Market Overview

Oregon Bancorp Reports Second Quarter 2018 Earnings

Share:

Quarterly Net earnings of $2.3 million, or $1.03 per common share

Net earnings increased $909,142, or 64%

Year-over-Year loan growth of 8% or $10 million and deposit growth of
28% or $41 million

Oregon Bancorp, Inc. (OTC: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.

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."

     
QUARTERLY FINANCIAL REPORT - JUNE 2018
Unaudited Unaudited
Summary Statements of Condition June 30, 2018     June 30, 2017
Cash and short term investments $ 35,472,733 $ 16,949,869
Investments -
Loans:
Commercial 8,829,744 6,564,065
Commercial real estate 128,428,107 121,525,738
Other 4,127,822 3,251,323
Loan loss reserve and unearned income   (1,610,595 )       (1,570,740 )
Total net loans 139,775,078 129,770,386
Loans available for sale 37,557,008 36,698,460
Property and other assets   11,754,774         10,242,438  
Total assets $ 224,559,593       $ 193,661,153  
 
Deposits:
Noninterest-bearing demand $ 32,878,975 $ 28,872,468
Interest-bearing demand 16,004,621 12,718,803
Savings and Money Market 43,812,417 47,978,714
Certificates of deposit   100,502,958         60,926,013  
Total deposits 193,198,971 150,495,998
Other liabilities 5,813,718 22,350,041
Shareholders' equity   25,546,904         20,815,114  
Total liabilities and shareholders' equity $ 224,559,593       $ 193,661,153  
 
Book value per share $ 12.20 $ 9.36
 
 
Unaudited Unaudited
Summary Statements of Income

Six Months Ending
June 30, 2018

   

Six Months Ending
June 30, 2017

Interest income $ 4,780,820 $ 3,792,320
Interest expense   752,729         434,967  
Net interest income 4,028,091 3,357,353
Provision for loan losses - -
Noninterest income 17,066,487 13,242,132
Noninterest expense   16,314,857         13,034,733  
Net income before income taxes 4,779,721 3,564,752
Provision for income taxes   1,224,471         1,332,603  
Net income after income taxes $ 3,555,250       $ 2,232,149  
 
Year-to-Date Net income per share, basic $

1.58

$ 1.01
 

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.

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