Highlights:
Fourth quarter net income of $2.7 million; $0.37 per diluted share.
Quarterly tax equivalent net interest margin of 3.96%, expansion of 0.08% over prior quarter.
Quarterly return on average assets of 1.27%.
Annual net income of $8.6 million; $1.19 per diluted share.
Annual loan growth of $28.1 million or 4.91%.
Annual deposit growth of $22.7 million or 3.36%.
Named one of the 100 Best Companies to Work for in Oregon for 2026 by Oregon Business Magazine.
FLORENCE, Ore., January 27, 2026--(BUSINESS WIRE)--Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported net income of $2.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2025, compared to $2.2 million or $0.31 per diluted share for the quarter ended September 30, 2025. On an annual basis the Bank reported 2025 net income of $8.6 million, or $1.19 per diluted share, compared to $7.5 million or $1.05 per diluted share for the year ending December 31, 2024.
"We are very pleased with the Bank’s 2025 financial results," said Ron Green, President and CEO. "Throughout 2025 the Bank remained dedicated to our mission of supporting local business and nonprofit clients. Through this focus the Bank achieved annual loan and deposit growth, which contributed to an increase in overall Bank profitability."
The Bank’s fourth quarter net interest margin increased to 3.96%, up from 3.88% reported in the third quarter of 2025. The expansion was attributable to both an increase in yield on loans and a reduction in the cost of funds. Despite a 0.50% reduction in the prime rate occurring during the quarter, the reduction in yield on variable loans and securities was more than offset by the increase in yield due to new loan production. The overall yield on loans increased to 5.80%, up from 5.73% in the third quarter of 2025. Quarterly loan production for new and renewed loans totaled $40.5 million, with a weighted average effective rate of 6.69%.
Period-end deposits totaled $699.4 million, reflecting quarterly contraction of $29.0 million. A portion of this reduction was due to deposit activity related to a terminating trust. Trust Assets Under Management (AUM) are typically invested in securities or real estate and do not appear on the Bank’s balance sheet. However, depending on beneficiaries’ cash requirements and the timing of final distributions, some trust assets may be held in cash. Currently, the cash portion of all trust client balances is held at Oregon Pacific Bank and protected by FDIC insurance through IntraFi’s Insured Cash Sweep (ICS) product. These cash balances are included in the Bank’s total interest-bearing demand deposits. At September 30, 2025, a terminating trust held $9.0 million in cash pending final distribution. During the fourth quarter these funds were paid to trust beneficiaries, and this reduced Bank deposits by $9.0 million. Additional deposit migration occurred at year end following the Bank’s typical seasonal deposit fluctuations, primarily attributable to year end distributions for large business clients.
Classified assets on December 31, 2025, totaled $13.1 million, and reflected a decrease of $1.3 million from the third quarter of 2025. Classified assets are defined as loans and loan contingent liabilities internally graded substandard or worse, impaired loans, adversely classified securities and other real estate owned. The reduction in classified assets was primarily attributable to a paydown on a substandard owner-occupied property and an upgrade of a multifamily loan. At December 31, 2025, nonperforming loans totaled $2.3 million, representing a quarterly increase of $1.8 million. The increase was attributable to the migration of two credits to nonaccrual status. The larger of the two non-accrual loans is a $1.6 million term loan fully secured with various pieces of equipment. The Bank is working on a resolution plan and currently does not anticipate any losses. The other loan is a $246 thousand commercial line of credit, which has a specific reserve of 100% in the December 31, 2025 allowance for credit losses, while the Bank evaluates potential impairment of the underlying collateral. Fourth quarter provision for credit losses totaled $346 thousand, while the provision for unfunded commitments reflected a credit of $15 thousand. The increase in provision was driven by the quarterly loan growth and a specific reserve associated with a nonaccrual loan.
Fourth quarter noninterest income grew to $2.3 million, reflecting a $106 thousand increase compared to the prior quarter. The most significant change was observed in trust fee income due to continued growth of trust AUM. Despite the terminating trust distribution, at December 31, 2025, trust AUM reached $297.7 million, reflecting quarterly growth of $16.4 million and an annual increase of $26.7 million or 9.83% from December 31, 2024. Trust services continue to be a valuable source of noninterest income which the Bank anticipates continuing to grow throughout 2026.
