Oregon Pacific Bancorp Announces Second Quarter 2026 Earnings Results

Florence, Ore., July 23, 2026 – Oregon Pacific Bancorp (ORPB), the holding company of Oregon Pacific Bank, today reported net income of $2.8 million, or $0.38 per diluted share, for the quarter ended June 30, 2026, compared to $2.4 million or $0.33 per diluted share for the quarter ended March 31, 2026.

“Our second quarter results reflect the durable foundation built through a consistent commitment to relationship banking, responsible growth, and service to our communities,” said Amber White, President and CEO. “Much of that foundation was established under Ron Green’s leadership during his nearly 13-year tenure leading Oregon Pacific Bank, and I am grateful for the lasting legacy he leaves with our organization.”

The Bank’s second quarter net interest margin increased to 4.19%, up from 4.13% reported in the first quarter of 2026. Quarterly loan production for new and renewed loans totaled $36.7 million, with a weighted average repricing life of 2.08 years as compared to $27.8 million and 2.33 years, respectively, for the prior quarter. Strong quarterly loan production in conjunction with payoffs falling from $16.7 million to $8.4 million quarter over quarter, resulted in the Bank growing outstanding loan balances $11.1 million in the second quarter. New and renewed loans had a weighted average effective yield of 6.86% versus loan payoffs at 5.58%. Despite this directional improvement on both yield and balances, quarter over quarter yield on loans fell slightly from 5.96% to 5.89%. This was driven by a combined $277 thousand of contribution to the margin from deferred fees and prepayment penalties in the first quarter that added 19 bps to loan yields, while deferred fees and prepayments were $88 thousand in the second quarter which added 5 bps to loan yields. Adjusting for these factors results in normalized first and second quarter loan yields of 5.77% and 5.84%, respectively, indicating a continuation of the positive trends within asset yields as existing loans continue to reprice above origination rates.

Period-end deposits totaled $708.7 million, reflecting quarterly growth of $2.1 million. While net growth was modest, there was significant change in deposit mix during the quarter. Interest and non-interest bearing demand accounts increased a combined $17.8 million, while money market and savings accounts declined a combined $16.3 million. This migration of deposit balances into lower rate products as of June 30, 2026, contributed to the cost of deposits falling from 1.25% to 1.19% quarter over quarter. Further, with $10 million of 5% callable brokered CDs retired late in the first quarter, the quarter ended June 30, 2026, was the first quarter to reflect the full benefit of the improved funding mix. Total interest expense for the second quarter was $2.38 million versus prior quarter of $2.47 million, reflecting a 3.3% decrease despite .30% growth in total deposits for the quarter.

Classified assets on June 30, 2026, totaled $19.5 million, and reflected an increase of $8.9 million from the first quarter of 2026. Classified assets are defined as loans and loan contingent liabilities internally graded substandard or worse, impaired loans, adversely classified securities and other real estate owned. The increase in classified assets was attributable to downgrades for a multi-family construction project and an owner-occupied nonprofit relationship, totaling $7.4 million and $2.7 million, respectively. The multi-family construction project is approximately 85%-90% complete but has experienced significant delays and overages that are being monitored closely. Project loan-to-value ratio based on total commitment is 72% on an as-complete stabilized value based on a recent appraisal. The non-profit relationship is well secured with owner-occupied property and a loan-to-value ratio of 35%. The organization continues to be well capitalized and is actively engaged in stabilizing operations. No material losses are expected related to either relationship. Partially offsetting the downgrades was the upgrade and payoff of two owner-occupied CRE relationships totaling $889 thousand and $267 thousand, respectively. Past due loans as of June 30, 2026, were 1.30% of the total loan portfolio which represents an increase over prior quarters. The previously mentioned construction loan represents $7.0 million of $7.8 million of total past due balances outstanding. The remaining past due totals continue to be relatively low and consistent with prior quarters.

Second quarter noninterest income increased to $2.2 million, reflecting a $156 thousand increase compared to the prior quarter. The most significant change observed was a $141 thousand improvement in trust fee income primarily due to increased trust management revenue, which was only partially offset by a reduction in transactional revenue. As of June 30, 2026, Trust AUM decreased to $302.2 million, reflecting a quarterly outflow of $5.4 million with an annual increase of $13.2 million or 4.6% from June 30, 2025. Trust services continue to be a valuable source of noninterest income which the Bank anticipates continuing to grow throughout 2026.

In the second quarter of 2026, noninterest expense totaled $6.7 million, reflecting a decrease of $114 thousand compared to the previous quarter. The largest expense fluctuation occurred in the salaries and employee benefits category, which declined $121 thousand from the prior quarter, accounting for most of the quarterly variance. The largest fluctuation was attributable to payroll taxes, which decreased $66 thousand from the prior quarter. Payroll tax counters are generally reset on a calendar basis, so tax expense at the beginning of the year is typically higher, decreasing over the course of the year as employees reach wage caps.

In addition to delivering strong financial performance during the quarter, the Bank continued to build out its team to best serve clients and support long-term growth across its markets. Miguel M. Santos joined the Bank as Senior Trust & Business Development Officer, based in the Portland metropolitan area, providing the Bank with a dedicated Trust officer to support the continued expansion of its Trust and Wealth Management services in that market. The Bank also promoted Joe Carmichael to Senior Vice President, Commercial Lending Team Leader for Eugene, where he will oversee the market’s commercial lending strategy and support the continued development of the lending team. These leadership appointments reflect the Bank’s ongoing commitment to investing in experienced professionals, developing internal talent, and delivering responsive, relationship-based financial services throughout Oregon.

Forward-Looking Statement Safe Harbor

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “estimates,” “intends,” “plans,” “goals,” “believes” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could.” The forward-looking statements made represent Oregon Pacific Bank’s current estimates, projections, expectations, plans or forecasts of its future results and revenues, including but not limited to statements about performance, loan or deposit growth, loan prepayments, investment purchases, investment yields, strategic focus, capital position, liquidity, credit quality, special asset liquidation, noninterest income, noninterest expense and credit quality trends. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Oregon Pacific Bank’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks. Oregon Pacific Bancorp undertakes no obligation to publicly revise or update any forward-looking statement to reflect the impact of events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking the PSLRA’s safe harbor provisions.