{"success":true,"data":{"pressRelease":{"id":"3673","rtpr_id":"nBw2xbLhNa","ticker":"ORPB","exchange":"OTC","all_tickers":["ORPB"],"title":"Oregon Pacific Bancorp Announces First Quarter 2026 Earnings Results","author":"Business Wire","published_at":"2026-04-21T20:30:00.347Z","article_body":"Oregon Pacific Bancorp Announces First Quarter 2026 Earnings Results\n\nHighlights:\n\n\n * Quarterly tax equivalent net interest margin of 4.13%, expansion of 0.17% over\nprior quarter.\n\n * Quarterly deposit growth of $7.3 million, despite retiring $10 million of\nbrokered deposits.\n\n * First quarter net income of $2.4 million; $0.33 per diluted share.\n\n * Quarterly return on average assets of 1.18%.\n\n * Announced the pending retirement of Ron Green, scheduled later in 2026. Amber\nWhite has been named as successor.\n\n * Named one of the 100 Best Companies to work for in Oregon, by Oregon Business\nMagazine.\n\nOregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank,\ntoday reported net income of $2.4 million, or $0.33 per diluted share, for the\nquarter ended March 31, 2026, compared to $2.7 million or $0.37 per diluted\nshare for the quarter ended December 31, 2025. “Our first quarter results\ndemonstrate the benefit of our disciplined approach to credit and pricing,\ndriving our sixth consecutive quarter of margin expansion,” said Ron Green,\nCEO. “This sustained performance positions us well as we continue to serve\nour local business and nonprofit clients.”\n\nThe Bank’s first quarter net interest margin increased to 4.13%, up from\n3.96% reported in the fourth quarter of 2025. Despite the prime rate remaining\nflat during the quarter, loan originations continued to occur at a rate higher\nthan the existing portfolio yield. This contributed to an increase in the\nquarterly loan yield to 5.96%, up from 5.80% in the fourth quarter of 2025.\nQuarterly loan production for new and renewed loans totaled $27.8 million,\nwith a weighted average effective rate of 6.91% and a weighted average\nrepricing life of 2.33 years. Despite robust quarterly loan production, the\nBank experienced a modest decline in outstanding loan balances. This was\nprimarily driven by approximately $16.7 million in early loan payoffs at a\nweighted average effective rate of 5.92%. A significant portion of these\npayoffs resulted from the sale of one property, while other borrowers\nrefinanced into long-term financing through FNMA programs that offered\n30‑year fixed-rate structures without personal guarantees, which represent\nterms that fall outside the Bank’s current risk and pricing appetite.\nAssociated with the early payoffs, the Bank recognized $139 thousand in\nprepayment penalties. Additionally, amortization of deferred loan origination\nfees increased during the quarter to $139 thousand, up from $94 thousand\nduring fourth quarter, as any unamortized loan origination fees are recognized\nas an increase to interest income upon early payoff. The impact of loan\nprepayments and loan fee amortization on the margin for quarters ended March\n31, and December 31, were 14 bps and 5 bps, respectively, indicating\napproximately 9 bps of the 17 bps quarterly margin expansion during first\nquarter 2026 was tied to nonrecurring prepayment activity.\n\nPeriod-end deposits totaled $706.7 million, reflecting quarterly growth of\n$7.3 million, despite the redemption of $10 million of callable brokered CDs\nretired during the quarter. These brokered deposits were evenly split between\nJanuary 2027 and January 2029 maturity dates, and both carried a 5.0% rate.\nWhile the call option was purchased at a premium versus non-call brokered CD\nfunding, the optionality ultimately provided the Bank the opportunity to\neliminate high-cost funding in tandem with core deposit growth. The brokered\nCDs were retired on March 27(th), thus most of the quarter over quarter\nbenefit will not be realized until the second quarter of 2026. At current\nmarket rates, the original brokered CD maturities could be replaced at\napproximately 4.0%, representing reduced interest expense if it was deemed\nappropriate to replace the noncore funding in the future.\n\nClassified assets on March 31, 2026, totaled $10.6 million, and reflected a\ndecrease of $2.5 million from the fourth quarter of 2025. Classified assets\nare defined as loans and loan contingent liabilities internally graded\nsubstandard or worse, impaired loans, adversely classified securities and\nother real estate owned. The reduction in classified assets was primarily\nattributable to upgrades for two commercial and industrial loan relationships,\ntotaling $2.2 million and $1 million, respectively. Partially offsetting these\nimprovements was the downgrade of an owner-occupied nonprofit relationship\ntotaling $1.8 million. The primary collateral is an owner-occupied building\nwith a loan-to-value of less than 50%. Financial operations are expected to\nstabilize based on 2026 operating budgets with no loss anticipated for the\nBank. On March 31, 2026, nonperforming loans totaled $2.1 million,\nrepresenting a quarterly decrease of $246 thousand, which was directly tied to\na charge off recorded during the quarter. First quarter provision for credit\nlosses on loans totaled $37 thousand, while the provision for unfunded\ncommitments reflected a credit of $30 thousand. The modest increase in\nprovision was a product of essentially flat loan balances versus December\n2025, in conjunction with stable asset quality metrics.