Second quarter 2024 net earnings of $0.8 million, or $0.32 per common share Quarterly return on average assets of 0.7% and return on average equity of 4.4%

Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the second quarter of $801,000 and $0.32 per common share. The Company’s quarterly return on average assets and return on average equity were 0.7% and 4.4%, respectively. This compares to $634,000 in net income and $0.26 per common share outstanding for the quarter ending March 31, 2024.

The Company’s balance sheet expanded by $82.3 million during the quarter. This was largely the result of a strategy to increase earnings through additional investment in securities issued by the United States government. Correspondingly, we entered into an interest rate swap agreement that is designed to offset changes in the value of these securities. This investment has improved our net income but resulted in a decline in our net interest margin. The Company’s net interest margin decreased from 4.2% to 3.4% during the second quarter. Bank asset quality and capital remain strong, which permitted the Board of Directors to distribute a $0.20 per share quarterly dividend on July 15, 2024.

Ryan Dempster, President and CEO, commented, “Although the economy continues to remain stable, economic data related to employment and inflation is beginning to display some slowing, which has led to renewed speculation that the Federal Reserve may reduce interest rates later this year. This could lead to a welcome reduction in loan interest rates for borrowers.”

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 five Home Loan Centers located in Oregon 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.

CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands except per share data)   June 30, March 31, ASSETS

2024

 

2023

 

2024

Cash and short term investments

$

21,050

 

$

15,373

 

$

19,591

 

Securities available-for-sale, at fair value

 

100,643

 

 

30,075

 

 

32,516

 

Loans available for sale, at fair value

 

14,849

 

 

37,080

 

 

18,387

 

Loans: Real estate

 

317,261

 

 

276,665

 

 

303,247

 

Commercial

 

6,524

 

 

6,109

 

 

6,634

 

Other

 

1,054

 

 

777

 

 

2,028

 

Deferred fees and costs

 

(751

)

 

(625

)

 

(781

)

Loan loss reserve

 

(3,443

)

 

(2,773

)

 

(3,275

)

Total net loans

 

320,645

 

 

280,153

 

 

307,853

 

Property and other assets

 

23,339

 

 

20,595

 

 

19,289

 

Total assets

$

480,526

 

$

383,276

 

$

397,636

 

  LIABILITIES Deposits: Noninterest-bearing demand

$

30,866

 

$

32,484

 

$

32,503

 

Interest-bearing demand

 

77,994

 

 

92,033

 

 

78,089

 

Savings and Money Market

 

118,229

 

 

106,525

 

 

116,665

 

Certificates of deposit

 

84,099

 

 

62,705

 

 

85,219

 

Total deposits

 

311,188

 

 

293,747

 

 

312,476

 

Borrowings

 

88,250

 

 

5,000

 

 

4,000

 

Other liabilities

 

8,554

 

 

11,664

 

 

8,244

 

Total liabilities

 

407,992

 

 

310,411

 

 

324,720

 

  SHAREHOLDERS' EQUITY

 

72,534

 

 

72,865

 

 

72,916

 

Total liabilities and shareholders' equity

$

480,526

 

$

383,276

 

$

397,636

 

  Book value per common share

$

29.22

 

$

29.46

 

$

29.55

 

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) (Amounts in thousands except per share data) Six Months Ending Three Months Ending June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest income

$

11,774

$

9,581

$

6,402

$

4,788

Interest expense

 

4,137

 

1,475

 

2,642

 

975

Net interest income

 

7,637

 

8,106

 

3,760

 

3,813

Provision for loan losses

 

288

 

112

 

169

 

112

Net interest income after provision

 

7,349

 

7,994

 

3,591

 

3,701

Noninterest income

 

6,239

 

9,674

 

3,229

 

5,319

Noninterest expense

 

11,683

 

14,517

 

5,778

 

7,663

Net income before income taxes

 

1,905

 

3,151

 

1,042

 

1,357

Provision for income taxes

 

470

 

786

 

241

 

334

Net income after income taxes

$

1,435

$

2,365

$

801

$

1,023

  Net income per common share, basic

$

0.58

$

0.96

$

0.32

$

0.41

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.

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