Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $945,033 for the fourth quarter of 2017 compared to $954,741 during the fourth quarter of 2016. Net income was reduced during the quarter by a non-recurring adjustment related to the new tax legislation. Pre-tax earnings for the quarter increased 28% to $2.1 million, up from $1.7 million reported in the year ago quarter. Earnings per share for the quarter were $0.85 compared to $0.88 for the same quarter a year ago. The company declared a cash dividend of $0.15 per share during December bringing year-to-date dividends to $1.60 per share.
Year-to-date net income rose 25% to $5.1 million in 2017 up from $4.1 million in 2016 and representing a new high for the Company. Return on average assets for the year reached 2.69% compared to 2.54% in 2016. Return on average equity for the year was 23.65% compared to 23.07% in 2016. Total assets rose to $205 million in 2017 up from $176 million at the end of 2016.
“We are pleased with the commercial and residential loan growth experienced during the year which were key to pushing the Company to over $200 million in assets and improved earnings from the prior year,” Neil Grossnicklaus, President and CEO stated. “Record earnings have enabled the Company to grow its asset base while avoiding dilutive capital raises.”
“We are pleased to report another strong and consistent year of earnings,” commented Ryan Dempster, Chief Financial Officer. “The new federal tax legislation will be accretive to the bottom line in 2018 and enable the Company to evaluate growth opportunities.”
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 and Vancouver, Washington, and Coeur d’Alene, Meridian, and Priest River, 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 | ||||||||||||
December 31, | September 30, | |||||||||||
Summary Statements of Condition | 2017 | 2016 | 2017 | |||||||||
Cash and short term investments | $ | 21,634,182 | $ | 17,458,362 | $ | 26,129,480 | ||||||
Investments | - | - | - | |||||||||
Loans: | ||||||||||||
Commercial | 7,563,118 | 5,750,895 | 7,791,936 | |||||||||
Commercial real estate | 127,607,896 | 113,843,750 | 127,477,891 | |||||||||
Other | 4,128,703 | 3,542,851 | 4,311,825 | |||||||||
Loan loss reserve and unearned income | (1,575,179 | ) | (1,570,749 | ) | (1,569,262 | ) | ||||||
Total net loans | 137,724,538 | 121,566,747 | 138,012,390 | |||||||||
Loans available for sale | 34,816,974 | 28,536,192 | 32,058,628 | |||||||||
Property and other assets | 10,878,477 | 9,214,910 | 8,059,626 | |||||||||
Total assets | $ | 205,054,171 | $ | 176,776,211 | $ | 204,260,124 | ||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 32,434,931 | $ | 27,918,671 | $ | 30,715,769 | ||||||
Interest-bearing demand | 14,403,535 | 12,066,511 | 14,315,811 | |||||||||
Savings and Money Market | 42,051,102 | 49,130,389 | 46,533,222 | |||||||||
Certificates of deposit | 87,235,931 | 63,579,784 | 74,463,022 | |||||||||
Total deposits | 176,125,499 | 152,695,355 | 166,027,824 | |||||||||
Other liabilities | 5,336,703 | 4,250,877 | 15,513,863 | |||||||||
Shareholders' equity | 23,591,969 | 19,829,979 | 22,718,437 | |||||||||
Total liabilities and shareholders' equity | $ | 205,054,171 | $ | 176,776,211 | $ | 204,260,124 | ||||||
Book value per share | $ | 21.21 | $ | 18.29 | $ | 20.43 |
CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||
Unaudited | |||||||||||
Twelve Months Ending | Three Months Ending | ||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||
Interest income | $ | 8,258,336 | $ | 7,348,857 | $ | 2,236,012 | $ | 1,902,491 | |||
Interest expense | 1,018,500 | 931,281 | 308,879 | 237,975 | |||||||
Net interest income | 7,239,836 | 6,417,576 | 1,927,133 | 1,664,516 | |||||||
Provision for loan losses | - | - | - | - | |||||||
Noninterest income | 30,415,155 | 22,092,892 | 8,150,500 | 5,880,034 | |||||||
Noninterest expense | 28,709,162 | 21,928,742 | 7,934,839 | 5,875,146 | |||||||
Net income before income taxes | 8,945,829 | 6,581,726 | 2,142,794 | 1,669,404 | |||||||
Provision for income taxes | 3,811,042 | 2,469,887 | 1,197,761 | 714,663 | |||||||
Net income after income taxes | $ | 5,134,787 | $ | 4,111,839 | $ | 945,033 | $ | 954,741 | |||
Net income per share, basic | $ | 4.64 | $ | 3.82 | $ | 0.85 | $ | 0.88 |
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.
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