM EST

Fourth quarter 2023 net earnings of $0.5 million, or $0.22 per common share

Quarterly return on average assets of 0.6% and return on average equity of 3.0%

Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the fourth quarter of $547,000 and $0.22 per common share. The Company’s quarterly return on average assets and return on average equity was 0.6% and 3.0%, respectively. This compares to $640,000 in net income and $0.26 earnings per common share outstanding for the quarter ending September 30, 2023.

Year-to-date net income reached $3.6 million and $1.44 per common share outstanding compared to $6.9 million and $2.86 per common share during the same period last year. For the fiscal year, the Company’s return on average assets was 0.9% compared to 1.7% in 2022. The Company’s net interest margin was 4.2% for the fourth quarter and 4.3% for the 2023 fiscal year. This compares to 4.6% in the fourth quarter of 2022 and 4.0% for the 2022 fiscal year.

The Company’s balance sheet declined $4.6 million during the prior quarter. This is primarily related to a $4.1 million decrease in deposits. Commercial loan balances increased $16.0 million during the same period. Compared to December 31, 2022, the balance sheet declined $6.1 million primarily due to a decline in deposits of $6.3 million. Commercial loans, however, increased $47.6 million over the last twelve months. Bank asset quality and capital remain good, and the Board of Directors distributed a $0.26 per share quarterly dividend on January 16, 2024.

Ryan Dempster, President and CEO, commented: “Loan interest rates remain elevated compared to recent norms. This has resulted in less demand for residential mortgage loans which has impacted earnings. Despite the higher interest rate environment, we continue to experience a good net interest margin and core deposits remain level from the prior year. Current expectations for interest rate reductions in 2024 are expected to result in lower lending rates and improve loan demand.”

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 nine 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 SHEET (Unaudited)
(Amounts in thousands except per share data)
	December 31,						September 30,
ASSETS	2023			2022			2023
Cash and short term investments	$	24,225		$	78,776		$	30,168
Securities available-for-sale, at fair value		33,763			23,453			30,976
Loans available for sale, at fair value		12,764			23,601			29,077
Loans:
Real estate		299,355			251,629			286,342
Commercial		7,547			6,992			6,263
Other		2,481			2,626			522
Deferred fees and costs		(640	)		(609	)		(613	)
Loan loss reserve		(3,156	)		(2,661	)		(2,960	)
Total net loans		305,587			257,977			289,554
Property and other assets		19,513			18,143			20,720
Total assets	$	395,852		$	401,950		$	400,495

LIABILITIES
Deposits:
Noninterest-bearing demand	$	32,792		$	31,747		$	27,886
Interest-bearing demand		80,589			101,167			92,558
Savings and Money Market		119,075			143,656			119,710
Certificates of deposit		79,897			42,081			76,342
Total deposits		312,353			318,651			316,496
Borrowings		-			-			-
Other liabilities		10,608			10,170			11,392
Total liabilities		322,961			328,821			327,888

SHAREHOLDERS' EQUITY		72,891			73,129			72,607
Total liabilities and shareholders' equity	$	395,852		$	401,950		$	400,495

Book value per common share	$	29.53		$	29.81		$	29.36

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)
(Amounts in thousands except per share data)
	Year-to-Date				Three Months Ending
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Interest income	$	20,092	$	16,386	$	5,422	$	4,745
Interest expense		4,180		880		1,403		231
Net interest income		15,912		15,506		4,019		4,514
Provision for loan losses		494		-		195		-
Net interest income after provision		15,418		15,506		3,824		4,514
Noninterest income		16,643		31,418		3,126		3,952
Noninterest expense		27,369		38,051		6,236		6,799
Net income before income taxes		4,692		8,873		714		1,667
Provision for income taxes		1,139		1,975		167		242
Net income after income taxes	$	3,553	$	6,898	$	547	$	1,425

Net income per common share, basic	$	1.44	$	2.86	$	0.22	$	0.58

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126263226/en/

Contacts

Ryan Dempster

Oregon Bancorp, Inc.

503-485-2222

bank@wvbk.com

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Oregon Bancorp Announces Fourth Quarter Earnings

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