Oak View National Bank reports second quarter 2021 results

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WARRENTON, VA / ACCESSWIRE / Aug 6, 2021 / Oak View National Bank (OTC PINK: OAKV) Reported net income of $ 215,600 for the quarter ended June 30, 2021, compared to net income of $ 673,600 for the second quarter of 2020, a decrease of 68.0%. Basic and diluted earnings per share for the second quarter of 2021 was $ 0.07 compared to $ 0.23 per share in the second quarter of 2020.

Net income for the six-month period ended June 30, 2021 was $ 980,500, compared to $ 860,100 for the six-month period ended June 30, 2020. Basic and diluted earnings per share for the six-month period ended June 30, 2021 was $ 0.34 compared to $ 0.30 per share for the six-month period ended June 30, 2020.

Selected highlights:

  • During the second quarter of 2021, the Bank incurred several non-recurring non-interest expenses. Expenses of $ 435,000 were related to the Bank’s conversion of its basic computer system and legal costs of $ 95,000 were related to the establishment of a holding company. These charges directly contributed to the increase in the level of non-interest charges during the period.
  • Total assets were $ 313.7 million as at June 30, 2021, an increase of $ 14.1 million and $ 29.6 million from March 31, 2021 and December 31, 2020, respectively .
  • Total loans increased to $ 245.0 million as at June 30, 2021, from $ 240.4 million as at March 31, 2021, and $ 245.8 million as at December 31, 2020. Excluding Check Protection Program loans Payroll (PPP), loan growth was 6.51% and 4.70% compared to March 31, 2021 and December 31, 2020, respectively.
  • Credit quality continues to be exceptional as the Bank had only one non-performing loan as of June 30, 2021, totaling $ 14,800. The Bank had no loans in arrears at the end of the second quarter of 2021. The allowance for loan losses was $ 2.1 million or 0.86% of total loans as at June 30, 2021, compared to 2.1 million dollars or 0.86% of total loans as of March 31. 2021 and $ 2.2 million 0.88% of total loans as of December 31, 2020.
  • Total deposits increased to $ 270.2 million as of June 30, 2021, compared to $ 254.3 million as of March 31, 2021 and $ 239.9 million as of December 31, 2020.

Michael Ewing, Vice Chairman of the Board and Chief Executive Officer, said: “While the financial performance in the second quarter was lower than in previous quarters, our one-time expenses incurred during the period were the result of ‘major investments in the Bank’s efforts to improve our customers’ online banking experience. and increase our presence in the communities in which we serve. During the period, we converted to a new data processing system, purchased assets for future branch expansion, increased our employee base and started working on an improved organizational structure, which will provide growth opportunities for our future. These are very exciting times for our organization. Mr. Ewing went on to say, “We are encouraged by the business opportunities we see and are excited to provide products and services that contribute to our goal of providing world-class community banking. “

Earnings

The average return on assets was 0.28% and the average return on equity was 3.17% for the second quarter of 2021 compared to 0.89% and 10.89% for the second quarter of 2020, respectively. average was 0.65% and 0.62% for the six months. completed on June 30, 2021 and 2020, respectively. The average return on equity was 7.33% and 7.04% for the six months ended June 30, 2021 and 2020, respectively.

Paycheque Protection Program (PPP) Update

As of June 30, 2021, the Bank had $ 15.2 million in PPP loans outstanding, of which $ 3.4 million was created in 2020 and the remaining $ 11.8 million was created in 2021. Accelerated PPP loans resulting from the cancellation of PPP loans of $ 9.4 million in major loan balances during the quarter.

Loan payment deferrals

In 2020, the Bank granted deferrals on 94 loans with an outstanding principal balance of $ 24.3 million, which represents approximately 9% of the loan portfolio. As of June 30, 2021, all loans have resumed their normal payment cycle.

Net interest margin

The net interest margin was 3.43% for the quarter ended June 30, 2021, compared to 3.47% for the quarter ended March 31, 2021 and 2.90% for the quarter ended June 30, 2020. The average return on productive assets was 3.83%. for the quarter ended June 30, 2021, compared to 3.99% for the quarter ended March 31, 2021, and 3.63% for the quarter ended June 30, 2020. The cost of funds was 0.59% in the second quarter 2021, compared to 0.75% for the quarter ended March 31, 2021 and 1.16% for the quarter ended June 30, 2020.

Non-interest income

Non-interest income increased by $ 88,300 or 25.73% to $ 431,400 for the quarter ended June 30, 2021, compared to the quarter ended March 31, 2021, and increased by 166 $ 200 or 62.67% from the quarter ended June 30, 2020. This increase was primarily related to higher levels of debit card fee income and mortgage loan fee income.

Non-interest charges

Non-interest expense increased by $ 822,000 or 45.5% for the quarter ended June 30, 2021, compared to the quarter ended March 31, 2021, and increased by $ 1.2 million or 90.3 % over the quarter ended June 30, 2020. Non-interest expense increases were primarily due to one-time costs of $ 435,000 associated with the conversion of the base data processor and expenses of $ 95,000 related to the creation of the holding company. In addition, comparable periods experienced extraordinary FAS-91 cost deferrals related to the large volume of PPP loan origination during comparable periods, resulting in a reduction in payroll costs of $ 282,870 and $ 530,390 for the quarters ended. on March 31, 2021 and June 30, 2020, respectively.

Oak View National Bank is a locally owned and managed community bank providing a full range of financial services to commercial and retail clients, as well as not-for-profit entities. Oak View National Bank is headquartered in Warrenton, Virginia, serving Fauquier, Culpeper, Rappahannock and surrounding counties with full-service offices in Warrenton, Marshall, and Culpeper and a loan production office in Washington, Virginia. Visit us at www.oakviewbank.com. FDIC member.

For more information, contact Jennifer Knighting, Senior Vice President / Director of Sales and Marketing, Oak View National Bank, at 540-825-2570.

THE SOURCE: Oak View National Bank Warrenton VA

See the source version on accesswire.com:
https://www.accesswire.com/658783/Oak-View-National-Bank-Announces-2021-Second-Quarter-Results


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