Oak Ridge Financial Services, Inc. Announces Second Quarter 2025 Results and Quarterly Cash Dividend of $0.14 Per Share

Core Viewpoint - Oak Ridge Financial Services, Inc. reported significant growth in earnings and financial metrics for the second quarter of 2025, driven by strong net interest income and noninterest income growth, marking a successful quarter in its 25th year as a community bank [3][4]. Financial Highlights - Net interest income for Q2 2025 was $6.8 million, up from $5.8 million in Q1 2025 and $5.3 million in Q2 2024, reflecting a growth of 7.6% and 16.0% respectively [4][5]. - Noninterest income increased to $1.2 million, a rise of 64.6% from Q1 2025 and 63.7% from Q2 2024 [3][9]. - Total loans receivable reached $537.5 million, an increase of 1.7% from Q1 2025 and 8.8% from Q2 2024 [5][6]. - Total deposits were $547.5 million, up 0.9% from Q1 2025 and 7.7% from Q2 2024 [5][6]. Earnings and Ratios - Earnings per share (diluted) rose to $0.81, compared to $0.57 in Q1 2025 and $0.46 in Q2 2024 [5][19]. - Return on average equity (annualized) improved to 14.13%, up from 10.04% in Q1 2025 and 8.57% in Q2 2024 [5][20]. - The efficiency ratio improved to 59.1%, significantly better than 66.8% in Q1 2025 and 70.0% in Q2 2024 [5][20]. Asset Quality - Nonperforming assets to total assets increased to 0.73% from 0.67% in Q1 2025, attributed to eight Small Business Administration (SBA) loans moving to nonaccrual status [5][8]. - The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025, up from 1.05% at December 31, 2024 [8][20]. Dividend Announcement - A quarterly cash dividend of $0.14 per share is set to be paid on September 3, 2025, to stockholders of record as of August 19, 2025, reflecting the company's commitment to enhancing stockholder value [4].