In the fourth quarter of 2025, noninterest expense totaled $6.3 million, reflecting a decrease of $7 thousand compared to the previous quarter. On a linked quarter basis salaries and employee benefits declined by $89 thousand primarily driven by a decrease in the officer bonus accrual, following a true-up process that aligned the accrual with updated year-end payout projections. Offsetting a reduction in salaries and benefit expense, trust expense grew $30 thousand during the quarter. The increase in trust expense was partially attributable to an overlap in trust accounting software as the Bank completed a core conversion of the trust accounting system effective November 1, 2025. As part of the conversion the Bank continued to incur the cost of the prior trust software through December 31st which contributed to additional non-recurring expense of $41 thousand.
CONSOLIDATED BALANCE SHEETS | ||||||||||||
Unaudited (dollars in thousands) | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
2025 | 2025 | 2024 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 11,722 | $ | 9,713 | $ | 9,521 | ||||||
Interest bearing deposits | 16,663 | 42,274 | 10,921 | |||||||||
Securities | 155,159 | 162,012 | 155,258 | |||||||||
Loans, net of deferred fees and costs | 599,636 | 594,695 | 571,565 | |||||||||
Allowance for credit losses | (8,237 | ) | (7,891 | ) | (7,400 | ) | ||||||
Premises and equipment, net | 13,022 | 13,156 | 13,279 | |||||||||
Bank owned life insurance | 10,472 | 10,388 | 9,142 | |||||||||
Other real estate owned | 157 | 157 | - | |||||||||
Deferred tax asset | 4,384 | 4,271 | 5,398 | |||||||||
Other assets | 9,238 | 8,866 | 8,764 | |||||||||
Total assets | $ | 812,216 | $ | 837,641 | $ | 776,448 | ||||||
LIABILITIES | ||||||||||||
Deposits | ||||||||||||
Demand - non-interest bearing | $ | 152,937 | $ | 167,010 | $ | 141,719 | ||||||
Demand - interest bearing | 279,014 | 298,089 | 277,932 | |||||||||
Money market | 142,499 | 139,513 | 135,255 | |||||||||
Savings | 66,534 | 66,901 | 66,194 | |||||||||
Certificates of deposit | 48,366 | 46,882 | 45,516 | |||||||||
Brokered deposits | 10,001 | 10,001 | 10,001 | |||||||||
Total deposits | 699,351 | 728,396 | 676,617 | |||||||||
FHLB borrowings | 7,500 | 7,500 | 7,500 | |||||||||
Junior subordinated debenture | 4,124 | 4,124 | 4,124 | |||||||||
Subordinated debenture | 14,927 | 14,902 | 14,827 | |||||||||
Other liabilities | 8,502 | 8,280 | 8,090 | |||||||||
Total liabilities | 734,404 | 763,202 | 711,158 | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Common stock | 21,923 | 21,809 | 21,612 | |||||||||
Retained earnings | 60,176 | 57,508 | 51,603 | |||||||||
Accumulated other comprehensive | ||||||||||||
income, net of tax | (4,287 | ) | (4,878 | ) | (7,925 | ) | ||||||
Total stockholders' equity | 77,812 | 74,439 | 65,290 | |||||||||
Total liabilities & stockholders' equity | $ | 812,216 | $ | 837,641 | $ | 776,448 | ||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
Unaudited (dollars in thousands, except per share data) | |||||||||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Loans | $ | 8,704 | $ | 8,552 | $ | 7,941 | $ | 33,400 | $ | 30,378 | |||||||||
Securities | 1,441 | 1,353 | 1,376 | 5,335 | 5,906 | ||||||||||||||
Other interest income | 386 | 500 | 282 | 1,347 | 1,018 | ||||||||||||||
Total interest income | 10,531 | 10,405 | 9,599 | 40,082 | 37,302 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 2,290 | 2,377 | 2,357 | 9,200 | 9,023 | ||||||||||||||
