Oregon Bancorp Reports Third Quarter 2018 Earnings

Quarterly Net earnings of $2.4 million, or $1.06 per common share

Net earnings increased $452,524, or 23%

Year-over-Year loan growth of 7% or $9 million and deposit growth of
21% or $34 million

SALEM, Ore.–(BUSINESS WIRE)–Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of
Willamette Valley Bank, reported net income of $2,410,129 for the third
quarter of 2018 compared to $1,957,605 during the third quarter of 2017.
This represents a 23% increase over the year ago quarter. The
improvement in quarterly net income was the result of a 7% increase in
commercial loan balances and $24 million increase in mortgage production
from the third quarter of 2017. The reduction in our effective tax rate
following the passage of the Tax Cuts and Jobs Act was also a
significant factor in our quarterly financial results.

Annualized return on assets for the quarter was 3.42% and return on
equity reached 29.71%. Total assets rose from $204 million a year ago to
$235 million, and quarterly earnings per share were $1.06 compared to
$0.88 for the same year ago period. Strong quarterly earnings improved
year-to-date return on assets to 3.60% and return on equity to 31.73%
compared to 3.00% and 25.66% during the same period in 2017. The company
declared a quarterly dividend of $0.10 per share that was paid on
October 15, 2018.

“We are pleased to see the strong financial results from the first half
of the year continue through the third quarter,” stated Neil
Grossnicklaus, President and CEO. “The third quarter was another record
quarter for the Bank which was achieved through continued commercial and
residential loan growth.”

“We continue to see earnings growth exceed our internal projections,”
commented Ryan Dempster, Chief Financial Officer. “The Bank experienced
good commercial loan growth during the quarter and liquidated the few
remaining nonperforming loan assets.”

QUARTERLY FINANCIAL REPORT – SEPTEMBER 2018
		Unaudited				Unaudited
Summary Statements of Condition		September 30, 2018				September 30, 2017
Cash and short term investments		$	48,056,051			$	26,129,480
Investments							–
Loans:
Commercial			9,956,631				7,791,936
Commercial real estate			134,829,332				127,477,891
Other			4,166,141				4,311,825
Loan loss reserve and unearned income			(1,650,280	)			(1,569,262	)
Total net loans			147,301,824				138,012,390
Loans available for sale			33,345,861				32,058,628
Property and other assets			6,806,657				8,059,626
Total assets		$	235,510,393			$	204,260,124
Deposits:
Noninterest-bearing demand		$	35,102,429			$	30,715,769
Interest-bearing demand			16,690,154				14,315,811
Savings and Money Market			48,639,166				46,533,222
Certificates of deposit			100,477,420				74,463,022
Total deposits			200,909,169				166,027,824
Other liabilities			6,744,039				15,513,863
Shareholders’ equity			27,857,185				22,718,437
Total liabilities and shareholders’ equity		$	235,510,393			$	204,260,124
Book value per share		$	12.26			$	10.21
		Unaudited				Unaudited
Summary Statements of Income		Year-to-Date September 30, 2018				Year-to-Date September 30, 2017
Interest income		$	7,450,373			$	6,022,324
Interest expense			1,223,486				709,621
Net interest income			6,226,887				5,312,703
Provision for loan losses			–				–
Noninterest income			27,389,121				22,264,655
Noninterest expense			25,581,482				20,774,323
Net income before income taxes			8,034,526				6,803,035
Provision for income taxes			2,069,147				2,613,281
Net income after income taxes		$	5,965,379			$	4,189,754
Year-to-Date Net income per share, basic		$	2.64			$	1.88

About Oregon Bancorp, Inc.

Oregon Bancorp, Inc. is the parent company of Willamette Valley Bank, a
community bank headquartered in Salem, Oregon. The Bank operates
full-service branches in Salem, Keizer, Silverton, and Albany, Oregon.
The Bank also operates Home Loan Centers in Bend, Eugene, Grants Pass,
Medford, Portland, Tualatin, and West Linn, Oregon, Spokane, Vancouver,
and Newport, Washington, and Coeur d’Alene and Meridian, Idaho. For more
information about Oregon Bancorp, Inc. or its subsidiary, Willamette
Valley Bank, please call (503)485-2221 or visit our website at www.willamettevalleybank.com.

Certain statements in this release may constitute forward-looking
statements within the definition of the “safe-harbor” provisions of
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are subject to significant uncertainties,
which could cause actual results to differ materially from those set
forth in such statements. Forward-looking statements are those that
incorporate management’s current expectations and plans based on
information currently known to them. These statements can
sometimes be identified by words such as “believe,” “estimate,”
“anticipate,” “expect,” “intend,” “will,” “may,” “should,” or other
similar phrases or words. Readers are cautioned not to place undue
reliance on forward-looking statements. In particular, they should not
be construed as assurances of a given level of performance or as
promises of a given set of management’s actions. Some of the
factors that could cause management to deviate from its current plans,
or could cause the Company’s results to differ from current
expectations, include the effect of localized or regional economic
shifts that may affect the collectability of loans or the value of the
collateral underlying those loans; the effects of laws, regulations,
policies and government actions upon the Company’s assets and
operations; sensitivity to the Northwestern Oregon geographic markets
and events affecting those markets; and the impacts of new government
initiatives upon us and our borrowers. The Company does not
intend to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date of this
release or to reflect the occurrence of unanticipated events.

Contacts

Oregon Bancorp, Inc.
Neil Grossnicklaus, 503-485-2222
President
and Chief Executive Officer
neil@wvbk.com