Oak Ridge Financial Services, Inc. Announces First Quarter 2025 Results and 17% Increase in Quarterly Cash Dividend

Core Viewpoint - Oak Ridge Financial Services, Inc. reported a strong financial performance for the first quarter of 2025, highlighted by a 17% increase in its quarterly cash dividend to $0.14 per share, reflecting the company's commitment to enhancing shareholder value [1][3][6]. Financial Performance - Earnings per share increased to $0.57, up from $0.56 in the previous quarter and $0.50 in the same quarter last year [4]. - Net income for the quarter was $1.6 million, an increase from $1.5 million in the fourth quarter of 2024 and $1.4 million in the first quarter of 2024 [4]. - The return on equity improved to 10.04%, compared to 9.63% in the prior quarter and 9.31% in the first quarter of 2024 [4][17]. Asset Quality - Nonperforming assets increased to $4.6 million, representing 0.67% of total assets, up from 0.44% in the previous quarter and 0.07% in the first quarter of 2024 [4][7]. - The increase in nonperforming assets was primarily due to eight Small Business Administration (SBA) loans moving to nonaccrual status [7]. Loan and Deposit Growth - Loans receivable reached $528.5 million, reflecting an annualized growth of 11.7% from the previous quarter and 10.7% year-over-year [4]. - Total deposits amounted to $542.5 million, representing an annualized growth of 8.6% from the prior quarter and a 9.2% increase from the first quarter of 2024 [4]. Interest Margin and Efficiency - The net interest margin improved to 3.97%, up from 3.92% in the previous quarter and 3.79% in the first quarter of 2024 [4][17]. - The efficiency ratio was reported at 66.8%, compared to 64.6% in the prior quarter and 68.3% in the first quarter of 2024 [4][17]. Dividends and Shareholder Value - The company declared a quarterly cash dividend of $0.14 per share, an increase of $0.02 from the previous quarter and the same quarter last year [6]. - The dividend will be paid on June 9, 2025, to stockholders of record as of May 23, 2025 [6]. Capital and Liquidity - The capital and liquidity positions of the company remain robust, with a Community Bank Leverage Ratio (CBLR) of 11.1%, indicating a well-capitalized status [4]. - Total stockholders' equity increased to $64.3 million, up 8.6% from the previous quarter and 8.0% year-over-year [4]. Noninterest Income and Expenses - Noninterest income decreased to $784,000 from $918,000 in the same period last year, primarily due to a lack of income from Small Business Investment Company (SBIC) investments [8]. - Noninterest expenses rose to $4.7 million, up from $4.3 million in the first quarter of 2024, driven by increases in salaries and employee benefits [9].