SALEM, Ore.--(BUSINESS WIRE)--Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $1,222,001 for the first quarter of 2018 compared to $808,042 during the first quarter of 2017. This represents a 51% increase over the year ago quarter. The improvement in quarterly net income was the result of a 12% increase in commercial loan balances and 47% increase in mortgage production from the first 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. On April 18, 2018, the Board of Directors announced a two-for-one stock split for shareholders of record on May 1, 2018.
Annualized return on assets rose to 2.38% compared to 1.83% in the year-ago period and return on equity reached 20.57% compared to 16.38% in 2017. Total assets rose to $217 million from $177 million and earnings per share for the quarter were $1.14 compared to $0.74 for the same quarter a year ago. The company declared an increase in the quarterly dividend to $0.20 per share and a special cash dividend of $1.20 per share was paid on March 15, 2018.
“Our solid financial performance in the first quarter is the result of efforts to enhance our presence throughout the Willamette Valley,” Neil Grossnicklaus, President and CEO stated. “Strong and consistent earnings over the last year enabled the Company to increase its quarterly dividend and pay a special cash dividend to our loyal shareholders.”
“We are pleased with the growth in core deposits that has enabled us to increase our local small business lending,” commented Ryan Dempster, Chief Financial Officer. “Residential mortgage lending has remained strong during a time of year that is normally slower due to seasonality.”
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.
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CONSOLIDATED BALANCE SHEETS Unaudited |
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| March 31, | ||||||||
| Summary Statements of Condition | 2018 | 2017 | ||||||
| Cash and short term investments | $ | 43,006,224 | $ | 16,731,650 | ||||
| Loans: | ||||||||
| Commercial real estate | 128,767,978 | 117,228,815 | ||||||
| Commercial | 8,163,968 | 5,724,371 | ||||||
| Other | 3,897,651 | 3,133,191 | ||||||
| Loan loss reserve and unearned income | (1,598,621 | ) | (1,561,756 | ) | ||||
| Total net loans | 139,230,976 | 124,524,621 | ||||||
| Loans available for sale | 23,882,093 | 25,895,568 | ||||||
| Property and other assets | 11,353,022 | 10,058,169 | ||||||
| Total assets | $ | 217,472,315 | $ | 177,210,008 | ||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 30,779,660 | $ | 27,635,014 | ||||
| Interest-bearing demand | 16,808,639 | 15,073,805 | ||||||
| Savings and Money Market | 48,399,039 | 49,612,588 | ||||||
| Certificates of deposit | 93,022,245 | 60,297,341 | ||||||
| Total deposits | 189,009,583 | 152,618,748 | ||||||
| Other liabilities | 5,267,176 | 4,964,045 | ||||||
| Shareholders' equity | 23,195,556 | 19,627,215 | ||||||
| Total liabilities and shareholders' equity | $ | 217,472,315 | $ | 177,210,008 | ||||
| Book value per share | $ | 20.43 | $ | 17.66 | ||||
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CONSOLIDATED STATEMENTS OF NET INCOME Unaudited |
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| Three Months Ending | ||||||
| March 31, 2018 | March 31, 2017 | |||||
| Interest income | $ | 2,205,832 | $ | 1,818,848 | ||
| Interest expense | 350,306 | 218,097 | ||||
| Net interest income | 1,855,526 | 1,600,751 | ||||
| Provision for loan losses | - | - | ||||
| Noninterest income | 7,420,869 | 5,507,900 | ||||
| Noninterest expense | 7,631,563 | 5,820,196 | ||||
| Net income before income taxes | 1,644,832 | 1,288,455 | ||||
| Provision for income taxes | 422,831 | 480,413 | ||||
| Net income after income taxes | $ | 1,222,001 | $ | 808,042 | ||
| Net income per share, basic | $ | 1.14 | $ | 0.74 | ||
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.