Oregon Pacific Bancorp Announces Fourth Quarter 2025 Earnings Results

Highlights:

• Fourth quarter net income of $2.7 million; $0.37 per diluted share.
• Quarterly tax equivalent net interest margin of 3.96%, expansion of 0.08% over prior quarter.
• Quarterly return on average assets of 1.27%.
• Annual net income of $8.6 million; $1.19 per diluted share.
• Annual loan growth of $28.1 million or 4.91%.
• Annual deposit growth of $22.7 million or 3.36%.
• Named one of the 100 Best Companies to Work for in Oregon for 2026 by Oregon Business Magazine.

FLORENCE, Ore.--(BUSINESS WIRE)--Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported net income of $2.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2025, compared to $2.2 million or $0.31 per diluted share for the quarter ended September 30, 2025. On an annual basis the Bank reported 2025 net income of $8.6 million, or $1.19 per diluted share, compared to $7.5 million or $1.05 per diluted share for the year ending December 31, 2024.

“We are very pleased with the Bank’s 2025 financial results,” said Ron Green, President and CEO. “Throughout 2025 the Bank remained dedicated to our mission of supporting local business and nonprofit clients. Through this focus the Bank achieved annual loan and deposit growth, which contributed to an increase in overall Bank profitability.”

The Bank’s fourth quarter net interest margin increased to 3.96%, up from 3.88% reported in the third quarter of 2025. The expansion was attributable to both an increase in yield on loans and a reduction in the cost of funds. Despite a 0.50% reduction in the prime rate occurring during the quarter, the reduction in yield on variable loans and securities was more than offset by the increase in yield due to new loan production. The overall yield on loans increased to 5.80%, up from 5.73% in the third quarter of 2025. Quarterly loan production for new and renewed loans totaled $40.5 million, with a weighted average effective rate of 6.69%.

Period-end deposits totaled $699.4 million, reflecting quarterly contraction of $29.0 million. A portion of this reduction was due to deposit activity related to a terminating trust. Trust Assets Under Management (AUM) are typically invested in securities or real estate and do not appear on the Bank’s balance sheet. However, depending on beneficiaries’ cash requirements and the timing of final distributions, some trust assets may be held in cash. Currently, the cash portion of all trust client balances is held at Oregon Pacific Bank and protected by FDIC insurance through IntraFi’s Insured Cash Sweep (ICS) product. These cash balances are included in the Bank’s total interest-bearing demand deposits. At September 30, 2025, a terminating trust held $9.0 million in cash pending final distribution. During the fourth quarter these funds were paid to trust beneficiaries, and this reduced Bank deposits by $9.0 million. Additional deposit migration occurred at year end following the Bank’s typical seasonal deposit fluctuations, primarily attributable to year end distributions for large business clients.

Classified assets on December 31, 2025, totaled $13.1 million, and reflected a decrease of $1.3 million from the third quarter of 2025. Classified assets are defined as loans and loan contingent liabilities internally graded substandard or worse, impaired loans, adversely classified securities and other real estate owned. The reduction in classified assets was primarily attributable to a paydown on a substandard owner-occupied property and an upgrade of a multifamily loan. At December 31, 2025, nonperforming loans totaled $2.3 million, representing a quarterly increase of $1.8 million. The increase was attributable to the migration of two credits to nonaccrual status. The larger of the two non-accrual loans is a $1.6 million term loan fully secured with various pieces of equipment. The Bank is working on a resolution plan and currently does not anticipate any losses. The other loan is a $246 thousand commercial line of credit, which has a specific reserve of 100% in the December 31, 2025 allowance for credit losses, while the Bank evaluates potential impairment of the underlying collateral. Fourth quarter provision for credit losses totaled $346 thousand, while the provision for unfunded commitments reflected a credit of $15 thousand. The increase in provision was driven by the quarterly loan growth and a specific reserve associated with a nonaccrual loan.

