Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $945,033 for the fourth quarter of 2017 compared to $954,741 during the fourth quarter of 2016. Net income was reduced during the quarter by a non-recurring adjustment related to the new tax legislation. Pre-tax earnings for the quarter increased 28% to $2.1 million, up from $1.7 million reported in the year ago quarter. Earnings per share for the quarter were $0.85 compared to $0.88 for the same quarter a year ago. The company declared a cash dividend of $0.15 per share during December bringing year-to-date dividends to $1.60 per share.

Year-to-date net income rose 25% to $5.1 million in 2017 up from $4.1 million in 2016 and representing a new high for the Company. Return on average assets for the year reached 2.69% compared to 2.54% in 2016. Return on average equity for the year was 23.65% compared to 23.07% in 2016. Total assets rose to $205 million in 2017 up from $176 million at the end of 2016.

“We are pleased with the commercial and residential loan growth experienced during the year which were key to pushing the Company to over $200 million in assets and improved earnings from the prior year,” Neil Grossnicklaus, President and CEO stated. “Record earnings have enabled the Company to grow its asset base while avoiding dilutive capital raises.”

“We are pleased to report another strong and consistent year of earnings,” commented Ryan Dempster, Chief Financial Officer. “The new federal tax legislation will be accretive to the bottom line in 2018 and enable the Company to evaluate growth opportunities.”

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 and Vancouver, Washington, and Coeur d’Alene, Meridian, and Priest River, 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.

CONSOLIDATED BALANCE SHEETS
Unaudited
     
December 31, September 30,
Summary Statements of Condition 2017 2016 2017
Cash and short term investments $ 21,634,182 $ 17,458,362 $ 26,129,480
Investments - - -
Loans:
Commercial 7,563,118 5,750,895 7,791,936
Commercial real estate 127,607,896 113,843,750 127,477,891
Other 4,128,703 3,542,851 4,311,825
Loan loss reserve and unearned income   (1,575,179 )   (1,570,749 )   (1,569,262 )
Total net loans 137,724,538 121,566,747 138,012,390
Loans available for sale 34,816,974 28,536,192 32,058,628
Property and other assets   10,878,477     9,214,910     8,059,626  
Total assets $ 205,054,171   $ 176,776,211   $ 204,260,124  
 
Deposits:
Noninterest-bearing demand $ 32,434,931 $ 27,918,671 $ 30,715,769
Interest-bearing demand 14,403,535 12,066,511 14,315,811
Savings and Money Market 42,051,102 49,130,389 46,533,222
Certificates of deposit   87,235,931     63,579,784     74,463,022  
Total deposits 176,125,499 152,695,355 166,027,824
Other liabilities 5,336,703 4,250,877 15,513,863
Shareholders' equity   23,591,969     19,829,979     22,718,437  
Total liabilities and shareholders' equity $ 205,054,171   $ 176,776,211   $ 204,260,124  
 
Book value per share $ 21.21 $ 18.29 $ 20.43
 
CONSOLIDATED STATEMENTS OF NET INCOME
Unaudited
     
Twelve Months Ending Three Months Ending
December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016
Interest income $ 8,258,336 $ 7,348,857 $ 2,236,012 $ 1,902,491
Interest expense   1,018,500   931,281   308,879   237,975
Net interest income 7,239,836 6,417,576 1,927,133 1,664,516
Provision for loan losses - - - -
Noninterest income 30,415,155 22,092,892 8,150,500 5,880,034
Noninterest expense   28,709,162   21,928,742   7,934,839   5,875,146
Net income before income taxes 8,945,829 6,581,726 2,142,794 1,669,404
Provision for income taxes   3,811,042   2,469,887   1,197,761   714,663
Net income after income taxes $ 5,134,787 $ 4,111,839 $ 945,033 $ 954,741
 
Net income per share, basic $ 4.64 $ 3.82 $ 0.85 $ 0.88

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.