Oak Ridge Financial Services, Inc. Announces Second Quarter 2024 Results and Quarterly Cash Dividend of $0.12 Per Share

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

dividends earnings

Rhea-AI Summary

Oak Ridge Financial Services, Inc. (OTCPink: BKOR) announced its Q2 2024 results and a quarterly cash dividend of $0.12 per share. Key highlights include:

- Earnings per share of $0.46, down from $0.54 in Q2 2023
- Return on equity of 8.57%, down from 10.83% in Q2 2023
- Net interest margin of 3.81%, slightly down from 3.86% in Q2 2023
- Loans receivable up 11.4% year-over-year to $494.0 million
- Total deposits up 6.5% year-over-year to $508.2 million
- Nonperforming assets to total assets at 0.16%

The Bank's Community Bank Leverage Ratio was 11.1%, well above the 9.0% requirement. Despite slight declines in earnings and margins, the company achieved double-digit annualized loan growth and maintained strong asset quality.

Positive

Quarterly cash dividend of $0.12 per share, up 20% from Q2 2023
Loans receivable increased by 11.4% year-over-year to $494.0 million
Total deposits grew by 6.5% year-over-year to $508.2 million
Bank's Community Bank Leverage Ratio at 11.1%, well above the 9.0% requirement
Strong asset quality with nonperforming assets to total assets at 0.16%

Negative

Earnings per share decreased to $0.46 from $0.54 in Q2 2023
Return on equity declined to 8.57% from 10.83% in Q2 2023
Net interest margin slightly decreased to 3.81% from 3.86% in Q2 2023
Provision for credit losses increased to $322,000 compared to a recovery of $43,000 in Q2 2023
Noninterest income decreased to $763,000 from $890,000 in Q2 2023

07/31/2024 - 01:38 PM

OAK RIDGE, N.C., July 31, 2024 (GLOBE NEWSWIRE) -- Oak Ridge Financial Services, Inc. (鈥淥ak Ridge鈥�; or the 鈥淐ompany鈥�) (OTCPink: BKOR), the parent company of Bank of Oak Ridge (the 鈥淏ank鈥�), announced unaudited financial results for the second quarter of 2024.

Second Quarter 2024 Highlights

Earnings per share of $0.46, compared to $0.50 for the prior quarter and $0.54 for the second quarter of 2023.
Return on equity of 8.57%, compared to 9.31% for the prior quarter and 10.83% for the second quarter of 2023.
Dividends declared per common share of $0.12, unchanged from the prior quarter and up 20% from the second quarter of 2023.
Tangible book value per common share of $21.95 as of period end, compared to $21.56 at the end of the prior quarter, and $20.15 at the end of the comparable period in 2023.
Net interest margin of 3.81% compared to 3.79% for the prior quarter and 3.86% for the second quarter of 2023.
Efficiency ratio of 70.0%, compared to 68.3% for the prior quarter and 70.1% for the comparable period in 2023.
Loans receivable of $494.0 million at quarter end, up 11.7% (annualized) from $466.8 million as of the prior year end, and up 11.4% from $444.3 million at the comparable quarter end in 2023.
Nonperforming assets to total assets of 0.16% at quarter end, compared to 0.06% as of the prior quarter end and 0.10% at the comparable quarter end in 2023.
Securities available-for-sale and held-to maturity of $103.0 million at quarter end, down 13.7% (annualized) from $110.6 million as of the prior year end, and down 9.4% from $113.8 million at the comparable quarter end in 2023.
Total deposits of $508.2 million at quarter end, up 6.1% (annualized) from $493.1 million as of the prior year end, up 6.5% from $476.9 million at the comparable quarter end in 2023.
Total short and long-term borrowings, junior subordinated notes, and subordinated debentures of $70.2 million at quarter end, up 41.5% (annualized) from $58.2 million as of the prior year end, and down 3.1% from $72.5 million at the comparable quarter end in 2023.
Total stockholders鈥� equity of $60.6 million at quarter end, up 7.8% (annualized) from $58.3 million as of the prior quarter end, and up 10.1% from $55.0 million at the comparable quarter end in 2023. At June 30, 2024, the Bank鈥檚 Community Bank Leverage Ratio (CBLR) was 11.1%, down slightly from 11.2% at December 31, 2023. A bank or savings institution electing to use the CBLR will generally be considered well-capitalized and to have met the risk-based and leverage capital requirements of the capital regulations if it has a leverage ratio greater than 9.0%.

