Oak Ridge Financial Services, Inc. (NASDAQ CM: BKOR), the holding
company for Bank of Oak Ridge, today reported annual 2008 net income and
diluted earnings per share of $1,038,000 and 58 cents, respectively,
compared with annual net income and diluted earnings per share of
$1,005,000 and 55 cents, respectively, for the same period in 2007. For
the fourth quarter of 2008, the company reported net income and diluted
earnings per share of $218,000 and 12 cents, compared with net income
and diluted earnings per share of $398,000 and 22 cents, respectively,
for the same period in 2007.
Oak Ridge Financial Services President, Ron Black, in commenting on the
results, noted, “We are pleased with our profitability in the fourth
quarter of 2008, and our increased annual earnings from 2007 to 2008
given the challenging economic environment we are operating in. Our
primary areas of focus for 2009 are servicing our existing loan
portfolio while supporting our local economy by taking deposits, making
loans, and providing financial advice for our clients in these difficult
times. The community was very supportive of our bank in 2008 and we had
significant increases in loans, deposits and noninterest income, and in
early 2008 we opened our fifth banking office, which was our third in
Greensboro. At December 31, 2008 we were well-capitalized with ample
capital for future growth. ”
About Bank of Oak Ridge
Bank of Oak Ridge, headquartered in Oak Ridge, NC, is a community Bank
with five locations in Oak Ridge, Summerfield and Greensboro. The Bank
offers a complete line of banking and investment services, including
savings and checking accounts, mortgage and business loans, extended
weekday and Saturday branch banking hours, same-day deposits, cash
management services, business and personal internet banking with balance
alerts and reminders, internet bill payment, mobile banking and accounts
designed specifically for seniors, small businesses and civic
organizations. For more information, contact Bank of Oak Ridge at
336-644-9944, or visit www.bankofoakridge.com.
Forward-looking Information
This form 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 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 words like “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 collectibility 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, (6) the impact of changes in monetary and fiscal policies,
laws, rules and regulations and (7) other risks and factors identified
in the Company’s other filings with the Federal Deposit Insurance
Corporation. The Company undertakes no obligation to update any
forward-looking statements.
|
Oak Ridge Financial Services, Inc.
Financial Highlights (dollars in thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
|
|
2008
|
|
|
2007
|
|
Change
|
|
|
2008
|
|
|
2007
|
|
Change
|
|
|
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
$
|
4,683
|
|
$
|
4,484
|
|
4.4
|
%
|
|
$
|
18,041
|
|
$
|
16,374
|
|
10.2
|
%
|
|
|
Total interest expense
|
|
2,295
|
|
|
2,477
|
|
(7.3
|
)
|
|
|
9,242
|
|
|
8,813
|
|
4.9
|
|
|
|
Net interest income
|
|
2,388
|
|
|
2,007
|
|
19.0
|
|
|
|
8,799
|
|
|
7,561
|
|
16.4
|
|
|
|
Provision for loan losses
|
|
266
|
|
|
175
|
|
52.0
|
|
|
|
603
|
|
|
448
|
|
34.6
|
|
|
|
Non-interest income
|
|
769
|
|
|
817
|
|
(5.9
|
)
|
|
|
3,316
|
|
|
2,564
|
|
