U.S. Markets closed

Oregon Bancorp Announces Second Quarter Earnings

SALEM, Ore.--(BUSINESS WIRE)--

Second quarter 2019 net earnings of $3.3 million, or $1.45 per common share

Quarterly net earnings increased $1,019,488, or 44%

Quarterly Return on Assets grew to 5.21% and Return on Equity reached 45.02%

Year-over-Year loan growth of 16% or $23 million and deposit growth of 12% or $23 million

Oregon Bancorp, Inc. (ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $3,352,737 for the second quarter of 2019 compared to $2,333,249 during the second quarter of 2018. This represents a 44% increase from the year ago quarter. The improvement in quarterly net income was the result of a 16% increase in commercial loan balances and 26% increase in mortgage production from the second quarter of 2018.

Quarterly return on assets rose to 5.21% compared to 4.22% in the year-ago period and return on equity reached 45.02% compared to 38.30% in the second quarter of 2018. Total assets rose to $257 million from $225 million and earnings per share for the quarter were $1.45 compared to $1.03 for the same quarter a year ago. The company declared a quarterly dividend of $0.11 per share that was paid on July 15, 2019.

“A reduction in mortgage rates helped propel an increase in mortgage activity building on last year’s solid results,” stated Neil Grossnicklaus, Chief Executive Officer. “We are pleased with our strong performance and hope to build upon our success moving through the rest of the year.”

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 operates full-service branches in Salem, Keizer, Silverton, and Albany, Oregon. The Bank also operates Home Loan Centers in Bend, Eugene, Grants Pass, Medford, Portland, Tualatin, and West Linn, Oregon, Vancouver, Spokane, Newport and Yakima, Washington, and Coeur d’Alene and Meridian, 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
 
June 30, March 31,
Summary Statements of Condition

 

2019

 

 

2018

 

 

2019

 

Cash and short term investments

$

27,549,342

 

$

35,472,733

 

$

50,690,431

 

Investments

 

-

 

 

-

 

 

-

 

Loans:
Commercial

 

8,927,461

 

 

8,829,744

 

 

154,312,573

 

Commercial real estate

 

151,544,604

 

 

128,428,107

 

 

9,167,333

 

Other

 

3,726,059

 

 

4,127,822

 

 

3,664,107

 

Loan loss reserve and unearned income

 

(1,782,693

)

 

(1,610,595

)

 

(1,793,018

)

Total net loans

 

162,415,431

 

 

139,775,078

 

 

165,350,995

 

Loans available for sale

 

54,128,103

 

 

37,557,008

 

 

35,097,337

 

Property and other assets

 

13,747,473

 

 

11,754,774

 

 

13,280,591

 

Total assets

$

257,840,349

 

$

224,559,593

 

$

264,419,354

 

 
Deposits:
Noninterest-bearing demand

$

41,478,578

 

$

32,878,975

 

$

38,812,158

 

Interest-bearing demand

 

20,744,371

 

 

16,004,621

 

 

20,889,812

 

Savings and Money Market

 

52,332,747

 

 

43,812,417

 

 

71,967,100

 

Certificates of deposit

 

101,433,425

 

 

100,502,958

 

 

95,554,401

 

Total deposits

 

215,989,121

 

 

193,198,971

 

 

227,223,471

 

Other liabilities

 

9,882,383

 

 

5,813,718

 

 

8,591,185

 

Shareholders' equity

 

31,968,845

 

 

25,546,904

 

 

28,604,698

 

Total liabilities and shareholders' equity

$

257,840,349

 

$

224,559,593

 

$

264,419,354

 

 
Book value per share

$

13.77

 

$

12.20

 

$

12.40

 

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
 
Six Months Ending Three Months Ending
June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018
Interest income

$

5,973,814

$

4,780,820

$

3,111,986

$

2,574,988

Interest expense

 

1,119,539

 

752,729

 

591,740

 

402,423

Net interest income

 

4,854,275

 

4,028,091

 

2,520,246

 

2,172,565

Less Provision for loan losses

 

190,000

 

-

 

-

 

-

Noninterest income

 

19,596,582

 

17,066,487

 

11,630,066

 

9,645,618

Noninterest expense

 

17,842,141

 

16,314,857

 

9,910,504

 

8,683,294

Net income before income taxes

 

6,418,716

 

4,779,721

 

4,239,808

 

3,134,889

Provision for income taxes

 

1,444,547

 

1,224,471

 

887,071

 

801,640

Net income after income taxes

$

4,974,169

$

3,555,250

$

3,352,737

$

2,333,249

 
Net income per share, basic

$

2.16

$

1.58

$

1.45

$

1.03

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190719005037/en/