Bank of Oak Ridge Records its First Annual Profit.Business Editors OAK RIDGE Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. , N.C.--(BUSINESS WIRE)--Feb. 12, 2003 Today Bank of Oak Ridge, which began operations about 33 months ago, reported its first full year of profitability. Net income was $7,000 and $101,000 for the three and twelve month periods, respectively, ending December December: see month. 31, 2002, with earnings per share of $0.01 and $0.16 for the three and twelve month periods, respectively. Bank of Oak Ridge President, Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Black, noted, "The first full year of profitability is yet another exciting milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. in the life of our community bank. Our positive financial performance, combined with the anticipated grand openings of our Oak Ridge and Summerfield Summerfield is the name of some places in the United States of America:
Please [ improve this article] or discuss the issue on the talk page. that exceed our customers expectations." Loans, deposits and investments all increased significantly from December 31, 2001 to December 31, 2002. Loans, which are the greatest source of income for the Bank, increased 54.9% from December 31, 2001 to $36.1 million at December 31, 2002. Investments increased 56.7% to $24.2 million during the same period of time. Deposits, which fund loan and investment growth, increased 80.0% from December 31, 2001 to $44.0 million at December 31, 2002. Borrowed funds, which were $12.5 million at December 31, 2002, also helped fund the growth in earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin from 2001 to 2002. Total interest income for the three months ended December 31, 2002 increased 45.2%, compared to the same period in 2001, and for the twelve months ended December 31, 2002 increased 55.6% compared to the same period in 2001. Interest expense increased at a smaller rate of 28.8% and 23.5% for the three and twelve-month periods, respectively, compared to the same periods in 2001, which contributed to an increase in the Bank's net interest margin before provision for loan loss in the three and twelve-month periods ending December 31, 2002 of 83.7% and 101.6%, respectively, compared to the same three and twelve-month periods in 2001. Another factor contributing to the bank's fourth quarterly and first annual profit was a decrease in the provision for loan loss in the three and twelve-month periods ending December 31, 2002 of 49.2% and 57.2%, respectively, compared to the same periods in 2001. In management's opinion, the decline in the provision is warranted given the satisfactory loan loss and past due experience of the bank's loan portfolio since the Bank began operations in April of 2000. In the three and twelve-month periods ending December 31, 2002, non-interest operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 119.7% and 72.2%, respectively, compared to the same periods in 2001. Lastly, non-interest operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. increased 42.2% and 23.0% in the three and twelve-month periods, respectively, compared to the same periods in 2001. Bank of Oak Ridge is the area's only locally owned community bank and offers a complete line of banking services, including savings and checking accounts, mortgage and business loans, Saturday Saturday: see week; Sabbath. hours, same-day deposits, online banking, online bill payment 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.
Bank of Oak Ridge Selected Financial Data
Quarter ended
(dollars in thousands, except per December 31,
share data) 2002 2001 % Change
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Statement of Income
Interest on investments $274 $129 112.4%
Interest on loans 546 376 45.2%
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Total interest income 820 505 62.4%
Interest on deposits 300 233 28.8%
Interest on other interest-bearing
liabilities 57 20 185.0%
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Total interest expense 357 253 41.1%
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Net interest margin before
provision for loan loss 463 252 83.7%
Provision for loan loss 32 63 (49.2%)
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Net interest margin after
provision for loan loss 431 189 128.0%
Total non-interest operating
income 145 66 119.7%
Total non-interest operating
expense 590 415 42.2%
Total non-operating income 21 - N/A
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Net Income (loss) before taxes 7 (160) NM
Income taxes - - N/A
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Net Income (loss) after taxes $7 $(160) NM
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Basic and fully diluted earnings
(loss) per share $0.01 $(0.26) NM
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Bank of Oak Ridge Selected Financial Data
Year ended
(dollars in thousands, except per December 31,
share data) 2002 2001 % Change
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Statement of Income
Interest on investments $1,021 $448 127.9%
Interest on loans 1,965 1,263 55.6%
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Total interest income 2,986 1,711 74.5%
Interest on deposits 1,055 854 23.5%
Interest on other interest-bearing
liabilities 244 20 1120.0%
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Total interest expense 1,299 874 48.6%
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Net interest margin before
provision for loan loss 1,687 837 101.6%
Provision for loan loss 98 229 (57.2%)
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Net interest margin after
provision for loan loss 1,589 608 161.3%
Total non-interest operating income 384 223 72.2%
Total non-interest operating expense 1,924 1,564 23.0%
Total non-operating income 52 20 160.0%
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Net Income (loss) before taxes 101 (713) NM
Income taxes - - N/A
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Net Income (loss) after taxes $101 $(713) NM
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Basic and fully diluted earnings
(loss) per share $0.16 $(1.17) NM
As of December 31,
(Dollars in thousands) 2002 2001 % Change
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Balance Sheet
Assets
Investments $24,169 $15,425 56.7%
Loans 36,122 23,323 54.9%
Allowance for Loan Loss (443) (350) 26.6%
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Net Loans 35,679 22,973 55.3%
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Total Earning Assets 59,848 38,398 55.9%
Non-interest earning assets 2,931 1,067 174.7%
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Total Assets $62,779 $39,465 59.1%
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Liabilities and Stockholders' Equity
Deposits $43,953 $24,425 80.0%
Other interest-bearing
liabilities 12,500 10,000 25.0%
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Total interest-bearing
liabilities 56,453 34,425 64.0%
Non-interest bearing liabilities 246 107 129.9%
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Total liabilities 56,699 34,532 64.2%
Total stockholders' equity 6,080 4,933 23.3%
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Total liabilities and stockholders'
equity $62,779 $39,465 59.1%
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Balance Sheet Ratios
Investments to assets 38.50% 39.09%
Loans to assets 57.54% 59.10%
Loans to deposits 82.18% 95.49%
Allowance for loan loss to loans 1.23% 1.50%
Earning assets to assets 95.33% 97.30%
Deposits to assets 70.01% 61.89%
Other interest-bearing
liabilities to assets 19.91% 25.34%
Stockholders' equity to total
assets 9.68% 12.50%
N/A - Not applicable, NM - Not meaningful
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