Oconee Financial Corporation Reports Third Quarter 2021 Results
Thursday, November 4th, 2021
Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the third quarter of 2021. Unaudited net income for the three months ending September 30, 2021, was $654,692 or $0.73 per common share. This compares to $516,482or $0.58 per common share for the third quarter of the prior year, an increase of 26.8%. . The increase in net earnings for the third quarter was mainly attributable to an increase in net interest income of $110,000. While interest income on loans decreased $202,000 due to lower loan yields during 2021, interest income on investments increased $249,000 due to the investment of excess funds into available-for-sale investment securities. In addition, interest expense on deposits and borrowings decreased $63,000, primarily due to lower rates on deposits.
Unaudited net income YTD as of September 30, 2021was $2,291,330 or $2.56 per common share. This compares to $1,555,194 or $1.73 per common share for YTD as of September 30 of the prior year. This represents an increase of 47.3% in net earnings YTD September 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 $964,000 and increases in mortgage banking income of $412,000.
Total assets as of September 30, 2021, were $532.2 million, compared to total assets of $494.5 million as of December 31, 2020. Total loans were $297.7 million and deposits were $481.2 million as of September 30, 2021. This compared to total loans of $319.6 million and deposits of $444.7 million at December 31, 2020. As of September 30, 2021, total loans decreased 6.9% and total deposits increased 8.2% versus December 31, 2020. Book value per share at September 30, 2021 was $43.88.
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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9/30/2021 |
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12/31/2020 |
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(Unaudited) |
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ASSETS |
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Cash and due from banks |
$ 75,024,113 |
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$ 76,418,430 |
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Securities available for sale (at fair value) |
137,637,156 |
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75,548,813 |
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Other investment |
247,400 |
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359,700 |
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Mortgage loans held for sale |
1,994,769 |
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6,408,720 |
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Loans, net of unearned income |
301,996,154 |
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323,624,861 |
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Allowance for loan loss |
(4,316,855) |
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(4,057,091) |
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Loans, net |
297,679,299 |
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319,567,770 |
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Premises and equipment |
8,186,982 |
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5,103,036 |
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Other real estate owned |
-- |
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-- |
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Other assets |
11,465,768 |
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11,129,233 |
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Total Assets |
$ 532,235,487 |
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$ 494,535,702 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities: |
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Deposits |
$ 481,178,740 |
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$ 444,701,932 |
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Subordinated debenture, net of capitalized expenses |
9,788,458 |
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9,770,497 |
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Dividends payable |
-- |
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-- |
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Accrued expenses and other liabilities |
1,970,147 |
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1,928,168 |
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Total Liabilities |
492,937,345 |
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456,400,597 |
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Stockholder's Equity: |
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Common Stock |
1,795,076 |
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1,794,250 |
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Restricted Stock |
(63,724) |
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(37,976) |
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Additional Paid in Capital |
4,159,822 |
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4,147,114 |
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Retained earnings |
32,560,129 |
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30,850,978 |
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Unrealized gain/loss on securities |
846,839 |
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1,380,739 |
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Total Stockholder's Equity |
39,298,142 |
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38,135,105 |
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Total Liabilities and Stockholder's Equity |
$ 532,235,487 |
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$ 494,535,702 |
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Book Value Per Share |
$ 43.88 |
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$ 42.56 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME-QTD |
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9/30/2021 |
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9/30/2020 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 3,618,485 |
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$ 3,820,044 |
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Securities available for sale |
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State, County & Municipal |
163,671 |
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82,218 |
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Treasuries & Agencies |
249,781 |
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168,215 |
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Corporate |
92,651 |
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12,531 |
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Federal funds sold & other |
25,746 |
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19,813 |
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4,150,335 |
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4,102,821 |
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Interest Expense: |
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Deposits |
236,938 |
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338,078 |
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Other |
155,988 |
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117,597 |
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Total Interest Expense |
392,926 |
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455,675 |
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Net interest income |
3,757,409 |
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3,647,146 |
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Provision for loan losses |
-- |
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487,500 |
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Net income after provision for loan losses |
3,757,409 |
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3,159,646 |
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Noninterest income |
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Service charges on deposit accounts |
117,081 |
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109,566 |
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Loss on Sale of Assets |
(27,690) |
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(4,864) |
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Securities gains (losses), net |
-- |
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18,866 |
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Mortgage banking income |
459,902 |
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627,119 |
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SBA loan related income |
37,168 |
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279,804 |
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Commissions on investment sales |
23,738 |
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147,232 |
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Other |
306,231 |
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310,801 |
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Total noninterest income |
916,430 |
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1,488,524 |
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Noninterest expense |
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Salaries and employee benefits |
2,221,805 |
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2,593,803 |
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Occupancy |
387,877 |
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306,541 |
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Other operating |
1,256,915 |
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1,139,494 |
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Total noninterest expense |
3,866,597 |
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4,039,838 |
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Income before provision for income taxes |
807,242 |
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608,332 |
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Provision for income taxes |
152,550 |
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91,850 |
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Net Income |
$ 654,692 |
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$ 516,482 |
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Period-Ending Outstanding Shares |
895,662 |
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895,237 |
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Weighted Average Shares Outstanding |
895,662 |
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895,401 |
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QTD Earnings Per Common Share |
$ 0.73 |
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$ 0.58 |
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OCONEE FINANCIAL CORPORATION |
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STATEMENT OF INCOME-YTD |
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9/30/2021 |
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9/30/2020 |
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(Unaudited) |
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Interest Income: |
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Loans |
$ 11,358,766 |
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$ 10,885,055 |
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Securities available for sale |
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State, County & Municipal |
517,609 |
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257,010 |
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Treasuries & Agencies |
610,697 |
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665,164 |
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Corporate |
251,273 |
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13,406 |
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Federal funds sold & other |
65,700 |
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180,068 |
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12,804,045 |
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12,000,703 |
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Interest Expense: |
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Deposits |
783,570 |
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1,310,370 |
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Other |
467,962 |
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135,793 |
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Total Interest Expense |
1,251,532 |
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1,446,163 |
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Net interest income |
11,552,513 |
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10,554,540 |
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Provision for loan losses |
235,500 |
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862,500 |
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Net income after provision for loan losses |
11,317,013 |
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9,692,040 |
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Noninterest income |
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Service charges on deposit accounts |
332,215 |
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339,613 |
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Loss on Sale of Assets |
(64,151) |
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(18,155) |
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Securities gains (losses), net |
172,312 |
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182,860 |
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Mortgage banking income |
1,662,571 |
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1,250,518 |
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SBA loan related income |
155,713 |
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589,352 |
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Commissions on investment sales |
163,080 |
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430,521 |
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Other |
1,055,703 |
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920,082 |
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Total noninterest income |
3,477,442 |
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3,694,790 |
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Noninterest expense |
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Salaries and employee benefits |
6,867,084 |
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7,491,765 |
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Occupancy |
1,049,283 |
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899,999 |
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Other operating |
4,000,890 |
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3,097,216 |
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Total noninterest expense |
11,917,257 |
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11,488,980 |
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Income before provision for income taxes |
2,877,198 |
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1,897,851 |
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Provision for income taxes |
585,868 |
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342,657 |
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Net Income |
$ 2,291,330 |
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$ 1,555,194 |
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Period-Ending Outstanding Shares |
895,662 |
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895,237 |
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Weighted Average Shares Outstanding |
895,662 |
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895,401 |
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YTD Earnings Per Common Share |
$ 2.56 |
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$ 1.73 |
