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Oregon Bancorp Announces Second Quarter Earnings

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Second quarter 2021 net earnings of $5.4 million, or $2.25 per common share
Quarterly return on average assets of 5.8% and return on average equity of 33.2%

SALEM, Ore., July 23, 2021--(BUSINESS WIRE)--Oregon Bancorp, Inc. (OTCBB: ORBN) (the "Company"), parent company of Willamette Valley Bank, reported net income for the second quarter totaled $5.4 million resulting in an annualized return on average assets of 5.8% and a return on average equity of 33.2%. This compares to $7.5 million and $3.3 million from the second quarters of 2020 and 2019, respectively. Quarterly residential mortgage loan production decreased 5% to $407.9 million compared to the same period in 2020. Yields earned on the sale of mortgage loans decreased which impacted noninterest income.

During the quarter, total assets increased $2.3 million driven by a $6.5 million increase in deposits and the paydown of $6.3 million in borrowings. The Company’s cash and short-term investments increased $19 million to $66.3 million at quarter end. The increase in cash is attributable to a decrease in mortgage loans held for sale and an increase in deposits.

Commercial real estate loan balances increased by $5.1 million during the quarter. This growth was offset by a $6.3 million reduction in Paycheck Protection Program loans that were forgiven by the U.S. Small Business Association. The Company’s capital continues to grow through earnings as evidenced by an 18.1% capital-to-assets ratio. During the quarter, the Board of Directors announced a $0.26 per share dividend payable to shareholders on July 15, 2021.

Ryan Dempster, President and CEO, commented, "Quarterly earnings remain strong and will continue to compare favorably to peer, and year-to-date earnings are well ahead of our results from the first half of last year." He continued by saying, "We believe the return to normalcy following the lapse in restrictions relating to the pandemic will allow for additional business opportunities for the Company as the economy recovers."

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 conducts commercial and retail banking activities at four full-service branch locations in Salem, Keizer, Silverton, and Albany, Oregon. The Bank also operates 13 Home Loan Centers located in Oregon, Washington, and 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.

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.

CONSOLIDATED BALANCE SHEETS

Unaudited

(Amounts in thousands except per share data)

June 30,

March 31,

Summary Statements of Condition

2021

2020

2021

Cash and short term investments

$

66,338

$

20,044

$

47,018

Loans:

Real estate

207,805

186,978

202,732

Commercial

24,548

37,462

30,947

Other

605

3,316

690

Unearned income

(899

)

(1,103

)

(970

)

Loan loss reserve

(2,601

)

(2,386

)

(2,598

)

Total net loans

229,458

224,267

230,801

Loans available for sale

62,338

90,437

75,596

Property and other assets

18,498

19,050

20,962

Total assets

$

376,632

$

353,798

$

374,377

Deposits:

Noninterest-bearing demand

$

28,921

$

25,509

$

27,130

Interest-bearing demand

80,546

62,843

83,724

Savings and Money Market

118,305

86,736

106,131

Certificates of deposit

68,759

82,005

73,061

Total deposits

296,531

257,093

290,046

Borrowings

-

37,881

6,343

Other liabilities

12,026

14,024

15,231

Shareholders' equity

68,075

44,800

62,756

Total liabilities and shareholders' equity

$

376,632

$

353,798

$

374,377

Book value per common share

$

28.22

18.99

26.36

CONSOLIDATED STATEMENTS OF NET INCOME

Unaudited

Six Months Ending

Three Months Ending

(Amounts in thousands except per share data)

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Interest income

$

7,047

$

6,283

$

3,543

$

3,332

Interest expense

599

1,157

293

548

Net interest income

6,448

5,126

3,250

2,784

Provision for loan losses

113

566

-

176

Net interest income after provision

6,335

4,560

3,250

2,608

Noninterest income

43,025

35,155

19,521

23,271

Noninterest expense

32,090

26,492

15,546

15,732

Net income before income taxes

17,270

13,223

7,225

10,147

Provision for income taxes

4,544

3,338

1,799

2,643

Net income after income taxes

$

12,726

$

9,885

$

5,426

$

7,504

Net income per share, basic

$

5.31

$

4.21

$

2.25

$

3.18

View source version on businesswire.com: https://www.businesswire.com/news/home/20210723005091/en/

Contacts

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

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