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Oak Ridge Financial Services Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 14, 2009 10:19AM
Oak Ridge Financial Services Inc. (BKOR) filed Quarterly Report for the period ended 2009-06-30. Bank of Oak Ridge 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 and accounts designed specifically for seniors small businesses and civic organizations. Oak Ridge Financial Services Inc. has a market cap of $11.2 million; its shares were traded at around $6.25 with a P/E ratio of 11.6 and P/S ratio of 0.6.
Highlight of Business Operations:
For the three months ended June 30, 2009, the Companys net income decreased 37 percent to $242,000 compared to $384,000 for the same period in 2008. Net income available to common stockholders decreased 80 percent to $78,000 in 2009 compared to $384,000 in 2008. Net income per diluted share decreased 50 percent to $0.04 compared to $0.08 for the prior year period. Returns on average assets and average equity were 0.36 percent and 2.97 percent, respectively, for the three months ended June 30, 2009, compared to 0.53 percent and 8.80 percent for the three months ended June 30, 2008.
For the six months ended June 30, 2009, the Companys net income decreased 23 percent to $342,000 compared to $445,000 for the same period in 2008. Net income available to common stockholders decreased 84 percent to $70,000 in 2009 compared to $445,000 in 2008. Net income per diluted share decreased 50 percent to $0.04 compared to $0.08 for the prior year period. Returns on average assets and average equity were 0.20 percent and 2.12 percent, respectively, for the six months ended June 30, 2009, compared to 0.32 percent and 5.08 percent for the prior year period.
FDIC assessment expense for the six months ended June 30, 2009 was $292,000 reflecting a $180,000 increase when compared to $112,000 for the same period in 2008. The FDIC mandated a special assessment for all financial institutions in the second quarter of 2009 equivalent to 5 basis points on total assets minus tier one capital. For the Bank the special assessment amounted to $162,000. The FDIC has not determined if additional special assessments will be required of all banks in a future period.
Total assets increased to $350.1 million at June 30, 2009, or 9 percent, from $320.7 million at December 31, 2008. The primary contributors to the growth between the two periods were increases in cash and due from banks, available-for-sale securities, loans receivable, and property and equipment of $8.7 million, $19.6 million, $1.0 million, and $2.0 million, respectively.
Borrowings, which consist of short and long-term debt, and junior subordinated notes related to trust preferred securities, totaled $23.2 million at June 30, 2009, down $7.0 million, or 23 percent, from $30.2 million at December 31, 2008. The increase in deposits noted above provided the Bank with additional liquidity to repay a FHLB of Atlanta advance of $7.0 million at maturity.
Stockholders equity totaled $27.0 million at June 30, 2009, up approximately $8.8 million, or 48.6 percent, from $18.2 million at December 31, 2008. The majority of the increase was due to the issuance of $7.7 million in preferred stock and warrants to the U.S. Treasury as part of its Capital Purchase Program, as well as an increase in accumulated other comprehensive income of $916,000 from December 31, 2008 to June 30, 2009. Net income of $342,000 for the six months ended June 30, 2009 also contributed to the increase, with the remaining decrease due to preferred stock dividends of $112,000 during the six-month period ended June 30, 2009.
Stocks Discussed: BKOR,