Oconee Financial Corporation Reports Fourth Quarter 2020 Results

February 5, 2021

Oconee Financial Corporation Reports Fourth Quarter 2020 Results

Oconee Financial Corporation (“Oconee”) (OTCQX: OSBK) is pleased to report results for the fourth quarter of 2020. Unaudited net income for the three months ending December 31, 2020, was $333,597 or $0.37 per common share. This compares to $1,936,380 or $2.17 per common share for the fourth quarter of 2019 and $516,483 or $0.58 per common share for the third quarter of 2020. Fourth quarter 2020’s results included $387,500 of loan loss provision expense versus $142,500 for the fourth quarter of 2019 and $487,500 for the third quarter of 2020. Fourth quarter 2019’s results included an after-tax gain on sale of Oconee’s operations center of $1.3 million, or $1.45 per common share.

Unaudited net income for the year ended December 31, 2020 was $1,888,792 or $2.11 per common share. This compares to $3,759,365 or $4.20 per common share for YTD as of December 31 of the prior year. This represents a decrease of 49.8% in net earnings for the year ended December 31, 2020 as compared to the same period in 2019. Excluding the gain on sale of the operations center, net income declined $573 thousand or $0.64 per share.

Total assets as of December 31, 2020, were $494.5 million, compared to total assets of $399.5 million as of December 31, 2019, an increase of $95.0 million, or 24%. Total loans were $319.6 million and deposits were $444.7 million as of December 31, 2020. This compared to total loans of $248.8 million and deposits of $361.5 million at December 31, 2019. As of December 31, 2020, total loans have increased 28.5% and total deposits have increased 23.0% versus December 31, 2019.

Neil Stevens, President and Chief Executive Officer of Oconee stated “our fourth quarter results were impacted by an additional loan loss provision of $200,000. This follows an additional $300,000 loan loss provision in the third quarter of 2020. While credit quality remains stable, we believe it was prudent in light of current economic conditions to book an additional loan loss provision this year of $500,000.

Stevens added “we’ve been privileged to play a very essential role in helping businesses in our communities recover from the economic impact of COVID-19. In 2020, we loaned over $55 million in PPP loans to over 600 businesses. We stand ready to assist customers with the next round of PPP loans.”

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service branches and one limited-service loan production office. 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

				12/31/2020	12/31/2019
				(Unaudited)
ASSETS
		Cash and due from banks		$ 76,418,430	$ 38,099,324
		Securities available for sale (at fair value)		75,548,813	99,228,506
		Other investment		359,700	314,900
		Mortgage loans held for sale		6,408,720	1,572,800
		Loans, less allowance for loan
			losses	319,567,770	248,771,230
		Premises and equipment		5,103,036	4,294,867
		Other real estate owned		—	—
		Other assets		11,129,233	7,239,812
			Total Assets	$ 494,535,702	$ 399,521,439

LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities:
		Deposits		$ 444,701,932	$ 361,522,574
		Repurchase agreements		—	—
		Subordinated debenture, net of capitalized expenses		9,770,497	—
		Dividends payable		—	—
		Other borrowings		—	—
		Accrued expenses and other liabilities		1,928,168	2,331,769
			Total Liabilities	456,400,597	363,854,343

	Stockholder’s Equity:
		Common Stock		1,794,250	1,793,760
		Restricted Stock		(37,977)	(36,745)
		Additional Paid in Capital		4,147,114	4,139,146
		Retained earnings		30,850,979	29,501,154
		Unrealized gain/loss on securities		1,380,739	269,781
			Total Stockholder’s Equity	38,135,105	35,667,096

			Total Liabilities and Stockholder’s Equity	$ 494,535,702	$ 399,521,439

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME – QTD

			12/31/2020	12/31/2019
			(Unaudited)
Interest Income:
Loans			$ 3,702,713	$ 3,221,637
Securities available for sale
		State, County & Municipal	150,758	93,972
		Treasuries & Agencies	139,227	296,051
		Corporate	45,187	—
	Federal funds sold & other		23,305	145,286
	Total Interest Income		4,061,190	3,756,947

Interest Expense:
	Deposits		287,415	475,516
	Other		180,617	398
	Total Interest Expense		468,032	475,914

		Net interest income	3,593,158	3,281,033

Provision for loan losses			387,500	142,500

Net income after provision for loan loss			3,205,658	3,138,533

Noninterest income
Service charge on deposit accounts			114,185	139,893
	Gain on Sale of Assets		500	1,781,545
	Securities gains (losses), net		—	930
	Mortgage banking income		668,645	194,979
	SBA loan related income		26,539	271,413
	Commissions on investment sales		106,387	123,821
	Other		337,942	306,319
	Total noninterest income		1,254,199	2,818,900

Noninterest expense
Salaries and employee benefits			2,593,870	2,178,654
	Occupancy		304,014	380,418
	Other operating		1,203,960	872,193
	Total noninterest expense		4,101,844	3,431,265

	Income before provision for income tax		358,013	2,526,168

Provision for income taxes			24,415	589,788

		Net Income	$ 333,597	$ 1,936,380

		Period-Ending Outstanding Shares	897,125	896,880
		Weighted Average Shares Outstanding	896,163	895,742
		QTD Earnings Per Common Share	$ 0.37	$ 2.17

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD

			12/31/2020	12/31/2019
			(Unaudited)
Interest Income:
	Loans		$ 14,587,768	$ 12,381,600
	Securities available for sale
		State, County & Municipal	407,768	454,790
		Treasuries & Agencies	804,391	1,259,350
		Corporate	58,594	—
	Federal funds sold & other		203,373	375,577
			16,061,894	14,471,317

Interest Expense:
	Deposits		1,597,785	1,523,254
	Other		316,410	11,211
	Total Interest Expense		1,914,195	1,534,465

		Net interest income	14,147,699	12,936,852

Provision for loan losses			1,250,000	570,000

	Net income after provision for loan losses		12,897,699	12,366,852

Noninterest income
	Service charges on deposit accounts		453,798	584,527
	Gain on Sale of Assets		(17,655)	1,781,545
	Securities gains (losses), net		182,860	7,437
	Mortgage banking income		1,919,163	518,339
	SBA loan related income		615,891	1,076,190
	Commissions on investment sales		536,908	510,184
	Other		1,258,024	1,249,918
	Total noninterest income		4,948,990	5,728,140

Noninterest expense
	Salaries and employee benefits		10,085,635	8,493,647
	Occupancy		1,204,014	1,358,796
	Other operating		4,301,175	3,465,678
	Total noninterest expense		15,590,824	13,318,121

		Income before provision for income taxes	2,255,864	4,776,871

Provision for income taxes			367,072	1,017,506

		Net Income	$ 1,888,792	$ 3,759,365

		Period-Ending Outstanding Shares	897,125	896,880
		Weighted Average Shares Outstanding	896,163	895,742
		YTD Earnings Per Common Share	$ 2.11	$ 4.20