Oregon Bancorp Inc (OTCMKTS:ORBN) Stock In Focus After Latest Developments

Oregon Bancorp Inc (OTCMKTS:ORBN) is the parent firm of Willamette Valley Bank. Willamette Valley Bank is a community bank headquartered in Salem, Oregon, and conducts retail and commercial banking activities. These will be done at four full-service branch locations in Keizer, Salem, Silverton, and Albany, Oregon. It also operates 15 Home Loan Centers in Idaho, Washington, and Oregon.

Market Stats

On Friday, ORBN stock moved down 1.53% to $31.51 with more than 21K shares, compared to its average volume of 1.6K shares. The stock moved within a range of $30.86 – 32.00 after opening trading at $31.25.

Oregon Bancorp Announces Second Quarter Earnings

Oregon Bancorp Inc on July 22, 2022, confirmed on net income of $1.5 million for quarter two of 2022 vis-à-vis $5.4 million during the same period last year. This leads to a quarterly return on average assets of 1.4% as well as a quarterly return on average equity of 8.0%.

The firm’s balance sheet is demonstrating superb asset quality, strong liquidity as well as robust capital. Its total assets augmented by $8.9 million, or 2.1% since March 31, 2022. The changes can be attributed to a $21.9 million surge in cash as well as short-term investments, a $6.2 million increase in deposits as well an $8.9 million decrease in mortgage loans. Furthermore, there was a single loan of $272 thousand, which was past due at quarter end. Additionally, non-performing assets were measured at $1.3 million, or 1.72% of total capital. Capital remains robust ensuring that the Board of Directors distributed a $0.52 per share quarterly dividend on July 15, 2022.

Ryan Dempster, President, and CEO said that the financial results in the last two years benefitted from low mortgage rates. Dempster added that the recent Federal Reserve actions on curbing inflation have resulted in an increase in mortgage rates. He added that the company financed $228 million in mortgage loans during the quarter and is looking forward to helping customers finance their homes.

Oregon Bancorp Announces Quarterly Dividend

The Board of Directors of Oregon Bancorp Inc on June 17, 2022, declared a quarterly dividend of $0.52 per share. The company on April 22, 2022, reported a net income of $2.6 million for quarter one of 2022 vis-à-vis $7.3 million and $2.4 million in the previous two years. This ensures a quarterly return on average assets of 2.5% and a quarterly return on average equity of 14.0%. The company’s total assets were lower at $407 million vis-à-vis $412 million on December 31, 2021. Its balance sheet growth was in domains such as investments, cash, commercial loans, and deposits. On the other hand, there was a decrease in mortgage loans due to slower demand. The capital position and asset quality remain strong with classified assets totaling to $2.2 million and a capital-to-assets ratio of 17.89%.

Ryan Dempster, President and CEO said that the financial performance during the same quarter in the previous year was due to exceptional mortgage production. Dempster added that the rate environment has moved higher resulting in lower mortgage lending. The CEO added that the company is pleased with the results.

Traders Corner

ORBN stock is trading below the 20-Day and 50-Day Moving averages of $31.78 and $31.29. Moreover, the stock is trading below the 200-Day moving average of $41.23.