Oregon Bancorp Announces Third Quarter Earnings

BY Business Wire | ECONOMIC | 10/21/22 09:20 AM EDT

SALEM, Ore.--(BUSINESS WIRE)-- Oregon Bancorp, Inc. (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. (ORBN)

Oregon Bancorp, Inc. (ORBN) 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. (ORBN) 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

?

?

Source: Oregon Bancorp, Inc. (ORBN)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article