Oregon Pacific Bank Announces Fourth Quarter Earnings Results

Florence, Ore., January 20, 2022 – Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported financial results for the fourth quarter ended December 31, 2021.


  • Fourth quarter net income of $1.9 million; $0.27 per diluted share.
  • Annual Non-PPP loan growth of $76.3 million or 24.47%
  • Annual Deposit growth of $132.3 million or 27.21%
  • Annual Trust assets under management growth of $40.2 million or 24.97%
  • Annual Oregon Pacific Wealth Management assets under management growth of $47.3 million or 57.04%.

View full financial tables: DEC-Statement-of-Condition-Q4-2021.pdf (opbc.com)

Net income for the fourth quarter was $1.9 million, or $0.27 per diluted share compared to $2.0 million, or $0.30 per diluted share for the quarter ended December 31, 2020. On an annual basis, the Bank recorded net income totaling $7.8 million, or $1.11 per diluted share compared to $4.4 million, or $0.62 per diluted share for the same period in 2020. The Bank continued to see Paycheck Protection Program (PPP) forgiveness payments processed during the fourth quarter, with the PPP fee income totaling $697 thousand for the fourth quarter 2021, compared to $1.1 million for the third quarter 2021. During the quarter the Bank saw outstanding PPP loans reduce to $10.0 million. As of December 31, 2021, the Bank had remaining unamortized PPP fee income of $347 thousand.


Period-end non-PPP loans, net of deferred loan origination fees, totaled $388.2 million, representing quarterly net growth of $26.6. million and year-to-date net growth of $76.3 million or an annualized growth rate of 24.47%. The Bank continued to experience non-PPP loan demand, but pricing pressures remain strong. The fourth quarter effective yield on the non-PPP loan portfolio lowered to 4.47%, down from 4.49% in third quarter, primarily related to new production occurring at rates below the current effective yield of the portfolio.


“We are very proud of the many significant achievements that occurred during the year,” said Ron Green, President and CEO. “We have a talented team that has remained focused on strategic growth and building future shareholder value.”


During the quarter the Bank saw a small increase in classified assets totaling $600 thousand. This increase was attributable to downgrades of three loans totaling $1.9 million, which was partially offset by upgrades of five loans during the quarter and one charge off totaling $128 thousand on a commercial line of credit. The downgrades represent one lending relationship in the commercial construction industry. The Bank believes the relationship is adequately collateralized, and all loans are current as of December 31, 2021. The Bank’s credit administration team continues to proactively work with lending staff to identify any possible credit stress. 


Fourth quarter 2021 deposit growth slowed but totaled $5.7 million. The Bank also continues to maintain $102.9 million of additional off-balance sheet deposits in the InterFi Network’s Insured Cash Sweep (ICS) and CDARS products. The off-balance sheet deposits remain a source of liquidity, with the ICS deposits available on-demand and the CDARs deposits had a maximum maturity of four weeks. 


Prior to the end of the quarter, the Bank closed on the purchase of a 15,000 sq ft building in Eugene, with the primary objective of housing the Eugene-based administrative staff. The Bank continues to see additional staffing growth in Eugene and during second quarter 2021 the Bank leased additional temporary office space located at 1600 Valley River Drive. The new building will require improvements and has a targeted occupancy date of Q2 2023. Once the building is occupied, all administrative staff will relocate from the branch building at 59 E. 11th and the Bank will also vacate the temporary office space.     


Fourth quarter 2021 noninterest income totaled $1.8 million, which represented an increase of $133 thousand from third quarter 2021 and an increase of $399 thousand over fourth quarter 2020. The increase in revenue is attributable to ancillary revenue through trust fee income, fee income from Oregon Pacific Wealth Management and mortgage loan sales income, which grew by $116 thousand, $35 thousand, and $25 thousand, respectively, over third quarter 2021.


“The Bank’s ancillary noninterest income sources exemplify our mission of creating value for all we serve,” said Ron Green, President and CEO. “Our clients come to Oregon Pacific Bank for traditional banking needs, and that relationship can be leveraged into investment advisory, trust and mortgage services.”


Noninterest expense in the fourth quarter totaled $4.3 million, up $146 thousand over the third quarter. The largest change occurred in the salaries and employee benefits category, which was primarily due to increased officer bonus accrual, tied to the Bank performance. The Bank also experienced an increase in the other operating expense category of $71 thousand, which was partially attributable to an increase in losses experienced due to check and debit card fraud.

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, strategic focus, capital position, liquidity, credit quality, special asset liquidation, 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.