Oregon Pacific Bancorp Reports Quarter and Year End EarningsFLORENCE, OR -- 02/09/2007 -- OREGON PACIFIC BANCORP (OTCBB: OPBP), holding company for Oregon Pacific Banking Co. (the "Bank"), reported record net income for 2006 of $1.99 million or $0.91 per common share, compared to $1.87 million or $0.87 per common share, for the same period in 2005. This represents an increase of 6.5% even though 2005 had two large one-time revenues not experienced in 2006. Net income for the fourth quarter of 2006 totaled $503 thousand, or $0.23 per fully diluted common share compared to $487 thousand, or $0.22 per diluted common share, for 2005, an increase of 3.3%.
Interest income totaled $11.74 million for the full year of 2006, compared to $9.98 million in 2005; fourth quarter interest income was $3.03 million and $2.60 million for 2006 and 2005, respectively. Total interest expense was $3.28 million in 2006, compared to $2.28 million in 2005. For the fourth quarter interest expense increased to $895 thousand from $668 thousand in 2005. The net interest income increase was attributable to increases in short-term interest rates by the Federal Reserve Bank through June 2006 affecting the Bank's loan portfolio with mostly variable rates. The net interest margin increased 42 basis points, from 5.42% to 5.89% for the year ended December 31, 2006.
Noninterest income totaled $2.74 million in 2006, a 2.0% decrease from the $2.79 million recorded in 2005. For the fourth quarter, noninterest income increased 7.4% to $704 thousand from $655 thousand in 2005. The decrease for the year was due to slowing in the real estate mortgage market.
Total assets for the company were $151.3 million at December 31, 2006, compared to $150.4 million at December 31, 2005, a less than 1% increase. Net loans were $121.1 million, representing a 3% increase over last year-end's balance of $118.0 million. Deposits, reported at $120.6 million, represented a less than 1% decrease over the $121.3 reported at year-end 2005.
In making the announcement, President and Chief Executive Officer Jim Clark commented, "We are facing the challenges of a flat-to-inverted yield curve, strong competition for loans and deposits, and a slowing in the housing market and economy as a whole. We expect the economy to remain stagnant for much of the coming year but steps are being taken to continue the increase in our profitability."
Oregon Pacific Bancorp is a Florence-based financial holding company which operates 4 banking centers in Oregon. The Company's stock is traded on the OTC Bulletin Board under the symbol "OPBP."
The discussions included in this release contain statements that may be deemed forward-looking statements within the meaning of the federal securities laws. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from these statements. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Such statements are often characterized by the use of qualifying words such as "expects," "anticipates," "believes," "estimates," "plans," "projects," or other statements concerning opinions or judgments of the Company and its management about future events. The accuracy of such forward-looking statements could be affected by certain factors, including but not limited to, the financial success or changing conditions or strategies of the Company's customers or vendors, fluctuations in interest rates, actions of government regulators, the availability of capital and personnel, and general economic conditions.
OREGON PACIFIC BANCORP
Selected Financial Information
(In thousands, except per share data)
Three months ended Year ended
December 31, December 31,
2006 2005 2006 2005
------------ ------------ --------- ---------
Condensed Results of
Operations
Interest income $ 3,025 $ 2,597 $ 11,735 $ 9,975
Interest expense 895 668 3,279 2,283
Net interest income 2,130 1,929 8,456 7,692
Provision for possible
loan losses - (30) 26 215
Noninterest income 704 655 2,738 2,794
Salaries and employee
benefits expense 1,182 1,303 4,896 4,562
Occupancy and equipment
expense 224 221 906 885
Other noninterest expense 639 593 2,285 2,049
------------ ------------ --------- ---------
Operating income before
provision for taxes 789 497 3,081 2,775
Provision for income
taxes 286 10 1,095 910
------------ ------------ --------- ---------
Net income $ 503 $ 487 $ 1,986 $ 1,865
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Income per share of
common stock
Basic $ 0.23 $ 0.23 $ 0.91 $ 0.87
Diluted $ 0.23 $ 0.22 $ 0.91 $ 0.86
Weighted average shares
outstanding
Basic 2,185,681 2,162,449 2,178,967 2,154,932
Diluted 2,195,228 2,172,658 2,187,141 2,162,826
December 31,
Selected Balance Sheet December 31, 2005 to 2006
Data 2006 2005 Change % Change
------------ ------------ --------- ---------
Total Assets $ 151,305 $ 150,441 $ 864 0.6%
Loans outstanding, net $ 121,067 $ 117,986 $ 3,081 2.6%
Investment securities $ 11,320 $ 12,667 $ (1,347) -10.6%
Deposits $ 120,611 $ 121,329 $ (718) -0.6%
Shareholders' equity $ 11,901 $ 10,263 $ 1,638 16.0%
Shareholders' equity per
common share $ 5.54 $ 4.78 $ 0.76 16.0%
Loan allowance to total
loans 1.6% 1.5% 0.0%
Net loans to deposits 100.4% 97.2% 3.1%
Other data
Return on average equity 18.03% 21.62% -3.6% -16.6%
Return on average assets 1.27% 1.27% 0.0% 0.0%
For more information, call:
James P. Clark
President and CEO
Joanne Forsberg
Corporate Secretary and CFO
at (541) 997-7121
Website: http://www.opbc.com