\n\nFirst quarter noninterest income fell to $2.1 million, reflecting a $221\nthousand decrease compared to the prior quarter. The most significant change\nobserved was a $196 thousand reduction in trust fee income primarily due to\nthe normalization of transactional revenue. While quarter ended March 31, 2026\ntrust fees declined versus prior quarter, quarter ended December 31, 2025\nbenefitted from relative spikes due to fees from real estate transactions. As\nof March 31, 2026, trust AUM increased to $307.6 million, reflecting a\nquarterly gain of $9.9 million and an annual increase of $40.2 million or\n15.1% from March 31, 2025. Trust services continue to be a valuable source of\nnoninterest income which the Bank anticipates continuing to grow throughout\n2026.\n\nIn the first quarter of 2026, noninterest expense totaled $6.8 million,\nreflecting an increase of $471 thousand compared to the previous quarter. The\nlargest expense fluctuation occurred in the salaries and employee benefits\ncategory, which grew $306 thousand from the prior quarter, accounting for most\nof the quarterly variance. Additionally, Outside Services and Other Operating\nExpense grew $77 thousand and $55 thousand over prior quarter, based upon\nbackloaded accounting fees and nonprofit sponsorship activity, respectively.\nBelow is a summary of the quarterly salaries and benefits expense detail.\n THREE MONTHS ENDED \n March 31,   December 31, \n   2026       2025   Change \n Employee salaries $ 2,627   $ 2,725   $ (98 ) \n Employee bonuses   364     132     232   \n Payroll taxes   310     224     86   \n FAS91 contra   (148 )   (177 )   29   \n Employee benefits   765     708     57   \n $ 3,918   $ 3,612   $ 306   \n\n\nThe largest quarterly increase was attributable to bonus compensation expense,\nwhich is tied to projected year end performance and is adjusted quarterly\nbased on the forecasted achievement. The fourth quarter of 2025 saw a\nreduction in bonus expense largely due to a year-end true up, with quarter\nended March 31 representing a normalized run rate, resulting in an increase of\n$232 thousand on a linked quarter basis. The Bank also experienced a quarterly\nincrease of $86 thousand in payroll tax expense. Payroll tax counters are\ngenerally reset on a calendar basis, therefore, tax expense at the beginning\nof the year is typically higher and then decreases over the course of the year\nas employees reach wage caps. Lastly, the Bank also saw a $57 thousand\nincrease in employee benefits expenses, primarily attributable to an increase\nin the Bank’s medical insurance, which increased $64 thousand over the prior\nquarter due to annual increases from the Bank’s medical insurance provider.\nPartially offsetting the above quarter over quarter increases was a $99\nthousand reduction in salary expense, driven by normal turnover.\n CONSOLIDATED BALANCE SHEETS \n Unaudited (dollars in thousands) \n   \n March 31,   December 31,   March 31, \n   2026       2025       2025   \n ASSETS \n Cash and due from banks $ 9,059   $ 11,722   $ 12,042   \n Interest bearing deposits   39,074     16,663     27,625   \n Securities   145,679     155,159     145,610   \n Loans, net of deferred fees and costs   598,656     599,636     582,939   \n Allowance for credit losses   (8,028 )   (8,237 )   (7,400 ) \n Premises and equipment, net   12,888     13,022     13,193   \n Bank owned life insurance   10,555     10,472     10,223   \n Other real estate owned   157     157     -   \n Deferred tax asset   4,491     4,384     4,911   \n Other assets   8,729     9,238     8,485   \n   \n Total assets $ 821,260   $ 812,216   $ 797,628   \n   \n   \n LIABILITIES \n Deposits \n Demand - non-interest bearing $ 154,248   $ 152,937   $ 153,956   \n Demand - interest bearing   293,268     279,014     276,594   \n Money market   143,690     142,499     140,373   \n Savings   67,890     66,534     67,566   \n Certificates of deposit   47,564     48,366     46,825   \n Brokered deposits   -     10,001     10,001   \n Total deposits   706,660     699,351     695,315   \n FHLB borrowings   7,500     7,500     7,500   \n Junior subordinated debenture   4,124     4,124     4,124   \n Subordinated debenture   14,952     14,927     14,852   \n Other liabilities   8,225     8,502     7,544   \n   \n Total liabilities   741,461     734,404     729,335   \n   \n STOCKHOLDERS' EQUITY \n Common stock   21,821     21,923     21,612   \n Retained earnings   62,554     60,176     53,287   \n Accumulated other comprehensive