Oconee Financial Corporation Reports Second Quarter 2022 Results

Rhea-AI Summary

Oconee Financial Corporation (OTCQX: OSBK) reported a net income of $1,229,477 or $1.37 per share for Q2 2022, a 51.3% increase from the prior year. The growth was driven by a $639,000 increase in SBA loan income, despite a $284,000 decline in net interest income due to lower PPP loan fees. Year-to-date net income reached $1,819,853, up 11.2% year-over-year. Total assets fell 11.4% to $505.9 million, with total deposits dropping 10.6% to $464.4 million. The book value per share decreased to $32.91 from $43.88.

Positive

• Net income for Q2 2022 was $1,229,477, a 51.3% increase year-over-year.
• SBA loan related income increased by $639,000, contributing to overall earnings growth.
• Year-to-date net income reached $1,819,853, an increase of 11.2% compared to last year.

Negative

• Net interest income decreased by $284,000 compared to Q2 2021.
• Total assets decreased by 11.4% to $505.9 million since December 31, 2021.
• Total loans and deposits fell by 1.4% and 10.6% respectively since December 31, 2021.
• Book value per share dropped from $43.88 to $32.91 due to $10.9 million in unrealized losses.

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

 

View original content:https://www.prnewswire.com/news-releases/oconee-financial-corporation-reports-second-quarter-2022-results-301600262.html

SOURCE Oconee Financial Corporation

FAQ

What were the second quarter 2022 results for Oconee Financial Corporation (OSBK)?

Oconee Financial Corporation reported a net income of $1,229,477 for Q2 2022, representing a 51.3% increase compared to the previous year.

How did Oconee Financial's net income change year-to-date for June 2022?

As of June 30, 2022, Oconee Financial's year-to-date net income was $1,819,853, an increase of 11.2% year-over-year.

What were the key factors affecting Oconee Financial's Q2 2022 performance?

The growth in Q2 2022 was mainly due to a $639,000 increase in SBA loan related income, despite a decline in net interest income.

How did total assets and deposits change for Oconee Financial Corporation (OSBK) as of June 30, 2022?

Total assets decreased by 11.4% to $505.9 million and total deposits fell by 10.6% to $464.4 million since December 31, 2021.

What was the book value per share for Oconee Financial Corporation on June 30, 2022?

The book value per share decreased to $32.91 on June 30, 2022, down from $43.88 at year-end 2021.