Borrowed funds | 308 | 308 | 318 | 1,246 | 1,344 | ||||||||||||||
Total interest expense | 2,598 | 2,685 | 2,675 | 10,446 | 10,367 | ||||||||||||||
NET INTEREST INCOME | 7,933 | 7,720 | 6,924 | 29,636 | 26,935 | ||||||||||||||
Provision for credit losses on loans | 346 | 505 | - | 1,015 | 331 | ||||||||||||||
Provision (credit) for unfunded commitments | (15 | ) | 123 | (30 | ) | 108 | (25 | ) | |||||||||||
Net interest income after | |||||||||||||||||||
provision for credit losses | 7,602 | 7,092 | 6,954 | 28,513 | 26,629 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Trust fee income | 1,276 | 1,137 | 1,135 | 4,704 | 4,001 | ||||||||||||||
Service charges | 396 | 394 | 378 | 1,553 | 1,457 | ||||||||||||||
Mortgage loan sales | 1 | 1 | 72 | 9 | 204 | ||||||||||||||
Merchant card services | 144 | 172 | 125 | 556 | 519 | ||||||||||||||
Oregon Pacific Wealth Management income | 358 | 366 | 349 | 1,420 | 1,301 | ||||||||||||||
Other income | 116 | 115 | 96 | 463 | 457 | ||||||||||||||
Total noninterest income | 2,291 | 2,185 | 2,155 | 8,705 | 7,939 | ||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Salaries and employee benefits | 3,612 | 3,701 | 3,418 | 15,158 | 14,337 | ||||||||||||||
Outside services | 727 | 709 | 787 | 2,929 | 2,814 | ||||||||||||||
Occupancy & equipment | 547 | 533 | 485 | 2,087 | 1,985 | ||||||||||||||
Trust expense | 716 | 686 | 724 | 2,825 | 2,589 | ||||||||||||||
Loan and collection, OREO expense | 19 | 18 | 16 | 63 | 70 | ||||||||||||||
Advertising | 96 | 102 | 89 | 414 | 328 | ||||||||||||||
Supplies and postage | 60 | 70 | 76 | 265 | 299 | ||||||||||||||
Other operating expenses | 529 | 494 | 552 | 2,066 | 2,201 | ||||||||||||||
Total noninterest expense | 6,306 | 6,313 | 6,147 | 25,807 | 24,623 | ||||||||||||||
Income before taxes | 3,587 | 2,964 | 2,962 | 11,411 | 9,945 | ||||||||||||||
Provision for income taxes | 921 | 752 | 744 | 2,840 | 2,424 | ||||||||||||||
NET INCOME | $ | 2,666 | $ | 2,212 | $ | 2,218 | $ | 8,571 | $ | 7,521 | |||||||||
Quarterly Highlights | |||||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||||||
2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
Earnings | |||||||||||||||||||
Interest income | $ | 10,531 | $ | 10,405 | $ | 9,747 | $ | 9,399 | $ | 9,599 | |||||||||
Interest expense | 2,598 | 2,685 | 2,553 | 2,610 | 2,675 | ||||||||||||||
Net interest income | $ | 7,933 | $ | 7,720 | $ | 7,194 | $ | 6,789 | $ | 6,924 | |||||||||
Provision for credit losses on loans | 346 | 505 | 164 | - | - | ||||||||||||||
Provision (credit) for unfunded commitments | (15 | ) | 123 | - | - | (30 | ) | ||||||||||||
Noninterest income | 2,291 | 2,185 | 2,086 | 2,143 | 2,155 | ||||||||||||||
Noninterest expense | 6,306 | 6,313 | 6,490 | 6,698 | 6,147 | ||||||||||||||
Provision for income taxes | 921 | 752 | 617 | 550 | 744 | ||||||||||||||
Net income | $ | 2,666 | $ | 2,212 | $ | 2,009 | $ | 1,684 | $ | 2,218 | |||||||||
Average shares outstanding | 7,163,160 | 7,163,503 | 7,164,363 | 7,151,365 | 7,136,389 | ||||||||||||||
Average diluted shares outstanding | 7,188,902 | 7,189,245 | 7,190,105 | 7,170,304 | 7,154,126 | ||||||||||||||
Period end shares outstanding | 7,162,985 | 7,163,503 | 7,164,144 | 7,164,470 | 7,138,259 | ||||||||||||||
Period end diluted shares outstanding | 7,188,727 | 7,189,245 | 7,189,886 | 7,190,212 | 7,155,996 | ||||||||||||||
