Oak Ridge Financial Services, Inc. Announces First Quarter 2025 Results and 17% Increase in Quarterly Cash Dividend
- 17% increase in quarterly dividend to $0.14 per share
- Net income increased to $1.6M, up from $1.5M QoQ and $1.4M YoY
- Strong loan growth of 11.7% annualized from previous quarter
- Net interest margin improved to 3.97%, up 18 basis points YoY
- Deposit growth of 9.2% YoY to $542.5M
- Strong capital position with CBLR at 11.1%
- Nonperforming assets increased significantly to 0.67% of total assets from 0.07% YoY
- Efficiency ratio worsened to 66.8% from 64.6% in previous quarter
- Noninterest income decreased by $134,000 YoY
- Noninterest expense increased by $400,000 YoY
OAK RIDGE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- Oak Ridge Financial Services, Inc. (“Oak Ridge”; or the “Company”) (OTCPink: BKOR), the parent company of Bank of Oak Ridge (the “Bank”), announced unaudited financial results for the first three months of 2025 and an increase of
First Quarter 2025 Highlights
- Earnings per share were
$0.57 , up from$0.56 in the fourth quarter of 2024 and$0.50 in the first quarter of 2024. - Return on equity of
10.04% , compared to9.63% for the prior quarter and9.31% for the first quarter of 2024. - Net Income was
$1.6 million , up from$1.5 million in the fourth quarter of 2024 and$1.4 million in the first quarter of 2024. - Tangible book value per common share of
$23.50 as of period end, compared to$23.02 at the end of the prior quarter, and$21.80 at the end of the first quarter of 2024. - Dividends declared per common share of
$0.14 , up17% from$0.12 for the prior quarter and the first quarter of 2024. - Net interest margin was
3.97% , increasing from3.92% in the fourth quarter of 2024 and from3.79% in the first quarter of 2024, representing a sequential increase of 5 basis points and a year-over-year increase of 18 basis points. - Efficiency ratio of
66.8% , compared to64.6% for the prior quarter and68.3% for the first quarter of 2024. - Loans receivable of
$528.5 million at quarter end, up11.7% (annualized) from$514.3 million as of the prior quarter end, up10.7% from$477.4 million at the end of the first quarter of 2024. - Nonperforming assets to total assets of
0.67% at quarter end, compared to0.44% as of the prior quarter end and0.07% at the end of the first quarter of 2024. - Nonperforming assets were
$4.6 million at quarter end, compared to$3.5 million as of the prior quarter-end and$461,000 as of the prior year quarter end.$4.0 million of the$4.1 million increase in nonperforming assets from the prior year quarter-end to the current quarter end is due to the guaranteed and nonguaranteed balances of eight Small Business Administration (“SBA”) 7(a) loans that moved to nonaccrual status during the third and fourth quarters of 2024, and the first quarter of 2025. The balances as of March 31, 2025, of SBA nonperforming loans guaranteed and unguaranteed by the SBA were$3.1 million and$858,000 , respectively. - Securities available-for-sale and held-to maturity of
$98.9 million at quarter end, representing an annualized decrease of21.1% from$104.4 million at the prior quarter end, and a decrease of8.3% from$107.8 million at the end of the first quarter of 2024. - Total deposits of
$542.5 million at quarter end, representing annualized growth of8.6% from$531.3 million at the prior quarter end, and an increase of9.2% from$496.9 million at the end of the first quarter of 2024. - Total short and long-term borrowings, junior subordinated notes, and subordinated debentures of
$59.7 million at quarter end, representing an annualized increase of10.5% from$58.2 million at the prior quarter end, and a decrease of7.0% from$64.2 million at the end of the first quarter of 2024. - Total stockholders’ equity of
$64.3 million at quarter end, up8.6% (annualized) from$63.0 million as of the prior quarter end, up8.0% from$59.6 million at the end of the first quarter of 2024. - On March 31, 2025, the Bank’s Community Bank Leverage Ratio (CBLR) was
11.1% , up slightly from11.0% on December 31, 2024. 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 than9.0% .
