Oconee Financial Corporation (OSBK) Reports Third Quarter 2020 Results

November 11, 2020

By Oconee Financial Corporation

Caption FF

Description FF

WATKINSVILLE, Ga., Nov. 10, 2020 /PRNewswire/ — Oconee Financial Corporation (“Oconee”) (OTCQX: OSBK) is pleased to report results for the third quarter of 2020. Unaudited net income for the three months ending September 30, 2020, was $516,483 or $0.58 per common share. This compares to $629,863 or $0.71 per common share for the third quarter of 2019 and $889,370 or $0.99 per common share for the second quarter of 2020. Third quarter 2020’s results included $487,500 of loan loss provision expense versus $142,500 for the third quarter of 2019 and $187,500 for the second quarter of 2020.

Unaudited net income YTD as of September 30, 2020 was $1,555,195 or $1.73 per common share. This compares to $1,822,985 or $2.03 per common share for YTD as of September 30 of the prior year. This represents a decrease of 14.7% in net earnings YTD September 30, 2020 as compared to the same period in 2019.

Total assets as of September 30, 2020, were $469.4 million, compared to total assets of $399.5 million as of December 31, 2019. Total loans were $326.1 million and deposits were $391.2 million as of September 30, 2020. This compared to total loans of $248.8 million and deposits of $361.5 million at December 31, 2019. As of September 30, 2020, total loans have increased 31.1% and total deposits have increased 8.2% versus December 31, 2019.

Neil Stevens, President and Chief Executive Officer of Oconee stated “while third quarter 2020’s earnings showed a decline over the third quarter of 2019, this was the result of additional loan loss provisioning in the third quarter. This move, along with the successful completion of a $10 million subordinated debt capital raise in August, both serve to further strengthen our balance sheet.”

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service loan production office. In February 2020, Oconee State bank celebrated 60 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

				9/30/2020	12/31/2019
				(Unaudited)
ASSETS
		Cash and due from banks		$ 61,243,175	$ 38,099,324
		Securities available for sale (at fair value)		56,632,642	99,228,506
		Other investment		359,600	314,900
		Mortgage loans held for sale		9,916,992	1,572,800
		Loans, less allowance for loan
			losses	326,077,498	248,771,230
		Premises and equipment		4,257,940	4,294,867
		Other real estate owned		—	—
		Other assets		10,865,826	7,239,812
			Total Assets	$ 469,353,672	$ 399,521,439

LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities:
		Deposits		$ 391,183,960	$ 361,522,574
		Repurchase agreements		—	—
		Subordinated debenture, net of capitalized expenses		9,783,216
		Dividends payable		—	—
		Other borrowings		28,552,722	—
		Accrued expenses and other liabilities		2,408,448	2,331,769
			Total Liabilities	431,928,346	363,854,343

	Stockholder’s Equity:
		Common Stock		1,792,750	1,793,760
		Restricted Stock		(36,745)	(36,745)
		Additional Paid in Capital		4,122,790	4,139,146
		Retained earnings		30,517,383	29,501,154
		Unrealized gain/loss on securities		1,029,150	269,781
			Total Stockholder’s Equity	37,425,327	35,667,096

			Total Liabilities and Stockholder’s Equity	$ 469,353,672	$ 399,521,439

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME – QTD

			9/30/2020	9/30/2019
			(Unaudited)
Interest Income:
Loans			$ 3,820,044	$ 3,231,071
Securities available for sale
		State, County & Municipal	82,218	96,282
		Treasuries & Agencies	168,215	285,207
		Corporate	12,531
	Federal funds sold & other		19,813	82,050
	Total Interest Income		4,102,822	3,694,609

Interest Expense:
	Deposits		338,078	403,897
	Other		117,597	1,272
	Total Interest Expense		455,675	405,169

		Net interest income	3,647,147	3,289,440

Provision for loan losses			487,500	142,500

Net income after provision for loan loss			3,159,647	3,146,940

Noninterest income
Service charge on deposit accounts			109,566	156,199
	Gain on Sale of Assets		(4,864)	—
	Securities gains (losses), net		18,866	(3,119)
	Mortgage banking income		627,119	152,128
	SBA loan related income		279,804	215,077
	Commissions on investment sales		147,232	99,115
	Other		310,801	299,555
	Total noninterest income		1,488,524	918,955

Noninterest expense
Salaries and employee benefits			2,593,803	2,113,003
	Occupancy		306,541	332,058
	Other operating		1,139,494	838,223
	Total noninterest expense		4,039,838	3,283,284

	Income before provision for income tax		608,333	782,612

Provision for income taxes			91,850	152,749

		Net Income	$ 516,483	$ 629,863

		Period-Ending Outstanding Shares	895,237	$ 899,051
		Weighted Average Shares Outstanding	895,401	899,778
		QTD Earnings Per Common Share	$ 0.58	$ 0.71

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD

			9/30/2020	9/30/2019
			(Unaudited)
Interest Income:
	Loans		$ 10,885,055	$ 9,159,963
Securities available for sale
		State, County & Municipal	257,010	360,818
		Treasuries & Agencies	665,164	963,299
		Corporate	13,406
	Federal funds sold & other		180,068	230,291
Total Interest Income			12,000,704	10,714,370

Interest Expense:
	Deposits		1,310,370	1,047,738
	Other		135,793	10,813
	Total Interest Expense		1,446,163	1,058,551

		Net interest income	10,554,541	9,655,819

Provision for loan losses			862,500	427,500

Net income after provision for loan loss			9,692,041	9,228,319

Noninterest income
	Service charges on deposit accounts		339,613	444,634
	Gain on Sale of Assets		(18,155)	—
	Securities gains (losses), net		182,860	6,507
	Mortgage banking income		1,250,518	323,360
	SBA loan related income		589,352	804,777
	Commissions on investment sales		430,521	386,363
	Other		920,082	943,599
	Total noninterest income		3,694,791	2,909,240

Noninterest expense
Salaries and employee benefits			7,491,765	6,314,993
	Occupancy		899,999	978,378
	Other operating		3,097,216	2,593,485
	Total noninterest expense		11,488,980	9,886,856

	Income before provision for income tax		1,897,852	2,250,703

Provision for income taxes			342,657	427,718

		Net Income	$ 1,555,195	$ 1,822,985

		Period-Ending Outstanding Shares	895,237	$ 899,051
		Weighted Average Shares Outstanding	895,401	899,778
		YTD Earnings Per Common Share	$ 1.73	$ 2.03