Oconee Financial Corporation Reports Second Quarter 2021 Results
Friday, August 6th, 2021
Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the second quarter of 2021. Unaudited net income for the three months ending June 30, 2021, was $812,417 or $0.91 per common share. This compares to $889,370 or $0.99 per common share for the second quarter of the prior year. This represents an 8.7% decrease in net earnings in the second quarter of 2021 as compared to the same period in 2020. The decrease for the second quarter was mainly attributed to merger expenses of $196,000 relating to our pending acquisition of Elberton Federal Savings and Loan Association. Excluding these merger-related charges, net earnings for the second quarter were $967,257. This represents an 8.8% increase over the second quarter of 2020.
Unaudited net income YTD as of June 30, 2021 was $1,636,638 or $1.83 per common share. This compares to $1,038,711 or $1.15 per common share for YTD as of June 30 of the prior year. This represents an increase of 57.6% in net earnings YTD June 30, 2021 as compared to the same period in 2020. The increase in earnings over the previous year was primarily attributable to increases in net interest income from Paycheck Protection Program (PPP) fees recognized of $835,000 and increases in mortgage banking income of $579,000.
Total assets as of June 30, 2021, were $529.3 million, compared to total assets of $494.5 million as of December 31, 2020. Total loans were $301.0 million and deposits were $478.9 million as of June 30, 2021. This compared to total loans of $319.6 million and deposits of $444.7 million at December 31, 2020. As of June 30, 2021, total loans decreased 5.8% and total deposits increased 7.7% versus December 31, 2020. Book value per share at June 30, 2021 was $43.43.
Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the second quarter's results noted "we're pleased with our earnings for the second quarter. So far in the third quarter we're seeing good lending momentum across all our markets".
Stevens also noted "in the second quarter, we moved into our corporate headquarters in downtown Watkinsville. This move allowed us to not only house our executive and support staff in one building but also downsize our square footage and reduced our occupancy costs. Also, the regulatory application for the Elberton Federal merger has now been filed and we are looking forward to completing the merger."
Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service branch. In February 2021, Oconee State bank celebrated 61 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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6/30/2021 |
12/31/2020 |
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(Unaudited) |
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ASSETS |
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Cash and due from banks |
$ 76,805,785 |
$ 76,418,430 |
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Securities available for sale (at fair value) |
126,595,713 |
75,548,813 |
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Other investment |
247,400 |
359,700 |
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Mortgage loans held for sale |
5,294,138 |
6,408,720 |
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Loans, net of unearned income |
305,344,255 |
323,624,861 |
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Allowance for loan loss |
(4,313,844) |
(4,057,091) |
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Loans, net |
301,030,411 |
319,567,770 |
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Premises and equipment |
8,105,088 |
5,103,036 |
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Other real estate owned |
-- |
-- |
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Other assets |
11,189,054 |
11,129,233 |
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Total Assets |
$ 529,267,589 |
$ 494,535,702 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities: |
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Deposits |
$ 478,936,187 |
$ 444,701,932 |
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Subordinated debenture, net of capitalized expenses |
9,782,471 |
9,770,497 |
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Dividends payable |
-- |
-- |
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Accrued expenses and other liabilities |
1,652,497 |
1,928,168 |
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Total Liabilities |
490,371,155 |
456,400,597 |
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Stockholder's Equity: |
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Common Stock |
1,795,076 |
1,794,250 |
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Restricted Stock |
(63,724) |
(37,976) |
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Additional Paid in Capital |
4,159,822 |
4,147,114 |
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Retained earnings |
31,905,437 |
30,850,978 |
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Unrealized gain/loss on securities |
1,099,823 |
1,380,739 |
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Total Stockholder's Equity |
38,896,434 |
38,135,105 |
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Total Liabilities and Stockholder's Equity |
$ 529,267,589 |
$ 494,535,702 |
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Book Value Per Share |
$ 43.43 |
$ 42.56 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME-YTD |
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6/30/2021 |
6/30/2020 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 7,740,280 |
$ 7,065,011 |
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Securities available for sale |
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State, County & Municipal |
353,938 |
174,792 |
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Treasuries & Agencies |
360,916 |
496,949 |
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Corporate |
158,622 |
875 |
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Federal funds sold & other |
39,954 |
160,255 |
