Oak Ridge Financial's Q3 net income rises on increase in net interest income
BKOR•Oak Ridge Financial's Q3 earnings per share rose year over year to $0.72, with net income increasing as net interest margin improved to 4.33% from 4.18%. Noninterest income fell 29% as the bank recorded no gains on SBA loan sales.
1. Earnings and margin
Oak Ridge Financial reported Q3 net income growth as net interest income increased and net interest margin rose to 4.33% from 4.18% a year earlier. Earnings per share rose year over year to $0.72.
2. Other drivers and outlook
Net income also benefited from a $765,000 lower provision for credit losses. Noninterest income declined 29%, with no gains on SBA loan sales compared with $380,000 in gains a year earlier. The company expects lower interest expense after redeeming subordinated debentures and says reducing nonperforming assets remains its highest priority in the coming quarter.
