Oak Ridge Financial Services Inc. (BKOR, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $9 million; its shares were traded at around $5 with a P/E ratio of 8.7 and P/S ratio of 0.4.
Stationary and supplies for the three months ended March 31, 2009 was $55,000 reflecting a $7,000 decrease when compared to the $62,000 for the same period in 2008. The decrease was due to an overall awareness of Bank employees to monitor unnecessary expenses in this area, as well as a decline in paper associated with account statements due to the introduction of e-statements for customers in 2008.
FDIC assessment expense for the three months ended March 31, 2009 was $73,000 reflecting a $23,000 increase when compared to the $50,000 for the same period in 2008. The increase is largely due to the Banks growth from 2008 to 2009. On February 27, 2009, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) voted to amend the restoration plan for the Deposit Insurance Fund. The Board took action by imposing a special assessment on insured institutions of 20 basis points, implementing changes to the risk-based assessment system, and increased regular premium rates for 2009, which banks must pay on top of the special assessment. The 20 basis point special assessment on the industry will be as of June 30, 2009 payable on September 30, 2009. As a result of the special assessment and increased regular assessments, the Company projects it will experience an increase in FDIC assessment expense of approximately $840,000 from 2008 to 2009. The 20 basis point special assessment represents $600,000 of this increase. On March 5, 2009, the FDIC Chairman announced that the FDIC intends to lower the special assessment from 20 basis points to 10 basis points. The approval of the cutback is contingent on whether Congress clears legislation that would expand the FDICs line of credit with the Treasury to $100 billion. Legislation to increase the FDICs borrowing authority on a permanent basis is also expected to advance to Congress, which should aid in reducing the burden on the industry. The assessment rates, including the special assessment, are subject to change at the discretion of the Board of Directors of the FDIC.
Total assets increased to $345.3 million at March 31, 2009, or 5 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 $9.9 million, $12.8 million, $4.7 million, and $1.2 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 March 31, 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 Federal Home Loan Bank of Atlanta advance of $7.0 million at maturity.
Stockholders equity totaled $26.0 million at March 31, 2009, up approximately $7.8 million, or 43.0 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 to the U.S. Treasury as part of its Troubled Asset Relief Program Capital Purchase Program.
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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 $9 million; its shares were traded at around $5 with a P/E ratio of 8.7 and P/S ratio of 0.4.
Highlight of Business Operations:
For the three months ended March 31, 2009, the Company increased in net income 64 percent to $100,000 compared to $61,000 for the same period in 2008. The Company recorded a loss in income available to common stockholders of $8,000 in 2009 compared to income available to common stockholders of $61,000 in 2008. Net income per diluted share decreased 100 percent to $0.00 compared to $0.03 for the prior year period. Returns on average assets and average equity were 0.12 percent and 1.83 percent, respectively, for the three months ended March 31, 2009, compared to 0.09 percent and 1.39 percent for the prior year period.Stationary and supplies for the three months ended March 31, 2009 was $55,000 reflecting a $7,000 decrease when compared to the $62,000 for the same period in 2008. The decrease was due to an overall awareness of Bank employees to monitor unnecessary expenses in this area, as well as a decline in paper associated with account statements due to the introduction of e-statements for customers in 2008.
FDIC assessment expense for the three months ended March 31, 2009 was $73,000 reflecting a $23,000 increase when compared to the $50,000 for the same period in 2008. The increase is largely due to the Banks growth from 2008 to 2009. On February 27, 2009, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) voted to amend the restoration plan for the Deposit Insurance Fund. The Board took action by imposing a special assessment on insured institutions of 20 basis points, implementing changes to the risk-based assessment system, and increased regular premium rates for 2009, which banks must pay on top of the special assessment. The 20 basis point special assessment on the industry will be as of June 30, 2009 payable on September 30, 2009. As a result of the special assessment and increased regular assessments, the Company projects it will experience an increase in FDIC assessment expense of approximately $840,000 from 2008 to 2009. The 20 basis point special assessment represents $600,000 of this increase. On March 5, 2009, the FDIC Chairman announced that the FDIC intends to lower the special assessment from 20 basis points to 10 basis points. The approval of the cutback is contingent on whether Congress clears legislation that would expand the FDICs line of credit with the Treasury to $100 billion. Legislation to increase the FDICs borrowing authority on a permanent basis is also expected to advance to Congress, which should aid in reducing the burden on the industry. The assessment rates, including the special assessment, are subject to change at the discretion of the Board of Directors of the FDIC.
Total assets increased to $345.3 million at March 31, 2009, or 5 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 $9.9 million, $12.8 million, $4.7 million, and $1.2 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 March 31, 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 Federal Home Loan Bank of Atlanta advance of $7.0 million at maturity.
Stockholders equity totaled $26.0 million at March 31, 2009, up approximately $7.8 million, or 43.0 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 to the U.S. Treasury as part of its Troubled Asset Relief Program Capital Purchase Program.
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