Oregon Bancorp Announces Stock Split, Reports First Quarter Earnings

Two-for-One stock split announced
First quarter 2018 net earnings of $1.2 million, or $1.14 per common share
Quarterly net earnings increased $413,959, or 51%
Year-over-Year loan growth of 12% or $15 million and deposit growth of 24% or $37 million

SALEM, Ore.--()--Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $1,222,001 for the first quarter of 2018 compared to $808,042 during the first quarter of 2017. This represents a 51% increase over the year ago quarter. The improvement in quarterly net income was the result of a 12% increase in commercial loan balances and 47% increase in mortgage production from the first 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. On April 18, 2018, the Board of Directors announced a two-for-one stock split for shareholders of record on May 1, 2018.

“Residential mortgage lending has remained strong during a time of year that is normally slower due to seasonality.”

Annualized return on assets rose to 2.38% compared to 1.83% in the year-ago period and return on equity reached 20.57% compared to 16.38% in 2017. Total assets rose to $217 million from $177 million and earnings per share for the quarter were $1.14 compared to $0.74 for the same quarter a year ago. The company declared an increase in the quarterly dividend to $0.20 per share and a special cash dividend of $1.20 per share was paid on March 15, 2018.

“Our solid financial performance in the first quarter is the result of efforts to enhance our presence throughout the Willamette Valley,” Neil Grossnicklaus, President and CEO stated. “Strong and consistent earnings over the last year enabled the Company to increase its quarterly dividend and pay a special cash dividend to our loyal shareholders.”

“We are pleased with the growth in core deposits that has enabled us to increase our local small business lending,” commented Ryan Dempster, Chief Financial Officer. “Residential mortgage lending has remained strong during a time of year that is normally slower due to seasonality.”

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.

 
CONSOLIDATED BALANCE SHEETS
Unaudited
 
  March 31,
Summary Statements of Condition 2018   2017
Cash and short term investments $ 43,006,224 $ 16,731,650
Loans:
Commercial real estate 128,767,978 117,228,815
Commercial 8,163,968 5,724,371
Other 3,897,651 3,133,191
Loan loss reserve and unearned income   (1,598,621 )   (1,561,756 )
Total net loans 139,230,976 124,524,621
Loans available for sale 23,882,093 25,895,568
Property and other assets   11,353,022     10,058,169  
Total assets $ 217,472,315   $ 177,210,008  
 
Deposits:
Noninterest-bearing demand $ 30,779,660 $ 27,635,014
Interest-bearing demand 16,808,639 15,073,805
Savings and Money Market 48,399,039 49,612,588
Certificates of deposit   93,022,245     60,297,341  
Total deposits 189,009,583 152,618,748
Other liabilities 5,267,176 4,964,045
Shareholders' equity   23,195,556     19,627,215  
Total liabilities and shareholders' equity $ 217,472,315   $ 177,210,008  
 
Book value per share $ 20.43 $ 17.66
 
 
CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
 
  Three Months Ending
March 31, 2018   March 31, 2017
Interest income $ 2,205,832 $ 1,818,848
Interest expense   350,306   218,097
Net interest income 1,855,526 1,600,751
Provision for loan losses - -
Noninterest income 7,420,869 5,507,900
Noninterest expense   7,631,563   5,820,196
Net income before income taxes 1,644,832 1,288,455
Provision for income taxes   422,831   480,413
Net income after income taxes $ 1,222,001 $ 808,042
 
Net income per share, basic $ 1.14 $ 0.74
 

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.

Contacts

Oregon Bancorp, Inc.
Neil Grossnicklaus, 503-485-2222
President and Chief Executive Officer
neil@wvbk.com

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