Oak Ridge Financial Services, Inc. Announces Second Quarter 2026 Results and Quarterly Cash Dividend of $0.16 Per Common Share

Oak Ridge Financial Services, Inc. (“Oak Ridge”; or the “Company”) (OTCPink: BKOR), the parent company of Bank of Oak Ridge (the “Bank”), announced unaudited financial results for the second quarter of 2026 and a quarterly cash dividend of $0.16 per common share. Second Quarter 2026 Highlights Earnings per share of $0.79 for the three months ended June 30, 2026, compared to $0.81 for the same period in 2025, and $0.53 for the three months ended March 31, 2026. Annualized return on average equity of 12.10% for the three months ended June 30, 2026, compared to 14.13% for the same period in 2025, and 8.24% for the three months ended March 31, 2026. Dividends declared per common share of $0.16 for the three months ended June 30, 2026, compared to $0.14 for the same period in 2025. Tangible book value per common share of $26.83 as of June 30, 2026, compared to $24.04 as of June 30, 2025, and $25.99 as of March 31, 2026. Net interest margin of 4.51% for the three months ended June 30, 2026, the highest quarterly net interest margin in the Company’s history, compared to 4.16% for the same period in 2025, and 3.98% for the three months ended March 31, 2026. Efficiency ratio of 61.8% for the three months ended June 30, 2026, compared to 59.1% for the same period in 2025, and 64.9% for the three months ended March 31, 2026. Loans receivable of $522.1 million as of June 30, 2026, down 2.6% from $535.7 million as of June 30, 2025, and up 1.7% from $513.4 million as of March 31, 2026. Nonperforming assets to total assets of 1.42% as of June 30, 2026, compared to 0.73% as of June 30, 2025, and 1.42% as of March 31, 2026. Nonperforming assets were $9.4 million at June 30, 2026, including 17 Small Business Administration (SBA) loans with an aggregate outstanding balance of $9.1 million, comprising a guaranteed balance of $7.0 million and nonguaranteed balances of $2.1 million. These loans are carried at net realizable value, reflecting prior write-downs to fair value less estimated costs to sell recognized through the provision for credit losses, and inclusive of expected recoveries from the SBA guarantee. Securities available-for-sale and held-to-maturity of $101.0 million as of June 30, 2026, up 1.2% from $99.8 million as of June 30, 2025, and up 4.0% from $97.1 million as of March 31, 2026. Total deposits of $505.8 million as of June 30, 2026, down 7.6% from $547.5 million as of June 30, 2025, and down 6.6% from $541.6 million as of March 31, 2026. Total short-and long-term borrowings, junior subordinated notes, and subordinated debentures of $70.7 million as of June 30, 2026, up 35.4% from $52.2 million as of June 30, 2025, and up 100.7% from $35.2 million as of March 31, 2026. Total stockholders’ equity of $74.3 million as of June 30, 2026, up 12.5% from $66.0 million as of June 30, 2025, and up 3.2% from $72.0 million as of March 31, 2026. At June 30, 2026, the Bank’s Community Bank Leverage Ratio was 12.5%, up from 11.2% as of June 30, 2025. Tom Wayne, Chief Executive Officer, stated, "We are pleased with our second quarter results, which rebounded strongly from the first quarter and reflect the fundamental strength of our franchise. While our earnings of $0.79 per share were slightly below the $0.81 reported in the same period in 2025 and up from $0.53 in the first quarter of 2026, our core performance remains excellent — anchored by a 4.51% net interest margin, an annualized return on average equity of 12.10%, and a strong capital position, with the Bank's Community Bank Leverage Ratio improving to 12.5%. While loans and deposits were down year-over-year, loans grew from year-end ...