Oak Ridge Financial Services, Inc. Announces Third Quarter and Nine Months Ended September 30, 2026 Results and Quarterly Cash Dividend of $0.16 Per Common Share

OAK RIDGE, N.C., Oct. 30, 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 third quarter and nine months ended September 30, 2026 and a quarterly cash dividend of $0.16 per common share.

Third Quarter and Nine Months Ended September 30, 2026 Highlights * Earnings per share of $0.72 for the three months ended September 30, 2026, compared to $0.69 for the same period in 2025, and $0.79 for the three months ended June 30, 2026. * Net income of $5.6 million, or $2.03 per share, for the nine months ended September 30, 2026, compared to $5.7 million, or $2.08 per share, for the same period in 2025. * Annualized return on average equity of 10.81% for the three months ended September 30, 2026, compared to 11.26% for the same period in 2025, and 12.10% for the three months ended June 30, 2026. * Dividends declared per common share of $0.16 for the three months ended September 30, 2026, compared to $0.14 for the same period in 2025, and $0.16 for the three months ended June 30, 2026. * Tangible book value per common share of $26.84 as of September 30, 2026, compared to $24.98 as of September 30, 2025, and $26.83 as of June 30, 2026. * Net interest margin of 4.33% for the three months ended September 30, 2026, compared to 4.18% for the same period in 2025, and 4.51% for the three months ended June 30, 2026. * Efficiency ratio of 66.2% for the three months ended September 30, 2026, compared to 59.0% for the same period in 2025, and 61.8% for the three months ended June 30, 2026. * Loans receivable of $535.4 million as of September 30, 2026, up 1.7% from $526.6 million as of September 30, 2025, and up 2.5% from $522.1 million as of June 30, 2026. * Nonperforming assets to total assets of 1.82% as of September 30, 2026, compared to 0.84% as of September 30, 2025, and 1.42% as of June 30, 2026. * Nonperforming assets were $12.3 million at September 30, 2026, compared to $5.8 million at September 30, 2025, and $9.4 million at June 30, 2026. At September 30, 2026, nonperforming assets included 19 U.S. Small Business Administration (SBA) loans with an aggregate outstanding balance of $11.9 million, or 97% of nonperforming assets, comprising $8.8 million guaranteed by the SBA and a nonguaranteed balance of $3.1 million. Estimated credit losses on these loans are based on the fair value of the collateral, less estimated costs to sell, together with expected recoveries from the SBA guarantee, and have been recognized through the provision for credit losses. * Securities available-for-sale and held-to-maturity of $91.2 million as of September 30, 2026, down 9.4% from $100.7 million as of September 30, 2025, and down 8.1% from $99.3 million as of June 30, 2026. * Total deposits of $520.4 million as of September 30, 2026, down 4.2% from $543.2 million as of September 30, 2025, and up 2.9% from $505.7 million as of June 30, 2026. * Total borrowings, junior subordinated notes and subordinated debentures of $69.2 million as of September 30, 2026, up 14.9% from $60.2 million as of September 30, 2025, and down 2.1% from $70.7 million as of June 30, 2026. * Total stockholders’ equity of $74.4 million as of September 30, 2026, up 8.5% from $68.5 million as of September 30, 2025, and up 0.1% from $74.3 million as of June 30, 2026. At September 30, 2026, the Bank’s Community Bank Leverage Ratio was 11.7%, compared to 11.5% as of September 30, 2025, and 12.5% as of June 30, 2026. Tom Wayne, Chief Executive Officer, stated, “Our third quarter net income improved modestly from the prior year's quarter. Net income increased 5.2% to $2.0 million, or $0.72 per share, compared to $1.9 million, or $0.69 per share, in the third quarter of 2025. The increase reflected a $178,000 increase in net interest income, as our net interest margin improved to 4.33% from 4.18%, and a $765,000 lower provision for credit losses. Those improvements were partially offset by a $367,000 decline in noninterest income, largely because we recognized no gains on the sale of SBA loans this quarter compared to $380,000 a year ago, and by a $458,000 increase in noninterest expense, of which $206,000 reflected higher employer payroll taxes following the recognition of our remaining Employee Retention Credits in 2025. As a result, pre-tax, pre-provision income, which is net interest income plus noninterest income less noninterest expense, was $2.7 million compared to $3.3 million a year ago. Improving this is a priority as we focus on loan growth following the redemption of our subordinated debentures in order to benefit our results. Our net interest margin moderated from 4.51% in the prior quarter but remains solid at 4.33%.