Oconee Financial Corporation Reports Third Quarter 2021 Results

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Oconee Financial Corporation

Nov 03, 2021, 11:00 ET

WATKINSVILLE, Ga., Nov. 3, 2021 /PRNewswire/ -- 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 $516,482 or $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, 2021 was $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.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the third quarter's results noted, "we're pleased with our growth in earnings for the quarter and for the year to date.  While loans decreased over the prior year, this was primarily due to a $39 million decrease in PPP loans versus the year ago level.  We saw very strong loan demand in the third quarter and strong loan demand continues into the fourth quarter.  This growth reflects the vibrancy of our markets and the quality of our lending team."  

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. 

OCONEE FINANCIAL CORPORATION

BALANCE SHEET












9/30/2021


12/31/2020





(Unaudited)



ASSETS






Cash and due from banks

$   75,024,113


$   76,418,430



Securities available for sale (at fair value)

137,637,156


75,548,813



Other investment

247,400


359,700



Mortgage loans held for sale

1,994,769


6,408,720










Loans, net of unearned income

301,996,154


323,624,861



Allowance for loan loss

(4,316,855)


(4,057,091)




Loans, net

297,679,299


319,567,770










Premises and equipment

8,186,982


5,103,036



Other real estate owned

--


--



Other assets

11,465,768


11,129,233




Total Assets

$ 532,235,487


$ 494,535,702








LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities:






Deposits

$ 481,178,740


$ 444,701,932



Subordinated debenture, net of capitalized expenses

9,788,458


9,770,497



Dividends payable

--


--



Accrued expenses and other liabilities

1,970,147


1,928,168




Total Liabilities

492,937,345


456,400,597









Stockholder's Equity:






Common Stock

1,795,076


1,794,250



Restricted Stock

(63,724)


(37,976)



Additional Paid in Capital

4,159,822


4,147,114



Retained earnings

32,560,129


30,850,978



Unrealized gain/loss on securities

846,839


1,380,739




Total Stockholder's Equity

39,298,142


38,135,105











Total Liabilities and Stockholder's Equity

$ 532,235,487


$ 494,535,702











Book Value Per Share

$            43.88


$            42.56

OCONEE FINANCIAL CORPORATION

STATEMENT OF INCOME-QTD










9/30/2021


9/30/2020




(Unaudited)



Interest Income:





Loans

$ 3,618,485


$ 3,820,044


Securities available for sale






State, County & Municipal

163,671


82,218



Treasuries & Agencies

249,781


168,215



 Corporate

92,651


12,531


Federal funds sold & other

25,746


19,813




4,150,335


4,102,821







Interest Expense:





Deposits

236,938


338,078


Other

155,988


117,597


Total Interest Expense

392,926


455,675









Net interest income

3,757,409


3,647,146







Provision for loan losses

--


487,500








Net income after provision for loan losses

3,757,409


3,159,646







Noninterest income





Service charges on deposit accounts

117,081


109,566


Loss on Sale of Assets

(27,690)


(4,864)


Securities gains (losses), net

--


18,866


Mortgage banking income

459,902


627,119


SBA loan related income

37,168


279,804


Commissions on investment sales

23,738


147,232


Other

306,231


310,801


Total noninterest income

916,430


1,488,524







Noninterest expense





Salaries and employee benefits

2,221,805


2,593,803


Occupancy

387,877


306,541


Other operating

1,256,915


1,139,494


Total noninterest expense

3,866,597


4,039,838









Income before provision for income taxes

807,242


608,332







Provision for income taxes

152,550


91,850









Net Income

$    654,692


$    516,482









Period-Ending Outstanding Shares

895,662


895,237



Weighted Average Shares Outstanding

895,662


895,401



QTD Earnings Per Common Share

$          0.73


$          0.58

OCONEE FINANCIAL CORPORATION

STATEMENT OF INCOME-YTD










9/30/2021


9/30/2020




(Unaudited)



Interest Income:





Loans

$ 11,358,766


$ 10,885,055


Securities available for sale






State, County & Municipal

517,609


257,010



Treasuries & Agencies

610,697


665,164



Corporate

251,273


13,406


Federal funds sold & other

65,700


180,068




12,804,045


12,000,703







Interest Expense:





Deposits

783,570


1,310,370


Other

467,962


135,793


Total Interest Expense

1,251,532


1,446,163









Net interest income

11,552,513


10,554,540







Provision for loan losses

235,500


862,500








Net income after provision for loan losses

11,317,013


9,692,040







Noninterest income





Service charges on deposit accounts

332,215


339,613


Loss on Sale of Assets

(64,151)


(18,155)


Securities gains (losses), net

172,312


182,860


Mortgage banking income

1,662,571


1,250,518


SBA loan related income

155,713


589,352


Commissions on investment sales

163,080


430,521


Other

1,055,703


920,082


Total noninterest income

3,477,442


3,694,790







Noninterest expense





Salaries and employee benefits

6,867,084


7,491,765


Occupancy

1,049,283


899,999


Other operating

4,000,890


3,097,216


Total noninterest expense

11,917,257


11,488,980









Income before provision for income taxes

2,877,198


1,897,851







Provision for income taxes

585,868


342,657









Net Income

$   2,291,330


$   1,555,194









Period-Ending Outstanding Shares

895,662


895,237



Weighted Average Shares Outstanding

895,662


895,401



YTD Earnings Per Common Share

$            2.56


$            1.73

SOURCE Oconee Financial Corporation