SALEM, Ore.--(BUSINESS WIRE)--Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $2,333,249 for the second quarter of 2018 compared to $1,424,107 during the second quarter of 2017. This represents a 64% increase over the year ago quarter. The improvement in quarterly net income was the result of an 8% increase in commercial loan balances and 24% increase in mortgage production from the second 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 rose to 4.22% compared to 3.07% in the year ago period and return on equity reached 38.30% compared to 28.17% in 2017. Total assets rose to $224 million from $193 million and quarterly earnings per share were $1.03 compared to $0.64 for the same year ago period. Strong quarterly earnings improved year-to-date return on assets to 3.31% and return on equity to 29.04% compared to 2.41% and 21.97% in 2017. The company declared a quarterly dividend of $0.10 per share on June 27, 2018 payable on July 20, 2018.
“Our company continues to grow at a consistent pace which has been a key factor in our earnings improvement,” Neil Grossnicklaus, President and CEO, stated. “Continued strength in earnings enables the company to expand without a need to pursue dilutive capital raises.”
“We are pleased that our enhanced focus on reaching new customers has led to additional core deposit growth during the second quarter,” commented Ryan Dempster, Chief Financial Officer. “Residential mortgage lending continues to increase as we enter the home buying season.”
|QUARTERLY FINANCIAL REPORT - JUNE 2018|
|Summary Statements of Condition||June 30, 2018||June 30, 2017|
|Cash and short term investments||$||35,472,733||$||16,949,869|
|Commercial real estate||128,428,107||121,525,738|
|Loan loss reserve and unearned income||(1,610,595||)||(1,570,740||)|
|Total net loans||139,775,078||129,770,386|
|Loans available for sale||37,557,008||36,698,460|
|Property and other assets||11,754,774||10,242,438|
|Savings and Money Market||43,812,417||47,978,714|
|Certificates of deposit||100,502,958||60,926,013|
|Total liabilities and shareholders' equity||$||224,559,593||$||193,661,153|
|Book value per share||$||12.20||$||9.36|
|Summary Statements of Income||
Six Months Ending
Six Months Ending
|Net interest income||4,028,091||3,357,353|
|Provision for loan losses||-||-|
|Net income before income taxes||4,779,721||3,564,752|
|Provision for income taxes||1,224,471||1,332,603|
|Net income after income taxes||$||3,555,250||$||2,232,149|
|Year-to-Date Net income per share, basic||$||
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.