Oregon Bancorp Reports Second Quarter 2018 Earnings

Quarterly Net earnings of $2.3 million, or $1.03 per common share

Net earnings increased $909,142, or 64%

Year-over-Year loan growth of 8% or $10 million and deposit growth of 28% or $41 million

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
	Unaudited			Unaudited
Summary Statements of Condition	June 30, 2018			June 30, 2017
Cash and short term investments	$	35,472,733		$	16,949,869
Investments					-
Loans:
Commercial		8,829,744			6,564,065
Commercial real estate		128,428,107			121,525,738
Other		4,127,822			3,251,323
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
Total assets	$	224,559,593		$	193,661,153
Deposits:
Noninterest-bearing demand	$	32,878,975		$	28,872,468
Interest-bearing demand		16,004,621			12,718,803
Savings and Money Market		43,812,417			47,978,714
Certificates of deposit		100,502,958			60,926,013
Total deposits		193,198,971			150,495,998
Other liabilities		5,813,718			22,350,041
Shareholders' equity		25,546,904			20,815,114
Total liabilities and shareholders' equity	$	224,559,593		$	193,661,153
Book value per share	$	12.20		$	9.36
	Unaudited			Unaudited
Summary Statements of Income	Six Months Ending June 30, 2018			Six Months Ending June 30, 2017
Interest income	$	4,780,820		$	3,792,320
Interest expense		752,729			434,967
Net interest income		4,028,091			3,357,353
Provision for loan losses		-			-
Noninterest income		17,066,487			13,242,132
Noninterest expense		16,314,857			13,034,733
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	$	1.58		$	1.01

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 [phone] 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.