Oregon Bancorp Reports Record 2016 Earnings

Board Declares Cash Dividend

SALEM, Ore.--()--Oregon Bancorp, Inc., parent company of Willamette Valley Bank (OTCBB: ORBN), reported net income for the fourth quarter of 2016 of $954 thousand, which is up 92% from $498 thousand during the same quarter of the previous year. Earnings per share for the quarter were $0.88 and annual earnings per share reached $3.81. Full year net income results were a record for the company at $4.11 million. The company declared a cash dividend of $0.15 per share during the fourth quarter, bringing total 2016 dividends to $0.60 per share.

Return on average assets for 2016 reached 2.51% compared to 1.37% in 2015. Return on average equity for the full year was 22.82% compared to 12.55% for the year ago period. Net interest margin of 4.12% compares favorably to peer and deposit growth caused total assets to rise to $176.5 million from $150.7 million at the end of 2015.

“Our robust financial performance this year is attributable to a slowly improving economy and continued execution of our strategic plan,” Neil D. Grossnicklaus, President and CEO, stated. “As the housing market recovers and broader economy slowly advances we have expanded into select markets to provide small business financing and residential home loans across the region.

“Our results have been driven primarily by commercial loan growth and continued strong fee income from mortgage banking operations. The Pacific Northwest has enjoyed solid economic growth and continues to attract in-migration from other parts of the country which is a trend that we expect to continue.”

Oregon Bancorp, Inc. is the parent company of Willamette Valley Bank, a community bank headquartered in Salem, Oregon. The Bank operates full-service Oregon branches in Salem, Keizer, Silverton, and Albany. The Bank also operates Home Loan Centers in Portland, Tualatin, Wilsonville, Eugene, Bend, Grants Pass, and Medford, Oregon, Vancouver and Spokane, Washington, and Coeur d’Alene, Priest River and Meridian, Idaho.

      Unaudited     Unaudited
Summary Statements of Condition     December 31, 2016     December 31, 2015
Cash and short term investments     $ 17,458,362       $ 9,786,949  
Securities       -         85,297  
Commercial       5,750,895         5,720,902  
Commercial real estate       113,843,750         102,615,517  
Other       3,542,851         2,746,964  
Loan loss reserve and unearned income       (1,570,749 )       (1,602,495 )
Total net loans       121,566,747         109,480,888  
Loans available for sale       28,536,192         22,986,913  
Property and other assets       9,214,910         8,333,946  
Total assets     $ 176,776,211       $ 150,673,993  
Noninterest-bearing demand     $ 27,918,671       $ 27,161,524  
Interest-bearing demand       12,066,511         7,946,014  
Savings and Money Market       49,130,389         37,861,330  
Certificates of deposit       63,579,784         58,051,940  
Total deposits       152,695,355         131,020,808  
Other liabilities       4,250,877         3,443,692  
Shareholders' equity       19,829,979         16,209,493  
Total liabilities and shareholders' equity     $ 176,776,211       $ 150,673,993  
Book value per share     $ 18.29       $ 15.30  
      Unaudited     Unaudited
Summary Statements of Income    

December 31, 2016


December 31, 2015

Interest income     $ 7,348,857       $ 6,908,784  
Interest expense       931,281         816,033  
Net interest income       6,417,576         6,092,751  
Provision for loan losses       -         -  
Noninterest income       22,092,892         14,246,872  
Noninterest expense       21,928,742         17,258,241  
Net income before income taxes       6,581,726         3,081,382  
Provision for income taxes       2,469,887         1,153,709  
Net income after income taxes     $ 4,111,839       $ 1,927,673  
Net income per share, basic     $ 3.81       $ 1.86  


Oregon Bancorp, Inc.
Neil Grossnicklaus, 503-763-6351

Release Summary

Oregon Bancorp, Inc. (OTCBB: ORBN), parent company of Willamette Valley Bank, reported net income for the fourth quarter of 2016 of $954 thousand.


Oregon Bancorp, Inc.
Neil Grossnicklaus, 503-763-6351