Quarterly Net earnings of $2.4 million, or $1.06 per common share
Net earnings increased $452,524, or 23%
Year-over-Year loan growth of 7% or $9 million and deposit growth of 21% or $34 million.
SALEM, Ore. –October 18, 2018 – Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $2,410,129 for the third quarter of 2018 compared to $1,957,605 during the third quarter of 2017. This represents a 23% increase over the year ago quarter. The improvement in quarterly net income was the result of a 7% increase in commercial loan balances and $24 million increase in mortgage production from the third 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.
Annualized return on assets for the quarter was 3.42% and return on equity reached 29.71%. Total assets rose from $204 million a year ago to $235 million, and quarterly earnings per share were $1.06 compared to $0.88 for the same year ago period. Strong quarterly earnings improved year-to-date return on assets to 3.60% and return on equity to 31.73% compared to 3.00% and 25.66% during the same period in 2017. The company declared a quarterly dividend of $0.10 per share that was paid on October 15, 2018.
“We are pleased to see the strong financial results from the first half of the year continue through the third quarter,” stated Neil Grossnicklaus, President and CEO. “The third quarter was another record quarter for the Bank which was achieved through continued commercial and residential loan growth.”
“We continue to see earnings growth exceed our internal projections,” commented Ryan Dempster, Chief Financial Officer. “The Bank experienced good commercial loan growth during the quarter and liquidated the few remaining nonperforming loan assets.”
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.
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.