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8,653,710 |
7,897,882 |
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Interest Expense: |
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Deposits |
546,632 |
972,292 |
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Other |
311,974 |
18,196 |
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Total Interest Expense |
858,606 |
990,488 |
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Net interest income |
7,795,104 |
6,907,394 |
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Provision for loan losses |
235,500 |
375,000 |
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Net income after provision for loan losses |
7,559,604 |
6,532,394 |
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Noninterest income |
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Service charges on deposit accounts |
215,134 |
230,047 |
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Loss on Sale of Assets |
(36,462) |
(13,291) |
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Securities gains (losses), net |
172,312 |
163,994 |
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Mortgage banking income |
1,202,670 |
623,399 |
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SBA loan related income |
118,545 |
309,548 |
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Commissions on investment sales |
139,341 |
283,289 |
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Other |
749,472 |
609,281 |
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Total noninterest income |
2,561,011 |
2,206,266 |
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Noninterest expense |
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Salaries and employee benefits |
4,645,279 |
4,897,962 |
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Occupancy |
661,406 |
593,458 |
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Other operating |
2,743,975 |
1,957,723 |
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Total noninterest expense |
8,050,659 |
7,449,143 |
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Income before provision for income taxes |
2,069,956 |
1,289,518 |
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Provision for income taxes |
433,318 |
250,807 |
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Net Income |
$ 1,636,638 |
$ 1,038,711 |
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Period-Ending Outstanding Shares |
895,662 |
895,237 |
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Weighted Average Shares Outstanding |
895,662 |
895,401 |
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YTD Earnings Per Common Share |
$ 1.83 |
$ 1.15 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME-QTD |
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6/30/2021 |
6/30/2020 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 3,887,179 |
$ 3,794,685 |
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Securities available for sale |
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State, County & Municipal |
166,595 |
85,972 |
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Treasuries & Agencies |
256,269 |
205,124 |
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Corporate |
90,849 |
875 |
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Federal funds sold & other |
19,381 |
19,445 |
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4,420,273 |
4,106,101 |
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Interest Expense: |
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Deposits |
260,545 |
375,380 |
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Other |
155,987 |
18,196 |
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Total Interest Expense |
416,532 |
393,576 |
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Net interest income |
4,003,741 |
3,712,525 |
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Provision for loan losses |
-- |
187,500 |
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Net income after provision for loan losses |
4,003,741 |
3,525,025 |
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Noninterest income |
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Service charges on deposit accounts |
108,952 |
99,217 |
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Loss on Sale of Assets |
(36,462) |
(13,291) |
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Securities gains (losses), net |
(23,991) |
163,994 |
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Mortgage banking income |
617,436 |
461,907 |
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SBA loan related income |
74,099 |
179,570 |
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Commissions on investment sales |
60,124 |
137,669 |
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Other |
347,393 |
287,875 |
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Total noninterest income |
1,147,551 |
1,316,941 |
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Noninterest expense |
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Salaries and employee benefits |
2,354,327 |
2,466,504 |
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Occupancy |
354,390 |
308,330 |
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Other operating |
1,416,609 |
939,104 |
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Total noninterest expense |
4,125,326 |
3,713,938 |
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Income before provision for income taxes |
1,025,966 |
1,128,028 |
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Provision for income taxes |
213,549 |
238,658 |
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Net Income |
$ 812,417 |
$ 889,370 |
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Period-Ending Outstanding Shares |
895,662 |
895,237 |
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Weighted Average Shares Outstanding |
895,662 |
895,401 |
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QTD Earnings Per Common Share |
$ 0.91 |
$ 0.99 |
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SOURCE Oconee Financial Corporation
