Oconee Financial Corporation Reports Third Quarter 2021 Results

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Oconee Financial Corporation (OTCQX: OSBK) reported a net income of $654,692 for Q3 2021, up 26.8% from $516,482 in Q3 2020, reflecting a per-share increase from $0.58 to $0.73. Year-to-date income reached $2,291,330, a 47.3% increase from $1,555,194 in 2020. Key drivers included a $964,000 rise in PPP fees and a $412,000 increase in mortgage banking income. Total assets climbed to $532.2 million, with loans decreasing 6.9% to $297.7 million and deposits increasing 8.2% to $481.2 million.

Positive

• Net income increased 26.8% for Q3 compared to the same quarter last year.
• Year-to-date net income rose 47.3% year-over-year.
• Increase in net interest income of $110,000.
• Strong demand for loans noted in Q3 and continuing into Q4.
• Total assets increased to $532.2 million from $494.5 million.

Negative

• Total loans decreased 6.9% from December 31, 2020.
• Interest income on loans decreased $202,000 due to lower loan yields.

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

 

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SOURCE Oconee Financial Corporation

FAQ

What were Oconee Financial Corporation's Q3 2021 earnings results?

Oconee reported a net income of $654,692 for Q3 2021, a 26.8% increase from the previous year's $516,482.

What is the year-to-date income for Oconee Financial Corporation as of September 30, 2021?

As of September 30, 2021, the year-to-date income was $2,291,330, up 47.3% from $1,555,194 in 2020.

How did total assets change for Oconee Financial Corporation from 2020 to 2021?

Total assets increased to $532.2 million as of September 30, 2021, compared to $494.5 million as of December 31, 2020.

What impact did the Paycheck Protection Program have on Oconee's financial results?

Oconee recognized $964,000 in PPP fees, contributing to its increase in net earnings.

How much did loans and deposits change for Oconee Financial Corporation in 2021?

Total loans decreased 6.9% to $297.7 million, while total deposits increased 8.2% to $481.2 million.