We are pleased to report a strong start to 2025, marked by solid financial performance and a significant
The
For the three months ending March 31, 2025 and 2024, net interest income was
For the three months ending March 31, 2025, the Company recorded a provision for credit losses of
Noninterest income experienced a decrease from
Noninterest expense increased from
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’s 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’s Top Workplace Finalist | 2016 Better Business Bureau Torch Award for Business Ethics | Triad’s Healthiest Employer Winner
Banking for Business & Personal | Mobile & Online Banking | Worldwide ATM | Debit, Credit + Rewards | Checking, Savings & Money Market | Loans + SBA | Mortgage | Insurance | Wealth Management
Let’s 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 “expect,” “anticipate,” “estimate” and “believe,” 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’s 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.
| OAK RIDGE FINANCIAL SERVICES, INC. | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| ASSETS | (unaudited) | (audited) | (unaudited) | |||||||||
| Cash and due from banks | $ | 10,641 | $ | 8,075 | $ | 6,688 | ||||||
| Interest-bearing deposits with banks | 14,614 | 13,102 | 16,862 | |||||||||
| Total cash and cash equivalents | 25,255 | 21,177 | 23,550 | |||||||||
| Securities available-for-sale | 80,291 | 85,714 | 89,132 | |||||||||
| Securities held-to-maturity, net of allowance for credit losses | 18,653 | 18,662 | 18,690 | |||||||||
| Restricted stock, at cost | 3,616 | 3,439 | 2,692 | |||||||||
| Loans receivable | 528,521 | 514,292 | 477,448 | |||||||||
| Allowance for credit losses | (5,558 | ) | (5,388 | ) | (4,941 | ) | ||||||
| Net loans receivable | 522,963 | 508,904 | 472,507 | |||||||||
| Property and equipment, net | 8,740 | 8,664 | 8,596 | |||||||||
| Accrued interest receivable | 3,478 | 3,135 | 2,841 | |||||||||
| Bank owned life insurance | 6,290 | 6,268 | 6,200 | |||||||||
| Right-of-use assets – operating leases | 2,165 | 2,166 | 2,393 | |||||||||
| Other assets | 5,218 | 5,553 | 5,010 | |||||||||
| Total assets | $ | 676,669 | $ | 663,682 | $ | 631,611 | ||||||
| LIABILITIES | ||||||||||||
| Noninterest-bearing deposits | $ | 124,274 | $ | 119,851 | $ | 99,666 | ||||||
| Interest-bearing deposits | 418,245 | 411,464 | 397,220 | |||||||||
| Total deposits | 542,519 | 531,315 | 496,886 | |||||||||
| Short-term borrowings | 41,500 | 18,000 | 34,000 | |||||||||
| Long-term borrowings | – | 22,000 | 12,000 | |||||||||
| Junior subordinated notes – trust preferred securities | 8,248 | 8,248 | 8,248 | |||||||||
| Subordinated debentures, net of discount | 9,993 | 9,983 | 9,953 | |||||||||
| Lease liabilities – operating leases | 2,165 | 2,166 | 2,393 | |||||||||
| Accrued interest payable | 956 | 709 | 1,729 | |||||||||
| Other liabilities | 6,970 | 6,546 | 6,848 | |||||||||
| Total liabilities | 612,351 | 600,692 | 572,057 | |||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||
| Common stock | 26,881 | 26,733 | 26,854 | |||||||||
| Retained earnings | 38,562 | 37,771 | 34,458 | |||||||||
| Net unrealized loss on debt securities, net of tax | (1,118 | ) | (1,771 | ) | (1,942 | ) | ||||||
| Net unrealized loss on hedging derivative instruments, net of tax | (7 | ) | 257 | 184 | ||||||||
| Total accumulated other comprehensive loss | (1,125 | ) | (1,514 | ) | (1,758 | ) | ||||||
| Total stockholders' equity | 64,318 | 62,990 | 59,554 | |||||||||
| Total liabilities and stockholders' equity | $ | 676,669 | $ | 663,682 | $ | 631,611 | ||||||
| Common shares outstanding | 2,747,920 | 2,736,770 | 2,761,870 | |||||||||
| Common shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
| OAK RIDGE FINANCIAL SERVICES, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Interest and dividend income: | ||||||||||||
