Oak Ridge Financial Services, Inc. Announces First Quarter 2026 Results and 14% Increase in Quarterly Cash Dividend
Rhea-AI Summary
Oak Ridge Financial Services (OTC Pink: BKOR) reported first-quarter 2026 results and raised its quarterly cash dividend 14% to $0.16 per share, payable June 9, 2026 to shareholders of record May 26, 2026. Q1 EPS was $0.53; tangible book value per share was $25.99 at March 31, 2026.
The quarter included three non-recurring items: a one-time interest income correction of $291,000, a $700,000 provision for credit losses, and a $224,000 gain on sale of securities. Total borrowings fell 49.8% year-over-year and total stockholders’ equity rose 12.0%.
Positive
- Quarterly dividend increased by 14% to $0.16 per share
- Total stockholders’ equity up 12.0% to $72.0 million
- Total borrowings reduced by 49.8%, lowering funding costs
- Tangible book value per share of $25.99
Negative
- EPS declined from $0.57 to $0.53 year-over-year
- Provision for credit losses rose to $700,000 from $304,000
- Nonperforming assets increased to 1.42% of total assets
News Market Reaction – BKOR
In the May 5 session, BKOR declined 0.64%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
OAK RIDGE, N.C., May 04, 2026 (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 quarter of 2026 and an increase of
First Quarter 2026 Highlights
- Earnings per share of
$0.53 for the three months ended March 31, 2026, compared to$0.57 for the same period in 2025. - Annualized return on average equity of
8.24% for the three months ended March 31, 2026, compared to10.04% for the same period in 2025. - Dividends declared per common share of
$0.16 for the three months ended March 31, 2026, compared to$0.14 for the same period in 2025. - Tangible book value per common share of
$25.99 as of March 31, 2026, compared to$23.50 as of March 31, 2025. - Net interest margin of
3.98% for the three months ended March 31, 2026, compared to3.97% for the same period in 2025. - Efficiency ratio of
64.9% for the three months ended March 31, 2026, compared to66.8% for the same period in 2025. - Loans receivable of
$515.1 million as of March 31, 2026, down2.5% from$528.5 million as of March 31, 2025. - Nonperforming assets to total assets of
1.42% as of March 31, 2026, compared to0.67% as of March 31, 2025. - Nonperforming assets were
$9.4 million at March 31, 2026, including 16 Small Business Administration (SBA) loans with guaranteed balances of$6.9 million and nonguaranteed balances of$2.1 million ; these balances are carried at net realizable value, reflecting prior write-downs to fair value less estimated costs to sell recognized through the provision for credit losses, and inclusive of expected recoveries from the SBA guarantee. - Securities available-for-sale and held-to-maturity of
$94.3 million as of March 31, 2026, down4.7% from$98.9 million as of March 31, 2025. - Total deposits of
$541.6 million as of March 31, 2026, down0.2% from$542.5 million as of March 31, 2025. - Total short-and long-term borrowings, junior subordinated notes, and subordinated debentures of
$35.2 million as of March 31, 2026, down49.8% from$70.2 million as of March 31, 2025. - Total stockholders’ equity of
$72.0 million as of March 31, 2026, up12.0% from$64.3 million as of March 31, 2025. At March 31, 2026, the Bank’s Community Bank Leverage Ratio was12.3% , up from11.1% as of March 31, 2025.
Tom Wayne, Chief Executive Officer, stated, "While our earnings of
The
The change in net income for the first quarter of 2026 compared to the same period in 2025 was driven primarily by the three factors noted above: the one-time interest income correction (as explained in more detail below), the increased provision for credit losses, and the non-recurring gain on the sale of securities. The Bank’s fundamental performance remains strong, characterized by a stable net interest margin and a significant reduction in wholesale funding costs. Additionally, the credit quality of the Bank’s non-SBA loan portfolio remains a significant source of strength, continuing to demonstrate excellent payment performance.