Fourth quarter noninterest income grew to $2.3 million, reflecting a $106 thousand increase compared to the prior quarter. The most significant change was observed in trust fee income due to continued growth of trust AUM. Despite the terminating trust distribution, at December 31, 2025, trust AUM reached $297.7 million, reflecting quarterly growth of $16.4 million and an annual increase of $26.7 million or 9.83% from December 31, 2024. Trust services continue to be a valuable source of noninterest income which the Bank anticipates continuing to grow throughout 2026.

In the fourth quarter of 2025, noninterest expense totaled $6.3 million, reflecting a decrease of $7 thousand compared to the previous quarter. On a linked quarter basis salaries and employee benefits declined by $89 thousand primarily driven by a decrease in the officer bonus accrual, following a true-up process that aligned the accrual with updated year-end payout projections. Offsetting a reduction in salaries and benefit expense, trust expense grew $30 thousand during the quarter. The increase in trust expense was partially attributable to an overlap in trust accounting software as the Bank completed a core conversion of the trust accounting system effective November 1, 2025. As part of the conversion the Bank continued to incur the cost of the prior trust software through December 31^st which contributed to additional non-recurring expense of $41 thousand.

CONSOLIDATED BALANCE SHEETS
Unaudited (dollars in thousands)
	December 31,			September 30,			December 31,
		2025			2025			2024
ASSETS
Cash and due from banks	$	11,722		$	9,713		$	9,521
Interest bearing deposits		16,663			42,274			10,921
Securities		155,159			162,012			155,258
Loans, net of deferred fees and costs		599,636			594,695			571,565
Allowance for credit losses		(8,237	)		(7,891	)		(7,400	)
Premises and equipment, net		13,022			13,156			13,279
Bank owned life insurance		10,472			10,388			9,142
Other real estate owned		157			157			-
Deferred tax asset		4,384			4,271			5,398
Other assets		9,238			8,866			8,764
Total assets	$	812,216		$	837,641		$	776,448
LIABILITIES
Deposits
Demand - non-interest bearing	$	152,937		$	167,010		$	141,719
Demand - interest bearing		279,014			298,089			277,932
Money market		142,499			139,513			135,255
Savings		66,534			66,901			66,194
Certificates of deposit		48,366			46,882			45,516
Brokered deposits		10,001			10,001			10,001
Total deposits		699,351			728,396			676,617
FHLB borrowings		7,500			7,500			7,500
Junior subordinated debenture		4,124			4,124			4,124
Subordinated debenture		14,927			14,902			14,827
Other liabilities		8,502			8,280			8,090
Total liabilities		734,404			763,202			711,158
STOCKHOLDERS' EQUITY
Common stock		21,923			21,809			21,612
Retained earnings		60,176			57,508			51,603
Accumulated other comprehensive
income, net of tax		(4,287	)		(4,878	)		(7,925	)
Total stockholders' equity		77,812			74,439			65,290
Total liabilities & stockholders' equity	$	812,216		$	837,641		$	776,448

CONSOLIDATED STATEMENTS OF INCOME
Unaudited (dollars in thousands, except per share data)
	THREE MONTHS ENDED									TWELVE MONTHS ENDED
	December 31,			September 30,			December 31,			December 31,		December 31,
	2025				2025		2024			2025		2024
INTEREST INCOME
Loans	$	8,704			$	8,552	$	7,941		$	33,400	$	30,378
Securities		1,441				1,353		1,376			5,335		5,906
Other interest income		386				500		282			1,347		1,018
Total interest income		10,531				10,405		9,599			40,082		37,302
INTEREST EXPENSE
Deposits		2,290				2,377		2,357			9,200		9,023
Borrowed funds		308				308		318			1,246		1,344
Total interest expense		2,598				2,685		2,675			10,446		10,367
NET INTEREST INCOME		7,933				7,720		6,924			29,636		26,935
Provision for credit losses on loans		346				505		-			1,015		331
Provision (credit) for unfunded commitments		(15	)			123		(30	)		108		(25	)
Net interest income after
provision for credit losses		7,602				7,092		6,954			28,513		26,629
NONINTEREST INCOME
Trust fee income		1,276				1,137		1,135			4,704		4,001
Service charges		396				394		378			1,553		1,457
Mortgage loan sales		1				1		72			9		204
Merchant card services		144				172		125			556		519
Oregon Pacific Wealth Management income		358				366		349			1,420		1,301
Other income		116				115		96			463		457
Total noninterest income		2,291				2,185		2,155			8,705		7,939
NONINTEREST EXPENSE
Salaries and employee benefits		3,612				3,701		3,418			15,158		14,337
Outside services		727				709		787			2,929		2,814
Occupancy & equipment		547				533		485			2,087		1,985
Trust expense		716				686		724			2,825		2,589
Loan and collection, OREO expense		19				18		16			63		70
Advertising		96				102		89			414		328
Supplies and postage		60				70		76			265		299
Other operating expenses		529				494		552			2,066		2,201
Total noninterest expense		6,306				6,313		6,147			25,807		24,623
Income before taxes		3,587				2,964		2,962			11,411		9,945
Provision for income taxes		921				752		744			2,840		2,424
NET INCOME	$	2,666			$	2,212	$	2,218		$	8,571	$	7,521

