Oconee Financial Corporation Reports Third Quarter 2020 Results
Friday, November 13th, 2020
Oconee Financial Corporation is pleased to report results for the third quarter of 2020. Unaudited net income for the three months ending September 30, 2020, was $516,483 or $0.58 per common share. This compares to $629,863 or $0.71per common share for the third quarter of 2019 and $889,370 or $0.99 per common share for the second quarter of 2020. Third quarter 2020's results included $487,500 of loan loss provision expense versus $142,500 for the third quarter of 2019 and $187,500 for the second quarter of 2020.
Unaudited net income YTD as of September 30, 2020 was $1,555,195 or $1.73per common share. This compares to $1,822,985 or $2.03 per common share for YTD as of September 30 of the prior year. This represents a decrease of 14.7% in net earnings YTD September 30, 2020 as compared to the same period in 2019.
Total assets as of September 30, 2020, were $469.4 million, compared to total assets of $399.5 million as of December 31, 2019. Total loans were $326.1 millionand deposits were $391.2 million as of September 30, 2020. This compared to total loans of $248.8 million and deposits of $361.5 million at December 31, 2019. As of September 30, 2020, total loans have increased 31.1% and total deposits have increased 8.2% versus December 31, 2019.
Neil Stevens, President and Chief Executive Officer of Oconee stated "while third quarter 2020's earnings showed a decline over the third quarter of 2019, this was the result of additional loan loss provisioning in the third quarter. This move, along with the successful completion of a $10 million subordinated debt capital raise in August, both serve to further strengthen our balance sheet."
Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service loan production office. In February 2020, Oconee State bank celebrated 60 years of service and continues to be the only locally owned and operated community bank headquartered in Oconee County. Oconee State Bank has proudly served the local community, providing an unparalleled commitment to personalized service, innovative products and solutions, and strives to bring exceptional value to our customers through local ownership, involvement and decision-making. We continuously strive to create remarkable experiences that significantly mark the lives of others.
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OCONEE FINANCIAL CORPORATION |
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BALANCE SHEET |
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9/30/2020 |
12/31/2019 |
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(Unaudited) |
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ASSETS |
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Cash and due from banks |
$ 61,243,175 |
$ 38,099,324 |
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Securities available for sale (at fair value) |
56,632,642 |
99,228,506 |
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Other investment |
359,600 |
314,900 |
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Mortgage loans held for sale |
9,916,992 |
1,572,800 |
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Loans, less allowance for loan |
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losses |
326,077,498 |
248,771,230 |
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Premises and equipment |
4,257,940 |
4,294,867 |
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Other real estate owned |
-- |
-- |
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Other assets |
10,865,826 |
7,239,812 |
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Total Assets |
$ 469,353,672 |
$ 399,521,439 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities: |
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Deposits |
$ 391,183,960 |
$ 361,522,574 |
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Repurchase agreements |
-- |
-- |
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Subordinated debenture, net of capitalized expenses |
9,783,216 |
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Dividends payable |
-- |
-- |
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Other borrowings |
28,552,722 |
-- |
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Accrued expenses and other liabilities |
2,408,448 |
2,331,769 |
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Total Liabilities |
431,928,346 |
363,854,343 |
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Stockholder's Equity: |
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Common Stock |
1,792,750 |
1,793,760 |
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Restricted Stock |
(36,745) |
(36,745) |
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Additional Paid in Capital |
4,122,790 |
4,139,146 |
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Retained earnings |
30,517,383 |
29,501,154 |
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Unrealized gain/loss on securities |
1,029,150 |
269,781 |
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Total Stockholder's Equity |
37,425,327 |
35,667,096 |
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Total Liabilities and Stockholder's Equity |
$ 469,353,672 |
$ 399,521,439 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME - QTD |
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9/30/2020 |
9/30/2019 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 3,820,044 |
$ 3,231,071 |
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Securities available for sale |
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State, County & Municipal |
82,218 |
96,282 |
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Treasuries & Agencies |
168,215 |
285,207 |
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Corporate |
12,531 |
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Federal funds sold & other |
19,813 |
82,050 |
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Total Interest Income |
4,102,822 |
3,694,609 |
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Interest Expense: |
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Deposits |
338,078 |
403,897 |
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Other |
117,597 |
1,272 |
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Total Interest Expense |
455,675 |
405,169 |
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Net interest income |
3,647,147 |
3,289,440 |
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Provision for loan losses |
487,500 |
142,500 |
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Net income after provision for loan loss |
3,159,647 |
3,146,940 |
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Noninterest income |
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Service charge on deposit accounts |
109,566 |
156,199 |
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Gain on Sale of Assets |
(4,864) |
-- |
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Securities gains (losses), net |
18,866 |
(3,119) |
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Mortgage banking income |
627,119 |
152,128 |
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SBA loan related income |
279,804 |
215,077 |
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Commissions on investment sales |
147,232 |
99,115 |
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Other |
310,801 |
299,555 |
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Total noninterest income |
1,488,524 |
918,955 |
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Noninterest expense |
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Salaries and employee benefits |
2,593,803 |
2,113,003 |
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Occupancy |
306,541 |
332,058 |
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Other operating |
1,139,494 |
838,223 |
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Total noninterest expense |
4,039,838 |
3,283,284 |
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Income before provision for income tax |
608,333 |
782,612 |
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Provision for income taxes |
91,850 |
152,749 |
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Net Income |
$ 516,483 |
$ 629,863 |
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Period-Ending Outstanding Shares |
895,237 |
$ 899,051 |
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Weighted Average Shares Outstanding |
895,401 |
899,778 |
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QTD Earnings Per Common Share |
$ 0.58 |
$ 0.71 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME-YTD |
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9/30/2020 |
9/30/2019 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 10,885,055 |
$ 9,159,963 |
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Securities available for sale |
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State, County & Municipal |
257,010 |
360,818 |
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Treasuries & Agencies |
665,164 |
963,299 |
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Corporate |
13,406 |
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Federal funds sold & other |
180,068 |
230,291 |
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Total Interest Income |
12,000,704 |
10,714,370 |
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Interest Expense: |
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Deposits |
1,310,370 |
1,047,738 |
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Other |
135,793 |
10,813 |
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Total Interest Expense |
1,446,163 |
1,058,551 |
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Net interest income |
10,554,541 |
9,655,819 |
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Provision for loan losses |
862,500 |
427,500 |
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Net income after provision for loan loss |
9,692,041 |
9,228,319 |
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Noninterest income |
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Service charges on deposit accounts |
339,613 |
444,634 |
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Gain on Sale of Assets |
(18,155) |
-- |
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Securities gains (losses), net |
182,860 |
6,507 |
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Mortgage banking income |
1,250,518 |
323,360 |
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SBA loan related income |
589,352 |
804,777 |
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Commissions on investment sales |
430,521 |
386,363 |
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Other |
920,082 |
943,599 |
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Total noninterest income |
3,694,791 |
2,909,240 |
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Noninterest expense |
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Salaries and employee benefits |
7,491,765 |
6,314,993 |
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Occupancy |
899,999 |
978,378 |
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Other operating |
3,097,216 |
2,593,485 |
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Total noninterest expense |
11,488,980 |
9,886,856 |
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Income before provision for income tax |
1,897,852 |
2,250,703 |
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Provision for income taxes |
342,657 |
427,718 |
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Net Income |
$ 1,555,195 |
$ 1,822,985 |
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Period-Ending Outstanding Shares |
895,237 |
$ 899,051 |
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Weighted Average Shares Outstanding |
895,401 |
899,778 |
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YTD Earnings Per Common Share |
$ 1.73 |
$ 2.03 |
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