For the three months ended March 31, 2026 and 2025, net interest income was
For the three months ended March 31, 2026 and 2025, the Company recorded provisions for credit losses of
Noninterest income totaled
Noninterest expense totaled
About Oak Ridge Financial Services, Inc. and 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, | |||||||
| 2026 | 2025 | 2025 | |||||||
| ASSETS | (unaudited) | (audited) | (unaudited) | ||||||
| Cash and due from banks | $ | 7,931 | $ | 8,840 | $ | 10,641 | |||
| Interest-bearing deposits with banks | 18,135 | 14,556 | 14,614 | ||||||
| Total cash and cash equivalents | 26,066 | 23,397 | 25,255 | ||||||
| Securities available-for-sale | 80,036 | 81,412 | 80,291 | ||||||
| Securities held-to-maturity, net of allowance for credit losses | 14,271 | 15,030 | 18,653 | ||||||
| Restricted stock, at cost | 2,585 | 3,059 | 3,616 | ||||||
| Loans receivable | 515,130 | 517,374 | 528,521 | ||||||
| Allowance for credit losses | (6,425 | ) | (6,030 | ) | (5,558 | ) | |||
| Net loans receivable | 508,705 | 511,344 | 522,963 | ||||||
| Property and equipment, net | 8,834 | 8,900 | 8,740 | ||||||
| Accrued interest receivable | 3,183 | 3,217 | 3,478 | ||||||
| Bank owned life insurance | 6,377 | 6,356 | 6,290 | ||||||
| Right-of-use assets – operating leases | 2,244 | 2,328 | 2,165 | ||||||
| Other assets | 5,594 | 5,199 | 5,218 | ||||||
| Total assets | $ | 657,895 | $ | 660,242 | $ | 676,669 | |||
| LIABILITIES | |||||||||
| Noninterest-bearing deposits | $ | 136,466 | $ | 128,408 | $ | 124,274 | |||
| Interest-bearing deposits | 405,113 | 406,521 | 418,245 | ||||||
| Total deposits | 541,579 | 534,929 | 542,519 | ||||||
| Federal Funds purchased | - | - | - | ||||||
| Short-term borrowings | 14,000 | 24,000 | 41,500 | ||||||
| Long-term borrowings | 7,000 | 7,000 | - | ||||||
| Junior subordinated notes – trust preferred securities | 8,248 | 8,248 | 8,248 | ||||||
| Subordinated debentures, net of discount | 6,000 | 6,000 | 9,993 | ||||||
| Lease liabilities – operating leases | 2,244 | 2,328 | 2,165 | ||||||
| Accrued interest payable | 512 | 521 | 956 | ||||||
| Other liabilities | 6,269 | 5,924 | 6,970 | ||||||
| Total liabilities | 585,852 | 588,950 | 612,351 | ||||||
| STOCKHOLDERS' EQUITY | |||||||||
| Common stock | 27,383 | 27,274 | 26,881 | ||||||
| Retained earnings | 44,927 | 43,851 | 38,562 | ||||||
| Net unrealized loss on debt securities, net of tax | (466 | ) | 304 | (1,118 | ) | ||||
| Net unrealized loss on hedging derivative instruments, net of tax | 199 | (137 | ) | (7 | ) | ||||
| Total accumulated other comprehensive loss | (267 | ) | 167 | (1,125 | ) | ||||
| Total stockholders’ equity | 72,043 | 71,292 | 64,318 | ||||||
| Total liabilities and stockholders’ equity | $ | 657,895 | $ | 660,242 | $ | 676,669 | |||
| Common shares outstanding | 2,772,150 | 2,741,350 | 2,747,920 | ||||||
| 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, | |||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans and fees on loans | $ | 7,770 | $ | 8,462 | $ | 8,276 | |||||||||
| Interest on deposits in banks | 217 | 184 | 166 | ||||||||||||
| Restricted stock dividends | 46 | 53 | 49 | ||||||||||||
| Interest on investment securities | 1,147 | 1,233 | 1,282 | ||||||||||||
