Oconee Financial Corporation Reports Second Quarter 2022 Results
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 | ||||
SOURCE Oconee Financial Corporation
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