Earnings per share | $ | 0.37 | $ | 0.31 | $ | 0.28 | $ | 0.24 | $ | 0.31 | |||||||||
Diluted earnings per share | $ | 0.37 | $ | 0.31 | $ | 0.28 | $ | 0.23 | $ | 0.31 | |||||||||
Performance Ratios | |||||||||||||||||||
Return on average assets | 1.27 | % | 1.06 | % | 1.02 | % | 0.87 | % | 1.12 | % | |||||||||
Return on average equity | 14.90 | % | 12.58 | % | 11.85 | % | 10.42 | % | 14.01 | % | |||||||||
Net interest margin - tax equivalent | 3.96 | % | 3.88 | % | 3.85 | % | 3.67 | % | 3.66 | % | |||||||||
Yield on loans | 5.80 | % | 5.73 | % | 5.65 | % | 5.53 | % | 5.55 | % | |||||||||
Yield on securities | 3.46 | % | 3.45 | % | 3.39 | % | 3.41 | % | 3.31 | % | |||||||||
Cost of deposits | 1.26 | % | 1.31 | % | 1.31 | % | 1.36 | % | 1.36 | % | |||||||||
Cost of interest-bearing liabilities | 1.76 | % | 1.83 | % | 1.86 | % | 1.88 | % | 1.89 | % | |||||||||
Efficiency ratio | 61.68 | % | 63.73 | % | 69.94 | % | 75.24 | % | 67.71 | % | |||||||||
Full-time equivalent employees | 149 | 146 | 146 | 148 | 145 | ||||||||||||||
Capital | |||||||||||||||||||
Tier 1 capital | $ | 91,828 | $ | 91,563 | $ | 91,437 | $ | 90,548 | $ | 89,133 | |||||||||
Leverage ratio | 10.96 | % | 10.99 | % | 11.52 | % | 11.40 | % | 11.19 | % | |||||||||
Common equity tier 1 ratio | 14.69 | % | 14.65 | % | 14.82 | % | 14.84 | % | 14.86 | % | |||||||||
Tier 1 risk based ratio | 14.69 | % | 14.65 | % | 14.82 | % | 14.84 | % | 14.86 | % | |||||||||
Total risk based ratio | 15.94 | % | 15.91 | % | 16.07 | % | 16.10 | % | 16.11 | % | |||||||||
Book value per share | $ | 10.86 | $ | 10.39 | $ | 9.93 | $ | 9.53 | $ | 9.12 | |||||||||
Quarterly Highlights | |||||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | 4th Quarter | |||||||||||||||
2025 | 2025 | 2025 | 2025 | 2024 | |||||||||||||||
Asset quality | |||||||||||||||||||
Allowance for credit losses (ACL) | $ | 8,237 | $ | 7,891 | $ | 7,388 | $ | 7,400 | $ | 7,400 | |||||||||
Nonperforming loans (NPLs) | $ | 2,338 | $ | 495 | $ | 495 | $ | 801 | $ | 798 | |||||||||
Nonperforming assets (NPAs) | $ | 2,494 | $ | 652 | $ | 652 | $ | 801 | $ | 798 | |||||||||
Classified Assets (1) | $ | 13,119 | $ | 14,391 | $ | 11,271 | $ | 10,550 | $ | 8,132 | |||||||||
Net loan charge offs (recoveries) | $ | - | $ | 1 | $ | 176 | $ | - | $ | - | |||||||||
ACL as a percentage of net loans | 1.37 | % | 1.33 | % | 1.25 | % | 1.27 | % | 1.29 | % | |||||||||
ACL as a percentage of NPLs | 352.31 | % | 1594.14 | % | 1492.53 | % | 923.85 | % | 927.32 | % | |||||||||
Net charge offs (recoveries) | |||||||||||||||||||
to average loans | 0.00 | % | 0.00 | % | 0.03 | % | 0.00 | % | 0.00 | % | |||||||||
Net NPLs as a percentage of | |||||||||||||||||||
total loans | 0.40 | % | 0.08 | % | 0.08 | % | 0.14 | % | 0.14 | % | |||||||||
Nonperforming assets as a | |||||||||||||||||||
percentage of total assets | 0.31 | % | 0.08 | % | 0.08 | % | 0.10 | % | 0.10 | % | |||||||||
Classified Asset Ratio (2) | 13.11 | % | 14.47 | % | 11.53 | % | 10.77 | % | 8.42 | % | |||||||||
Past due as a percentage of | |||||||||||||||||||
total loans | 0.17 | % | 0.12 | % | 0.08 | % | 0.11 | % | 0.06 | % | |||||||||
Off-balance sheet figures | |||||||||||||||||||
Unused credit commitments | $ | 98,660 | $ | 108,753 | $ | 103,063 | $ | 94,843 | $ | 98,616 | |||||||||
Trust assets under management (AUM) | $ | 297,701 | $ | 281,281 | $ | 288,935 | $ | 267,359 | $ | 271,046 | |||||||||
Oregon Pacific Wealth Management AUM | $ | 154,137 | $ | 181,349 | $ | 174,724 | $ | 172,729 | $ | 165,045 | |||||||||