Tom Wayne, Chief Executive Officer, reported, 鈥淎lthough earnings in the second quarter of 2024 were down slightly from the prior quarter and the second quarter of 2023, we achieved year-to-date and quarterly double-digit annualized loan growth in the second quarter with funding provided through a combination of increased deposits and borrowings. Asset quality remained strong at the end of the second quarter of 2024, and our net interest margin also remained strong during the quarter. Capital and liquidity levels remain solid. Oak Ridge continues to focus on maintaining and developing full client relationships including long-term core deposit and lending solutions and other products and services that meet our customers鈥� financial objectives. We are incredibly proud of our entire team and appreciate their efforts in serving our clients and managing the Bank in a safe and sound manner.鈥�

In July 2024, the Company announced the promotion of Kevin Reid to Chief Financial Officer and Senior Vice President. Tom Wayne commented, 鈥淚 am delighted that Kevin Reid is the Chief Financial Officer and Senior Vice President of Bank of Oak Ridge and Oak Ridge Financial Services, Inc. With an extensive background in accounting and auditing in the financial services industry, Kevin has played a unique and pivotal role in enhancing the Bank鈥檚 financial health and strengthening our risk position since joining the bank in May of 2021.鈥�

A quarterly cash dividend of $0.12 per share of common stock is payable on September 3, 2024, to stockholders of record as of the close of business on August 19, 2024, which represents the 23^rd consecutive quarterly dividend paid by the Company. 鈥淲e are pleased to pay another quarterly cash dividend to our stockholders,鈥� said Mr. Wayne. 鈥淧aying stockholders a portion of our earnings reflects our continuing commitment to enhance stockholder value.鈥�

For the three months ended June 30, 2024, and 2023, net interest income was $5.8 million and $5.4 million, respectively. For the three months ended June 30, 2024, the annualized net interest margin was 3.81% compared to 3.86% for the second quarter of 2023, a decrease of five basis points. For the six months ended June 30, 2024, and 2023, net interest income was $11.5 million and $10.7 million, respectively. For the six months ended June 30, 2024, the annualized net interest margin was 3.80% compared to 3.87% in the same period in 2023, a decrease of seven basis points.

For the three months ended June 30, 2024, the Company recorded a provision for credit losses of $322,000, compared to a recovery of credit losses of $43,000 in the second quarter of 2023. For the six months ended June 30, 2024, the Company recorded a provision for credit losses of $587,000, compared to a provision for credit losses of $158,000 for the same period in 2023. The allowance for credit losses as a percentage of total loans was 1.06% at June 30, 2024, compared to 1.05% at December 31, 2023. Nonperforming assets represented 0.16% of total assets at June 30, 2024, compared to 0.07% at December 31, 2023.

Noninterest income totaled $763,000 for the three months ended June 30, 2024, compared to $890,000 for the second quarter of 2023. There were increases and decreases in components of noninterest income from the second quarter of 2023 to the comparable quarter of 2024, with the following categories significantly contributing to the overall net decrease: there were no gains on sale(s) of SBA loans during the second quarter of 2024, compared to gains of $98,000 in the second quarter of 2023. The Company retained all its second quarter 2024 originations of SBA loans for balance sheet management purposes, while selling the guaranteed portion for most loans originated in the second quarter of 2023. Additionally, other service charges and fees were $87,000 in the second quarter of 2024 and $155,000 in the second quarter of 2023.

Noninterest income totaled $1.6 million for the six months ended June 30, 2024, compared to $1.9 million for the comparable period in 2023. There were increases and decreases in components of noninterest income from the first six months of 2023 to the comparable period 2024, with the following categories significantly contributing to the overall net decrease: there were no gains or losses on sale(s) of investment securities in the first six months of 2024 compared to gains on sale(s) of investment securities of $77,000 in the comparable period in 2023; there were no gains on sale(s) of SBA loans during the first six months of 2024, compared to gains of $328,000 in the comparable period in 2023. The Company retained all its 2024 originations of SBA loans for balance sheet management purposes, while selling the guaranteed portion for most loans originated in the first six months of 2023. Finally, other service charges and fees were $320,000 in the first six months of 2024 and $185,000 in the comparable period in 2023.

