Oak Ridge Financial Services, Inc. Announces Fourth Quarter and Full Year of 2025 Results, Quarterly Cash Dividend of $0.14 Per Share | BKOR Stock News

OAK RIDGE, N.C., Feb. 05, 2026 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year of 2025, and a quarterly cash dividend of $0.14 per share. Full Year 2025 Highlights Earnings per share of $2.92 for 2025, compared to $2.06 for 2024.Return on equity of 12.21% for 2025, compared to 9.27% for 2024.Dividends declared per common share of $0.54 for 2025, compared to $0.46 for 2024.Tangible book value per common share of $26.01 as of year-end 2025, compared to $23.02 as of year-end 2024.Net interest margin of 4.11% for 2025, compared to 3.83% for 2024.Efficiency ratio of 64.7% for 2025, compared to 67.7% for 2024.Loans receivable of $517.4 million as of December 31, 2025, up 0.6% from $514.3 million as of December 31, 2024.Nonperforming assets to total assets of 1.07% as of December 31, 2025, compared to 0.53% as of December 31, 2024.Nonperforming assets were $7.1 million at December 31, 2025, of which $6.9 million consisted of the guaranteed and unguaranteed portions of SBA loans; these balances 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 $96.4 million as of December 31, 2025, down 7.6% from $104.4 million as of year-end 2024.Total deposits of $538.6 million as of December 31, 2025, up 0.7% from $531.3 million as of year-end 2024.Total short-and long-term borrowings, junior subordinated notes, and subordinated debentures of $45.2 million as of December 31, 2025, down 22.3% from $58.2 million as of year-end 2024.Total stockholders’ equity of $71.3 million as of December 31, 2025, up 13.2% from $63.0 million as of year-end 2024. At December 31, 2025, the Bank’s Community Bank Leverage Ratio (CBLR) was 11.86%, up from 11.04% as of December 31, 2024. Tom Wayne, Chief Executive Officer, announced, "2025 was a record-breaking year for Oak Ridge Financial Services, as we achieved a milestone $8.0 million in net income and grew earnings per share by 42% to $2.92. These exceptional results reflect the strength of our community banking model and our disciplined focus on margin, evidenced by our 4.11% net interest margin in 2025. Furthermore, we maintained a stable and resilient balance sheet, finishing the year with modest organic growth in both loans and deposits. Our commitment to creating stockholder value remains paramount; in 2025, we increased our quarterly dividend and grew tangible book value per share by 13% to $26.01. While we saw an increase in nonaccrual assets, the vast majority of this balance is comprised of SBA-guaranteed loans. We are working diligently through the liquidation and guarantee process, and our current carrying values already reflect adjustments to their net realizable value. We owe these accomplishments to our dedicated employees and the invaluable support of our Board of Directors. I am thankful for their continued commitment to serving our clients and ensuring the Bank's enduring strength and success." A quarterly cash dividend of $0.14 per share of common stock will be paid on March 3, 2026, to stockholders of record as of the close of business on February 18, 2026. “We are pleased to pay another quarterly cash dividend to our stockholders,” said Mr. Wayne. “Paying stockholders a portion of our earnings reflects our continuing commitment to enhance stockholder value.” For 2025 and 2024, net interest income was $26.5 million and $23.7 million, respectively, and the net interest margin was 4.10% in 2025 compared to 3.83% in 2024, an increase of 27 basis points. For the three months ending December 31, 2025 and 2024, net interest income was $6.7 million and $6.3 million, respectively. For the three months ending December 31, 2025, the net interest margin increased 18 basis points to 4.10%, compared to 3.92% in the prior year period. For 2025, the Company recorded a provision for credit losses of $1.3 million, compared to a provision for credit losses of $1.4 million in 2024. For the three months ending December 31, 2025, the Company recorded a negative provision for credit losses of $298,000, compared to a provision for credit losses of $514,000 in the same period in 2024. The allowance for credit losses as a percentage of total loans was 1.17% and 1.05% on December 31, 2025 and 2024, respectively. Nonperforming assets represented 1.07% of total assets on December 31, 2025, compared to 0.53% on December 31, 2024. The recorded balances of nonperforming