income, net of tax   (4,576 )   (4,287 )   (6,606 ) \n   \n Total stockholders' equity   79,799     77,812     68,293   \n   \n Total liabilities & stockholders' equity $ 821,260   $ 812,216   $ 797,628   \n   \n\n CONSOLIDATED STATEMENTS OF INCOME \n Unaudited (dollars in thousands, except per share data) \n THREE MONTHS ENDED \n March 31, December 31, March 31, \n 2026     2025     2025 \n INTEREST INCOME \n Loans $ 8,792 $ 8,704   $ 7,859 \n Securities   1,360   1,441     1,279 \n Other interest income   273   386     261 \n Total interest income   10,425   10,531     9,399 \n   \n INTEREST EXPENSE \n Deposits   2,166   2,290     2,306 \n Borrowed funds   299   308     304 \n Total interest expense   2,465   2,598     2,610 \n   \n NET INTEREST INCOME   7,960   7,933     6,789 \n Provision for credit losses on loans   37   346     - \n Provision (credit) for unfunded commitments   30   (15 )   - \n Net interest income after provision for credit losses   7,893   7,602     6,789 \n   \n NONINTEREST INCOME \n Trust fee income   1,080   1,276     1,198 \n Service charges   398   396     373 \n Mortgage loan sales   1   1     7 \n Merchant card services   126   144     117 \n Oregon Pacific Wealth Management income   345   358     339 \n Other income   120   116     109 \n Total noninterest income   2,070   2,291     2,143 \n   \n NONINTEREST EXPENSE \n Salaries and employee benefits   3,918   3,612     3,993 \n Outside services   804   727     702 \n Occupancy & equipment   557   547     517 \n Trust expense   716   716     742 \n Loan and collection, OREO expense   23   19     14 \n Advertising   107   96     91 \n Supplies and postage   68   60     70 \n Other operating expenses   584   529     591 \n Total noninterest expense   6,777   6,306     6,720 \n   \n Income before taxes   3,186   3,587     2,212 \n Provision for income taxes   808   921     528 \n   \n NET INCOME $ 2,378 $ 2,666   $ 1,684 \n   \n\n Quarterly Highlights \n 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter \n   2026       2025       2025       2025       2025   \n   \n Earnings \n Interest income $ 10,425   $ 10,531   $ 10,405   $ 9,747   $ 9,399   \n Interest expense   2,465     2,598     2,685     2,553     2,610   \n Net interest income $ 7,960   $ 7,933   $ 7,720   $ 7,194   $ 6,789   \n Provision for credit losses on loans   37     346     505     164     -   \n Provision (credit) for unfunded commitments   30     (15 )   123     -     -   \n Noninterest income   2,070     2,291     2,185     2,086     2,143   \n Noninterest expense   6,777     6,306     6,313     6,490     6,698   \n Provision for income taxes   808     921     752     617     550   \n Net income $ 2,378   $ 2,666   $ 2,212   $ 2,009   $ 1,684   \n   \n Average shares outstanding   7,171,523     7,163,160     7,163,503     7,164,363     7,151,365   \n Average diluted shares outstanding   7,196,169     7,188,902     7,189,245     7,190,105     7,170,304   \n Period end shares outstanding   7,179,876     7,162,985     7,163,503     7,164,144     7,164,470   \n Period end diluted shares outstanding   7,203,449     7,188,727     7,189,245     7,189,886     7,190,212   \n Earnings per share $ 0.33   $ 0.37   $ 0.31   $ 0.28   $ 0.24   \n Diluted earnings per share $ 0.33   $ 0.37   $ 0.31   $ 0.28   $ 0.23   \n   \n Performance Ratios \n Return on average assets   1.18 %   1.27 %   1.06 %   1.02 %   0.87 % \n Return on average equity   12.65 %   14.90 %   12.58 %   11.85 %   10.42 % \n Net interest margin - tax equivalent   4.13 %   3.96 %   3.88 %   3.85 %   3.67 % \n Yield on loans   5.96 %   5.80 %   5.73 %   5.65 %   5.53 % \n Yield on securities   3.59 %   3.46 %   3.45 %   3.39 %   3.41 % \n Cost of deposits   1.25 %   1.26 %   1.31 %   1.31 %   1.36 % \n Cost of interest-bearing liabilities   1.73 %   1.76 %   1.83 %   1.86 %   1.88 % \n Efficiency ratio   67.57 %   61.68 %   63.73 %   69.94 %   75.24 % \n Full-time equivalent employees   144     149     146     146     148   \n   \n Capital \n Tier 1 capital $ 91,689   $ 91,828   $ 91,563   $ 91,437   $ 90,548   \n Leverage ratio   11.16 %   10.96 %   10.99 %   11.52 %   11.40 % \n Common equity tier 1 ratio   14.65 %   14.69 %   14.65 %   14.82 %   14.84 % \n Tier 1 risk based ratio   14.65 %   14.69 %   14.65 %   14.82 %   14.84 % \n Total risk based ratio   15.90 %   15.94 %   15.91 %   16.07 %   16.10 % \n Book value per share $ 11.13   $ 10.86   $ 10.39   $ 9.93   $ 9.53   \n\n Quarterly Highlights \n 1st Quarter   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter \n   2026       2025       2025       2025       2025   \n   \n Asset quality \n Allowance for credit losses (ACL) $ 8,028   $ 8,237   $ 7,891   $ 7,388   $ 7,400   \n Nonperforming loans (NPLs) $ 2,092   $ 2,338   $ 495   $ 495   $ 801   \n Nonperforming assets (NPAs) $ 2,248   $ 2,494   $ 652   $ 652   $ 801   \n Classified Assets( (1)) $ 10,635   $ 13,119   $ 14,391   $ 11,271   $ 10,550   \n Net loan charge offs (recoveries) $ 246   $ -   $ 1   $ 176   $ -   \n ACL as a percentage of net loans   1.34 %   1.37 %   1.33 %   1.25 %   1.27 % \n ACL as a percentage of NPLs   383.81 %   352.31 %   1594.14 %   1492.53 %   923.85 % \n Net charge offs (recoveries) to average loans   0.04 %   0.00 %   0.00 %   0.03 %   0.00 % \n Net NPLs as a percentage of total loans   0.35 %   0.40 %   0.08 %   0.08 %   0.14 % \n Nonperforming assets as a \n percentage of total assets   0.27 %   0.31 %   0.08 %   0.08 %   0.10 % \n Classified Asset Ratio ((2))   10.67 %   13.11 %   14.47 %   11.53 %   10.77 % \n Past due as a percentage of total loans   0.13 %   0.17 %   0.12 %   0.08 %   0.11 % \n   \n Off-balance sheet figures \n Unused credit commitments $ 96,198   $ 98,660   $ 108,753   $ 103,063   $ 94,843   \n Trust assets under management (AUM) $ 307,597   $ 297,701   $ 281,281   $ 288,935   $ 267,359   \n Oregon Pacific Wealth Management AUM $ 148,443   $ 154,137   $ 181,349   $ 174,724   $ 172,729   \n   \n End of period balances \n Total securities $ 145,679   $ 155,159   $ 162,012   $ 142,357   $ 145,610   \n Total short term deposits $ 39,074   $ 16,663   $ 42,274   $ 30,348   $ 27,625   \n Total loans net of allowance $ 590,628   $ 591,399   $ 586,804   $ 584,407   $ 575,539   \n Total earning assets $ 785,385   $ 773,409   $ 800,930   $ 766,445   $ 758,119   \n Total assets $ 821,260   $ 812,216   $ 837,641   $ 805,262   $ 797,628   \n Total noninterest bearing deposits $ 154,248   $ 152,937   $ 167,010   $ 162,426   $ 153,956   \n Total brokered deposits $ -   $ 10,001   $ 10,001   $ 10,001   $ 10,001   \n Total core deposits $ 706,660   $ 689,350   $ 718,395   $ 689,740   $ 685,314   \n Total deposits $ 706,660   $ 699,351   $ 728,396   $ 699,741   $ 695,315   \n   \n Average balances \n Total securities $ 151,912   $ 159,462   $ 153,603   $ 143,627   $ 150,197   \n Total short term deposits $ 30,441   $ 40,352   $ 44,423   $ 18,044   $ 23,766   \n Total loans net of allowance $ 590,420   $ 587,209   $ 584,102   $ 580,377   $ 568,635   \n Total earning assets $ 782,984   $ 796,948   $ 791,637   $ 751,538   $ 751,933   \n Total assets $ 817,928   $ 833,972   $ 827,823   $ 787,506   $ 787,201   \n Total noninterest bearing deposits $ 152,699   $ 164,736   $ 166,857   $ 158,985   $ 149,802   \n Total brokered deposits $ 9,445   $ 10,001   $ 10,001   $ 10,001   $ 10,001   \n Total core deposits $ 694,145   $ 712,607   $ 710,376   $ 672,711   $ 675,953   \n Total deposits $ 703,590   $ 722,608   $ 720,377   $ 682,712   $ 685,954   \n   \n (1) Classified assets is defined as the sum of all loan-related contingent \n liabilities and loans internally graded substandard or worse, impaired loans \n (net of government guarantees), adversely classified securities, and other \n real estate owned. \n (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. \n\n\nForward-Looking Statement Safe Harbor\n\nThis release contains “forward-looking statements” within the meaning of\nthe Private Securities Litigation Reform Act of 1995 (“PSLRA”). These\nstatements can be identified by the fact that they do not relate strictly to\nhistorical or current facts. Forward-looking statements often use words such\nas “anticipates,” “targets,” “expects,” “estimates,”\n“intends,” “plans,” “goals,” “believes” and other similar\nexpressions or future or conditional verbs such as “will,” “should,”\n“would” and “could.” The forward-looking statements made represent\nOregon Pacific Bank’s current estimates, projections, expectations, plans or\nforecasts of its future results and revenues, including but not limited to\nstatements about performance, loan or deposit growth, loan prepayments,\ninvestment purchases, investment yields, strategic focus, capital position,\nliquidity, credit quality, special asset liquidation, noninterest income,\nnoninterest expense and credit quality trends. These statements are not\nguarantees of future results or performance and involve certain risks,\nuncertainties and assumptions that are difficult to predict and are often\nbeyond Oregon Pacific Bank’s control. Actual outcomes and results may differ\nmaterially from those expressed in, or implied by, any of these\nforward-looking statements. You should not place undue reliance on any\nforward-looking statement and should consider all of the following\nuncertainties and risks. Oregon Pacific Bancorp undertakes no obligation to\npublicly revise or update any forward-looking statement to reflect the impact\nof events or circumstances that arise after the date of this release. This\nstatement is included for the express purpose of invoking the PSLRA’s safe\nharbor provisions.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260421947986/en/\n(https://www.businesswire.com/news/home/20260421947986/en/)\n\nEditorial Contact:\n\nRon Green, Chief Executive Officer\n\nron.green@opbc.com \n(mailto:ron.green@opbc.com) \n(541) 902-9800\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw2xbLhNa","title":"Oregon Pacific Bancorp Announces First Quarter 2026 Earnings Results","author":"Business Wire","ticker":"ORPB","created":"2026-04-21T20:30:00.347Z","tickers":["ORPB"],"exchange":"OTC","article_body":"Oregon Pacific Bancorp Announces First Quarter 2026 Earnings Results\n\nHighlights:\n\n\n * Quarterly tax equivalent net interest margin of 4.13%, expansion of 0.17% over\nprior quarter.