Oconee Financial Corporation Reports Second Quarter 2022 Results

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Aug 04, 2022, 16:01 ET

WATKINSVILLE, Ga., Aug. 4, 2022 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the second quarter of 2022. Unaudited net income for the three months ending June 30, 2022, was $1,229,477 or $1.37 per common share. This compares to $812,417 or $0.91 per common share for the second quarter of the prior year, an increase of 51.3%. The increase in net earnings for the second quarter was mainly attributable to an increase in SBA loan related income of $639,000. Net interest income decreased $284,000 for the second quarter 2022 compared to the same period of 2021. This was mainly due to the decline in loan fees from the Paycheck Protection Program (PPP) of $687,000 versus the second quarter of 2021. Interest income on investments increased $97,000 due to the investment of excess funds into available-for-sale investments securities. In addition, interest expense on deposits and borrowings decreased $102,000, primarily due to lower interest rates on deposits. Excluding an after-tax gain on sale of bank premises in the second quarter of $167 thousand, net earnings for the second quarter were $1,062,293, or $1.18 per share.

Unaudited net income YTD as of June 30, 2022 was $1,819,853, or $2.03 per common share. This compares to $1,636,638 or $1.83 per common share for YTD as of June 30 of the prior year. This represents an increase of 11.2% in net earnings YTD June 30, 2022 as compared to the same period in 2021. Excluding an after-tax gain on sale of bank premises in the second quarter of $167 thousand, net earnings YTD June 30, 2022 were $1,652,669, or $1.84 per share.

Total assets as of June 30, 2022, were $505.9 million, compared to total assets of $571.1 million as of December 31, 2021, a decrease of 11.4%. Total loans were $293.9 million and total deposits were $464.4 million as of June 30, 2022. This compared to total loans of $298.0 million and deposits of $519.7 million at December 31, 2021. As of June 30, 2022, total loans decreased 1.4% and total deposits decreased 10.6% versus December 31, 2021. Excluding the effect of paydowns on PPP loans that has continued into 2022, loans decreased $625 thousand, or 0.2%. Book value per share at June 30, 2022 was $32.91 versus $43.88 at December 31, 2021. The decrease in book value per share during the first half of the year was due to recording $10.9 million of unrealized losses in the Bank's investment portfolio.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the second quarter's results noted, "We had an excellent second quarter, with strong earnings improvement over last quarter and versus the second quarter of last year. Our team is doing an excellent job of improving earnings, especially in light of replacing almost $700,000 of PPP loan fees we had in the second quarter a year ago."

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service financial centers and one loan production office. In February 2022, Oconee State bank celebrated 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

				6/30/2022	12/31/2021
				(Unaudited)
ASSETS
		Cash and due from banks		$ 32,116,471	$ 85,774,514
		Securities available for sale (at fair value)		150,386,861	162,165,152
		Other investment		285,600	247,400
		Mortgage loans held for sale		1,936,913	1,212,617

		Loans, net of unearned income		298,456,019	302,523,687
		Allowance for loan loss		(4,549,025)	(4,542,292)
			Loans, net	293,906,994	297,981,395

		Premises and equipment		7,990,608	8,602,518
		Other assets		19,293,786	15,158,402
			Total Assets	$ 505,917,233	$ 571,141,998

LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$ 464,381,658	$ 519,693,969
		Subordinated debenture, net of capitalized expenses		9,806,419	9,794,445
		Dividends payable		--	--
		Accrued expenses and other liabilities		2,239,113	2,320,963
			Total Liabilities	476,427,191	531,809,377

	Stockholder's Equity:
		Common Stock		1,795,900	1,795,076
		Restricted Stock		(70,523)	(38,311)
		Additional Paid in Capital		4,176,342	4,159,822
		Retained earnings		34,460,929	33,268,328
		Unrealized gain/loss on securities		(10,872,606)	147,706
			Total Stockholder's Equity	29,490,042	39,332,621

			Total Liabilities and Stockholder's Equity	$ 505,917,233	$ 571,141,998

			Book Value Per Share	$ 32.91	$ 43.88

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD

				6/30/2022	6/30/2021
				(Unaudited)
	Interest Income:
		Loans		$ 6,623,582	$ 7,740,280
		Securities available for sale
			State, County & Municipal	387,964	353,938
			Treasuries & Agencies	625,557	360,916
			Corporate	189,740	158,622
		Federal funds sold & other		127,129	39,954
				7,953,972	8,653,710

	Interest Expense:
		Deposits		329,127	546,632
		Other		311,974	311,974
		Total Interest Expense		641,101	858,606

			Net interest income	7,312,871	7,795,104

	Provision for loan losses			--	235,500

		Net income after provision for loan losses		7,312,871	7,559,604

	Noninterest income
		Service charges on deposit accounts		323,389	215,134
		Gain (Loss) on Sale of Assets		218,227	(36,462)
		Securities gains (losses), net		--	172,312
		Mortgage banking income		616,875	1,202,670
		SBA loan related income		815,364	118,545
		Commissions on investment sales		61,635	139,341
		Other		812,152	749,472
		Total noninterest income		2,847,642	2,561,011

	Noninterest expense
		Salaries and employee benefits		4,562,970	4,645,279
		Occupancy		608,000	661,406
		Other operating		2,617,969	2,743,975
		Total noninterest expense		7,788,939	8,050,659

			Income before provision for income taxes	2,371,574	2,069,956

	Provision for income taxes			551,721	433,318

			Net Income	$ 1,819,853	$ 1,636,638

			Period-Ending Outstanding Shares	896,074	895,662
			Weighted Average Shares Outstanding	896,823	895,662
			YTD Earnings Per Common Share	$ 2.03	$ 1.83

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD

				6/30/2022	6/30/2021
				(Unaudited)
	Interest Income:
		Loans		$ 3,333,559	$ 3,887,179
		Securities available for sale
			State, County & Municipal	192,939	166,595
			Treasuries & Agencies	323,493	256,269
			Corporate	94,766	90,849
		Federal funds sold & other		89,475	19,381
				4,034,232	4,420,273

	Interest Expense:
		Deposits		158,246	260,545
		Other		155,987	155,987
		Total Interest Expense		314,233	416,532

			Net interest income	3,719,999	4,003,741

	Provision for loan losses			--	--

		Net income after provision for loan losses		3,719,999	4,003,741

	Noninterest income
		Service charges on deposit accounts		160,443	108,952
		Gain (Loss) on Sale of Assets		218,227	(36,462)
		Securities gains (losses), net		--	(23,991)
		Mortgage banking income		238,374	617,436
		SBA loan related income		712,838	74,099
		Commissions on investment sales		37,890	60,124
		Other		411,082	347,393
		Total noninterest income		1,778,854	1,147,551

	Noninterest expense
		Salaries and employee benefits		2,262,774	2,354,327
		Occupancy		305,094	354,390
		Other operating		1,321,550	1,416,609
		Total noninterest expense		3,889,418	4,125,325

			Income before provision for income taxes	1,609,435	1,025,966

	Provision for income taxes			379,959	213,549

			Net Income	$ 1,229,477	$ 812,417

			Period-Ending Outstanding Shares	896,074	895,662
			Weighted Average Shares Outstanding	896,823	895,662
			QTD Earnings Per Common Share	$ 1.37	$ 0.91