Oregon Bancorp Announces Second Quarter Earnings

Second quarter 2020 net earnings of $7.5 million, or $3.18 per common share
Quarterly net earnings increased $4,151,585, or 124%
Quarterly Residential Mortgage Lending reached $430 million

SALEM, Ore.--()--Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $7,504,322 for the second quarter of 2020 compared to $3,352,737 during the second quarter of 2019. This represents an increase of $4,151,585, or 124%, over the year-ago quarter. The improvement in quarterly net income was the result of a $63 million, or 38%, increase in commercial lending and $185 million, or 75%, increase in residential mortgage lending from the 2019 second quarter.

Quarterly return on assets rose to 9.07% compared to 5.21% in the year-ago period and return on average equity reached 73.01% compared to 45.02% in 2019. Total assets rose to $353 million from $257 million and earnings per share for the quarter were $3.18 compared to $1.45 for the same quarter a year ago. The company declared a quarterly dividend of $0.11 per share that was paid on July 15, 2020.

Ryan Dempster, President and CEO, commented, “A portion of our commercial loan growth during the quarter is attributable to the Bank’s participation in the Paycheck Protection Program. During the year we have distributed $25 million in funding to help 220 companies stay in business and retain jobs for approximately 2,974 employees.” He continued by saying “We are proud to have loaned $430 million to help over 1,600 households during the quarter purchase their dream home or lower their mortgage payments by refinancing their existing home loan.”

About Oregon Bancorp, Inc.

Oregon Bancorp, Inc. is the parent company of Willamette Valley Bank (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, Tualatin, and West Linn, Oregon, Vancouver, Spokane, Newport and Yakima, Washington, and Coeur d’Alene and Meridian, Idaho. For more information about Oregon Bancorp, Inc. or its subsidiary, Willamette Valley Bank, please call (503)485-2222 or visit our website at www.willamettevalleybank.com.

CONSOLIDATED BALANCE SHEETS
Unaudited
 
June 30, March 31,
Summary Statements of Condition

 

2020

 

 

2019

 

 

2020

 

Cash and short term investments

$

20,044,152

 

$

27,549,342

 

$

22,902,162

 

Loans:
Commercial

 

37,461,985

 

 

8,927,461

 

 

170,283,067

 

Commercial real estate

 

186,977,728

 

 

151,544,604

 

 

12,051,408

 

Other

 

3,315,807

 

 

3,726,059

 

 

3,902,202

 

Loan loss reserve and unearned income

 

(3,489,212

)

 

(1,782,693

)

 

(2,425,837

)

Total net loans

 

224,266,308

 

 

162,415,431

 

 

183,810,840

 

Loans available for sale

 

90,436,887

 

 

54,128,103

 

 

83,528,555

 

Property and other assets

 

19,050,237

 

 

13,747,473

 

 

17,970,015

 

Total assets

$

353,797,584

 

$

257,840,349

 

$

308,211,572

 

 
Deposits:
Noninterest-bearing demand

$

25,508,692

 

$

41,478,578

 

$

19,001,215

 

Interest-bearing demand

 

62,843,120

 

 

20,744,371

 

 

44,561,804

 

Savings and Money Market

 

86,736,079

 

 

52,332,747

 

 

58,006,561

 

Certificates of deposit

 

82,004,946

 

 

101,433,425

 

 

106,543,506

 

Total deposits

 

257,092,837

 

 

215,989,121

 

 

228,113,086

 

Other liabilities

 

51,904,911

 

 

9,882,383

 

 

42,665,912

 

Shareholders' equity

 

44,799,836

 

 

31,968,845

 

 

37,432,574

 

Total liabilities and shareholders' equity

$

353,797,584

 

$

257,840,349

 

$

308,211,572

 

 
Book value per share

$

18.96

 

$

13.77

 

$

15.94

 

CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
 
Six Months Ending Three Months Ending
June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019
Interest income

$

6,283,316

$

5,973,814

$

3,332,170

$

3,111,986

Interest expense

 

1,157,237

 

1,119,539

 

548,638

 

591,740

Net interest income

 

5,126,079

 

4,854,275

 

2,783,532

 

2,520,246

Less Provision for loan losses

 

566,000

 

190,000

 

176,000

 

-

Net interest income after provision

 

4,560,079

 

4,664,275

 

2,607,532

 

2,520,246

Noninterest income

 

35,154,978

 

19,596,582

 

23,270,920

 

11,630,066

Noninterest expense

 

26,492,466

 

17,842,141

 

15,732,020

 

9,910,504

Net income before income taxes

 

13,222,591

 

6,418,716

 

10,146,432

 

4,239,808

Provision for income taxes

 

3,337,532

 

1,444,547

 

2,642,110

 

887,071

Net income after income taxes

$

9,885,059

$

4,974,169

$

7,504,322

$

3,352,737

 
Net income per share, basic

$

4.21

$

2.16

$

3.18

$

1.45

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.

Contacts

Ryan Dempster
Oregon Bancorp, Inc.
503-485-2222
bank@wvbk.com

Contacts

Ryan Dempster
Oregon Bancorp, Inc.
503-485-2222
bank@wvbk.com