Willamette Community Bank Announces Q1 Earnings

April 22, 2020

For immediate release: April 22, 2020

Contact: Joan Reukauf, President and Chief Executive Officer
(541) 926-9000 or jreukauf@willamettecommunitybank.com

Willamette Community Bank Reports First Quarter Earnings

Albany, OR – April 22, 2020- Willamette Community Bank (the “Bank”) (OTCQB: WMCB) based in Albany, Oregon, releases its financial results for the first quarter of 2020. The bank grew total assets to $157 million, an increase of 4% or $6.5 million over year end, 2019. “We were able to grow deposits in the first quarter of 2020 by 5%, giving us the lift in total assets” said Willamette Community Bank President and CEO Joan Reukauf. Net income for the first quarter 2020 came in at $98,000. “A rising deposit rate market in 2019, coupled with an unusual occurrence of loan market rates not moving in tandem, created a situation of stagnant interest income returns for the first quarter” commented Reukauf.

Loan totals reached $127 million in the first quarter, an increase in our loan portfolio of 16.6% year over year compared to totals during the same period in 2019. Loan growth was accompanied by a decrease in non-performing assets. “We were able to improve our percentage of non-performing assets from 1.37% to 1.32% quarter over quarter” commented Reukauf. “As loan activity continued to pick up in the first quarter, continuing to focus on building a robust pipeline for sustained loan growth, we remain vigilant over non-performing assets and continue to see improvement as a percentage of total loans” Reukauf continued. “In light of current circumstance and effects on economies nationwide, the bank has increased its reserve to outstanding loans from $1.398M at the end of the first quarter 2019 to $1.567M at the end of the same quarter in 2020.

“Focus in the last several weeks has turned almost entirely to the effect of COVID-19 not only on our operation but on our customers and local economies. We are proud of the way we have reacted to this pandemic situation by taking measures to protect our employees and customers as best we can. Proactively contacting our customers during this time and being responsive to their situation was a natural response for our bank. We are especially proud to have been a participating community bank in the recent Paycheck Protection Program (PPP), helping our local small businesses and communities by receiving funding approval for more than $15 million dollars in SBA guaranteed loans. We are hopeful that this program will receive more funding, ensuring more of our local businesses receive these much-needed dollars to get them through this unprecedented period in our economy. It’s times like these that are a true test of community banks and the reason why we exist – to support our communities through both the good and the bad. We will make a difference with our action and reaction to this pandemic for our communities and local businesses,” commented Reukauf.

Financial Highlights (as of, or for the period ending March 31, 2020, except as noted)

• Net income for the first quarter is $98,000, or $0.35 per share. On a pre-tax/pre-provision basis, income for the first quarter is $149,000.
• Net interest income increased year over year compared to first quarter 2019 by 3.9% to $1.70 million. Non-interest income came in at $122,000, a slight decrease of 4.5% compared to the same period in 2019.
• Return on average assets (ROAA) decreased to 0.26% for the first quarter compared to the same period in 2019 of 0.43%, while return on average equity (ROAE) decreased to 1.96% from 3.39% over the same period.
• Loans grew 4.1% compared to 2019 end of year totals, finishing the quarter at $127 million.
• Deposits grew 4.9 compared to 2019 end of year totals, finishing the quarter at $136 million.
• The Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under current regulatory requirement.

Willamette Community Bank serves its customers from three offices located in Albany, Lebanon and Salem.

Full financials are available on our website at www.willamettecommunitybank.com.

This document includes forward-looking information, which is subject to the “safe harbor” created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act and the Private Securities Litigation Reform Act of 1995. When the Bank uses or incorporates by reference in this letter the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “commit,” “believe” and similar expressions, the Company intends to identify forward-looking statements. Our actual results may differ materially from those projected in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control.

Performance Highlights:

March 2020 (unaudited)
Total Assets $157,037
Loans $126,672,627
Deposits $135,631,163
Shareholders’ Equity $20,123,700
Net Income $98,000
Book Value $10.83

March 2019 (unaudited)
Total Assets $148,808,342
Loans $108,647,556
Deposits $129,428,968
Shareholders’ Equity $19,005,325
Net Income $157,772
Book Value $10.36

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