Quarterly Highlights
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
		2025			2025			2025			2025			2024
Earnings
Interest income	$	10,531		$	10,405		$	9,747		$	9,399		$	9,599
Interest expense		2,598			2,685			2,553			2,610			2,675
Net interest income	$	7,933		$	7,720		$	7,194		$	6,789		$	6,924
Provision for credit losses on loans		346			505			164			-			-
Provision (credit) for unfunded commitments		(15	)		123			-			-			(30	)
Noninterest income		2,291			2,185			2,086			2,143			2,155
Noninterest expense		6,306			6,313			6,490			6,698			6,147
Provision for income taxes		921			752			617			550			744
Net income	$	2,666		$	2,212		$	2,009		$	1,684		$	2,218
Average shares outstanding		7,163,160			7,163,503			7,164,363			7,151,365			7,136,389
Average diluted shares outstanding		7,188,902			7,189,245			7,190,105			7,170,304			7,154,126
Period end shares outstanding		7,162,985			7,163,503			7,164,144			7,164,470			7,138,259
Period end diluted shares outstanding		7,188,727			7,189,245			7,189,886			7,190,212			7,155,996
Earnings per share	$	0.37		$	0.31		$	0.28		$	0.24		$	0.31
Diluted earnings per share	$	0.37		$	0.31		$	0.28		$	0.23		$	0.31
Performance Ratios
Return on average assets		1.27	%		1.06	%		1.02	%		0.87	%		1.12	%
Return on average equity		14.90	%		12.58	%		11.85	%		10.42	%		14.01	%
Net interest margin - tax equivalent		3.96	%		3.88	%		3.85	%		3.67	%		3.66	%
Yield on loans		5.80	%		5.73	%		5.65	%		5.53	%		5.55	%
Yield on securities		3.46	%		3.45	%		3.39	%		3.41	%		3.31	%
Cost of deposits		1.26	%		1.31	%		1.31	%		1.36	%		1.36	%
Cost of interest-bearing liabilities		1.76	%		1.83	%		1.86	%		1.88	%		1.89	%
Efficiency ratio		61.68	%		63.73	%		69.94	%		75.24	%		67.71	%
Full-time equivalent employees		149			146			146			148			145
Capital
Tier 1 capital	$	91,828		$	91,563		$	91,437		$	90,548		$	89,133
Leverage ratio		10.96	%		10.99	%		11.52	%		11.40	%		11.19	%
Common equity tier 1 ratio		14.69	%		14.65	%		14.82	%		14.84	%		14.86	%
Tier 1 risk based ratio		14.69	%		14.65	%		14.82	%		14.84	%		14.86	%
Total risk based ratio		15.94	%		15.91	%		16.07	%		16.10	%		16.11	%
Book value per share	$	10.86		$	10.39		$	9.93		$	9.53		$	9.12

