Oak Ridge Financial Services Reports Year-End 2024 Performance
Oak Ridge Financial Services' 2024 Financial Overview
Oak Ridge Financial Services, Inc. (OTCPink: BKOR), the parent company of Bank of Oak Ridge, recently disclosed its unaudited financial results for the fourth quarter and the entire year of 2024, including the announcement of a quarterly cash dividend.
Key Highlights from 2024
Throughout 2024, the company recorded an earnings per share of $2.06, a slight decrease compared to $2.10 in 2023. The return on equity for the year stood at 9.27%, a decline from 10.38% in the previous year. However, dividends declared rose to $0.44 per share, up from $0.30 in 2023, demonstrating the company's commitment to returning value to its shareholders.
Valuable Growth Metrics
The tangible book value for common shares increased to $23.02 by the end of 2024, compared to $21.36 at the end of the previous year. Loans receivable totaled $508.4 million, marking a robust annual growth rate of 10.2%, significantly contributing to overall financial health. Deposits also reflected growth, with total deposits reaching $531.3 million by year-end, up 7.7% compared to 2023.
Performance Amid Challenges
Despite a rise in nonperforming assets, which represented 0.53% of total assets by the end of the year, the company attributed this to a few specific loans that had moved to nonaccrual status. The company effectively navigated through these challenges while maintaining a solid net interest margin of 3.83% for the year.
Quarterly Cash Dividend Announced
On March 3, 2025, the company plans to pay a quarterly cash dividend of $0.12 per share to stockholders of record as of February 18, 2025. This marks the 25th consecutive quarter of dividends paid, underscoring Oak Ridge Financial Services’ commitment to enhancing shareholder value.
Commitment to Community and Stability
CEO Tom Wayne highlighted significant achievements, such as being ranked #8 in SBA 7(a) loan production in North Carolina and being recognized as one of American Banker’s Top 100 Publicly Traded Community Banks under $2 billion in assets. These recognitions are a testament to the company’s robust standing in the financial sector.
Future Outlook and Employee Recognition
The share repurchase program implemented in 2024 allowed for the purchase of 25,100 shares at a total cost of $321,000, showcasing proactive measures for managing the company's stock. Tom Wayne expressed gratitude towards employees and the Board of Directors for their continued dedication and contribution to the company’s success and stability.
About Oak Ridge Financial Services, Inc.
Oak Ridge Financial Services operates the Bank of Oak Ridge, known for its long-standing commitment to community banking. The bank prioritizes a personalized approach, whether customers are visiting in person or utilizing their digital services, ensuring a convenient and secure banking experience.
Frequently Asked Questions
What are the key earnings statistics for Oak Ridge Financial Services in 2024?
In 2024, the earnings per share were $2.06, with a return on equity of 9.27%.
How much did the company declare in dividends?
The company declared a total dividend of $0.44 per common share in 2024, which is an increase from $0.30 in 2023.
What led to the increase in nonperforming assets?
The increase was primarily attributed to six Small Business Administration loans moving to nonaccrual status.
When is the next cash dividend payment scheduled?
The upcoming cash dividend of $0.12 per share is scheduled for payment on March 3, 2025.
What recognition did Oak Ridge Financial Services receive in 2024?
In 2024, the company was ranked #8 in North Carolina’s SBA 7(a) loan production and recognized among the Top 100 Publicly Traded Community Banks by American Banker.
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