| Total interest and dividend income | 9,180 | 9,932 | 9,773 | ||||||||||||
| Interest expense | |||||||||||||||
| Deposits | 2,445 | 2,630 | 2,714 | ||||||||||||
| Short-term and long-term debt | 547 | 648 | 767 | ||||||||||||
| Total interest expense | 2,992 | 3,278 | 3,481 | ||||||||||||
| Net interest income | 6,188 | 6,654 | 6,292 | ||||||||||||
| Provision for credit losses | 700 | (298 | ) | 304 | |||||||||||
| Net interest income after provision for credit losses | 5,488 | 6,952 | 5,988 | ||||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on deposit accounts | 205 | 233 | 227 | ||||||||||||
| Gain (loss) on sale of securities | 224 | - | - | ||||||||||||
| Gain on sale of foreclosed property | (1 | ) | 21 | - | |||||||||||
| Insurance commissions | 158 | 146 | 150 | ||||||||||||
| Gain on sale of Small Business Administration loans | - | - | - | ||||||||||||
| Debit and credit card interchange income | 261 | 289 | 272 | ||||||||||||
| Income from Small Business Investment Company | 16 | - | - | ||||||||||||
| Income earned on bank owned life insurance | 21 | 22 | 22 | ||||||||||||
| Other service charges and fees | 124 | 117 | 88 | ||||||||||||
| Total noninterest income | 1,008 | 828 | 759 | ||||||||||||
| Noninterest expenses: | |||||||||||||||
| Salaries | 2,228 | 2,309 | 2,354 | ||||||||||||
| Employee Benefits | 307 | 353 | 335 | ||||||||||||
| Occupancy | 365 | 324 | 300 | ||||||||||||
| Equipment | 183 | 241 | 164 | ||||||||||||
| Data and Item Processing | 594 | 593 | 615 | ||||||||||||
| Professional & Advertising | 297 | 267 | 219 | ||||||||||||
| Stationary and Supplies | 27 | 28 | 31 | ||||||||||||
| Telecommunications | 77 | 81 | 80 | ||||||||||||
| FDIC Assessment | 73 | 30 | 120 | ||||||||||||
| Other expense | 521 | 545 | 491 | ||||||||||||
| Total noninterest expenses | 4,672 | 4,771 | 4,709 | ||||||||||||
| Income before income taxes | 1,824 | 3,009 | 2,038 | ||||||||||||
| Income tax expense | 364 | 685 | 469 | ||||||||||||
| Net income and income available to common shareholders | $ | 1,460 | $ | 2,324 | $ | 1,569 | |||||||||
| Basic income per common share | $ | 0.53 | $ | 0.85 | $ | 0.57 | |||||||||
| Diluted income per common share | $ | 0.53 | $ | 0.85 | $ | 0.57 | |||||||||
| Basic weighted average shares outstanding | 2,744,088 | 2,742,752 | 2,761,870 | ||||||||||||
| Diluted weighted average shares outstanding | 2,744,088 | 2,742,752 | 2,761,870 | ||||||||||||
| 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, | |||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||
| Return on average common stockholders' equity1 | 8.24 | % | 13.39 | % | 11.25 | % | 14.13 | % | 10.04 | % | |||||
| Tangible book value per share | $ | 25.99 | $ | 26.01 | $ | 24.98 | $ | 24.04 | $ | 23.41 | |||||
| Return on average assets1 | 0.90 | % | 1.37 | % | 1.10 | % | 1.32 | % | 0.95 | % | |||||
| Net interest margin1 | 3.98 | % | 4.10 | % | 4.18 | % | 4.16 | % | 3.97 | % | |||||
| Efficiency ratio | 64.9 | % | 63.8 | % | 59.0 | % | 59.1 | % | 66.8 | % | |||||
| Nonperforming assets to total assets | 1.42 | % | 1.07 | % | 0.84 | % | 0.73 | % | 0.67 | % | |||||
| Allowance for credit losses to total loans | 1.25 | % | 1.17 | % | 1.19 | % | 1.10 | % | 1.05 | % | |||||
| 1Annualized | |||||||||||||||
Contact: Skylar Mearing, Marketing Director
Phone: 336.662.4840
