Second quarter 2021 net earnings of $5.4 million, or $2.25 per common share

Quarterly return on average assets of 5.8% and return on average equity of 33.2%

Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income for the second quarter totaled $5.4 million resulting in an annualized return on average assets of 5.8% and a return on average equity of 33.2%. This compares to $7.5 million and $3.3 million from the second quarters of 2020 and 2019, respectively. Quarterly residential mortgage loan production decreased 5% to $407.9 million compared to the same period in 2020. Yields earned on the sale of mortgage loans decreased which impacted noninterest income.

During the quarter, total assets increased $2.3 million driven by a $6.5 million increase in deposits and the paydown of $6.3 million in borrowings. The Company’s cash and short-term investments increased $19 million to $66.3 million at quarter end. The increase in cash is attributable to a decrease in mortgage loans held for sale and an increase in deposits.

Commercial real estate loan balances increased by $5.1 million during the quarter. This growth was offset by a $6.3 million reduction in Paycheck Protection Program loans that were forgiven by the U.S. Small Business Association. The Company’s capital continues to grow through earnings as evidenced by an 18.1% capital-to-assets ratio. During the quarter, the Board of Directors announced a $0.26 per share dividend payable to shareholders on July 15, 2021.

Ryan Dempster, President and CEO, commented, “Quarterly earnings remain strong and will continue to compare favorably to peer, and year-to-date earnings are well ahead of our results from the first half of last year.” He continued by saying, “We believe the return to normalcy following the lapse in restrictions relating to the pandemic will allow for additional business opportunities for the Company as the economy recovers.”

About Oregon Bancorp, Inc.

Oregon Bancorp, Inc. is the parent company of Willamette Valley Bank (Bank), a community bank headquartered in Salem, Oregon. The Bank conducts commercial and retail banking activities at four full-service branch locations in Salem, Keizer, Silverton, and Albany, Oregon. The Bank also operates 13 Home Loan Centers located in Oregon, Washington, and Idaho. For more information about Oregon Bancorp, Inc. or its subsidiary, Willamette Valley Bank, please call (503) 485-2222 or visit our website at www.willamettevalleybank.com.

Forward Looking Statements

Certain statements in this release may be deemed “forward-looking statements”. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.

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