Oconee Financial Corporation Reports First Quarter 2022 Results
Rhea-AI Summary
Oconee Financial Corporation (OTCQX: OSBK) reported a first-quarter 2022 net income of $590,376, or $0.66 per share, down 28.4% from $824,221, or $0.92 per share in Q1 2021. The decline was primarily due to a $314,000 drop in net interest income, primarily attributed to a decrease in loan fees from the Paycheck Protection Program. Total assets decreased to $557.1 million, down 2.5%, with total loans and deposits also declining. Book value per share fell to $36.49 from $43.88, mainly due to $6.6 million in unrealized losses from the investment portfolio.
Positive
- Interest income on investments increased by $249,000.
- Provision for loan losses decreased by $235,500 as no reserve was recorded.
Negative
- Net income decreased by 28.4% year-over-year.
- Net interest income dropped by $314,000.
- Decrease in total loans by 3.3% and total deposits by 1.5% quarter-over-quarter.
- Book value per share fell from $43.88 to $36.49.
News Market Reaction – OSBK
On the day this news was published, OSBK declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WATKINSVILLE, Ga., May 5, 2022 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the first quarter of 2022. Unaudited net income for the three months ending March 31, 2022, was
Total assets as of March 31, 2022, were
Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the first quarter's results noted, "the decline in earnings for the first quarter compared to last year's first quarter reflects the decline in PPP fee income over this period. We believe the first quarter 2022 results are representative of the true earnings of the bank given the relatively small amount of PPP fee income recognized in this year's first quarter. The recording of unrealized losses in the bond portfolio is due to the recent unprecedented rise in interest rates in the first quarter. This is a prevalent issue in the banking industry. These losses are unrealized and do not impact regulatory capital ratios."
Stevens continued "we continue to realign our distribution system to reflect changes in customer preferences. On April 15th, we closed our Butler's Crossing financial center. Our customers can use either our Main Office or Bogart financial centers if they want to come into one of our locations in Oconee County. Also, we recently implemented our Digital Solutions Center, which will be the central touch point for all digital banking services and our customer call center."
Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service financial centers. 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 | ||||||
3/31/2022 | 12/31/2021 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Cash and due from banks | $ 82,779,147 | $ 85,774,514 | ||||
Securities available for sale (at fair value) | 159,482,949 | 162,165,152 | ||||
Other investment | 285,600 | 247,400 | ||||
Mortgage loans held for sale | -- | 1,212,617 | ||||
Loans, net of unearned income | 292,809,083 | 302,523,687 | ||||
Allowance for loan loss | (4,546,704) | (4,542,292) | ||||
Loans, net | 288,262,379 | 297,981,395 | ||||
Premises and equipment | 8,548,560 | 8,602,518 | ||||
Other assets | 17,754,063 | 15,158,402 | ||||
Total Assets | $ 557,112,697 | $ 571,141,998 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities: | ||||||
Deposits | $ 512,054,545 | $ 519,693,969 | ||||
Subordinated debenture, net of capitalized expenses | 9,800,432 | 9,794,445 | ||||
Dividends payable | 627,252 | -- | ||||
Accrued expenses and other liabilities | 1,934,493 | 2,320,963 | ||||
Total Liabilities | 524,416,722 | 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 | 33,231,452 | 33,268,328 | ||||
Unrealized gain/loss on securities | (6,437,196) | 147,706 | ||||
Total Stockholder's Equity | 32,695,975 | 39,332,621 | ||||
Total Liabilities and Stockholder's Equity | $ 557,112,697 | $ 571,141,998 | ||||
Book Value Per Share | $ 36.49 | $ 43.88 | ||||
OCONEE FINANCIAL CORPORATION | ||||||
STATEMENT OF INCOME-YTD | ||||||
3/31/2022 | 3/31/2021 | |||||
(Unaudited) | ||||||
Interest Income: | ||||||
Loans | $ 3,290,023 | $ 3,853,102 | ||||
Securities available for sale | ||||||
State, County & Municipal | 195,025 | 187,343 | ||||
Treasuries & Agencies | 302,064 | 104,647 | ||||
Corporate | 94,974 | 67,773 | ||||
Federal funds sold & other | 37,654 | 20,573 | ||||
3,919,740 | 4,233,437 | |||||
Interest Expense: | ||||||
Deposits | 170,881 | 286,087 | ||||
Other | 155,987 | 155,987 | ||||
Total Interest Expense | 326,868 | 442,074 | ||||
Net interest income | 3,592,872 | 3,791,363 | ||||
Provision for loan losses | -- | 235,500 | ||||
Net income after provision for loan losses | 3,592,872 | 3,555,863 | ||||
Noninterest income | ||||||
Service charges on deposit accounts | 162,946 | 106,182 | ||||
Loss on Sale of Assets | -- | -- | ||||
Securities gains (losses), net | -- | 196,303 | ||||
Mortgage banking income | 378,500 | 585,233 | ||||
SBA loan related income | 102,525 | 44,446 | ||||
Commissions on investment sales | 23,745 | 79,217 | ||||
Other | 401,071 | 402,079 | ||||
Total noninterest income | 1,068,787 | 1,413,461 | ||||
Noninterest expense | ||||||
Salaries and employee benefits | 2,300,196 | 2,290,952 | ||||
Occupancy | 302,906 | 307,016 | ||||
Other operating | 1,296,419 | 1,327,366 | ||||
Total noninterest expense | 3,899,521 | 3,925,334 | ||||
Income before provision for income taxes | 762,138 | 1,043,990 | ||||
Provision for income taxes | 171,762 | 219,769 | ||||
Net Income | $ 590,376 | $ 824,221 | ||||
Period-Ending Outstanding Shares | 896,074 | 895,662 | ||||
Weighted Average Shares Outstanding | 896,822 | 895,662 | ||||
YTD Earnings Per Common Share | $ 0.66 | $ 0.92 | ||||
View original content:https://www.prnewswire.com/news-releases/oconee-financial-corporation-reports-first-quarter-2022-results-301541234.html
SOURCE Oconee Financial Corporation
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