loans were $7.1 million on December 31, 2025, of which $6.9 million consisted of the guaranteed and unguaranteed portions of SBA loans; these balances 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. The recorded balances of nonperforming assets were $3.5 million on December 31, 2024. Noninterest income totaled $4.1 million and $3.2 million for 2025 and 2024, respectively. There were increases and decreases in components of noninterest income from 2024 to 2025, with the following categories significantly contributing to the overall net increase: Service charges on deposit accounts were $939,000 for 2025 compared to $836,000 in 2024; the increase is due to a new deposit account fee established in July 2024, which and was in effect all of 2025. Gain on sale of Small Business Administration loans were $709,000 in 2025 with no loan sales in 2024. Income from Small Business Investment Company investments were $27,000 for 2025 compared to $211,000 in 2024; the Company received reduced income distributions from Small Business Investment Company investments in 2025 compared to 2024. Other service charges and fees were $469,000 for 2025 compared to $380,000 in 2024; the increase is due to a combination of new and recurring loan and deposit fees. Noninterest income totaled $828,000 and $784,000 for the three months ended December 31, 2025 and 2024, respectively due to small individual increases and decreases in the different noninterest income categories. Noninterest expense totaled $19.0 million and $18.3 million for 2025 and 2024, respectively. There were increases and decreases in components of noninterest expense from 2024 to 2025, with the following categories significantly contributing to the overall net increase of $727,000: Salaries were $9.5 million in 2025, compared to $9.0 million in 2024; the increase is mostly due to higher salaries and incentive payments to employees for 2025. Equipment expense was $954,000 in 2025 compared to $595,000 in 2024; the increase is mostly due to higher equipment depreciation and maintenance expenses in 2025 compared to 2024. Professional and advertising expenses were $906,000 for 2025 compared to $1.2 million for 2024; the decrease is mostly due to decreases in information technology contracted services and consultant fees in 2025 compared to 2024. Other expense was $2.1 million in 2025 compared to $1.7 million in 2024; the increase is due to higher licensing fees in 2025 compared to 2024. Noninterest expense totaled $4.8 million and $4.7 million for the three months ended December 31, 2025 and 2024, respectively, due to small individual increases and decreases in the different noninterest expense categories. About Oak Ridge Financial Services, Inc. and Bank of Oak RidgeWe pride ourselves on knowing your name when you walk through our door. Whether in-person or through our digital offerings, managing your financial well-being is easy, safe, and convenient. We are the longest-running employee-owned community bank in the Triad and have served community members, local businesses, and non-profit organizations since 2000. Learn more about what makes Bank of Oak Ridge the Triad’s community bank by visiting one of our convenient locations in Greensboro, High Point, Summerfield, and Oak Ridge. Oak Ridge Financial Services, Inc. (OTC Pink: BKOR) is the holding company for Bank of Oak Ridge. Bank of Oak Ridge is a member of the FDIC and an Equal Housing Lender. Awards & Recognitions | Best Bank in the Triad | Triad’s Top Workplace Finalist | 2016 Better Business Bureau Torch Award for Business Ethics | Triad’s Healthiest Employer Winner Banking for Business & Personal | Mobile & Online Banking | Worldwide ATM | Debit, Credit + Rewards | Checking, Savings & Money Market | Loans + SBA | Mortgage | Insurance | Wealth Management Let’s Talk | 336.644.9944 | www.BankofOakRidge.com | Extended Interactive Teller Machine Hours at all Triad Locations Forward-looking Information This earnings release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of the words “expect,” “anticipate,” “estimate” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Company’s markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectability of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, and (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations. The Company undertakes no obligation to update any forward-looking statements. OAK RIDGE FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) December 31, December 