Exhibit 99.1
Oregon Pacific Bancorp Reports 4th Quarter and Year End Earnings
FLORENCE, Ore.--(BUSINESS WIRE)--Feb. 10, 2006--Oregon Pacific
Bancorp (OTCBB:OPBP), holding company for Oregon Pacific Banking Co.,
announced today that consolidated net income increased to $486,906, or
$0.22 per fully diluted common share for the three months ended
December 31, 2005, compared to $439,957, or $0.20 per diluted common
share, for 2004. For the year ended December 31, 2005, net income was
$1,865,372 or $0.86 per fully-diluted common share, compared to
$1,066,720 or $0.49 per common share, for the same period in 2004, an
increase of 74.9%.
Several one-time events affected income in 2005. During the fourth
quarter 2005, the Company recognized $48,000, or $0.02 per diluted
share, of income tax benefit as a result of a corporate tax kicker
credit from the Oregon Department of Revenue. During the first quarter
of 2005 a collection of $377,000 of previously non-accrual interest
from prior years added $0.09 per diluted share, and in the third
quarter the receipt of an insurance reimbursement of $200,000 for
amounts previously expensed added $0.05 to diluted per share earnings.
Total assets for the Company were $150.4 million at December 31,
2005, an 8.8% increase over $138.2 million at December 31, 2004. Net
loans were $118.0 million, representing an 8.5% increase over last
year-end's balance of $108.7 million. Deposits, at $121.3 million,
represented a 9.2% increase over the $111.1 million reported at
year-end 2004.
"Oregon Pacific Bancorp experienced a landmark year in 2005 with
record earnings and even without one-time occurrences the Company's
net income increased an unprecedented 45%," stated Tom Grove,
president and chief executive officer. "The Bank was successful in
accomplishing one of its major goals of lowering the efficiency ratio
from 83.9% in 2004 to 69.9% in 2005. We also were able to increase our
net interest margin to a tax-equivalent 5.54% from 5.38% excluding our
one-time interest receipt. We believe we have our strongest team ever
and look forward to another great year in 2006."
Oregon Pacific Bancorp is a financial holding company for Oregon
Pacific Banking Co. headquartered in Florence, Oregon. The Bank also
has branches in Roseburg and Coos Bay, 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,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Condensed Results of
Operations
- ----------------------
Interest income $ 2,646 $ 2,202 $ 10,134 $ 7,994
Interest expense 668 410 2,283 1,484
Net interest income 1,978 1,792 7,851 6,510
Provision for possible
loan losses (30) 5 215 (355)
Noninterest income 655 668 2,794 2,407
Salaries and employee
benefits expense 1,352 1,080 4,721 4,660
Occupancy and
equipment expense 221 210 885 834
Other noninterest
expense 593 488 2,049 2,194
---------- ---------- ---------- ----------
Operating income
before provision for
taxes 497 677 2,775 1,584
Provision for income
taxes 10 237 910 517
---------- ---------- ---------- ----------
Net income $ 487 $ 440 $ 1,865 $ 1,067
========== ========== ========== ==========
Income per share of
common stock
Basic $ 0.23 $ 0.20 $ 0.87 $ 0.49
Diluted $ 0.22 $ 0.20 $ 0.86 $ 0.49
Weighted average
shares outstanding
Basic 2,162,449 2,174,278 2,154,932 2,178,531
Diluted 2,172,658 2,177,866 2,162,826 2,180,710
December 31,
Selected Balance Sheet December 31, 2004 to 2005
Data 2005 2004 Change % Change
- ---------------------- ---------- ---------- ----------- ----------
Total Assets $ 150,441 $ 138,249 $ 12,192 8.8%
Loans outstanding, net $ 117,986 $ 108,707 $ 9,279 8.5%
Investment securities $ 12,667 $ 16,445 $ (3,778) -23.0%
Deposits $ 121,329 $ 111,061 $ 10,268 9.2%
Shareholders' equity $ 10,263 $ 8,892 $ 1,371 15.4%
Shareholders' equity
per common share $ 4.78 $ 4.14 $ 0.64 15.4%
Loan allowance to
total loans 1.6% 1.5% 0.1%
Net loans to deposits 97.2% 97.9% -0.6%
Other data
- ----------------------
Return on average
equity 21.62% 12.09% 9.5% 78.8%
Return on average
assets 1.27% 0.81% 0.5% 56.8%
CONTACT: Oregon Pacific Bancorp
Thomas K. Grove, President and CEO
Joanne Forsberg, Corporate Secretary and CFO
541-997-7121
http://www.opbc.com