29.3
|
|
|
|
Non-interest expense
|
|
2,557
|
|
|
2,025
|
|
26.3
|
|
|
|
9,888
|
|
|
8,141
|
|
21.5
|
|
|
|
Net income before provision for income taxes
|
|
334
|
|
|
624
|
|
(46.5
|
)
|
|
|
1,624
|
|
|
1,536
|
|
5.7
|
|
|
|
Provision for income taxes
|
|
116
|
|
|
226
|
|
(48.7
|
)
|
|
|
586
|
|
|
531
|
|
10.4
|
|
|
|
Net income
|
$
|
218
|
|
$
|
398
|
|
(45.2
|
)
|
|
$
|
1,038
|
|
$
|
1,005
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data and shares outstanding: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
$
|
0.12
|
|
$
|
0.22
|
|
(45.5
|
)%
|
|
$
|
0.58
|
|
$
|
0.56
|
|
3.6
|
%
|
|
|
Diluted net income per share
|
|
0.12
|
|
|
0.22
|
|
(45.5
|
)
|
|
|
0.58
|
|
|
0.55
|
|
5.5
|
|
|
|
Book value at period end
|
|
10.16
|
|
|
9.87
|
|
2.9
|
|
|
|
10.16
|
|
|
9.87
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding (000's):
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,791.5
|
|
|
1,791.5
|
|
-
|
%
|
|
|
1,791.5
|
|
|
1,790.5
|
|
0.1
|
%
|
|
|
Diluted
|
|
1,791.5
|
|
|
1,799.4
|
|
(0.4
|
)
|
|
|
1,791.5
|
|
|
1,827.5
|
|
(2.0
|
)
|
|
|
Shares outstanding at period end
|
|
1,791.5
|
|
|
1,791.5
|
|
-
|
|
|
|
1,791.5
|
|
|
1,791.5
|
|
-
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
Balance sheet data
|
|
|
2008
|
|
|
|
2007
|
|
Change
|
|
|
Total assets
|
|
$
|
320,672
|
|
|
$
|
262,208
|
|
22.3
|
%
|
|
Loans receivable
|
|
|
245,481
|
|
|
|
212,821
|
|
15.3
|
|
|
Allowance for loan losses
|
|
|
2,450
|
|
|
|
2,120
|
|
15.6
|
|
|
Other interest-earning assets
|
|
|
55,807
|
|
|
|
31,724
|
|
75.9
|
|
|
Noninterest bearing deposits
|
|
|
18,181
|
|
|
|
14,771
|
|
23.1
|
|
|
Total deposits
|
|
|
270,604
|
|
|
|
218,516
|
|
23.8
|
|
|
Borrowings
|
|
|
30,248
|
|
|
|
24,248
|
|
24.7
|
|
|
Stockholders' equity
|
|
|
18,195
|
|
|
|
17,685
|
|
2.9
|
|
|
|
|
Three months ended
December 31,
|
|
Year Ended
December 31,
|
|
Selected performance ratios:
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
|
Return on average assets (2)
|
|
0.27
|
%
|
|
0.63
|
%
|
|
0.35
|
%
|
|
0.44
|
%
|
|
Return on average stockholders' equity (2)
|
|
4.75
|
|
|
9.06
|
|
|
5.81
|
|
|
5.94
|
|
|
Net interest margin (2)(3)
|
|
3.19
|
|
|
3.42
|
|
|
3.67
|
|
|
3.67
|
|
|
Net interest spread (2)(4)
|
|
2.89
|
|
|
2.96
|
|
|
2.95
|
|
|
3.12
|
|
|
Noninterest income as a % of total revenue
|
|
24.4
|
|
|
28.9
|
|
|
27.4
|
|
|
25.3
|
|
|
Noninterest income as a % of average assets (2)
|
|
1.0
|
|
|
1.3
|
|
|
1.1
|
|
|
1.1
|
|
|
Efficiency ratio (5)
|
|
80.99
|
|
|
71.71
|
|
|
81.62
|
|
|
80.40
|
|
|
Noninterest expense as a % of average assets (2)
|
|
3.2
|
|
|
3.2
|
|
|
3.4
|
|
|
3.6
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
Asset quality ratios (at period end):
|
|
2008
|
|
2007
|
|
2006
|
|
Nonperforming assets to period-end loans (6)
|
|
1.09
|
%
|
|
0.18
|
%
|
|
0.22
|
%
|
|
Allowance for loan losses to period-end loans
|
|
1.00
|
|
|
1.00
|
|
|
1.07
|
|
|
Allowance for loan losses to total assets
|
|
0.76
|
|
|
0.81
|
|
|
0.82
|
|
|
Net loan charge-offs to average loans outstanding (2)
|
|
0.12
|
|
|
0.02
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
Capital and liquidity ratios:
|
|
2008
|
|
2007
|
|
2006
|
|
Equity to assets ratio
|
|
5.7
|
%
|
|
6.7
|
%
|
|
8.8
|
%
|
|
Loans to deposits
|
|
90.7
|
|
|
97.4
|
|
|
87.5
|
|
|
Oak Ridge Financial Services, Inc.
