In a recent announcement, Bank of Oak Ridge highlighted its solid performance for the fourth quarter and full year of 2024. Despite minor fluctuations in earnings per share, the bank achieved significant milestones in loan and deposit growth, capital strength, and community recognition.

Empowering Community Growth with Strong Financial Foundations

Growth Metrics and Financial Highlights

The year 2024 was marked by substantial progress for Bank of Oak Ridge. Loan growth surged by 10.2%, reflecting the institution's commitment to supporting local businesses and individuals. Concurrently, deposits expanded by 7.7%, reinforcing the bank's position as a trusted financial partner within the community. The tangible book value per common share witnessed an increase from $21.36 at the end of 2023 to $23.02 in 2024. These figures underscore the bank’s robust financial health and its ability to deliver consistent value to shareholders.In addition, the bank declared cash dividends totaling $0.44 per common share for 2024, up from $0.30 in the previous year. A noteworthy achievement was the initiation of a share repurchase program, under which 25,100 shares were repurchased during the year. This strategic move aimed to enhance shareholder value while maintaining a strong liquidity position.

Net Interest Margin and Credit Quality

Maintaining stability in net interest margin is crucial for any financial institution, and Bank of Oak Ridge managed to keep it steady at 3.83% for 2024. In the final quarter, this margin saw a slight improvement, rising to 3.92%. The bank also recorded a provision for credit losses of $1.4 million for the year, compared to $727,000 in 2023. Nonperforming assets increased to $3.5 million by the end of 2024, primarily due to six SBA loans moving to nonaccrual status. However, $2.1 million of these loans are guaranteed by the SBA, mitigating potential risks.

Noninterest Income and Expenses

Noninterest income for 2024 totaled $3.2 million, down from $3.9 million in 2023. Key factors influencing this change included service charges on deposit accounts, which increased to $234,000 from $169,000 in 2023, driven by a new deposit account fee introduced in 2024. Conversely, income from Small Business Investment Company investments decreased to $211,000 from $395,000, reflecting fewer income distributions received in 2024.Noninterest expenses amounted to $18.3 million for the year, representing a modest increase from $17.9 million in 2023. Notable changes included higher occupancy expenses, primarily due to increased property maintenance costs, and lower equipment depreciation expenses. Professional and advertising expenses declined, attributed to reduced information technology contracted services.

Awards and Community Recognition

Bank of Oak Ridge has garnered several accolades, including being ranked #8 in North Carolina for SBA 7(a) loan production. Additionally, the bank earned a place among American Banker’s Top 100 Publicly Traded Community Banks under $2 billion in assets. These recognitions highlight the bank's dedication to excellence and its pivotal role in fostering economic development within the Triad region.

Commitment to Shareholders

Tom Wayne, Chief Executive Officer, expressed gratitude for the unwavering support of the bank’s employees and Board of Directors. He emphasized that these accomplishments are a testament to the collective efforts aimed at ensuring the bank’s enduring strength and success. The decision to pay another quarterly cash dividend of $0.12 per share underscores the bank’s commitment to enhancing shareholder value. This marks the 25th consecutive quarterly dividend paid by the company, symbolizing long-term stability and trust.