Oconee Financial Corporation Reports Fourth Quarter 2020 Results

Rhea-AI Summary

Oconee Financial Corporation (OTCQX: OSBK) reported a significant decline in net income for Q4 2020, totaling $333,597, compared to $1,936,380 in Q4 2019. The annual net income dropped 49.8% to $1,888,792 from $3,759,365. In contrast, total assets increased to $494.5 million, a 24% rise from the previous year, with loans and deposits also seeing substantial growth of 28.5% and 23.0%, respectively. The company allocated $387,500 for loan loss provisions in Q4 2020, highlighting concerns over credit quality amidst economic challenges due to COVID-19.

Positive

• Total assets rose 24% to $494.5 million year-over-year.
• Total loans increased by 28.5% to $319.6 million.
• Total deposits grew by 23.0% to $444.7 million.

Negative

• Net income decreased by 49.8% to $1,888,792 for the year.
• Net income for Q4 2020 dropped to $333,597 from $1,936,380 in Q4 2019.
• Loan loss provisions increased to $387,500, reflecting potential credit risk.

WATKINSVILLE, Ga., Feb. 4, 2021 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the fourth quarter of 2020.  Unaudited net income for the three months ending December 31, 2020, was $333,597 or $0.37 per common share.  This compares to $1,936,380 or $2.17 per common share for the fourth quarter of 2019 and $516,483 or $0.58 per common share for the third quarter of 2020.  Fourth quarter 2020's results included $387,500 of loan loss provision expense versus $142,500 for the fourth quarter of 2019 and $487,500 for the third quarter of 2020.   Fourth quarter 2019's results included an after-tax gain on sale of Oconee's operations center of $1.3 million, or $1.45 per common share.

Unaudited net income for the year ended December 31, 2020 was $1,888,792 or $2.11 per common share.  This compares to $3,759,365 or $4.20 per common share for YTD as of December 31 of the prior year.  This represents a decrease of 49.8% in net earnings for the year ended December 31, 2020 as compared to the same period in 2019.  Excluding the gain on sale of the operations center, net income declined $573 thousand or $0.64 per share.

Total assets as of December 31, 2020, were $494.5 million, compared to total assets of $399.5 million as of December 31, 2019, an increase of $95.0 million, or 24%. Total loans were $319.6 million and deposits were $444.7 million as of December 31, 2020.  This compared to total loans of $248.8 million and deposits of $361.5 million at December 31, 2019.  As of December 31, 2020, total loans have increased 28.5% and total deposits have increased 23.0% versus December 31, 2019. 

Neil Stevens, President and Chief Executive Officer of Oconee stated "our fourth quarter results were impacted by an additional loan loss provision of $200,000.  This follows an additional $300,000 loan loss provision in the third quarter of 2020.  While credit quality remains stable, we believe it was prudent in light of current economic conditions to book an additional loan loss provision this year of $500,000. 

Stevens added "we've been privileged to play a very essential role in helping businesses in our communities recover from the economic impact of COVID-19.  In 2020, we loaned over $55 million in PPP loans to over 600 businesses. We stand ready to assist customers with the next round of PPP loans."  

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service loan production office.  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
				12/31/2020		12/31/2019
				(Unaudited)
ASSETS
		Cash and due from banks		$         76,418,430		$          38,099,324
		Securities available for sale (at fair value)		75,548,813		99,228,506
		Other investment		359,700		314,900
		Mortgage loans held for sale		6,408,720		1,572,800
		Loans, less allowance for loan
			losses	319,567,770		248,771,230
		Premises and equipment		5,103,036		4,294,867
		Other real estate owned		--		--
		Other assets		11,129,233		7,239,812
			Total Assets	$       494,535,702		$        399,521,439
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$       444,701,932		$        361,522,574
		Repurchase agreements		--		--
		Subordinated debenture, net of capitalized expenses		9,770,497		--
		Dividends payable		--		--
		Other borrowings		--		--
		Accrued expenses and other liabilities		1,928,168		2,331,769
			Total Liabilities	456,400,597		363,854,343
	Stockholder's Equity:
		Common Stock		1,794,250		1,793,760
		Restricted Stock		(37,977)		(36,745)
		Additional Paid in Capital		4,147,114		4,139,146
		Retained earnings		30,850,979		29,501,154
		Unrealized gain/loss on securities		1,380,739		269,781
			Total Stockholder's Equity	38,135,105		35,667,096
			Total Liabilities and Stockholder's Equity	$       494,535,702		$        399,521,439

