Oregon Pacific Bank Announces 2019 Earnings

Oregon Pacific Bancorp, and its wholly owned subsidiary Oregon Pacific Bank, reported quarterly net income of $400 thousand, or $0.06 per diluted share. Included in the first quarter earnings was a $252 thousand loss on sale of other real estate as the Bank sold its last remaining bank-owned real estate asset. Excluding the impact of the loss on sale of other real estate, the Bank’s earnings would have been approximately $595 thousand or $0.09 per share. This non-GAAP financial metric is provided to show the impact of this one-time expense.

The Bank took possession of this other real estate property in March of 2015 and was incurring approximately $50 thousand of annual holding costs. The property was aging, vacant and the high price point translated to a potentially lengthy holding period and increased maintenance expenses. After factoring in these considerations, the Bank made the strategic decision to sell the property and incurred a loss on sale.

“We are very proud to resolve the Bank’s final pre-recession nonperforming asset,” said Ron Green, President and Chief Executive Officer. “The sale of this asset sets the Bank on the right path for 2019 and better prepares our balance sheet for any future softening in the economy. Given the high-end nature of the property, it was an asset we did not want to own in the event the real estate market experienced a decline.”

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