Q3 Net Income Flat at $2.75M as Bank Retires $15M of Subordinated Debt
ORPB sits 72% above its 52-week low of $7.28.
Summary
Net income came in at $2.75 million, or $0.38 per diluted share, essentially flat versus $2.76 million and $0.38 last quarter. The headline move is the retirement of $15 million in subordinated debt that was set to reprice from a 3.375% fixed rate to roughly 6.34%; management says that avoids about $505 thousand of additional annual interest expense, or $0.04 to $0.05 per diluted share. Deposits grew $19.3 million to $728.0 million, almost entirely from noninterest-bearing demand accounts, and cost of deposits slipped to 1.16% from 1.19%. Credit is the blemish: nonperforming loans jumped to $7.3 million from $2.1 million as a $7.0 million multi-family construction project moved to nonaccrual, and the allowance now covers just 115% of NPLs versus 385% last quarter. Classified assets did fall $4.6 million to $14.9 million and past dues dropped to 0.25% of loans from 1.30%, so the deterioration is concentrated in one credit rather than broad-based.
At the time of this announcement, ORPB was trading at $12.49 on OTC in the Finance sector, with a market capitalization of approximately $89.7M. The 52-week trading range was $7.28 to $12.84. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.