|
|
Financial Highlights (dollars in thousands, except share and per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
|
Total Revenue
|
|
2008
|
|
|
|
2007
|
|
Change
|
|
|
2008
|
|
|
|
2007
|
|
|
Change
|
|
|
Net interest income
|
$
|
2,388
|
|
|
$
|
2,007
|
|
19.0
|
%
|
|
$
|
8,799
|
|
|
$
|
7,561
|
|
|
16.4
|
%
|
|
|
Fees and other revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
230
|
|
|
|
181
|
|
27.1
|
|
|
|
805
|
|
|
|
586
|
|
|
37.4
|
|
|
|
Mortgage loan origination fees
|
|
94
|
|
|
|
111
|
|
(15.3
|
)
|
|
|
424
|
|
|
|
427
|
|
|
(0.7
|
)
|
|
|
Investment and insurance commissions
|
|
127
|
|
|
|
299
|
|
(57.5
|
)
|
|
|
814
|
|
|
|
925
|
|
|
(12.0
|
)
|
|
|
Trading income
|
|
(1
|
)
|
|
|
6
|
|
(116.7
|
)
|
|
|
(2
|
)
|
|
|
(129
|
)
|
|
n/a
|
|
|
|
Fee income from purchase of accounts receivable
|
|
182
|
|
|
|
106
|
|
71.7
|
|
|
|
743
|
|
|
|
342
|
|
|
117.3
|
|
|
|
Income earned on bank owned life insurance
|
|
42
|
|
|
|
43
|
|
(2.3
|
)
|
|
|
162
|
|
|
|
161
|
|
|
0.6
|
|
|
|
Other
|
|
95
|
|
|
|
71
|
|
33.8
|
|
|
|
370
|
|
|
|
252
|
|
|
46.8
|
|
|
|
Total noninterest income
|
|
769
|
|
|
|
817
|
|
(5.9
|
)
|
|
|
3,316
|
|
|
|
2,564
|
|
|
29.3
|
|
|
|
Total revenue
|
$
|
3,157
|
|
|
$
|
2,824
|
|
11.8
|
|
|
$
|
12,115
|
|
|
$
|
10,125
|
|
|
19.7
|
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
Noninterest Expense
|
|
|
2008
|
|
|
2007
|
|
Change
|
|
|
|
2008
|
|
|
2007
|
|
Change
|
|
|
Salaries and employee benefits
|
|
$
|
1,329
|
|
$
|
1,135
|
|
17.1
|
%
|
|
$
|
5,213
|
|
$
|
4,491
|
|
16.1
|
%
|
|
Occupancy
|
|
|
172
|
|
|
126
|
|
36.5
|
|
|
|
605
|
|
|
493
|
|
22.7
|
|
|
Equipment
|
|
|
161
|
|
|
148
|
|
8.8
|
|
|
|
600
|
|
|
555
|
|
8.1
|
|
|
Data and items processing
|
|
|
147
|
|
|
86
|
|
70.9
|
|
|
|
480
|
|
|
309
|
|
55.3
|
|
|
Professional and advertising
|
|
|
258
|
|
|
190
|
|
35.8
|
|
|
|
1,109
|
|
|
907
|
|
22.3
|
|
|
Stationary and supplies
|
|
|
55
|
|
|
41
|
|
34.1
|
|
|
|
247
|
|
|
199
|
|
24.1
|
|
|
Telecommunications expense
|
|
|
60
|
|
|
48
|
|
25.0
|
|
|
|
254
|
|
|
212
|
|
19.8
|
|
|
Other
|
|
|
375
|
|
|
251
|
|
49.4
|
|
|
|
1,380
|
|
|
975
|
|
41.5
|
|
|
Total noninterest expense
|
|
$
|
2,557
|
|
$
|
2,025
|
|
26.3
|
|
|
$
|
9,888
|
|
$
|
8,141
|
|
21.5
|
|
|
|
|
Three months ended December 31,
|
|
Year Ended December 31,
|
|
Average Balances
|
|
|
2008
|
|
|
|
2007
|
|
Change
|
|
|
|
2008
|
|
|
2007
|
|
Change
|
|
|
Total assets
|
|
$
|
316,410
|
|
|
$
|
250,381
|
|
26.4
|
%
|
|
$
|
293,157
|
|
$
|
227,232
|
|
29.0
|
%
|
|
Loans receivable
|
|
|
243,494
|
|
|
|
204,905
|
|
18.8
|
|
|
|
232,351
|
|
|
182,152
|
|
27.6
|
|
|
Allowance for loan losses
|
|
|
2,421
|
|
|
|
2,041
|
|
18.6
|
|
|
|
2,304
|
|
|
1,872
|
|
23.1
|
|
|
Other interest-earning assets
|
|
|
53,501
|
|
|
|
28,311
|
|
89.0
|
|
|
|
42,605
|
|
|
29,290
|
|
45.5
|
|
|
Total deposits
|
|
|
277,192
|
|
|
|
231,103
|
|
19.9
|
|
|
|
227,607
|
|
|
184,608
|
|
23.3
|
|
|
Borrowings
|
|
|
30,263
|
|
|
|
25,994
|
|
16.4
|
|
|
|
28,969
|
|
|
21,516
|
|
34.6
|
|
|
Stockholders' equity
|
|
|
18,195
|
|
|
|
17,434
|
|
4.4
|
|
|
|
17,815
|
|
|
16,928
|
|
5.2
|
|
(1) Computed based on the weighted average number of shares outstanding
during each period.
(2) Ratios for the three-month periods ended December 31, 2008 and 2007
are presented on an annualized basis.
(3) Net interest margin is net interest income divided by average
interest earning assets.
(4) Net interest spread is the difference between the average yield on
interest earning assets and the average cost of interest bearing
liabilities.
(5) Efficiency ratio is noninterest expense divided by the sum of net
interest income and noninterest income.
(6) Nonperforming assets consist of non-accruing loans, restructured
loans and foreclosed assets, where applicable.
Oak Ridge Financial Services, Inc.
Ron Black, President & CEO,
336-644-9944