\n\n * Quarterly deposit growth of $7.3 million, despite retiring $10 million of\nbrokered deposits.\n\n * First quarter net income of $2.4 million; $0.33 per diluted share.\n\n * Quarterly return on average assets of 1.18%.\n\n * Announced the pending retirement of Ron Green, scheduled later in 2026. Amber\nWhite has been named as successor.\n\n * Named one of the 100 Best Companies to work for in Oregon, by Oregon Business\nMagazine.\n\nOregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank,\ntoday reported net income of $2.4 million, or $0.33 per diluted share, for the\nquarter ended March 31, 2026, compared to $2.7 million or $0.37 per diluted\nshare for the quarter ended December 31, 2025. “Our first quarter results\ndemonstrate the benefit of our disciplined approach to credit and pricing,\ndriving our sixth consecutive quarter of margin expansion,” said Ron Green,\nCEO. “This sustained performance positions us well as we continue to serve\nour local business and nonprofit clients.”\n\nThe Bank’s first quarter net interest margin increased to 4.13%, up from\n3.96% reported in the fourth quarter of 2025. Despite the prime rate remaining\nflat during the quarter, loan originations continued to occur at a rate higher\nthan the existing portfolio yield. This contributed to an increase in the\nquarterly loan yield to 5.96%, up from 5.80% in the fourth quarter of 2025.\nQuarterly loan production for new and renewed loans totaled $27.8 million,\nwith a weighted average effective rate of 6.91% and a weighted average\nrepricing life of 2.33 years. Despite robust quarterly loan production, the\nBank experienced a modest decline in outstanding loan balances. This was\nprimarily driven by approximately $16.7 million in early loan payoffs at a\nweighted average effective rate of 5.92%. A significant portion of these\npayoffs resulted from the sale of one property, while other borrowers\nrefinanced into long-term financing through FNMA programs that offered\n30‑year fixed-rate structures without personal guarantees, which represent\nterms that fall outside the Bank’s current risk and pricing appetite.\nAssociated with the early payoffs, the Bank recognized $139 thousand in\nprepayment penalties. Additionally, amortization of deferred loan origination\nfees increased during the quarter to $139 thousand, up from $94 thousand\nduring fourth quarter, as any unamortized loan origination fees are recognized\nas an increase to interest income upon early payoff. The impact of loan\nprepayments and loan fee amortization on the margin for quarters ended March\n31, and December 31, were 14 bps and 5 bps, respectively, indicating\napproximately 9 bps of the 17 bps quarterly margin expansion during first\nquarter 2026 was tied to nonrecurring prepayment activity.\n\nPeriod-end deposits totaled $706.7 million, reflecting quarterly growth of\n$7.3 million, despite the redemption of $10 million of callable brokered CDs\nretired during the quarter. These brokered deposits were evenly split between\nJanuary 2027 and January 2029 maturity dates, and both carried a 5.0% rate.\nWhile the call option was purchased at a premium versus non-call brokered CD\nfunding, the optionality ultimately provided the Bank the opportunity to\neliminate high-cost funding in tandem with core deposit growth. The brokered\nCDs were retired on March 27(th), thus most of the quarter over quarter\nbenefit will not be realized until the second quarter of 2026. At current\nmarket rates, the original brokered CD maturities could be replaced at\napproximately 4.0%, representing reduced interest expense if it was deemed\nappropriate to replace the noncore funding in the future.\n\nClassified assets on March 31, 2026, totaled $10.6 million, and reflected a\ndecrease of $2.5 million from the fourth quarter of 2025. Classified assets\nare defined as loans and loan contingent liabilities internally graded\nsubstandard or worse, impaired loans, adversely classified securities and\nother real estate owned. The reduction in classified assets was primarily\nattributable to upgrades for two commercial and industrial loan relationships,\ntotaling $2.2 million and $1 million, respectively. Partially offsetting these\nimprovements was the downgrade of an owner-occupied nonprofit relationship\ntotaling $1.8 million. The primary collateral is an owner-occupied building\nwith a loan-to-value of less than 50%. Financial operations are expected to\nstabilize based on 2026 operating budgets with no loss anticipated for the\nBank. On March 31, 2026, nonperforming loans totaled $2.1 million,\nrepresenting a quarterly decrease of $246 thousand, which was directly tied to\na charge off recorded during the quarter. First quarter provision for credit\nlosses on loans totaled $37 thousand, while the provision for unfunded\ncommitments reflected a credit of $30 thousand. The modest increase in\nprovision was a product of essentially flat loan balances versus December\n2025, in conjunction with stable asset quality metrics.