Oak View profit increases 35 percent in 2nd quarter
Warrenton-based Oak View National Bank reported net income of $506,002 for the quarter ended June 30, an increase of 35.3 percent from the same period last year.
For the first half of 2019, profits rose 27.7 percent to $943,809.
Earnings per share rose to 18 cents for the quarter and 33 cents for the first half of the year.
“The bank continues to enjoy outstanding credit quality,” Chairman and CEO Michael Ewing said. “During the current quarter, the bank received a significant curtailment on one of its few substandard loans, which contributed to a reduction in the level of the allowance for loan and lease losses required for the loan portfolio resulting in a recovery in the current quarter of $12,682.
“Increases in short-term rates and local competition have driven our cost of funds higher, however, we are beginning to see some moderation of the pressure to raise deposit rates. Although the environment is challenging, we are managing our asset growth, continuing to increase revenues faster than non-interest expenses, and focusing on increasing our levels of non-interest income as we seek to improve our overall profitability.”
Compared to the same period last year, quarterly net interest income increased by 5.2 percent to $2.1 million.
Loans increased 3.8 percent to $208.6 million.
The bank had two non-performing loans as of June 30, totaling $57,690.
Total deposits ended the quarter at $200.6 million, up 3.7 percent.
Total assets of $250.5 million rose 3.9 percent from a year earlier.
A locally-owned community bank, Oak View has offices in Warrenton, Marshall and Culpeper.