 

	OCONEE FINANCIAL CORPORATION
	STATEMENT OF INCOME - QTD
				12/31/2020		12/31/2019
				(Unaudited)
	Interest Income:
	Loans			$        3,702,713		$         3,221,637
	Securities available for sale
			State, County & Municipal	150,758		93,972
			Treasuries & Agencies	139,227		296,051
			Corporate	45,187		--
		Federal funds sold & other		23,305		145,286
		Total Interest Income		4,061,190		3,756,947
	Interest Expense:
		Deposits		287,415		475,516
		Other		180,617		398
		Total Interest Expense		468,032		475,914
			Net interest income	3,593,158		3,281,033
	Provision for loan losses			387,500		142,500
	Net income after provision for loan loss			3,205,658		3,138,533
	Noninterest income
	Service charge on deposit accounts			114,185		139,893
		Gain on Sale of Assets		500		1,781,545
		Securities gains (losses), net		--		930
		Mortgage banking income		668,645		194,979
		SBA loan related income		26,539		271,413
		Commissions on investment sales		106,387		123,821
		Other		337,942		306,319
		Total noninterest income		1,254,199		2,818,900
	Noninterest expense
	Salaries and employee benefits			2,593,870		2,178,654
		Occupancy		304,014		380,418
		Other operating		1,203,960		872,193
		Total noninterest expense		4,101,844		3,431,265
		Income before provision for income tax		358,013		2,526,168
	Provision for income taxes			24,415		589,788
			Net Income	$           333,597		$         1,936,380
			Period-Ending Outstanding Shares	897,125		896,880
			Weighted Average Shares Outstanding	896,163		895,742
			QTD Earnings Per Common Share	$                 0.37		$                  2.17

 

	OCONEE FINANCIAL CORPORATION
	STATEMENT OF INCOME-YTD
				12/31/2020		12/31/2019
				(Unaudited)
	Interest Income:
		Loans		$         14,587,768		$          12,381,600
		Securities available for sale
			State, County & Municipal	407,768		454,790
			Treasuries & Agencies	804,391		1,259,350
			Corporate	58,594		--
		Federal funds sold & other		203,373		375,577
				16,061,894		14,471,317
	Interest Expense:
		Deposits		1,597,785		1,523,254
		Other		316,410		11,211
		Total Interest Expense		1,914,195		1,534,465
			Net interest income	14,147,699		12,936,852
	Provision for loan losses			1,250,000		570,000
		Net income after provision for loan losses		12,897,699		12,366,852
	Noninterest income
		Service charges on deposit accounts		453,798		584,527
		Gain on Sale of Assets		(17,655)		1,781,545
		Securities gains (losses), net		182,860		7,437
		Mortgage banking income		1,919,163		518,339
		SBA loan related income		615,891		1,076,190
		Commissions on investment sales		536,908		510,184
		Other		1,258,024		1,249,918
		Total noninterest income		4,948,990		5,728,140
	Noninterest expense
		Salaries and employee benefits		10,085,635		8,493,647
		Occupancy		1,204,014		1,358,796
		Other operating		4,301,175		3,465,678
		Total noninterest expense		15,590,824		13,318,121
			Income before provision for income taxes	2,255,864		4,776,871
	Provision for income taxes			367,072		1,017,506
			Net Income	$           1,888,792		$            3,759,365
			Period-Ending Outstanding Shares	897,125		896,880
			Weighted Average Shares Outstanding	896,163		895,742
			YTD Earnings Per Common Share	$                    2.11		$                     4.20

 

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SOURCE Oconee Financial Corporation

FAQ

What were Oconee Financial's net income results for Q4 2020?

Oconee Financial Corporation reported a net income of $333,597 for Q4 2020.

How much did Oconee Financial's net income decrease in 2020?

The net income for Oconee Financial declined by 49.8% in 2020.

What are the total assets of Oconee Financial as of December 31, 2020?

Oconee Financial's total assets were $494.5 million as of December 31, 2020.

How much did Oconee Financial allocate for loan loss provisions in Q4 2020?

Oconee Financial allocated $387,500 for loan loss provisions in Q4 2020.

What was Oconee Financial's EPS for the year ended December 31, 2020?

Oconee Financial's earnings per share (EPS) for the year ended December 31, 2020, was $2.11.