Noninterest expense totaled $4.6 million for the three months ended June 30, 2024, compared to $4.4 million for the comparable period in 2023. There were increases and decreases in components of noninterest expense from 2023 to 2024, with the following categories significantly contributing to the overall net decrease: Salaries were $2.3 million for the three months ended June 30, 2024, compared to $2.2 million for the comparable period in 2023. The increase in salaries is mostly due to annual merit increases to employees effective April 1, 2024. Occupancy expenses were $351,000 for the three months ended June 30, 2024, compared to $261,000 in the comparable period in 2023. The increase in occupancy expense is mostly due to higher property maintenance expenses in 2024 compared to 2023. Equipment expense was $155,000 for the three months ended June 30, 2024, compared to $239,000 in the comparable period in 2023. The decrease in equipment expense is mostly due to lower equipment depreciation expense in 2024 compared to 2023. Other expense was $448,000 for the three months ended June 30, 2024, compared to $344,000 in the comparable period in 2023. The increase in other expenses is mostly due to increases in software licensing fees, taxes other than income taxes, insurance expenses, and director fees.

Noninterest expense totaled $9.0 million for the six months ended June 30, 2024, and 2023. There were increases and decreases in components of noninterest expense from 2023 to 2024, with the following categories significantly contributing to the overall net increase of $31,000: Equipment expense was $318,000 for the six months ended June 30, 2024, compared to $450,000 in the comparable period in 2023. The decrease in equipment expense is mostly due to lower equipment depreciation expense in 2024 compared to 2023. Data and items processing expense was $318,000 for the six months ended June 30, 2024, compared to $450,000 in the comparable period in 2023. The increase in data and items processing expense is mostly due to higher software licensing fees from its core processing vendor. Telecommunications expense was $142,000 for the six months ended June 30, 2024, compared to $255,000 in the comparable period in 2023. The decrease in telecommunications expense is mostly due to the reduction in unnecessary or redundant telecommunications expenses. Other expense was $831,000 for the three months ended June 30, 2024, compared to $710,000 for the comparable period in 2023. The increase in other expenses is mostly due to increases in software licensing fees, dues and memberships, insurance expense, and director fees.

About Oak Ridge Financial Services, Inc., and Bank of Oak Ridge
At Bank of Oak Ridge, we pride ourselves on knowing your name when you walk through our door. Whether in-person or through our digital offerings, managing your financial well-being is easy, safe, and convenient. We are the longest-running employee-owned community bank in the Triad and have served community members, local businesses, and non-profit organizations since 2000. Learn more about what makes Bank of Oak Ridge the Triad鈥檚 community bank by visiting one of our convenient locations in Greensboro, High Point, Summerfield, and Oak Ridge.

Oak Ridge Financial Services, Inc. (OTC Pink: BKOR) is the holding company for Bank of Oak Ridge. Bank of Oak Ridge is a member of the FDIC and an Equal Housing Lender.

Awards & Recognitions | Best Bank in the Triad | Triad鈥檚 Top Workplace Finalist | 2016 Better Business Bureau Torch Award for Business Ethics | Triad鈥檚 Healthiest Employer Winner

Let鈥檚 Talk | 336.644.9944 | www.BankofOakRidge.com | Extended Interactive Teller Machine Hours at all Triad Locations

Forward-looking Information This earnings release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of the words 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渆stimate鈥� and 鈥渂elieve,鈥� variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Company鈥檚 markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectability of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, and (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations. The Company undertakes no obligation to update any forward-looking statements.