End of period balances | |||||||||||||||||||
Total securities | $ | 155,159 | $ | 162,012 | $ | 142,357 | $ | 145,610 | $ | 155,258 | |||||||||
Total short term deposits | $ | 16,663 | $ | 42,274 | $ | 30,348 | $ | 27,625 | $ | 10,921 | |||||||||
Total loans net of allowance | $ | 591,399 | $ | 586,804 | $ | 584,407 | $ | 575,539 | $ | 564,165 | |||||||||
Total earning assets | $ | 773,409 | $ | 800,930 | $ | 766,445 | $ | 758,119 | $ | 739,677 | |||||||||
Total assets | $ | 812,216 | $ | 837,641 | $ | 805,262 | $ | 797,628 | $ | 776,448 | |||||||||
Total noninterest bearing deposits | $ | 152,937 | $ | 167,010 | $ | 162,426 | $ | 153,956 | $ | 141,719 | |||||||||
Total brokered deposits | $ | 10,001 | $ | 10,001 | $ | 10,001 | $ | 10,001 | $ | 10,001 | |||||||||
Total core deposits | $ | 689,350 | $ | 718,395 | $ | 689,740 | $ | 685,314 | $ | 666,616 | |||||||||
Total deposits | $ | 699,351 | $ | 728,396 | $ | 699,741 | $ | 695,315 | $ | 676,617 | |||||||||
Average balances | |||||||||||||||||||
Total securities | $ | 159,462 | $ | 153,603 | $ | 143,627 | $ | 150,197 | $ | 159,587 | |||||||||
Total short term deposits | $ | 40,352 | $ | 44,423 | $ | 18,044 | $ | 23,766 | $ | 23,654 | |||||||||
Total loans net of allowance | $ | 587,209 | $ | 584,102 | $ | 580,377 | $ | 568,635 | $ | 561,601 | |||||||||
Total earning assets | $ | 796,948 | $ | 791,637 | $ | 751,538 | $ | 751,933 | $ | 754,173 | |||||||||
Total assets | $ | 833,972 | $ | 827,823 | $ | 787,506 | $ | 787,201 | $ | 789,333 | |||||||||
Total noninterest bearing deposits | $ | 164,736 | $ | 166,857 | $ | 158,985 | $ | 149,802 | $ | 152,844 | |||||||||
Total brokered deposits | $ | 10,001 | $ | 10,001 | $ | 10,001 | $ | 10,001 | $ | 12,610 | |||||||||
Total core deposits | $ | 712,607 | $ | 710,376 | $ | 672,711 | $ | 675,953 | $ | 676,900 | |||||||||
Total deposits | $ | 722,608 | $ | 720,377 | $ | 682,712 | $ | 685,954 | $ | 689,510 | |||||||||
(1) Classified assets is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned. | |||||||||||||||||||
(2) Classified asset ratio is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for credit losses. | |||||||||||||||||||
Forward-Looking Statement Safe Harbor
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipates," "targets," "expects," "estimates," "intends," "plans," "goals," "believes" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could." The forward-looking statements made represent Oregon Pacific Bank’s current estimates, projections, expectations, plans or forecasts of its future results and revenues, including but not limited to statements about performance, loan or deposit growth, loan prepayments, investment purchases, investment yields, strategic focus, capital position, liquidity, credit quality, special asset liquidation, noninterest income, noninterest expense and credit quality trends. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Oregon Pacific Bank’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks. Oregon Pacific Bancorp undertakes no obligation to publicly revise or update any forward-looking statement to reflect the impact of events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking the PSLRA’s safe harbor provisions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127891989/en/
Contacts
Editorial Contact:
Ron Green, President and Chief Executive Officer
ron.green@opbc.com
(541) 902-9800