SALEM, Ore.–(BUSINESS WIRE)–Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $2,333,249 for the second quarter of 2018 compared to $1,424,107 during the second quarter of 2017. This represents a 64% increase over the year ago quarter. The improvement in quarterly net income was the result of an 8% increase in commercial loan balances and 24% increase in mortgage production from the second 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.
“We are pleased that our enhanced focus on reaching new customers has led to additional core deposit growth during the second quarter”
Annualized return on assets for the quarter rose to 4.22% compared to 3.07% in the year ago period and return on equity reached 38.30% compared to 28.17% in 2017. Total assets rose to $224 million from $193 million and quarterly earnings per share were $1.03 compared to $0.64 for the same year ago period. Strong quarterly earnings improved year-to-date return on assets to 3.31% and return on equity to 29.04% compared to 2.41% and 21.97% in 2017. The company declared a quarterly dividend of $0.10 per share on June 27, 2018 payable on July 20, 2018.
“Our company continues to grow at a consistent pace which has been a key factor in our earnings improvement,” Neil Grossnicklaus, President and CEO, stated. “Continued strength in earnings enables the company to expand without a need to pursue dilutive capital raises.”
“We are pleased that our enhanced focus on reaching new customers has led to additional core deposit growth during the second quarter,” commented Ryan Dempster, Chief Financial Officer. “Residential mortgage lending continues to increase as we enter the home buying season.”