Oconee Financial Corporation Reports Second Quarter 2022 Results
08/04/2022 - 04:01 PM
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
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SOURCE Oconee Financial Corporation
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OSBK Stock Data
Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Financial Conglomerates, Finance, Regional Banks, Finance and Insurance, Commercial Banking
About OSBK
oconee state bank is a locally owned and operated community bank in oconee county, offering a competitive line of products and services. member fdic and equal housing lender in the early 1900s, there were banks in all the small towns of oconee county…bishop, bogart, eastville, farmington and watkinsville. when the depression came along in 1929, all the banks went broke and oconee county was without a bank for the next 30 years. in 1958, a group of community leaders recognized the need for a bank in oconee county and started a process of getting the necessary approval for a state chartered community bank. in 1959, they announced that the fdic had approved a community bank and oconee state bank opened its doors for business on february 1, 1960 with 3 employees and a small corner office on main street in downtown watkinsville. because the local people had lost money in banks that went broke, it was important for the founders to promote the bank as a “locally-owned bank” that would be owne