\n\nFirst quarter noninterest income fell to $2.1 million, reflecting a $221\nthousand decrease compared to the prior quarter. The most significant change\nobserved was a $196 thousand reduction in trust fee income primarily due to\nthe normalization of transactional revenue. While quarter ended March 31, 2026\ntrust fees declined versus prior quarter, quarter ended December 31, 2025\nbenefitted from relative spikes due to fees from real estate transactions. As\nof March 31, 2026, trust AUM increased to $307.6 million, reflecting a\nquarterly gain of $9.9 million and an annual increase of $40.2 million or\n15.1% from March 31, 2025. Trust services continue to be a valuable source of\nnoninterest income which the Bank anticipates continuing to grow throughout\n2026.\n\nIn the first quarter of 2026, noninterest expense totaled $6.8 million,\nreflecting an increase of $471 thousand compared to the previous quarter. The\nlargest expense fluctuation occurred in the salaries and employee benefits\ncategory, which grew $306 thousand from the prior quarter, accounting for most\nof the quarterly variance. Additionally, Outside Services and Other Operating\nExpense grew $77 thousand and $55 thousand over prior quarter, based upon\nbackloaded accounting fees and nonprofit sponsorship activity, respectively.\nBelow is a summary of the quarterly salaries and benefits expense detail.\n THREE MONTHS ENDED \n March 31,   December 31, \n   2026       2025   Change \n Employee salaries $ 2,627   $ 2,725   $ (98 ) \n Employee bonuses   364     132     232   \n Payroll taxes   310     224     86   \n FAS91 contra   (148 )   (177 )   29   \n Employee benefits   765     708     57   \n $ 3,918   $ 3,612   $ 306   \n\n\nThe largest quarterly increase was attributable to bonus compensation expense,\nwhich is tied to projected year end performance and is adjusted quarterly\nbased on the forecasted achievement. The fourth quarter of 2025 saw a\nreduction in bonus expense largely due to a year-end true up, with quarter\nended March 31 representing a normalized run rate, resulting in an increase of\n$232 thousand on a linked quarter basis. The Bank also experienced a quarterly\nincrease of $86 thousand in payroll tax expense. Payroll tax counters are\ngenerally reset on a calendar basis, therefore, tax expense at the beginning\nof the year is typically higher and then decreases over the course of the year\nas employees reach wage caps. Lastly, the Bank also saw a $57 thousand\nincrease in employee benefits expenses, primarily attributable to an increase\nin the Bank’s medical insurance, which increased $64 thousand over the prior\nquarter due to annual increases from the Bank’s medical insurance provider.\nPartially offsetting the above quarter over quarter increases was a $99\nthousand reduction in salary expense, driven by normal turnover.\n CONSOLIDATED BALANCE SHEETS \n Unaudited (dollars in thousands) \n   \n March 31,   December 31,   March 31, \n   2026       2025       2025   \n ASSETS \n Cash and due from banks $ 9,059   $ 11,722   $ 12,042   \n Interest bearing deposits   39,074     16,663     27,625   \n Securities   145,679     155,159     145,610   \n Loans, net of deferred fees and costs   598,656     599,636     582,939   \n Allowance for credit losses   (8,028 )   (8,237 )   (7,400 ) \n Premises and equipment, net   12,888     13,022     13,193   \n Bank owned life insurance   10,555     10,472     10,223   \n Other real estate owned   157     157     -   \n Deferred tax asset   4,491     4,384     4,911   \n Other assets   8,729     9,238     8,485   \n   \n Total assets $ 821,260   $ 812,216   $ 797,628   \n   \n   \n LIABILITIES \n Deposits \n Demand - non-interest bearing $ 154,248   $ 152,937   $ 153,956   \n Demand - interest bearing   293,268     279,014     276,594   \n Money market   143,690     142,499     140,373   \n Savings   67,890     66,534     67,566   \n Certificates of deposit   47,564     48,366     46,825   \n Brokered deposits   -     10,001     10,001   \n Total deposits   706,660     699,351     695,315   \n FHLB borrowings   7,500     7,500     7,500   \n Junior subordinated debenture   4,124     4,124     4,124   \n Subordinated debenture   14,952     14,927     14,852   \n Other liabilities   8,225     8,502     7,544   \n   \n Total liabilities   741,461     734,404     729,335   \n   \n STOCKHOLDERS' EQUITY \n Common stock   21,821     21,923     21,612   \n Retained earnings   62,554     60,176     53,287   \n Accumulated other comprehensive income, net of tax   (4,576 )   (4,287 )   (6,606 ) \n   \n Total stockholders' equity   79,799     77,812     68,293   \n   \n Total liabilities & stockholders' equity $ 821,260   $ 812,216   $ 797,628   \n   \n\n CONSOLIDATED STATEMENTS OF INCOME \n Unaudited (dollars in thousands, except per share data) \n THREE MONTHS ENDED \n March 31, December 31, March 31, \n 2026     2025     2025 \n INTEREST INCOME \n Loans $ 8,792 $ 8,704   $ 7,859 \n Securities   1,360   1,441     1,279 \n Other interest income   273   386     261 \n Total interest income   10,425   10,531     9,399 \n   \n INTEREST EXPENSE \n Deposits   2,166   2,290     2,306 \n Borrowed funds   299   308     304 \n Total interest expense   2,465   2,598     2,610 \n   \n NET INTEREST INCOME   7,960   7,933     6,789 \n Provision for credit losses on loans   37   346     - \n Provision (credit) for unfunded commitments   30   (15 )   - \n Net interest income after provision for credit losses   7,893   7,602     6,789 \n   \n NONINTEREST INCOME \n Trust fee income   1,080   1,276     1,198 \n Service charges   398   396     373 \n Mortgage loan sales   1   1     7 \n Merchant card services   126   144     117 \n Oregon Pacific Wealth Management income   345   358     339 \n Other income   120   116     109 \n Total noninterest income   2,070   2,291     2,143 \n   \n NONINTEREST EXPENSE \n Salaries and employee benefits   3,918   3,612     3,993 \n Outside services   804   727     702 \n Occupancy & equipment   557   547     517 \n Trust expense   716   716     742 \n Loan and collection, OREO expense   23   19     14 \n Advertising   107   96     91 \n Supplies and postage   68   60     70 \n Other operating expenses   584   529     591 \n Total noninterest expense   6,777   6,306     6,720 \n   \n Income before taxes   3,186   3,587     2,212 \n Provision for income taxes   808   921     528 \n   \n NET INCOME $ 2,378 $ 2,666   $ 1,684 \n   \n\n Quarterly Highlights \n 1st Quarter 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter \n   2026       2025       2025       2025       2025   \n   \n Earnings \n Interest income $ 10,425   $ 10,531   $ 10,405   $ 9,747   $ 9,399   \n Interest expense   2,465     2,598     2,685     2,553     2,610   \n Net interest income $ 7,960   $ 7,933   $ 7,720   $ 7,194   $ 6,789   \n Provision for credit losses on loans   37     346     505     164     -   \n Provision (credit) for unfunded commitments   30     (15 )   123     -     -   \n Noninterest income   2,070     2,291     2,185     2,086     2,143   \n Noninterest expense   6,777     6,306     6,313     6,490     6,698   \n Provision for income taxes   808     921     752     617     550   \n Net income $ 2,378   $ 2,666   $ 2,212   $ 2,009   $ 1,684   \n   \n Average shares outstanding   7,171,523     7,163,160     7,163,503     7,164,363     7,151,365   \n Average diluted shares outstanding   7,196,169     7,188,902     7,189,245     7,190,105     7,170,304   \n Period end shares outstanding   7,179,876     7,162,985     7,163,503     7,164,144     7,164,470   \n Period end diluted shares outstanding   7,203,449     7,188,727     7,189,245     7,189,886     7,190,212   \n Earnings per share $ 0.33   $ 0.37   $ 0.31   $ 0.28   $ 0.24   \n Diluted earnings per share $ 0.33   $ 0.37   $ 0.31   $ 0.28   $ 0.23   \n   \n Performance Ratios \n Return on average assets   1.18 %   1.27 %   1.06 %   1.02 %   0.87 % \n Return on average equity   12.65 %   14.90 %   12.58 %   11.85 %   10.42 % \n Net interest margin - tax equivalent   4.13 %   3.96 %   3.88 %   3.85 %   3.67 % \n Yield on loans   5.96 %   5.80 %   5.73 %   5.65 %   5.53 % \n Yield on securities   3.59 %   3.46 %   3.45 %   3.39 %   3.41 % \n Cost of deposits   1.25 %   1.26 %   1.31 %   1.31 %   1.36 % \n Cost of interest-bearing liabilities   1.73 %   1.76 %   1.83 %   1.86 %   1.88 % \n Efficiency ratio   67.57 %   61.68 %   63.73 %   69.94 %   75.24 % \n Full-time equivalent employees   144     149     146     146     148   \n   \n Capital \n Tier 1 capital $ 91,689   $ 91,828   $ 91,563   $ 91,437   $ 90,548   \n Leverage ratio   11.16 %   10.96 %   10.99 %   11.52 %   11.40 % \n Common equity tier 1 ratio   14.65 %   14.69 %   14.65 %   14.82 %   14.84 % \n Tier 1 risk based ratio   14.65 %   14.69 %   14.65 %   14.82 %   14.84 % \n Total risk based ratio   15.90 %   15.94 %   15.91 %   16.07 %   16.10 % \n Book value per share $ 11.13   $ 10.86   $ 10.39   $ 9.93   $ 9.53   \n\n Quarterly Highlights \n 1st Quarter   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter \n   2026       2025       2025       2025       2025   \n   \n Asset quality \n Allowance for credit losses (ACL) $ 8,028   $ 8,237   $ 7,891   $ 7,388   $ 7,400   \n Nonperforming loans (NPLs) $ 2,092   $ 2,338   $ 495   $ 495   $ 801   \n Nonperforming assets (NPAs) $ 2,248   $ 2,494   $ 652   $ 652   $ 801   \n Classified Assets( (1)) $ 10,635   $ 13,119   $ 14,391   $ 11,271   $ 10,550   \n Net loan charge offs (recoveries) $ 246   $ -   $ 1   $ 176   $ -   \n ACL as a percentage of net loans   1.34 %   1.37 %   1.33 %   1.25 %   1.27 % \n ACL as a percentage of NPLs   383.81 %   352.31 %   1594.14 %   1492.53 %   923.85 % \n Net charge offs (recoveries) to average loans   0.04 %   0.00 %   0.00 %   0.03 %   0.00 % \n Net NPLs as a percentage of total loans   0.35 %   0.40 %   0.08 %   0.08 %   0.14 % \n Nonperforming assets as a \n percentage of total assets   0.27 %   0.31 %   0.08 %   0.08 %   0.10 % \n Classified Asset Ratio ((2))   10.67 %   13.11 %   14.47 %   11.53 %   10.77 % \n Past due as a percentage of total loans   0.13 %   0.17 %   0.12 %   0.08 %   0.11 % \n   \n Off-balance sheet figures \n Unused credit commitments $ 96,198   $ 98,660   $ 108,753   $ 103,063   $ 94,843   \n Trust assets under management (AUM) $ 307,597   $ 297,701   $ 281,281   $ 288,935   $ 267,359   \n Oregon Pacific Wealth Management AUM $ 148,443   $ 154,137   $ 181,349   $ 174,724   $ 172,729   \n   \n End of period balances \n Total securities $ 145,679   $ 155,159   $ 162,012   $ 142,357   $ 145,610   \n Total short term deposits $ 39,074   $ 16,663   $ 42,274   $ 30,348   $ 27,625   \n Total loans net of allowance $ 590,628   $ 591,399   $ 586,804   $ 584,407   $ 575,539   \n Total earning assets $ 785,385   $ 773,409   $ 800,930   $ 766,445   $ 758,119   \n Total assets $ 821,260   $ 812,216   $ 837,641   $ 805,262   $ 797,628   \n Total noninterest bearing deposits $ 154,248   $ 152,937   $ 167,010   $ 162,426   $ 153,956   \n Total brokered deposits $ -   $ 10,001   $ 10,001   $ 10,001   $ 10,001   \n Total core deposits $ 706,660   $ 689,350   $ 718,395   $ 689,740   $ 685,314   \n Total deposits $ 706,660   $ 699,351   $ 728,396   $ 699,741   $ 695,315   \n   \n Average balances \n Total securities $ 151,912   $ 159,462   $ 153,603   $ 143,627   $ 150,197   \n Total short term deposits $ 30,441   $ 40,352   $ 44,423   $ 18,044   $ 23,766   \n Total loans net of allowance $ 590,420   $ 587,209   $ 584,102   $ 580,377   $ 568,635   \n Total earning assets $ 782,984   $ 796,948   $ 791,637   $ 751,538   $ 751,933   \n Total assets $ 817,928   $ 833,972   $ 827,823   $ 787,506   $ 787,201   \n Total noninterest bearing deposits $ 152,699   $ 164,736   $ 166,857   $ 158,985   $ 149,802   \n Total brokered deposits $ 9,445   $ 10,001   $ 10,001   $ 10,001   $ 10,001   \n Total core deposits $ 694,145   $ 712,607   $ 710,376   $ 672,711   $ 675,953   \n Total deposits $ 703,590   $ 722,608   $ 720,377   $ 682,712   $ 685,954   \n   \n (1) Classified assets is defined as the sum of all loan-related contingent \n liabilities and loans internally graded substandard or worse, impaired loans \n (net of government guarantees), adversely classified securities, and other \n real estate owned. \n (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. \n\n\nForward-Looking Statement Safe Harbor\n\nThis release contains “forward-looking statements” within the meaning of\nthe Private Securities Litigation Reform Act of 1995 (“PSLRA”). These\nstatements can be identified by the fact that they do not relate strictly to\nhistorical or current facts. Forward-looking statements often use words such\nas “anticipates,” “targets,” “expects,” “estimates,”\n“intends,” “plans,” “goals,” “believes” and other similar\nexpressions or future or conditional verbs such as “will,” “should,”\n“would” and “could.” The forward-looking statements made represent\nOregon Pacific Bank’s current estimates, projections, expectations, plans or\nforecasts of its future results and revenues, including but not limited to\nstatements about performance, loan or deposit growth, loan prepayments,\ninvestment purchases, investment yields, strategic focus, capital position,\nliquidity, credit quality, special asset liquidation, noninterest income,\nnoninterest expense and credit quality trends. These statements are not\nguarantees of future results or performance and involve certain risks,\nuncertainties and assumptions that are difficult to predict and are often\nbeyond Oregon Pacific Bank’s control. Actual outcomes and results may differ\nmaterially from those expressed in, or implied by, any of these\nforward-looking statements. You should not place undue reliance on any\nforward-looking statement and should consider all of the following\nuncertainties and risks. Oregon Pacific Bancorp undertakes no obligation to\npublicly revise or update any forward-looking statement to reflect the impact\nof events or circumstances that arise after the date of this release. This\nstatement is included for the express purpose of invoking the PSLRA’s safe\nharbor provisions.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260421947986/en/\n(https://www.businesswire.com/news/home/20260421947986/en/)\n\nEditorial Contact:\n\nRon Green, Chief Executive Officer\n\nron.green@opbc.com \n(mailto:ron.green@opbc.com) \n(541) 902-9800\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-21T20:30:00.443849328Z","server_sent_at_ms":1776803400443},"received_at":"2026-04-21T20:30:00.581Z","source_url":"https://www.businesswire.com/news/home/20260421947986/en/"},"analysis":null,"durationMs":null,"modelName":null}}