Oak Ridge Financial Services, Inc. the parent company of Bank of Oak Ridge, announced unaudited financial results for the second quarter of 2015. Net income was $855,000 compared to net income of $575,000 for the second quarter of 2014, an increase of $280,000.
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Net income available to common stockholders for the second quarter of 2015 was $738,000 compared to net income of $402,000 for the second quarter of 2014, an increase of $336,000. Basic and diluted income per common share increased $0.13 to $0.34 for the second quarter of 2015 compared to diluted income per common share of $0.21 in the second quarter of 2014.
The company's net income for the first six months of 2015 was $1.6 million compared to net income of $983,000 for the same period in 2014, an increase of $586,000.
Net income available to common stockholders for the first six months of 2015 was $1.3 million compared to net income of $714,000 for the same period in 2014, an increase of $621,000.
Basic and diluted income per common share increased $0.24 to $0.61 for the first six months of 2015 compared to diluted income per common share of $0.37 for the same period in 2014.
Profitability as measured by the company's annualized return on average assets was 0.95% and 0.65% for the three months ended June 30, 2015 and 2014, respectively.
The company produced net interest income of $3.3 million during the first three months of 2015, which was slightly lower than the $3.4 million generated for the same time period of 2014.
The decrease was primarily caused by higher interest expense, which increased $45,000 or approximately 9.9% to $498,000 for the three months ended June 30, 2015 as compared to the same time period of the prior year. Interest income was relatively unchanged in the three months ended June 30, 2015 compared to the same period in 2014.
Noninterest income decreased $136,000 or approximately 17.5% to $640,000 during the three months ended June 30, 2015 as compared to the same time period of 2014. The majority of the net decrease was associated with decreases in gain on sale of securities and fee income from accounts receivable financing, as well as an increase in impairment loss on securities.
Total liabilities as of June 30, 2015 were $332.3 million, up approximately 0.4% or $1.4 million from $330.9 million as of December 31, 2014. Higher levels of deposits drove the increase as noninterest-bearing deposits increased $2.5 million or 6.2%.
The increase in noninterest-bearing deposits was offset by a $959,000 decrease in interest-bearing deposits from December 31, 2014 to June 30, 2015.
Total stockholders' equity as of June 30, 2015 was $27.5 million as compared to total stockholders' equity as of December 31, 2014 of $26.8 million.
Increases from December 31, 2014 to June 30, 2015 in common stock of $379,000 and net income of $1.6 million, were offset by preferred dividends of $234,000 and a $1.0 million decrease in accumulated other comprehensive income. ■