Oconee Financial Corporation Reports Fourth Quarter and Full Year 2021 Results

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Feb 01, 2022, 16:01 ET

WATKINSVILLE, Ga., Feb. 1, 2022 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the fourth quarter of 2021 and for the year ending December 31, 2021. Unaudited net income for the three months ending December 31, 2021, was $708,199 or $0.79 per common share. This compares to $333,597 or $0.37 per common share for the fourth quarter of the prior year, an increase of 112.3%. The increase in net earnings for the fourth quarter was mainly attributable to an increase in net interest income of $520,000. Interest income on loans increased $220,000 primarily due to recognition of loan fees from the Paycheck Protection Program (PPP). Interest income on investments increased $193,000 due to the investment of excess funds into available-for-sale investment securities. In addition, interest expense on deposits and borrowings decreased $94,000, primarily due to lower interest rates on deposits.

Unaudited net income YTD as of December 31, 2021 was $2,999,529 or $3.35 per common share. This compares to $1,888,792 or $2.11 per common share for YTD as of December 31^st of the prior year. This represents an increase of 58.8% in net earnings YTD December 31, 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 PPP fees recognized of $1,227,000.

Total assets as of December 31, 2021, were $571.1 million, compared to total assets of $494.5 million as of December 31, 2020, an increase of 15.5%. Total loans were $298.0 million and deposits were $519.7 million as of December 31, 2021. This compared to total loans of $319.6 million and deposits of $444.7 million at December 31, 2020. As of December 31, 2021, total loans decreased 6.8% and total deposits increased 16.9% versus December 31, 2020. Excluding the effect of pay downs on PPP loans during 2021, loans increased $29.9 million, or 9.4%. Book value per share at December 31, 2021 was $43.88 versus $42.56 at December 31, 2020.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the fourth quarter's results noted, "We are very pleased with our fourth quarter and full year results. Both measures reflect a significant improvement over the same period a year ago and reflect the dedication and quality work of our team.

2022 will be a transitional year for the Bank, as we work to continue improving results, while at the same time, working to replace over $2 million of non-recurring PPP fees we saw in 2021. We are confident that our talented team of bankers will meet this challenge, but improving on our 2021 results will be no small task."

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service branch. In February 2022, Oconee State bank will celebrate 62 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.

OCONEE FINANCIAL CORPORATION
BALANCE SHEET

				12/31/2021	12/31/2020
				(Unaudited)
ASSETS
		Cash and due from banks		$ 85,774,514	$ 76,418,430
		Securities available for sale (at fair value)		162,165,152	75,548,813
		Other investment		247,400	359,700
		Mortgage loans held for sale		1,212,617	6,408,720

		Loans, net of unearned income		302,523,687	323,624,861
		Allowance for loan loss		(4,542,292)	(4,057,091)
			Loans, net	297,981,395	319,567,770

		Premises and equipment		8,602,518	5,103,036
		Other real estate owned		--	--
		Other assets		15,158,403	11,129,233
			Total Assets	$ 571,141,998	$ 494,535,702

LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$ 519,693,969	$ 444,701,932
		Subordinated debenture, net of capitalized expenses		9,794,445	9,770,497
		Dividends payable		--	--
		Accrued expenses and other liabilities		2,320,963	1,928,168
			Total Liabilities	531,809,377	456,400,597

	Stockholder's Equity:
		Common Stock		1,795,076	1,794,250
		Restricted Stock		(38,311)	(37,976)
		Additional Paid in Capital		4,159,822	4,147,114
		Retained earnings		33,268,328	30,850,978
		Unrealized gain/loss on securities		147,706	1,380,739
			Total Stockholder's Equity	39,332,621	38,135,105

			Total Liabilities and Stockholder's Equity	$ 571,141,998	$ 494,535,702

			Book Value Per Share	$ 43.88	$ 42.56

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD

				12/31/2021	12/31/2020
				(Unaudited)
	Interest Income:
		Loans		$ 3,923,036	$ 3,702,713
		Securities available for sale
			State, County & Municipal	168,142	150,758
			Treasuries & Agencies	264,838	139,227
			Corporate	94,766	45,187
		Federal funds sold & other		36,578	23,305
				4,487,360	4,061,190

	Interest Expense:
		Deposits		218,171	287,415
		Other		155,987	180,617
		Total Interest Expense		374,158	468,032

			Net interest income	4,113,203	3,593,158

	Provision for loan losses			220,500	387,500

		Net income after provision for loan losses		3,892,703	3,205,658

	Noninterest income
		Service charges on deposit accounts		126,728	114,185
		Loss on Sale of Assets		(203,971)	500
		Securities gains (losses), net		--	--
		Mortgage banking income		405,419	668,645
		SBA loan related income		183,938	26,539
		Commissions on investment sales		24,249	106,387
		Other		378,718	337,942
		Total noninterest income		915,081	1,254,199

	Noninterest expense
		Salaries and employee benefits		2,433,066	2,593,870
		Occupancy		375,854	304,015
		Other operating		1,144,600	1,203,959
		Total noninterest expense		3,953,519	4,101,844

			Income before provision for income taxes	854,265	358,012

	Provision for income taxes			146,066	24,415

			Net Income	$ 708,199	$ 333,597

			Period-Ending Outstanding Shares	896,412	897,125
			Weighted Average Shares Outstanding	896,412	896,163
			QTD Earnings Per Common Share	$ 0.79	$ 0.37

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD

				12/31/2021	12/31/2020
				(Unaudited)
	Interest Income:
		Loans		$ 15,281,802	$ 14,587,768
		Securities available for sale
			State, County & Municipal	685,752	407,768
			Treasuries & Agencies	875,535	804,391
			Corporate	346,038	58,594
		Federal funds sold & other		102,278	203,373
				17,291,405	16,061,894

	Interest Expense:
		Deposits		1,001,740	1,597,785
		Other		623,949	316,410
		Total Interest Expense		1,625,689	1,914,195

			Net interest income	15,665,716	14,147,699

	Provision for loan losses			456,000	1,250,000

		Net income after provision for loan losses		15,209,716	12,897,699

	Noninterest income
		Service charges on deposit accounts		458,943	453,798
		Loss on Sale of Assets		(268,123)	(17,655)
		Securities gains (losses), net		172,312	182,860
		Mortgage banking income		2,067,991	1,919,163
		SBA loan related income		339,651	615,891
		Commissions on investment sales		187,329	536,908
		Other		1,434,421	1,258,024
		Total noninterest income		4,392,523	4,948,990

	Noninterest expense
		Salaries and employee benefits		9,300,150	10,085,635
		Occupancy		1,425,137	1,204,014
		Other operating		5,145,490	4,301,175
		Total noninterest expense		15,870,776	15,590,824

			Income before provision for income taxes	3,731,463	2,255,864

	Provision for income taxes			731,934	367,072

			Net Income	$ 2,999,529	$ 1,888,792

			Period-Ending Outstanding Shares	896,412	895,237
			Weighted Average Shares Outstanding	896,412	895,401
			YTD Earnings Per Common Share	$ 3.35	$ 2.11