Oregon Pacific Bancorp (ORPB) Announces Q2 2024 Financial Results
Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, has released its financial results for the second quarter ending June 30, 2024.
Key Highlights:
- Net Income: $1.9 million; $0.26 per diluted share
- Net Interest Margin: 3.65% (tax equivalent)
- Cost of Funds: 1.30%
- Loan Growth: $12.1 million or 8.80% annualized
Financial Performance: Net income for the quarter was $1.9 million, or $0.26 per diluted share, up from $1.6 million, or $0.22 per diluted share, in the previous quarter. “We are pleased with the growth in our core earnings,” said Ron Green, President and CEO. He highlighted the expansion of net interest margin and growth in noninterest income from trust, investment advisory services, and mortgage income as positive trends.
Net Interest Margin: The net interest margin increased to 3.65% from 3.59% in the first quarter, driven by higher asset yields, which rose from 4.88% to 5.03%. This increase was due to a shift in asset mix as maturing investment securities were replaced by higher-yielding loans and fed funds.
Loan Growth: Period-end loans, net of deferred fees, totaled $563 million, reflecting a quarterly growth of $12.1 million, or 8.80% annualized. The loan yield increased to 5.43%, up by 0.13% from the prior quarter. New and renewed loans for the quarter amounted to $31.6 million, with a weighted average effective rate of 7.50% and a repricing life of 4.22 years.
Classified Assets: Classified assets increased by $2 million due to the downgrade of one commercial and industrial lending relationship affected by a slowdown in the RV industry. This relationship, worth $2 million, is monitored monthly and continues to pay as agreed, with no losses anticipated.
Credit Loss Provisions: The bank recorded a $91,000 recovery from a previously charged-off residential real estate loan and a $141,000 provision for credit losses, leading to a $232,000 increase in the allowance for credit losses, primarily due to loan growth.
Deposits: Period-end deposits totaled $677.5 million, a quarterly contraction of $18.0 million but a growth of $17.0 million since December 31, 2023. The cost of funds increased slightly to 1.30%, up from 1.20% in the first quarter.
Noninterest Income and Expense: Noninterest income grew to $2.0 million, up $171,000 from the first quarter, driven by a $37,000 increase in trust fee income and a $63,000 rise in other income. Noninterest expenses decreased by $130,000 to $6.1 million, primarily due to reduced costs in outside services.
Forward-Looking Statements: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect Oregon Pacific Bancorp’s current estimates, projections, expectations, plans, or forecasts of its future results and revenues and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. The company undertakes no obligation to publicly revise or update any forward-looking statement to reflect events or circumstances that arise after the date of this release.
Consolidated Balance Sheets and Statements of Income: Detailed financial statements and performance ratios are provided in the full release, illustrating the bank’s assets, liabilities, stockholders’ equity, and earnings for the second quarter of 2024 compared to previous periods.
This summary highlights the key financial metrics and strategic comments from Oregon Pacific Bancorp’s second quarter 2024 earnings report.