听	听			听			听
OAK RIDGE FINANCIAL SERVICES, INC.	听			听			听
CONSOLIDATED BALANCE SHEETS	听			听			听
(Dollars in thousands, except share data)	听			听			听
听	June 30,			December 31,			June 30,
听	听	2024	听	听	2023	听	听	2023	听
ASSETS	(unaudited)			(audited)			(unaudited)
Cash and due from banks	$	8,084	听	$	7,792	听	$	9,085	听
Interest-bearing deposits with banks	听	19,457	听	听	12,633	听	听	25,218	听
Total cash and cash equivalents	听	27,541	听	听	20,425	听	听	34,303	听
Securities available-for-sale	听	84,342	听	听	91,849	听	听	95,213	听
Securities held-to-maturity, net of allowance for credit losses	听	18,685	听	听	18,706	听	听	18,566	听
Restricted stock, at cost	听	4,002	听	听	2,404	听	听	2,737	听
Loans receivable	听	493,960	听	听	466,796	听	听	443,293	听
Allowance for credit losses	听	(5,230	)	听	(4,920	)	听	(4,695	)
Net loans receivable	听	488,730	听	听	461,876	听	听	438,598	听
Property and equipment, net	听	8,721	听	听	8,366	听	听	8,757	听
Accrued interest receivable	听	2,952	听	听	2,580	听	听	2,125	听
Bank owned life insurance	听	6,222	听	听	6,178	听	听	6,134	听
Right-of-use assets听鈥� operating leases	听	2,318	听	听	2,466	听	听	2,610	听
Other assets	听	5,310	听	听	4,544	听	听	4,459	听
Total assets	$	648,823	听	$	619,394	听	$	613,502	听
LIABILITIES	听			听			听
Noninterest-bearing deposits	$	106,494	听	$	99,702	听	$	110,637	听
Interest-bearing deposits	听	401,678	听	听	393,442	听	听	366,300	听
Total deposits	听	508,172	听	听	493,144	听	听	476,937	听
Short-term borrowings	听	40,000	听	听	40,000	听	听	54,000	听
Long-term borrowings	听	12,000	听	听	-	听	听	286	听
Junior subordinated notes听鈥� trust preferred securities	听	8,248	听	听	8,248	听	听	8,248	听
Subordinated debentures, net of discount	听	9,963	听	听	9,943	听	听	9,923	听
Lease liabilities听鈥� operating leases	听	2,318	听	听	2,466	听	听	2,610	听
Accrued interest payable	听	795	听	听	1,154	听	听	548	听
Other liabilities	听	6,711	听	听	6,092	听	听	5,904	听
Total liabilities	听	588,207	听	听	561,047	听	听	558,456	听
STOCKHOLDERS' EQUITY	听			听			听
Common stock	听	26,977	听	听	26,736	听	听	26,471	听
Retained earnings	听	35,403	听	听	33,364	听	听	30,939	听
Net unrealized loss on debt securities, net of tax	听	(2,051	)	听	(1,580	)	听	(2,398	)
Net unrealized loss on hedging derivative instruments, net of tax	听	287	听	听	(173	)	听	34	听
Total accumulated other comprehensive loss	听	(1,764	)	听	(1,753	)	听	(2,364	)
Total stockholders' equity	听	60,616	听	听	58,347	听	听	55,046	听
Total liabilities and stockholders' equity	$	648,823	听	$	619,394	听	$	613,502	听
Common shares outstanding	听	2,761,870	听	听	2,732,720	听	听	2,732,020	听
Common shares authorized	听	50,000,000	听	听	50,000,000	听	听	50,000,000	听
听	听			听			听

OAK RIDGE FINANCIAL SERVICES, INC.

听

CONSOLIDATED STATEMENTS OF INCOME

听

(Dollars in thousands, except share data)

听

Three Months Ended

Six Months Ended

听

June 30,

March 31,

June 30,

听

2024

听

2024

听

2023

听

2024

听

2023

听

Interest and dividend income:

听

Loans and fees on loans

7,663

听

7,230

听

5,780

听

14,894

听

11,696

听

Interest on deposits in banks

听

244

听

151

听

216

听

395

听

456

听

Restricted stock dividends

听

109

听

Interest on investment securities

听

1,453

听

1,445

听

1,367

听

2,897

听

2,206

听

Total interest and dividend income

听

9,424

听

8,871

听

7,404

听

18,295

听

14,456

听

Interest expense

听

Deposits

听

2,460

听

2,351

听

1,374

听

4,811

听

2,396

听

Short-term and long-term debt

听

1,130

听

899

听

645

听

2,030

听

1,315

听

Total interest expense

听

3,590

听

3,250

听

2,019

听

6,841

听

3,711

听

Net interest income

听

5,834

听

5,621

听

5,385

听

11,454

听

10,745

听

Provision for (recovery of) credit losses

听

322

听

264

听

(43

)

听

587

听

158

听

Net interest income after provision for credit losses

听

5,512

听

5,357

听

5,428

听

10,867

听

10,587

听

Noninterest income:

听

Service charges on deposit accounts

听

198

听

172

听

149

听

371

听

297

听

Gain (loss) on sale of securities

听

Brokerage commissions on mortgage loans

听

Insurance commissions

听

125

听

135

听

109

听

260

听

206

听

Gain on sale of Small Business Administration loans

听

328

听

Debit and credit card interchange income

听

309

听

288

听

299

听

597

听

591

听

Income from Small Business Investment Company

听

100

听

Income earned on bank owned life insurance

听

Other Service Charges and Fees

听

155

听

185

听

320

听

Total noninterest income

听

763

听

793

听

890

听

1,557

听

1,943

听

Noninterest expenses:

