Oregon Pacific Bancorp Announces Fourth Quarter 2025 Earnings Results

Highlights:

• Fourth quarter net income of $2.7 million; $0.37 per diluted share.
• Quarterly tax equivalent net interest margin of 3.96%, expansion of 0.08% over prior quarter.
• Quarterly return on average assets of 1.27%.
• Annual net income of $8.6 million; $1.19 per diluted share.
• Annual loan growth of $28.1 million or 4.91%.
• Annual deposit growth of $22.7 million or 3.36%.
• Named one of the 100 Best Companies to Work for in Oregon for 2026 by Oregon Business Magazine.

FLORENCE, Ore.--(BUSINESS WIRE)-- Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported net income of $2.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2025, compared to $2.2 million or $0.31 per diluted share for the quarter ended September 30, 2025. On an annual basis the Bank reported 2025 net income of $8.6 million, or $1.19 per diluted share, compared to $7.5 million or $1.05 per diluted share for the year ending December 31, 2024.

“We are very pleased with the Bank’s 2025 financial results,” said Ron Green, President and CEO. “Throughout 2025 the Bank remained dedicated to our mission of supporting local business and nonprofit clients. Through this focus the Bank achieved annual loan and deposit growth, which contributed to an increase in overall Bank profitability.”

The Bank’s fourth quarter net interest margin increased to 3.96%, up from 3.88% reported in the third quarter of 2025. The expansion was attributable to both an increase in yield on loans and a reduction in the cost of funds. Despite a 0.50% reduction in the prime rate occurring during the quarter, the reduction in yield on variable loans and securities was more than offset by the increase in yield due to new loan production. The overall yield on loans increased to 5.80%, up from 5.73% in the third quarter of 2025. Quarterly loan production for new and renewed loans totaled $40.5 million, with a weighted average effective rate of 6.69%.

Period-end deposits totaled $699.4 million, reflecting quarterly contraction of $29.0 million. A portion of this reduction was due to deposit activity related to a terminating trust. Trust Assets Under Management (AUM) are typically invested in securities or real estate and do not appear on the Bank’s balance sheet. However, depending on beneficiaries’ cash requirements and the timing of final distributions, some trust assets may be held in cash. Currently, the cash portion of all trust client balances is held at Oregon Pacific Bank and protected by FDIC insurance through IntraFi’s Insured Cash Sweep (ICS) product. These cash balances are included in the Bank’s total interest-bearing demand deposits. At September 30, 2025, a terminating trust held $9.0 million in cash pending final distribution. During the fourth quarter these funds were paid to trust beneficiaries, and this reduced Bank deposits by $9.0 million. Additional deposit migration occurred at year end following the Bank’s typical seasonal deposit fluctuations, primarily attributable to year end distributions for large business clients.

Classified assets on December 31, 2025, totaled $13.1 million, and reflected a decrease of $1.3 million from the third quarter of 2025. Classified assets are defined as loans and loan contingent liabilities internally graded substandard or worse, impaired loans, adversely classified securities and other real estate owned. The reduction in classified assets was primarily attributable to a paydown on a substandard owner-occupied property and an upgrade of a multifamily loan. At December 31, 2025, nonperforming loans totaled $2.3 million, representing a quarterly increase of $1.8 million. The increase was attributable to the migration of two credits to nonaccrual status. The larger of the two non-accrual loans is a $1.6 million term loan fully secured with various pieces of equipment. The Bank is working on a resolution plan and currently does not anticipate any losses. The other loan is a $246 thousand commercial line of credit, which has a specific reserve of 100% in the December 31, 2025 allowance for credit losses, while the Bank evaluates potential impairment of the underlying collateral. Fourth quarter provision for credit losses totaled $346 thousand, while the provision for unfunded commitments reflected a credit of $15 thousand. The increase in provision was driven by the quarterly loan growth and a specific reserve associated with a nonaccrual loan.

Fourth quarter noninterest income grew to $2.3 million, reflecting a $106 thousand increase compared to the prior quarter. The most significant change was observed in trust fee income due to continued growth of trust AUM. Despite the terminating trust distribution, at December 31, 2025, trust AUM reached $297.7 million, reflecting quarterly growth of $16.4 million and an annual increase of $26.7 million or 9.83% from December 31, 2024. Trust services continue to be a valuable source of noninterest income which the Bank anticipates continuing to grow throughout 2026.

In the fourth quarter of 2025, noninterest expense totaled $6.3 million, reflecting a decrease of $7 thousand compared to the previous quarter. On a linked quarter basis salaries and employee benefits declined by $89 thousand primarily driven by a decrease in the officer bonus accrual, following a true-up process that aligned the accrual with updated year-end payout projections. Offsetting a reduction in salaries and benefit expense, trust expense grew $30 thousand during the quarter. The increase in trust expense was partially attributable to an overlap in trust accounting software as the Bank completed a core conversion of the trust accounting system effective November 1, 2025. As part of the conversion the Bank continued to incur the cost of the prior trust software through December 31^st which contributed to additional non-recurring expense of $41 thousand.

CONSOLIDATED BALANCE SHEETS
Unaudited (dollars in thousands)
		December 31,				September 30,				December 31,
			2025				2025				2024
ASSETS
Cash and due from banks		$	11,722			$	9,713			$	9,521
Interest bearing deposits			16,663				42,274				10,921
Securities			155,159				162,012				155,258
Loans, net of deferred fees and costs			599,636				594,695				571,565
Allowance for credit losses			(8,237	)			(7,891	)			(7,400	)
Premises and equipment, net			13,022				13,156				13,279
Bank owned life insurance			10,472				10,388				9,142
Other real estate owned			157				157				-
Deferred tax asset			4,384				4,271				5,398
Other assets			9,238				8,866				8,764
Total assets		$	812,216			$	837,641			$	776,448
LIABILITIES
Deposits
Demand - non-interest bearing		$	152,937			$	167,010			$	141,719
Demand - interest bearing			279,014				298,089				277,932
Money market			142,499				139,513				135,255
Savings			66,534				66,901				66,194
Certificates of deposit			48,366				46,882				45,516
Brokered deposits			10,001				10,001				10,001
Total deposits			699,351				728,396				676,617
FHLB borrowings			7,500				7,500				7,500
Junior subordinated debenture			4,124				4,124				4,124
Subordinated debenture			14,927				14,902				14,827
Other liabilities			8,502				8,280				8,090
Total liabilities			734,404				763,202				711,158
STOCKHOLDERS' EQUITY
Common stock			21,923				21,809				21,612
Retained earnings			60,176				57,508				51,603
Accumulated other comprehensive
income, net of tax			(4,287	)			(4,878	)			(7,925	)
Total stockholders' equity			77,812				74,439				65,290
Total liabilities & stockholders' equity		$	812,216			$	837,641			$	776,448

