Oregon Bancorp Announces Third Quarter Earnings

·5 min read

Third quarter 2020 net earnings of $10.45 million, or $4.43 per common share
Quarterly net earnings increased $6,991,876, or 202%, from third quarter 2019
Quarterly Residential Mortgage Lending reached $500 million

Oregon Bancorp, Inc. (OTCBB: ORBN) (the "Company"), parent company of Willamette Valley Bank, reported net income of $10,455,732 for the third quarter of 2020 compared to $3,463,856 during the third quarter of 2019. This represents an increase of $6,991,876, or 202%, over the year-ago quarter. The improvement in quarterly net income was the result of a $62 million, or 37%, increase in commercial lending and $199 million, or 66%, increase in residential mortgage lending from the 2019 third quarter.

Quarterly return on assets rose to 11.69% compared to 5.31% in the year-ago period and return on average equity reached 83.49% compared to 41.14% in 2019. Earnings per share for the quarter were $4.43 compared to $1.49 for the same quarter a year ago and total assets rose to $384 million from $266 million. The company declared a quarterly dividend of $0.11 per share that was paid on October 14, 2020.

Ryan Dempster, President and CEO, commented "2020 has been a difficult year for companies and people throughout the world. I’m pleased that we have remained a source of strength for our customers and community all while posting improved earnings from 2019." Mr. Dempster continued by saying, "The low interest rates have led to a significant increase in mortgage lending and profitability. However, I am equally pleased we have experienced good growth in commercial loans and deposits."

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

September 30,

June 30,

Summary Statements of Condition

2020

2019

2020

Cash and short term investments

$ 22,088,990

$ 19,685,751

$ 20,044,152

Investments

-

-

-

Loans:

Commercial

36,933,533

11,285,739

37,461,985

Commercial real estate

191,328,447

153,588,865

186,977,728

Other

3,576,022

3,304,553

3,315,807

Unearned income

(913,132)

(144,690)

(1,103,248)

Loan and lease loss reserve

(2,434,858)

(1,674,245)

(2,385,964)

Total net loans

228,490,012

166,360,222

224,266,308

Loans available for sale

113,322,565

66,605,272

90,436,887

Property and other assets

20,442,443

13,562,618

19,050,237

Total assets

$ 384,344,010

$ 266,213,863

$ 353,797,584

Deposits:

Noninterest-bearing demand

$ 26,843,325

$ 41,873,417

$ 25,508,692

Interest-bearing demand

64,416,006

21,674,511

62,843,120

Savings and Money Market

91,600,189

52,264,726

86,736,079

Certificates of deposit

73,520,599

105,427,046

82,004,946

Total deposits

256,380,119

221,239,700

257,092,837

Borrowings

57,830,155

883,577

37,874,303

Other liabilities

14,934,249

8,703,222

14,030,608

Shareholders' equity

55,199,487

35,387,364

44,799,836

Total liabilities and shareholders' equity

$ 384,344,010

$ 266,213,863

$ 353,797,584

Book value per share

$ 23.37

$ 15.25

$ 18.96

CONSOLIDATED STATEMENTS OF NET INCOME

Unaudited

Year-to-Date

Three Months Ending

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

Interest income

$ 9,805,252

$ 9,069,333

$ 3,521,936

$ 3,095,519

Interest expense

1,531,396

1,757,248

374,159

637,709

Net interest income

8,273,856

7,312,085

3,147,777

2,457,810

Less Provision for loan losses

612,321

190,000

46,321

-

Net interest income after provision

7,661,535

7,122,085

3,101,456

2,457,810

Noninterest income

64,378,962

33,440,315

29,223,984

13,843,733

Noninterest expense

44,721,330

29,278,828

18,228,864

11,436,687

Net income before income taxes

27,319,167

11,283,572

14,096,576

4,864,856

Provision for income taxes

6,978,376

2,845,547

3,640,844

1,401,000

Net income after income taxes

$ 20,340,791

$ 8,438,025

$ 10,455,732

$ 3,463,856

Net income per share, basic

$ 8.65

$ 3.65

$ 4.43

$ 1.49

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.

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Contacts

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