WARRENTON, VA / ACCESSWIRE / November 1, 2021 / Oak View National Bank (OTC PINK:OAKV) reported net income of $621,554 for the quarter ended September 30, 2021, compared to net income of $571,113 for the third quarter of 2020, an increase of 8.83%. Basic and diluted earnings per share for the third quarter of 2021 were $0.21 compared to $0.20 per share in the second quarter of 2020.
Net income for the nine months ended September 30, 2021, was $1.60 million, compared to $1.43 million for the nine months ended September 30, 2020. Basic and diluted earnings per share for the nine months ended September 30, 2021, were $0.55 compared to $0.50 per share for the nine months ended September 30, 2020.
Selected Highlights:
- The net interest margin was 3.28% for the third quarter of 2021, compared to 3.43% and 3.30% for the second quarter of 2021 and the third quarter of 2020, respectively. The net interest margin was 3.37% for the first nine months of 2021, compared to 3.11% for the first nine months of 2020.
- Total assets were $327.72 million on September 30, 2021, an increase of $14.00 million and $43.15 million compared to June 30, 2021, and December 31, 2020, respectively.
- Total loans increased to $246.50 million on September 30, 2021, compared to $245.00 million on June 30, 2021, and $245.77 million on December 31, 2020. Excluding Paycheck Protection Program loans (PPP), loan growth was 3.13% and 8.00% compared to March 31, 2021, and December 31, 2020, respectively.
- Credit quality continues to be outstanding as the Bank had just one non-performing loan on September 30, 2021, totaling $5,985 and there were no past due loans at the end of the third quarter 2021.
- The Bank recorded provision for loan losses of $9,695 and a recovery of loan losses of $57,848 for the third quarter and first nine months of 2021, respectively. While the Bank provided adequate reserves for loan growth during the reported periods, a portion of the reserves recognized during 2020 was released as credit deterioration as previously anticipated at the onset of the COVID-19 pandemic has not been experienced.
- Total deposits increased to $283.73 million on September 30, 2021, compared to $270.19 million on June 30, 2021, and $239.89 million on December 31, 2020. This represents an increase of $13.54 million and $43.84 million compared to June 30, 2021, and December 31, 2020, respectively.
Michael Ewing, CEO and Chairman of the Board said, "We are pleased with the financial results for the third quarter. And equally important, we are extremely proud of our employees who, as the momentum in opening new accounts increased, remained focused on providing an exceptional experience at every customer interaction." Mr. Ewing continued by stating, "During the quarter, a record number of over four hundred new accounts were opened, which contributed significantly to our growth for the period. We are thrilled at the level of support we have received from our customers and communities and are excited for the opportunity to provide products and services that will meet their financial needs at the time they need it most."
Earnings
Return on average assets was 0.76% and return on average equity was 8.87% for the third quarter of 2021 compared to 0.81% and 8.88% respectively for the third quarter of 2020. Return on average assets was 0.69% and 0.68% for the first nine months of 2021 and 2020, respectively. Return on average equity was 7.86% and 7.67% for the first nine months of 2021 and 2020, respectively.
Paycheck Protection Program (PPP) Update
As of September 30, 2021, the Bank had $9.51 million in outstanding PPP loans, $302,030 of which were originated in 2020 and the remaining $9.21 million were originated in 2021. Net PPP loan fees recognized for the quarter totaled $161,072, of which $137,470 represented accelerated PPP loan fees earned from PPP loan forgiveness of $5.65 million in principal loan balances during the quarter.
Net Interest Margin
The net interest margin declined fifteen basis points to 3.28% for the third quarter of 2021, compared to 3.43% for the second quarter of 2021 and declined 2 basis points, compared to 3.30% for the third quarter of 2020. The net interest margin increased by twenty-six basis points to 3.37% for the first nine months of 2021, compared to 3.11% for the first nine months of 2020.
Changes to the net interest margin were impacted by the changes in the yield on average earning assets, primarily lower yields on loans, offset by lower cost of funds. The average yield on earning assets decreased to 3.59% for the third quarter of 2021 from 3.83% for the second quarter of 2021 and 3.99% for the third quarter of 2020. The cost of funds decreased to 0.47% for the third quarter of 2021 from 0.59% for second quarter of 2021 and 0.98% for the third quarter of 2020.
Noninterest Income
Noninterest income increased by $53,259 or 12.89% to $466,459 for the third quarter of 2021, compared to the second quarter of 2021, and increased by $96,589 or 26.11% compared to the third quarter of 2020. This increase was primarily related to higher levels of interchange fee income and mortgage loan fee income.
Noninterest Expenses
Noninterest expenses decreased by $425,456 or 16.19% for the third quarter of 2021, compared to the second quarter of 2021. While expenses related to salaries and benefits increased quarter-over-quarter due to growth opportunities the bank has experienced, this increase was offset by the reduction in data processing expenses associated with the core data processor conversion that occurred during the second quarter of 2021.
Noninterest expenses increased by $422,730 or 23.76% for the third quarter of 2021, compared to the third quarter of 2020. Period-over-period noninterest expenses increased as a result of new positions in 2021, the strategic decision to increase advertising efforts throughout our market area and the costs related to reorganization of the bank into a holding company.
Oak View is a locally owned and managed community bank serving Fauquier, Culpeper, Rappahannock, and surrounding Counties. For more information about Oak View National Bank, please visit our website at www.oakviewbank.com.
For additional information, contact Jennifer Knighting, Senior Vice President/Director of Sales & Marketing, Oak View National Bank, at 540-825-2570.
SOURCE: Oak View National Bank Warrenton VA
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