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Oak Ridge Financial Services Announces First Quarter 2011 Results

^{Published on 2011-04-26 10:35:57 - Market Wire}
 

OAK RIDGE, N.C.--([ BUSINESS WIRE ])--Oak Ridge Financial Services, Inc. (Nasdaq:BKOR), parent company of Bank of Oak Ridge, headquartered in Oak Ridge, North Carolina, reported financial results for the first quarter of 2011.

Financial Highlights:

• Quarterly net income of $193,000, compared to $639,000 in the same period in 2010. Contributing to the decrease were increases in provision for loan losses and noninterest expense, and a decrease in noninterest income. Positively contributing to net income in 2011 relative to 2010 were increases in net interest income and a reduction in income tax expense.
• Quarterly net income available to common shareholders of $30,000, compared to $484,000 in the same period in 2010.
• Allowance for loan losses of 1.74% of total loans as of March 31, 2011, compared to 1.71% as of December 31, 2010.
• Noninterest income of $820,000, down 31.4% from noninterest income of $1.2 million for the same period in 2010. A primary factor contributing to the decrease in noninterest income was a gain on sale of securities in 2010 of $386,000 where there were no such gains in 2011. Excluding the gain on sale of securities in 2010, noninterest income increased 1.4% from 2010 to 2011.
• Noninterest expense of $3.5 million, up 9.2% from noninterest expense of $3.2 million for the same period in 2010.
• Total loans decreased 0.2% to $256.0 million from December 31, 2010 to March 31, 2011.
• Noninterest bearing deposits increased 8.4% to $29.0 million from December 31, 2010 to March 31, 2011.

Narrative:

Oak Ridge Financial Services, Inc. announced net income for the three months ended March 31, 2011 of $193,000, compared to net income of $639,000 for the prior year period. After subtracting dividends and accretion on preferred stock, net income available for common shareholders was $30,000 and $484,000 for the three months ended March 31, 2011 and 2010, respectively. Net income per diluted share was $0.02 and $0.27 for the three months ended March 31, 2011 and 2010, respectively.

Oak Ridge Financial Services President, Ron Black, in commenting on the results, noted, aGiven the difficult economic environment, we are pleased that we were able to increase from 2010 to 2011 net interest income and noninterest income, after excluding 2010a™s investment securities gain. Nonperforming assets were up from December 2010 to March 2011 as our region continues to experience the negative effects of the weak economy. We continue to devote substantial efforts in servicing and reducing these assets.a

Mr. Black further commented, aOur primary areas of focus for the rest of 2011 will be continuing to service our loan and other real estate owned portfolios while growing net interest income and noninterest income while providing the best service possible to existing and potential clients. We plan to continue to support our local economy by taking deposits, making loans, and providing financial advice to help our clients navigate these difficult times. The community was supportive of our Bank in the first quarter of 2011 and we are very encouraged by the continuing growth we are seeing in both noninterest deposits and interest bearing checking deposits. Lastly, at March 31, 2011 we were well-capitalized with capital available for future profitable growth.a

About Bank of Oak Ridge

Bank of Oak Ridge, headquartered in Oak Ridge, NC, is a community Bank with five banking offices in Oak Ridge, Summerfield and Greensboro. The Banka™s independent financial advisory division, Oak Ridge Wealth Management, operates out of an office in downtown Greensboro. The Bank 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, remote check capture for businesses, mobile banking 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 ].

Forward-looking Information

This form contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company.These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like aexpect,a aanticipate,a aestimatea and abelieve,a variations of these words and other similar expressions.Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Companya™s markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Companya™s other filings with the Federal Deposit Insurance Corporation.The Company undertakes no obligation to update any forward-looking statements.