CONSOLIDATED STATEMENTS OF INCOME
Unaudited (dollars in thousands, except per share data)
		THREE MONTHS ENDED												TWELVE MONTHS ENDED
		December 31,			September 30,				December 31,					December 31,			December 31,
		2025				2025			2024					2025			2024
INTEREST INCOME
Loans		$	8,704			$	8,552		$	7,941				$	33,400		$	30,378
Securities			1,441				1,353			1,376					5,335			5,906
Other interest income			386				500			282					1,347			1,018
Total interest income			10,531				10,405			9,599					40,082			37,302
INTEREST EXPENSE
Deposits			2,290				2,377			2,357					9,200			9,023
Borrowed funds			308				308			318					1,246			1,344
Total interest expense			2,598				2,685			2,675					10,446			10,367
NET INTEREST INCOME			7,933				7,720			6,924					29,636			26,935
Provision for credit losses on loans			346				505			-					1,015			331
Provision (credit) for unfunded commitments			(15	)			123			(30	)				108			(25	)
Net interest income after
provision for credit losses			7,602				7,092			6,954					28,513			26,629
NONINTEREST INCOME
Trust fee income			1,276				1,137			1,135					4,704			4,001
Service charges			396				394			378					1,553			1,457
Mortgage loan sales			1				1			72					9			204
Merchant card services			144				172			125					556			519
Oregon Pacific Wealth Management income			358				366			349					1,420			1,301
Other income			116				115			96					463			457
Total noninterest income			2,291				2,185			2,155					8,705			7,939
NONINTEREST EXPENSE
Salaries and employee benefits			3,612				3,701			3,418					15,158			14,337
Outside services			727				709			787					2,929			2,814
Occupancy & equipment			547				533			485					2,087			1,985
Trust expense			716				686			724					2,825			2,589
Loan and collection, OREO expense			19				18			16					63			70
Advertising			96				102			89					414			328
Supplies and postage			60				70			76					265			299
Other operating expenses			529				494			552					2,066			2,201
Total noninterest expense			6,306				6,313			6,147					25,807			24,623
Income before taxes			3,587				2,964			2,962					11,411			9,945
Provision for income taxes			921				752			744					2,840			2,424
NET INCOME		$	2,666			$	2,212		$	2,218				$	8,571		$	7,521

Quarterly Highlights
	4th Quarter				3rd Quarter				2nd Quarter				1st Quarter				4th Quarter
		2025				2025				2025				2025				2024
Earnings
Interest income	$	10,531			$	10,405			$	9,747			$	9,399			$	9,599
Interest expense		2,598				2,685				2,553				2,610				2,675
Net interest income	$	7,933			$	7,720			$	7,194			$	6,789			$	6,924
Provision for credit losses on loans		346				505				164				-				-
Provision (credit) for unfunded commitments		(15	)			123				-				-				(30	)
Noninterest income		2,291				2,185				2,086				2,143				2,155
Noninterest expense		6,306				6,313				6,490				6,698				6,147
Provision for income taxes		921				752				617				550				744
Net income	$	2,666			$	2,212			$	2,009			$	1,684			$	2,218
Average shares outstanding		7,163,160				7,163,503				7,164,363				7,151,365				7,136,389
Average diluted shares outstanding		7,188,902				7,189,245				7,190,105				7,170,304				7,154,126
Period end shares outstanding		7,162,985				7,163,503				7,164,144				7,164,470				7,138,259
Period end diluted shares outstanding		7,188,727				7,189,245				7,189,886				7,190,212				7,155,996
Earnings per share	$	0.37			$	0.31			$	0.28			$	0.24			$	0.31
Diluted earnings per share	$	0.37			$	0.31			$	0.28			$	0.23			$	0.31
Performance Ratios
Return on average assets		1.27	%			1.06	%			1.02	%			0.87	%			1.12	%
Return on average equity		14.90	%			12.58	%			11.85	%			10.42	%			14.01	%
Net interest margin - tax equivalent		3.96	%			3.88	%			3.85	%			3.67	%			3.66	%
Yield on loans		5.80	%			5.73	%			5.65	%			5.53	%			5.55	%
Yield on securities		3.46	%			3.45	%			3.39	%			3.41	%			3.31	%
Cost of deposits		1.26	%			1.31	%			1.31	%			1.36	%			1.36	%
Cost of interest-bearing liabilities		1.76	%			1.83	%			1.86	%			1.88	%			1.89	%
Efficiency ratio		61.68	%			63.73	%			69.94	%			75.24	%			67.71	%
Full-time equivalent employees		149				146				146				148				145
Capital
Tier 1 capital	$	91,828			$	91,563			$	91,437			$	90,548			$	89,133
Leverage ratio		10.96	%			10.99	%			11.52	%			11.40	%			11.19	%
Common equity tier 1 ratio		14.69	%			14.65	%			14.82	%			14.84	%			14.86	%
Tier 1 risk based ratio		14.69	%			14.65	%			14.82	%			14.84	%			14.86	%
Total risk based ratio		15.94	%			15.91	%			16.07	%			16.10	%			16.11	%
Book value per share	$	10.86			$	10.39			$	9.93			$	9.53			$	9.12