31, 2025 2024 ASSETS(unaudited) (audited)Cash and due from banks$8,840 $8,075 Interest-bearing deposits with banks 14,556 13,102 Total cash and cash equivalents 23,397 21,177 Securities available-for-sale 81,412 85,714 Securities held-to-maturity, net of allowance for credit losses 15,030 18,662 Restricted stock, at cost 3,059 3,439 Loans receivable 517,374 514,291 Allowance for credit losses (6,030) (5,388)Net loans receivable 511,344 508,903 Property and equipment, net 8,900 8,664 Accrued interest receivable 3,217 3,135 Bank owned life insurance 6,356 6,268 Right-of-use assets – operating leases 2,328 2,166 Other assets 5,199 5,553 Total assets$660,242 $663,681 LIABILITIES Noninterest-bearing deposits$128,408 $119,851 Interest-bearing deposits 406,521 411,464 Total deposits 534,929 531,315 Federal Funds purchased - 1,725 Short-term borrowings 24,000 40,000 Long-term borrowings 7,000 - Junior subordinated notes – trust preferred securities 8,248 8,248 Subordinated debentures, net of discount 6,000 9,983 Lease liabilities – operating leases 2,328 2,166 Accrued interest payable 521 709 Other liabilities 5,924 6,545 Total liabilities 588,950 600,691 STOCKHOLDERS' EQUIT Common stock 27,274 26,733 Retained earnings 43,851 37,771 Net unrealized loss on debt securities, net of tax 304 (1,771)Net unrealized loss on hedging derivative instruments, net of tax (137) 257 Total accumulated other comprehensive loss 167 (1,514)Total stockholders’ equity 71,292 62,990 Total liabilities and stockholders’ equity$660,242 $663,681 Common shares outstanding 2,741,350 2,736,770 Common shares authorized 50,000,000 50,000,000 OAK RIDGE FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share data) Three Months Ended For the year ended December 31, December 31, December 31, December 31, 2025 2024 2025 2024Interest and dividend income: Loans and fees on loans$8,462 $8,212 $34,205 $31,076 Interest on deposits in banks 184 217 712 887 Restricted stock dividends 53 64 221 241 Interest on investment securities 1,233 1,279 5,047 5,578 Total interest and dividend income 9,932 9,772 40,185 37,782 Interest expense Deposits 2,630 2,700 10,694 10,268 Short-term and long-term debt 648 786 2,944 3,778 Total interest expense 3,278 3,486 13,638 14,046 Net interest income 6,654 6,286 26,547 23,736 Provision for credit losses (298) 514 1,286 1,359 Net interest income after provision for credit losses 6,952 5,772 25,261 22,377 Noninterest income: Service charges on deposit accounts 233 234 939 836 Gain (loss) on sale of securities - 19 42 19 Gain on sale of foreclosed property 21 - 17 - Insurance commissions 146 125 654 553 Gain on sale of Small Business Administration loans - - 709 - Debit and credit card interchange income 289 285 1,151 1,174 Income from Small Business Investment Company - - 27 211 Income earned on bank owned life insurance 22 23 89 90 Other service charges and fees 117 98 469 380 Total noninterest income 828 784 4,097 3,263 Noninterest expenses: Salaries 2,309 2,198 9,471 8,962 Employee Benefits 353 370 1,420 1,294 Occupancy 324 321 1,153 1,325 Equipment 241 134 954 595 Data and Item Processing 593 602 2,139 2,255 Professional & Advertising 267 298 906 1,249 Stationary and Supplies 28 21 118 131 Telecommunications 81 65 343 278 FDIC Assessment 30 118 352 460 Other expense 545 443 2,132 1,712 Total noninterest expenses 4,771 4,570 18,988 18,261 Income before income taxes 3,009 1,986 10,370 7,379 Income tax expense 685 461 2,356 1,706 Net income and income available to common shareholders$2,324 $1,525 $8,014 $5,673 Basic income per common share$0.85 $0.56 $2.92 $2.06 Diluted income per common share$0.85 $0.56 $2.92 $2.06 Basic weighted average shares outstanding 2,742,752 2,744,609 2,741,686 2,752,991 Diluted weighted average shares outstanding 2,742,752 2,744,609 2,741,686 2,752,991 OAK RIDGE FINANCIAL SERVICES, INC. Selected Financial Data As Of Or For The Three Months Ended, December 31,September 30,June 30,March 31,December 31, 2025 2025 2025 2025 2024 Return on average common stockholders' equity1 13.39% 11.25% 14.13% 10.04% 9.63%Tangible book value per share$26.01 $24.98 $24.04 $23.41 $23.02 Return on average assets1 1.38% 1.10% 1.32% 0.95% 0.91%Net interest margin1 4.10% 4.18% 4.16% 3.97% 3.92%Efficiency ratio 63.8% 59.0% 59.1% 66.8% 64.6%Nonperforming assets to total assets 1.07% 0.84% 0.73% 0.67% 0.53%Allowance for credit losses to total loans 1.17% 1.19% 1.10% 1.05% 1.05%1Annualized Contact: Skylar Mearing, Marketing DirectorPhone: 336.662.4840