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: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
