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Oregon Pacific Bank Announces Second Quarter Earnings Results
Oregon Pacific Bank Announces Second Quarter Earnings Results.
About this update from Oregon Pacific Bancorp
[{"type":"text","content":"\nOregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported financial results for the second quarter ended, June 30, 2023.\n\n\nHighlights:\n\n\n\nSecond quarter net income of $2.2 million; $0.31 per diluted share.\n\n\n\nQuarterly loan growth of $16.8 million or 3.40%.\n\n\n\nQuarterly tax equivalent net interest margin of 3.72%.\n\n\n\nFederal Reserve approved conversion of Portland loan production office to full-service branch.\n\n\n\nNet income for the quarter ended June 30, 2023, was $2.2 million, or $0.31 per diluted share compared to $1.9 million or $0.27 per diluted share for the quarter ended June 30, 2022. Core earnings remained strong, but the Bank experienced some margin compression as pressure on cost of funds and deposit retention grew. The second quarter margin contracted to 3.72%, down from 3.87% in first quarter 2023, but still remains elevated when compared to the quarterly margin of 3.27% from second quarter 2022. The rapid pace of rate increases occurring between mid-2022 and early-2023 lead to record margin expansion and the industry is seeing some amount of compression as deposit rates lagged the increase in asset yields.\n\n\nDuring the quarter the Bank received regulatory approval to convert the Portland loan production office into a full-service Branch. The Bank has identified a permanent branch location located at 16101 SW 72nd Avenue, with an official branch opening anticipated during the third quarter. “Conversion of the Portland Loan Production Office into a full-service branch further demonstrates the Bank’s commitment to growing the Portland Market,” said Ron Green, President and Chief Executive Officer. “We believe the strength of our Portland banking team, led by Market President Kyle Baisch, will have tremendous success as clients continue to see the value of relationships and the community bank model.”\n\n\nPeriod-end loans, net of deferred loan origination fees, totaled $510.3 million, representing quarterly growth of $16.8 million. The first quarter loan yield grew to 4.96%, representing an increase of 0.11% over the prior quarter as new loan production is occurring at a rate higher than the portfolio yield. Quarterly loan production for new and renewed loans totaled $32.1 million, with a weighted average effective rate of 6.71%.\n...