New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Oak Ridge Financial Services Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 14, 2012 03:06PM

Oak Ridge Financial Services Inc. (BKOR) filed Quarterly Report for the period ended 2012-09-30. Oak Ridge Financial Services has a market cap of $7.9 million; its shares were traded at around $4.35 with and P/S ratio of 0.4.



Highlight of Business Operations:

Interest income decreased $414 thousand or 9.7% for the three months ended September 30, 2012 compared to the same three months of 2011. The decrease for the three months ended September 30, 2012 is primarily due to decreases on rates earned on these assets. The yield on average earning assets decreased 47 basis points for the three months ending September 30, 2012 to 5.19% from the same period in 2011. Management attributes the decrease in the yield on our earning assets to the decline in offering rates on new and renewed loans, as well as a decrease in the yield on investment securities.

Interest income decreased $1.1 million or 8.6% for the nine months ended September 30, 2012 compared to the same nine months of 2011. The decrease for the nine months ended September 30, 2012 is primarily due to decreases on rates earned on these assets. The yield on average earning assets decreased 50 basis points for the nine months ending September 30, 2012 to 5.29% from the same period in 2011. Management attributes the decrease in the yield on our earning assets to the decline in offering rates on new and renewed loans, as well as a decrease in the yield on investment securities.

Noninterest income increased $86 thousand or 10.3% to $922 thousand for the three months ended September 30, 2012 compared to $836 thousand for the same period in 2011. The increase in noninterest income in the three months ended September 30, 2012 is primarily due to increases in service charge on deposit accounts, gain (loss) on sale of equipment, mortgage loan origination fees, and debit card interchange income, offset by decreases in investment and insurance commissions. Service charges on deposit accounts increased $78 thousand for the three months ended September 30, 2012 as compared to the same period in 2011. The primary reasons for the increase were increases in non-sufficient funds fees and service charges and related fees on deposit accounts. Gain on sale of equipment was $51 thousand in the three months ended September 30, 2012 with no gains during the same period in 2011. The gain on sale of equipment in 2012 was a result of the sale of equipment to the Bank s former wealth management division in the third quarter of 2012. Mortgage loan origination fees increased $142 thousand for the three months ended September 30, 2012 as compared to the same period in 2011. The primary reason for this increase were new mortgage loan officers hired near the end of 2011 that were more productive than those employed by the Bank during the three months ended September 30, 2011, as well as an increase in the mortgage refinancing demand in 2012 compared to 2011. Debit card interchange income increased $39 thousand for the three months ended September 30, 2012 as compared to the same period in 2011. The primary reason for the increase was the continued growth of consumer checking accounts with debit cards at the Bank during 2011 and the first nine months of 2012. Investment and insurance commissions decreased $228 thousand for the three months ended September 30, 2012 as compared to the same periods in 2011. The declines were due to the sale of the Bank s wealth management division on July 1, 2012. On July 1, 2012, the Bank entered into an alliance agreement with the wealth management division whereby the Bank gets a percentage of gross revenue generated from the non-deposit product sales. Along with the agreement, the Bank will incur no expenses related to the wealth management division after July 1, 2012.

Noninterest income increased $63 thousand or 2.3% to $2.9 million for the nine months ended September 30, 2012 compared to $2.8 million for the same period in 2011. The increase in noninterest income in the nine months ended September 30, 2012 is primarily due to gain (loss) on sale of equipment, mortgage loan origination fees, debit card interchange income, and other service charges and fees, offset by decreases in gain on sale of securities, investment and insurance commissions, and fee income from accounts receivable financing. Gain(loss) on sale of equipment were $58 thousand in the nine months ended September 30, 2012 with a loss of $4 thousand during the same period in 2011. The gain on sale of equipment in 2012 was a result of the sale of equipment to the Bank s former wealth management division in the third quarter of 2012. Mortgage loan origination fees increased $325 thousand for the nine months ended September 30, 2012 as compared to the same period in 2011. The primary reason for this increase were new mortgage loan officers hired near the end of 2011 that were more productive than those employed by the Bank during the nine months ended September 30, 2011, as well as an increase in the mortgage refinancing demand in 2012 compared to 2011. Debit card interchange income increased $130 thousand for the nine months ended September 30, 2012 as compared to the same period in 2011. The primary reason for the increase was the continued growth of consumer checking accounts with debit cards at the Bank during 2011 and the first nine months of 2012. Other service charges and fees increased by $50 thousand for the nine months ended September 30, 2012 as compared to the same period in 2011. The primary reason for the increase was a reimbursement in excess of actual expenses from a previously charged off loan. Gain on sale of securities was $258 thousand for the nine months ended September 30, 2012. The Bank had no sales of investment securities in the first nine months of 2011. Investment and insurance commissions decreased $157 thousand for the nine months ended September 30, 2012 as compared to the same periods in 2011. The declines were due to the sale of the Bank s wealth management division on July 1, 2012. On July 1, 2012, the Bank entered into an alliance agreement with the wealth management division whereby the Bank gets a percentage of gross revenue generated from the non-deposit product sales. Along with the agreement, the Bank will incur no expenses related to the wealth management division after July 1, 2012. Fee income from accounts receivable financing decreased $76 thousand for the nine months ended September 30, 2012 as compared to the same period in 2011. The primary reason for the decrease was lower receivables of existing clients and fewer clients in 2012 as compared to 2011.

Read the The complete Report



Stocks Discussed: BKOR,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial