Oregon Bancorp Reports Third Quarter 2018 Earnings
Quarterly Net earnings of $2.4 million, or $1.06 per common share
Net earnings increased $452,524, or 23%
Year-over-Year loan growth of 7% or $9 million and deposit growth of 21% or $34 million
Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $2,410,129
for the third quarter of 2018 compared to $1,957,605 during the third quarter of 2017. This represents a 23% increase over the year
ago quarter. The improvement in quarterly net income was the result of a 7% increase in commercial loan balances and $24 million
increase in mortgage production from the third quarter of 2017. The reduction in our effective tax rate following the passage of
the Tax Cuts and Jobs Act was also a significant factor in our quarterly financial results.
Annualized return on assets for the quarter was 3.42% and return on equity reached 29.71%. Total assets rose from $204 million a
year ago to $235 million, and quarterly earnings per share were $1.06 compared to $0.88 for the same year ago period. Strong
quarterly earnings improved year-to-date return on assets to 3.60% and return on equity to 31.73% compared to 3.00% and 25.66%
during the same period in 2017. The company declared a quarterly dividend of $0.10 per share that was paid on October 15, 2018.
“We are pleased to see the strong financial results from the first half of the year continue through the third quarter,” stated
Neil Grossnicklaus, President and CEO. “The third quarter was another record quarter for the Bank which was achieved through
continued commercial and residential loan growth.”
“We continue to see earnings growth exceed our internal projections,” commented Ryan Dempster, Chief Financial Officer. “The
Bank experienced good commercial loan growth during the quarter and liquidated the few remaining nonperforming loan assets.”
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| QUARTERLY FINANCIAL REPORT - SEPTEMBER 2018 |
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Unaudited |
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Unaudited |
| Summary Statements of Condition |
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September 30, 2018 |
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September 30, 2017 |
| Cash and short term investments |
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$ |
48,056,051 |
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$ |
26,129,480 |
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| Investments |
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- |
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| Loans: |
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| Commercial |
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9,956,631 |
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7,791,936 |
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| Commercial real estate |
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134,829,332 |
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127,477,891 |
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| Other |
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4,166,141 |
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4,311,825 |
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| Loan loss reserve and unearned income |
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(1,650,280 |
) |
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(1,569,262 |
) |
| Total net loans |
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147,301,824 |
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138,012,390 |
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| Loans available for sale |
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33,345,861 |
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32,058,628 |
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| Property and other assets |
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6,806,657 |
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8,059,626 |
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| Total assets |
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$ |
235,510,393 |
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$ |
204,260,124 |
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| Deposits: |
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| Noninterest-bearing demand |
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$ |
35,102,429 |
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$ |
30,715,769 |
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| Interest-bearing demand |
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16,690,154 |
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14,315,811 |
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| Savings and Money Market |
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48,639,166 |
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46,533,222 |
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| Certificates of deposit |
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100,477,420 |
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74,463,022 |
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| Total deposits |
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200,909,169 |
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166,027,824 |
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| Other liabilities |
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6,744,039 |
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15,513,863 |
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| Shareholders' equity |
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27,857,185 |
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22,718,437 |
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| Total liabilities and shareholders' equity |
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$ |
235,510,393 |
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$ |
204,260,124 |
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| Book value per share |
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$ |
12.26 |
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$ |
10.21 |
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Unaudited |
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Unaudited |
| Summary Statements of Income |
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Year-to-Date
September 30, 2018
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Year-to-Date
September 30, 2017
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| Interest income |
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$ |
7,450,373 |
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$ |
6,022,324 |
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| Interest expense |
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1,223,486 |
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709,621 |
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| Net interest income |
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6,226,887 |
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5,312,703 |
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| Provision for loan losses |
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- |
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- |
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| Noninterest income |
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27,389,121 |
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22,264,655 |
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| Noninterest expense |
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25,581,482 |
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20,774,323 |
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| Net income before income taxes |
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8,034,526 |
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6,803,035 |
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| Provision for income taxes |
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2,069,147 |
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2,613,281 |
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| Net income after income taxes |
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$ |
5,965,379 |
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$ |
4,189,754 |
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| Year-to-Date Net income per share, basic |
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$ |
2.64 |
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$ |
1.88 |
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About Oregon Bancorp, Inc.
Oregon Bancorp, Inc. is the parent company of Willamette Valley 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, Spokane, Vancouver, and Newport, Washington, and Coeur
d’Alene and Meridian, Idaho. For more information about Oregon Bancorp, Inc. or its subsidiary, Willamette Valley Bank, please call
(503)485-2221 or visit our website at
www.willamettevalleybank.com.
Certain statements in this release may constitute forward-looking statements within the definition of the “safe-harbor”
provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to
significant uncertainties, which could cause actual results to differ materially from those set forth in such statements.
Forward-looking statements are those that incorporate management’s current expectations and plans based on information currently
known to them. These statements can sometimes be identified by words such as “believe,” “estimate,” “anticipate,” “expect,”
“intend,” “will,” “may,” “should,” or other similar phrases or words. Readers are cautioned not to place undue reliance on
forward-looking statements. In particular, they should not be construed as assurances of a given level of performance or as
promises of a given set of management’s actions. Some of the factors that could cause management to deviate from its current
plans, or could cause the Company’s results to differ from current expectations, include the effect of localized or regional
economic shifts that may affect the collectability of loans or the value of the collateral underlying those loans; the effects of
laws, regulations, policies and government actions upon the Company’s assets and operations; sensitivity to the Northwestern Oregon
geographic markets and events affecting those markets; and the impacts of new government initiatives upon us and our borrowers.
The Company does not intend to publicly release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Oregon Bancorp, Inc.
Neil Grossnicklaus, 503-485-2222
President and Chief Executive Officer
neil@wvbk.com
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