Oconee Financial Corporation : Reports Second Quarter 2021 Results

WATKINSVILLE, Ga., Aug. 3, 2021 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the second quarter of 2021.  Unaudited net income for the three months ending June 30, 2021, was $812,417 or $0.91 per common share.  This compares to $889,370 or $0.99 per common share for the second quarter of the prior year.  This represents an 8.7% decrease in net earnings in the second quarter of 2021 as compared to the same period in 2020.  The decrease for the second quarter was mainly attributed to merger expenses of $196,000 relating to our pending acquisition of Elberton Federal Savings and Loan Association. Excluding these merger-related charges, net earnings for the second quarter were $967,257.  This represents an 8.8% increase over the second quarter of 2020.

Unaudited net income YTD as of June 30, 2021 was $1,636,638 or $1.83 per common share.  This compares to $1,038,711 or $1.15 per common share for YTD as of June 30 of the prior year.  This represents an increase of 57.6% in net earnings YTD June 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 $835,000 and increases in mortgage banking income of $579,000.

Total assets as of June 30, 2021, were $529.3 million, compared to total assets of $494.5 million as of December 31, 2020.  Total loans were $301.0 million and deposits were $478.9 million as of June 30, 2021.  This compared to total loans of $319.6 million and deposits of $444.7 million at December 31, 2020.  As of June 30, 2021, total loans decreased 5.8% and total deposits increased 7.7% versus December 31, 2020.  Book value per share at June 30, 2021 was $43.43.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the second quarter's results noted "we're pleased with our earnings for the second quarter.  So far in the third quarter we're seeing good lending momentum across all our markets".

Stevens also noted "in the second quarter, we moved into our corporate headquarters in downtown Watkinsville.  This move allowed us to not only house our executive and support staff in one building but also downsize our square footage and reduced our occupancy costs.  Also, the regulatory application for the Elberton Federal merger has now been filed and we are looking forward to completing the merger."

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
				6/30/2021		12/31/2020
				(Unaudited)
ASSETS
		Cash and due from banks		$   76,805,785		$   76,418,430
		Securities available for sale (at fair value)		126,595,713		75,548,813
		Other investment		247,400		359,700
		Mortgage loans held for sale		5,294,138		6,408,720
		Loans, net of unearned income		305,344,255		323,624,861
		Allowance for loan loss		(4,313,844)		(4,057,091)
			Loans, net	301,030,411		319,567,770
		Premises and equipment		8,105,088		5,103,036
		Other real estate owned		--		--
		Other assets		11,189,054		11,129,233
			Total Assets	$ 529,267,589		$ 494,535,702
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$ 478,936,187		$ 444,701,932
		Subordinated debenture, net of capitalized expenses		9,782,471		9,770,497
		Dividends payable		--		--
		Accrued expenses and other liabilities		1,652,497		1,928,168
			Total Liabilities	490,371,155		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		31,905,437		30,850,978
		Unrealized gain/loss on securities		1,099,823		1,380,739
			Total Stockholder's Equity	38,896,434		38,135,105
			Total Liabilities and Stockholder's Equity	$ 529,267,589		$ 494,535,702
			Book Value Per Share	$            43.43		$            42.56

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD
				6/30/2021		6/30/2020
				(Unaudited)
	Interest Income:
		Loans		$ 7,740,280		$ 7,065,011
		Securities available for sale
			State, County & Municipal	353,938		174,792
			Treasuries & Agencies	360,916		496,949
			Corporate	158,622		875
		Federal funds sold & other		39,954		160,255
				8,653,710		7,897,882
	Interest Expense:
		Deposits		546,632		972,292
		Other		311,974		18,196
		Total Interest Expense		858,606		990,488
			Net interest income	7,795,104		6,907,394
	Provision for loan losses			235,500		375,000
		Net income after provision for loan losses		7,559,604		6,532,394
	Noninterest income
		Service charges on deposit accounts		215,134		230,047
		Loss on Sale of Assets		(36,462)		(13,291)
		Securities gains (losses), net		172,312		163,994
		Mortgage banking income		1,202,670		623,399
		SBA loan related income		118,545		309,548
		Commissions on investment sales		139,341		283,289
		Other		749,472		609,281
		Total noninterest income		2,561,011		2,206,266
	Noninterest expense
		Salaries and employee benefits		4,645,279		4,897,962
		Occupancy		661,406		593,458
		Other operating		2,743,975		1,957,723
		Total noninterest expense		8,050,659		7,449,143
			Income before provision for income taxes	2,069,956		1,289,518
	Provision for income taxes			433,318		250,807
			Net Income	$ 1,636,638		$ 1,038,711
			Period-Ending Outstanding Shares	895,662		895,237
			Weighted Average Shares Outstanding	895,662		895,401
			YTD Earnings Per Common Share	$          1.83		$          1.15

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD
				6/30/2021		6/30/2020
				(Unaudited)
	Interest Income:
		Loans		$ 3,887,179		$ 3,794,685
		Securities available for sale
			State, County & Municipal	166,595		85,972
			Treasuries & Agencies	256,269		205,124
			Corporate	90,849		875
		Federal funds sold & other		19,381		19,445
				4,420,273		4,106,101
	Interest Expense:
		Deposits		260,545		375,380
		Other		155,987		18,196
		Total Interest Expense		416,532		393,576
			Net interest income	4,003,741		3,712,525
	Provision for loan losses			--		187,500
		Net income after provision for loan losses		4,003,741		3,525,025
	Noninterest income
		Service charges on deposit accounts		108,952		99,217
		Loss on Sale of Assets		(36,462)		(13,291)
		Securities gains (losses), net		(23,991)		163,994
		Mortgage banking income		617,436		461,907
		SBA loan related income		74,099		179,570
		Commissions on investment sales		60,124		137,669
		Other		347,393		287,875
		Total noninterest income		1,147,551		1,316,941
	Noninterest expense
		Salaries and employee benefits		2,354,327		2,466,504
		Occupancy		354,390		308,330
		Other operating		1,416,609		939,104
		Total noninterest expense		4,125,326		3,713,938
			Income before provision for income taxes	1,025,966		1,128,028
	Provision for income taxes			213,549		238,658
			Net Income	$    812,417		$    889,370
			Period-Ending Outstanding Shares	895,662		895,237
			Weighted Average Shares Outstanding	895,662		895,401
			QTD Earnings Per Common Share	$          0.91		$          0.99

 

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SOURCE Oconee Financial Corporation