SALEM, Ore.--(BUSINESS WIRE)--Oregon Bancorp, Inc. (OTCBB: ORBN) (the "Company"), parent company of Willamette Valley Bank, reported net income for the fourth quarter of $547,000 and $0.22 per common share. The Company's quarterly return on average assets and return on average equity was 0.6% and 3.0%, respectively. This compares to $640,000 in net income and $0.26 earnings per common share outstanding for the quarter ending September 30, 2023.
Year-to-date net income reached $3.6 million and $1.44 per common share outstanding compared to $6.9 million and $2.86 per common share during the same period last year. For the fiscal year, the Company's return on average assets was 0.9% compared to 1.7% in 2022. The Company's net interest margin was 4.2% for the fourth quarter and 4.3% for the 2023 fiscal year. This compares to 4.6% in the fourth quarter of 2022 and 4.0% for the 2022 fiscal year.
The Company's balance sheet declined $4.6 million during the prior quarter. This is primarily related to a $4.1 million decrease in deposits. Commercial loan balances increased $16.0 million during the same period. Compared to December 31, 2022, the balance sheet declined $6.1 million primarily due to a decline in deposits of $6.3 million. Commercial loans, however, increased $47.6 million over the last twelve months. Bank asset quality and capital remain good, and the Board of Directors distributed a $0.26 per share quarterly dividend on January 16, 2024.
Ryan Dempster, President and CEO, commented: "Loan interest rates remain elevated compared to recent norms. This has resulted in less demand for residential mortgage loans which has impacted earnings. Despite the higher interest rate environment, we continue to experience a good net interest margin and core deposits remain level from the prior year. Current expectations for interest rate reductions in 2024 are expected to result in lower lending rates and improve loan demand."
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 conducts commercial and retail banking activities at four full-service branch locations in Salem, Keizer, Silverton, and Albany, Oregon. The Bank also operates nine Home Loan Centers located in Oregon, Washington, and 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.
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.
| CONSOLIDATED BALANCE SHEET (Unaudited) | |||||||||||
| (Amounts in thousands except per share data) | |||||||||||
| December 31, | September 30, | ||||||||||
| ASSETS | 2023 | 2022 | 2023 | ||||||||
| Cash and short term investments | $ | 24,225 | $ | 78,776 | $ | 30,168 | |||||
| Securities available-for-sale, at fair value | 33,763 | 23,453 | 30,976 | ||||||||
| Loans available for sale, at fair value | 12,764 | 23,601 | 29,077 | ||||||||
| Loans: | |||||||||||
| Real estate | 299,355 | 251,629 | 286,342 | ||||||||
| Commercial | 7,547 | 6,992 | 6,263 | ||||||||
| Other | 2,481 | 2,626 | 522 | ||||||||
| Deferred fees and costs | (640 | ) | (609 | ) | (613 | ) | |||||
| Loan loss reserve | (3,156 | ) | (2,661 | ) | (2,960 | ) | |||||
| Total net loans | 305,587 | 257,977 | 289,554 | ||||||||
| Property and other assets | 19,513 | 18,143 | 20,720 | ||||||||
| Total assets | $ | 395,852 | $ | 401,950 | $ | 400,495 | |||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing demand | $ | 32,792 | $ | 31,747 | $ | 27,886 | |||||
| Interest-bearing demand | 80,589 | 101,167 | 92,558 | ||||||||
| Savings and Money Market | 119,075 | 143,656 | 119,710 | ||||||||
| Certificates of deposit | 79,897 | 42,081 | 76,342 | ||||||||
| Total deposits | 312,353 | 318,651 | 316,496 | ||||||||
| Borrowings | - | - | - | ||||||||
| Other liabilities | 10,608 | 10,170 | 11,392 | ||||||||
| Total liabilities | 322,961 | 328,821 | 327,888 | ||||||||
| SHAREHOLDERS' EQUITY | 72,891 | 73,129 | 72,607 | ||||||||
| Total liabilities and shareholders' equity | $ | 395,852 | $ | 401,950 | $ | 400,495 | |||||
| Book value per common share | $ | 29.53 | $ | 29.81 | $ | 29.36 | |||||
| CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) | |||||||||||
| (Amounts in thousands except per share data) | |||||||||||
| Year-to-Date | Three Months Ending | ||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||
| Interest income | $ | 20,092 | $ | 16,386 | $ | 5,422 | $ | 4,745 | |||
| Interest expense | 4,180 | 880 | 1,403 | 231 | |||||||
| Net interest income | 15,912 | 15,506 | 4,019 | 4,514 | |||||||
| Provision for loan losses | 494 | - | 195 | - | |||||||
| Net interest income after provision | 15,418 | 15,506 | 3,824 | 4,514 | |||||||
| Noninterest income | 16,643 | 31,418 | 3,126 | 3,952 | |||||||
| Noninterest expense | 27,369 | 38,051 | 6,236 | 6,799 | |||||||
| Net income before income taxes | 4,692 | 8,873 | 714 | 1,667 | |||||||
| Provision for income taxes | 1,139 | 1,975 | 167 | 242 | |||||||
| Net income after income taxes | $ | 3,553 | $ | 6,898 | $ | 547 | $ | 1,425 | |||
| Net income per common share, basic | $ | 1.44 | $ | 2.86 | $ | 0.22 | $ | 0.58 | |||
Contacts
Ryan Dempster
Oregon Bancorp, Inc.
503-485-2222
bank@wvbk.com