Quarterly Highlights
	4th Quarter				3rd Quarter				2nd Quarter				1st Quarter				4th Quarter
		2025				2025				2025				2025				2024
Asset quality
Allowance for credit losses (ACL)	$	8,237			$	7,891			$	7,388			$	7,400			$	7,400
Nonperforming loans (NPLs)	$	2,338			$	495			$	495			$	801			$	798
Nonperforming assets (NPAs)	$	2,494			$	652			$	652			$	801			$	798
Classified Assets (1)	$	13,119			$	14,391			$	11,271			$	10,550			$	8,132
Net loan charge offs (recoveries)	$	-			$	1			$	176			$	-			$	-
ACL as a percentage of net loans		1.37	%			1.33	%			1.25	%			1.27	%			1.29	%
ACL as a percentage of NPLs		352.31	%			1594.14	%			1492.53	%			923.85	%			927.32	%
Net charge offs (recoveries)
to average loans		0.00	%			0.00	%			0.03	%			0.00	%			0.00	%
Net NPLs as a percentage of
total loans		0.40	%			0.08	%			0.08	%			0.14	%			0.14	%
Nonperforming assets as a
percentage of total assets		0.31	%			0.08	%			0.08	%			0.10	%			0.10	%
Classified Asset Ratio (2)		13.11	%			14.47	%			11.53	%			10.77	%			8.42	%
Past due as a percentage of
total loans		0.17	%			0.12	%			0.08	%			0.11	%			0.06	%
Off-balance sheet figures
Unused credit commitments	$	98,660			$	108,753			$	103,063			$	94,843			$	98,616
Trust assets under management (AUM)	$	297,701			$	281,281			$	288,935			$	267,359			$	271,046
Oregon Pacific Wealth Management AUM	$	154,137			$	181,349			$	174,724			$	172,729			$	165,045
End of period balances
Total securities	$	155,159			$	162,012			$	142,357			$	145,610			$	155,258
Total short term deposits	$	16,663			$	42,274			$	30,348			$	27,625			$	10,921
Total loans net of allowance	$	591,399			$	586,804			$	584,407			$	575,539			$	564,165
Total earning assets	$	773,409			$	800,930			$	766,445			$	758,119			$	739,677
Total assets	$	812,216			$	837,641			$	805,262			$	797,628			$	776,448
Total noninterest bearing deposits	$	152,937			$	167,010			$	162,426			$	153,956			$	141,719
Total brokered deposits	$	10,001			$	10,001			$	10,001			$	10,001			$	10,001
Total core deposits	$	689,350			$	718,395			$	689,740			$	685,314			$	666,616
Total deposits	$	699,351			$	728,396			$	699,741			$	695,315			$	676,617
Average balances
Total securities	$	159,462			$	153,603			$	143,627			$	150,197			$	159,587
Total short term deposits	$	40,352			$	44,423			$	18,044			$	23,766			$	23,654
Total loans net of allowance	$	587,209			$	584,102			$	580,377			$	568,635			$	561,601
Total earning assets	$	796,948			$	791,637			$	751,538			$	751,933			$	754,173
Total assets	$	833,972			$	827,823			$	787,506			$	787,201			$	789,333
Total noninterest bearing deposits	$	164,736			$	166,857			$	158,985			$	149,802			$	152,844
Total brokered deposits	$	10,001			$	10,001			$	10,001			$	10,001			$	12,610
Total core deposits	$	712,607			$	710,376			$	672,711			$	675,953			$	676,900
Total deposits	$	722,608			$	720,377			$	682,712			$	685,954			$	689,510
(1) Classified assets is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned.
(2) Classified asset ratio is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for credit losses.

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, investment yields, strategic focus, capital position, liquidity, credit quality, special asset liquidation, noninterest income, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260127891989/en/

Editorial Contact:

Ron Green, President and Chief Executive Officer

ron.green@opbc.com

(541) 902-9800

Source: Oregon Pacific Bancorp