Quarterly Highlights
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
		2025			2025			2025			2025			2024
Asset quality
Allowance for credit losses (ACL)	$	8,237		$	7,891		$	7,388		$	7,400		$	7,400
Nonperforming loans (NPLs)	$	2,338		$	495		$	495		$	801		$	798
Nonperforming assets (NPAs)	$	2,494		$	652		$	652		$	801		$	798
Classified Assets^(1)	$	13,119		$	14,391		$	11,271		$	10,550		$	8,132
Net loan charge offs (recoveries)	$	-		$	1		$	176		$	-		$	-
ACL as a percentage of net loans		1.37	%		1.33	%		1.25	%		1.27	%		1.29	%
ACL as a percentage of NPLs		352.31	%		1594.14	%		1492.53	%		923.85	%		927.32	%
Net charge offs (recoveries)
to average loans		0.00	%		0.00	%		0.03	%		0.00	%		0.00	%
Net NPLs as a percentage of
total loans		0.40	%		0.08	%		0.08	%		0.14	%		0.14	%
Nonperforming assets as a
percentage of total assets		0.31	%		0.08	%		0.08	%		0.10	%		0.10	%
Classified Asset Ratio ^(2)		13.11	%		14.47	%		11.53	%		10.77	%		8.42	%
Past due as a percentage of
total loans		0.17	%		0.12	%		0.08	%		0.11	%		0.06	%
Off-balance sheet figures
Unused credit commitments	$	98,660		$	108,753		$	103,063		$	94,843		$	98,616
Trust assets under management (AUM)	$	297,701		$	281,281		$	288,935		$	267,359		$	271,046
Oregon Pacific Wealth Management AUM	$	154,137		$	181,349		$	174,724		$	172,729		$	165,045
End of period balances
Total securities	$	155,159		$	162,012		$	142,357		$	145,610		$	155,258
Total short term deposits	$	16,663		$	42,274		$	30,348		$	27,625		$	10,921
Total loans net of allowance	$	591,399		$	586,804		$	584,407		$	575,539		$	564,165
Total earning assets	$	773,409		$	800,930		$	766,445		$	758,119		$	739,677
Total assets	$	812,216		$	837,641		$	805,262		$	797,628		$	776,448
Total noninterest bearing deposits	$	152,937		$	167,010		$	162,426		$	153,956		$	141,719
Total brokered deposits	$	10,001		$	10,001		$	10,001		$	10,001		$	10,001
Total core deposits	$	689,350		$	718,395		$	689,740		$	685,314		$	666,616
Total deposits	$	699,351		$	728,396		$	699,741		$	695,315		$	676,617
Average balances
Total securities	$	159,462		$	153,603		$	143,627		$	150,197		$	159,587
Total short term deposits	$	40,352		$	44,423		$	18,044		$	23,766		$	23,654
Total loans net of allowance	$	587,209		$	584,102		$	580,377		$	568,635		$	561,601
Total earning assets	$	796,948		$	791,637		$	751,538		$	751,933		$	754,173
Total assets	$	833,972		$	827,823		$	787,506		$	787,201		$	789,333
Total noninterest bearing deposits	$	164,736		$	166,857		$	158,985		$	149,802		$	152,844
Total brokered deposits	$	10,001		$	10,001		$	10,001		$	10,001		$	12,610
Total core deposits	$	712,607		$	710,376		$	672,711		$	675,953		$	676,900
Total deposits	$	722,608		$	720,377		$	682,712		$	685,954		$	689,510
^(1)Classified assets is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned.
^(2)Classified asset ratio is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for credit losses.

Forward-Looking Statement Safe Harbor

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “estimates,” “intends,” “plans,” “goals,” “believes” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could.” The forward-looking statements made represent Oregon Pacific Bank’s current estimates, projections, expectations, plans or forecasts of its future results and revenues, including but not limited to statements about performance, loan or deposit growth, loan prepayments, investment purchases, investment yields, strategic focus, capital position, liquidity, credit quality, special asset liquidation, noninterest income, noninterest expense and credit quality trends. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Oregon Pacific Bank’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks. Oregon Pacific Bancorp undertakes no obligation to publicly revise or update any forward-looking statement to reflect the impact of events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking the PSLRA’s safe harbor provisions.