听

Salaries

听

2,311

听

2,166

听

2,180

听

4,477

听

4,492

听

Employee Benefits

听

302

听

312

听

264

听

614

听

573

听

Occupancy

听

351

听

296

听

261

听

646

听

569

听

Equipment

听

155

听

163

听

239

听

318

听

450

听

Data & Item Processing

听

526

听

520

听

468

听

1,046

听

938

听

Professional & Advertising

听

305

听

314

听

345

听

619

听

703

听

Stationary & Supplies

听

Telecommunications

听

129

听

142

听

255

听

FDIC Assessment

听

111

听

114

听

132

听

225

听

206

听

Other expense

听

448

听

383

听

344

听

831

听

710

听

Total noninterest expenses

听

4,617

听

4,380

听

4,396

听

8,995

听

8,964

听

Income before income taxes

听

1,658

听

1,770

听

1,922

听

3,429

听

3,566

听

Income tax expense

听

382

听

403

听

434

听

784

听

799

听

Net income and income available to common shareholders

1,276

听

1,367

听

1,488

听

2,645

听

2,767

听

Basic income per common share

0.46

听

0.50

听

0.54

听

0.96

听

1.02

听

Diluted income per common share

0.46

听

0.50

听

0.54

听

0.96

听

1.02

听

Basic weighted average shares outstanding

听

2,761,870

听

2,743,611

听

2,732,720

听

2,752,741

听

2,723,391

听

Diluted weighted average shares outstanding

听

2,761,870

听

2,743,611

听

2,732,720

听

2,752,741

听

2,723,391

听

OAK RIDGE FINANCIAL SERVICES, INC.	听			听			听			听			听
Selected Financial Data	听			听			听			听			听
听	As Of Or For The Three Months Ended,
听	June 30,			March 31,			December 31,			September 30,			June 30,
听	听	2024	听	听	2024	听	听	2023	听	听	2023	听	听	2023	听
Return on average common stockholders' equity¹	听	8.57	%	听	9.31	%	听	10.44	%	听	10.63	%	听	10.83	%
Tangible book value per share	$	21.95	听	$	21.56	听	$	21.35	听	$	20.26	听	$	20.15	听
Return on average assets¹	听	0.80	%	听	0.88	%	听	0.95	%	听	0.98	%	听	1.02	%
Net interest margin¹	听	3.81	%	听	3.79	%	听	3.79	%	听	3.83	%	听	3.86	%
Efficiency ratio	听	70.0	%	听	68.3	%	听	65.2	%	听	68.7	%	听	70.1	%
Nonperforming assets to total assets	听	0.16	%	听	0.06	%	听	0.07	%	听	0.08	%	听	0.10	%
Allowance for credit losses to total loans	听	1.06	%	听	1.03	%	听	1.05	%	听	1.06	%	听	1.06	%
¹Annualized	听			听			听			听			听
听	听			听			听			听			听

Contact: Skylar Mearing, Marketing Director

Phone: 336.662.4840

FAQ

What was Oak Ridge Financial Services' (BKOR) earnings per share in Q2 2024?

Oak Ridge Financial Services (BKOR) reported earnings per share of $0.46 in Q2 2024, compared to $0.54 in Q2 2023.

How much did Oak Ridge Financial Services (BKOR) declare in quarterly cash dividend for Q2 2024?

Oak Ridge Financial Services (BKOR) declared a quarterly cash dividend of $0.12 per share for Q2 2024, unchanged from the prior quarter but up 20% from Q2 2023.

What was the loan growth for Oak Ridge Financial Services (BKOR) in Q2 2024?

Oak Ridge Financial Services (BKOR) reported loans receivable of $494.0 million at Q2 2024 end, up 11.4% from $444.3 million at the comparable quarter end in 2023.

What was Oak Ridge Financial Services' (BKOR) net interest margin in Q2 2024?

Oak Ridge Financial Services (BKOR) reported a net interest margin of 3.81% in Q2 2024, compared to 3.86% for Q2 2023.

How did Oak Ridge Financial Services' (BKOR) deposit base change in Q2 2024?

Oak Ridge Financial Services (BKOR) reported total deposits of $508.2 million at Q2 2024 end, up 6.5% from $476.9 million at the comparable quarter end in 2023.

AG真人官方