| Loans and fees on loans | $ | 8,276 | $ | 8,212 | $ | 7,230 | ||||||
| Interest on deposits in banks | 166 | 217 | 151 | |||||||||
| Restricted stock dividends | 49 | 64 | 45 | |||||||||
| Interest on investment securities | 1,282 | 1,279 | 1,445 | |||||||||
| Total interest and dividend income | 9,773 | 9,772 | 8,871 | |||||||||
| Interest expense | ||||||||||||
| Deposits | 2,714 | 2,700 | 2,351 | |||||||||
| Short-term and long-term debt | 767 | 786 | 899 | |||||||||
| Total interest expense | 3,481 | 3,486 | 3,250 | |||||||||
| Net interest income | 6,292 | 6,286 | 5,621 | |||||||||
| Provision for credit losses | 304 | 514 | 264 | |||||||||
| Net interest income after provision for credit losses | 5,988 | 5,772 | 5,357 | |||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 227 | 234 | 172 | |||||||||
| Gain (loss) on sale of securities | – | 19 | – | |||||||||
| Insurance commissions | 150 | 125 | 135 | |||||||||
| Gain on sale of Small Business Administration loans | – | – | – | |||||||||
| Debit and credit card interchange income | 272 | 285 | 288 | |||||||||
| Income from Small Business Investment Company | – | – | 78 | |||||||||
| Income earned on bank owned life insurance | 22 | 23 | 22 | |||||||||
| Other Service Charges and Fees | 88 | 98 | 98 | |||||||||
| Total noninterest income | 759 | 784 | 793 | |||||||||
| Noninterest expenses: | ||||||||||||
| Salaries | 2,354 | 2,198 | 2,166 | |||||||||
| Employee Benefits | 335 | 370 | 312 | |||||||||
| Occupancy | 300 | 321 | 296 | |||||||||
| Equipment | 164 | 134 | 163 | |||||||||
| Data and Item Processing | 615 | 602 | 520 | |||||||||
| Professional & Advertising | 219 | 298 | 314 | |||||||||
| Stationary and Supplies | 31 | 21 | 32 | |||||||||
| Telecommunications | 80 | 65 | 80 | |||||||||
| FDIC Assessment | 120 | 118 | 114 | |||||||||
| Other expense | 491 | 441 | 383 | |||||||||
| Total noninterest expenses | 4,709 | 4,568 | 4,380 | |||||||||
| Income before income taxes | 2,038 | 1,988 | 1,770 | |||||||||
| Income tax expense | 469 | 461 | 403 | |||||||||
| Net income and income available to common shareholders | $ | 1,569 | $ | 1,527 | $ | 1,367 | ||||||
| Basic income per common share | $ | 0.57 | $ | 0.56 | $ | 0.50 | ||||||
| Diluted income per common share | $ | 0.57 | $ | 0.56 | $ | 0.50 | ||||||
| Basic weighted average shares outstanding | 2,761,870 | 2,744,609 | 2,743,611 | |||||||||
| Diluted weighted average shares outstanding | 2,761,870 | 2,744,609 | 2,743,611 | |||||||||
| OAK RIDGE FINANCIAL SERVICES, INC. | ||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||
| As Of Or For The Three Months Ended, | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Return on average common stockholders' equity1 | 10.04 | % | 9.63 | % | 9.56 | % | 8.57 | % | 9.31 | % | ||||||||||
| Tangible book value per share | $ | 23.41 | $ | 23.02 | $ | 22.78 | $ | 21.95 | $ | 21.56 | ||||||||||
| Return on average assets1 | 0.95 | % | 0.91 | % | 0.91 | % | 0.80 | % | 0.88 | % | ||||||||||
| Net interest margin1 | 3.97 | % | 3.92 | % | 3.81 | % | 3.81 | % | 3.79 | % | ||||||||||
| Efficiency ratio | 66.8 | % | 64.6 | % | 67.9 | % | 70.0 | % | 68.3 | % | ||||||||||
| Nonperforming assets to total assets | 0.67 | % | 0.53 | % | 0.45 | % | 0.08 | % | 0.06 | % | ||||||||||
| Allowance for credit losses to total loans | 1.05 | % | 1.05 | % | 1.06 | % | 1.06 | % | 1.03 | % | ||||||||||
| 1Annualized | ||||||||||||||||||||
Contact: Skylar Mearing, Marketing Director
Phone: 336.662.4840
FAQ
What is BKOR's new quarterly dividend and how much did it increase?
What was Oak Ridge Financial Services' (BKOR) earnings per share in Q1 2025?
How much did BKOR's nonperforming assets increase in Q1 2025?
What was Oak Ridge Financial's loan growth in Q1 2025?
What was BKOR's net interest margin in Q1 2025?
