Oregon Pacific Bank profits rise by 25 percent
After a federal tax accounting change, profits at Florence-based Oregon Pacific Bank rose 25 percent last year, the bank reported on Tuesday.
The bank said it had a net profit of $1.4 million in the year ended Dec. 31, 2017, compared with $1.1 million in 2016.
Oregon Pacific Bank has full-service branches in Florence, Coos Bay and Roseburg, a banking office in Eugene, and a trust office in Medford.
For 2017, profits equaled 31 cents a share compared with 26 cents a share in 2016, the bank reported.
Fourth-quarter profits were decreased by provisions of the federal Tax Cuts and Jobs Act of 2017, according to President and Chief Executive Ron Green. Under the new tax law, Oregon Pacific had to make a one-time accounting change of $508,029 related to its deferred tax assets, he said.
However, the bank expects to earn that amount back this year because of the new tax law’s reduction in the bank’s federal income tax rate, Green said.
In November, Oregon Pacific issued 2.4 million shares of common stock in a primary offering for $4.60 a share. After expenses, the offering raised $10.8 million for the bank, Green said.
The bank plans to leverage those funds with its existing and projected deposit growth to provide local businesses with $125 million in loans, much of it in the Eugene market, he said. “This capital enhancement will create an initial dilution of earnings per share, but we are working diligently to hire the best bankers and expand our community presence in the Eugene area,” he said.
In 2017, deposits grew 12.5 percent, reaching $221 million, the bank reported. Loans increased to $190 million, up 21 percent from the previous year, the bank said.
Oregon Pacific Bancorp stock is publicly traded under the ticker symbol ORPB on the OTC-Pink Open Market. The lightly traded stock last sold at $4.76 a share, according to otcmarkets.com. During the past 52 weeks, the stock has traded between $4.04 and $4.90 a share.
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