The Company also announced that its Board of Directors has approved a stock repurchase program. Under this program, the Company may repurchase up to 50,000 shares of its common stock, from time to time. The repurchase program permits shares to be repurchased in the open market, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. Repurchases may be made at management's discretion at prices management considers to be attractive, subject to the availability of stock, general market conditions, the applicable trading price, future alternative advantageous uses for capital, and the Company's financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities Exchange Act and other applicable legal requirements.

The repurchase program has an initial term of one year and may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares. Any shares acquired will be cancelled and become authorized but unissued shares, available for future issuance.

With respect to the consolidated statement of operations for the three months ended June 30, 2019, net interest income was $4.1 million, which was an increase from $3.9 million during the same period in 2018. For the three months ended June 30, 2019, the net interest margin was 3.72% compared to 3.90% for the same period in 2018, a decrease of 18 basis points. For the six months ended June 30, 2019, net interest income was $8.1 million, compared to $7.7 million during the same period in 2018. The net interest margin was 3.72% for the six months ended June 30, 2019, compared to 3.86% for the same period in 2018, a decrease of 14 basis points.

The Company recorded a provision for loan loss of $225,000 for the three months ended June 30, 2019, compared with a provision of $66,000 for the same period in 2018. For the six months ended June 30, 2019 the Company recorded a provision for loan loss of $185,000 compared with a provision of $66,000 for the same period in 2018. The allowance for loan losses as a percentage of total loans was 0.80% at June 30, 2019 compared to 1.04% at December 31, 2018. The need to supplement the allowance for loan losses in 2019 was mitigated by improvement in various quantitative and qualitative factors used in the determination of the allowance. Nonperforming assets represented 0.50% of total assets at June 30, 2019, down from 0.63% of assets as of December 31, 2018.

Noninterest income totaled $847,000 for the three months ended June 30, 2019, compared with $691,000 for the same period in 2018, an increase of $156,000 or 22.6%. The biggest contributor to the increase was a gain on the sale of securities of $164,000 in the second quarter of 2019 and no such gains in the comparable period in 2018. Noninterest income totaled $1.4 million for the six months ended June 30, 2019, compared with $1.6 million for the same period in 2018, a decrease of $200,000 or 12.1%. The biggest contributor to the decrease was a gain on sale of SBA loans of $305,000 during the six months ended June 30, 2018, compared to no such gains during the same period in 2019. This was offset by a gain on the sale of securities of $164,000 in the first six month of 2019 and no such gains in the comparable period in 2018.

Noninterest expense totaled $3.5 million in the three months ended June 30, 2019, an increase of $61,000, or 1.8%, from the same period in 2018. Increases in equipment and data processing expenses, partially offset by decreases in salaries and employee benefits accounted for most of the overall net increase. Noninterest expense totaled $6.9 million in the six months ended June 30, 2019, a decrease of $161,000, or 2.3%, from 2018. Decreases in salaries and employee benefits, partially offset by increases in equipment and data processing expenses, accounted for most of the overall net decrease.

Oak Ridge Financial Services, Inc. (OTC:BKOR) is the holding company for Bank of Oak Ridge. Bank of Oak Ridge is an employee-owned community bank that delivers personal attention and convenience for every client. We are proud of our many accolades and awards, including seven "Best Bank in the Triad" wins, "Triad's Top Workplace" finalist, "Triad's Healthiest Employer" winner and a Better Business Bureau "Torch Award" winner. We offer a complete range of banking services for individuals and businesses. Bank of Oak Ridge is a member of the FDIC and an Equal Housing Lender.

Forward-looking Information
This earnings release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Company's markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectability of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, and (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations. The Company undertakes no obligation to update any forward-looking statements.