WARRENTON, Va. / ACCESS CABLE / July 28, 2922 / Oak View Bankshares, Inc. (the “Company”) (OTC Pink:OAKV), the parent company of Oak View National Bank (the “Bank”), reported net income of $674,977 for the quarter ended June 30, 2022, in compared to revenue of $215,583 for the quarter ended June 30, 2021. Basic and diluted earnings per share for the second quarter were $0.23 compared to $0.07 per share for the second quarter of 2021.
Net income for the six months ended June 30, 2022 was $1.3 million, compared to $980,481 for the six months ended June 30, 2021. Basic and diluted earnings per share for the six months ended on June 30, 2022 were $0.43 compared to $0.34 per share for the six months ended June 30, 2021.
Selected highlights:
Net interest margin was 3.13% for the quarter, compared to 3.12% and 3.43% for the prior quarter and the quarter ended June 30, 2021, respectively. Net interest margin was 3.12% and 3.45% for the six months ended June 30, 2022 and 2021, respectively. Total assets increased to $398.5 million on June 30, 2022, compared to $345.1 million on December 31, 2021. Total loans increased to $257.6 million on June 30, 2022, compared to $251 .2 million on December 31, 2021. Credit quality remains outstanding. The Company reported no loans in arrears or loans past due as of June 30, 2022. The Bank recorded a provision for credit losses of $131,815 and $38,457 for the quarters ended June 30, 2022 and 2021, respectively, and a $55,333 for quarter ended March 31, 2022. A provision for credit losses of $76,482 was recorded for the six months ended June 30, 2022, compared to a recovery in the provision for credit losses of $67,542 for the six months ended June 30, 2021. Total deposits increased to $340.9 million on June 30, 2022, compared to $300.3 million on December 31, 2021. Regulatory capital remains strong with ratios exceeding thresholds well capitalized in all categories.
Michael Ewing, CEO and Chairman of the Board, said, “Thanks to the hard work and dedication of every member of our team, we are pleased to report second quarter financial results. With total balance sheet growth of more than $50 million, our deposit growth has been phenomenal, paving our way in the execution of many of our strategic initiatives.” Mr. Ewing continued, “As we all feel the pressure of today’s economic and interest rate environments, our management team and dedicated employees continue to strive to achieve our vision of Passionate Community Banking, delivering an exceptional experience at every turn. customer interaction. and surprise every customer, every time, by meeting their financial needs when they need it.”
Profits
Average return on assets was 0.70% and average return on equity was 9.83% for the quarter, compared to 0.67% and 8.40%, respectively, for the quarter ended on March 31, 2022, and 0.28% and 3.17%, respectively, for the quarter ended June 30, 2021. Average return on assets was 0.68% and 0.65% for the six months ended June 30, 2022 and 2021, respectively. Average return on equity was 9.63% and 7.33% for the six months ended June 30, 2022 and 2021, respectively.
Net Interest Income
Net interest income was $2.9 million for the quarter, compared to $2.6 million for the quarters ended March 31, 2022 and June 30, 2021. Net interest income was $5, 5 million and $4.9 million for the six months ended June 30, 2022 and 2021, respectively.
The main factors contributing to changes in net interest income are the result of the Company’s strategic investment initiatives to allocate funds to higher yielding investments and increases in interest expense related to the issuance of subordinated debt of the Company in February 2022.
Income without interest
Non-interest income was $349,248 for the quarter, compared to $296,254 in the prior quarter and $376,310 for the quarter ended June 30, 2021. This represents an increase of $52,994 compared to the prior quarter and a decrease of $27,062 compared to the quarter ended June 30, 2021. Interchange fee income increased by $31,317 and $29,904 compared to the prior quarter and the quarter ended June 30, 2021, respectively, due to the increase in the volume of transactions period after period. Bank-owned life insurance revenue also increased by $14,180 and $13,034 compared to the prior quarter and the quarter ended June 30, 2021, respectively, due to the increase in additional policies purchased during the current period along with a increase in the average rates earned on these investments. The increase in revenue from revenue sharing and revenue received from bank-owned life insurance was offset by decreases in mortgage loan commission revenue, as changes in the interest rate environment directly impact origination of loans in the secondary market.
Non-interest income was $645,502 and $672,550 for the six months ended June 30, 2022 and 2021, respectively. As mentioned above, while trade-in income and income received from bank-owned life insurance contributed favorably to non-interest income, this was more than offset by lower mortgage loan fee income during the six months ended June 30, 2022.
Non-interest expense
Non-interest expense was $2.2 million, relatively flat for the quarter compared to the prior quarter and $2.6 million for the second quarter of 2021. The decrease in non-interest expense compared with the same quarter of 2021 was the direct result of expenses associated with the core data processing conversion that occurred during the second quarter of 2021.
Non-interest expense was $4.5 million and $4.4 million for the six months ended June 30, 2022 and 2021, respectively.
The factors that contributed to the higher variations in non-interest expenses were related to the increases in salaries and benefits period over period due to the growth opportunities that the Bank has experienced, offset by the reduction in the processing expenses of data associated with the conversion of the central data processor, as mentioned above.
Asset quality
The allowance for loan losses was $2.2 million and $2.1 million on June 30, 2022 and December 31, 2021. Changes in the allowance for loan losses were primarily related to additional allowances required as a result of credit growth and increases to qualitative factors related to the current state of the local, regional and national economy.
Capital
Total consolidated stockholders’ equity was $27.5 million on June 30, 2022, compared to $28.6 million on December 31, 2021. Earnings for the current period increased stockholders’ equity by $1.3 million , however, this was offset by $2.6 million of unrealized losses due to the change in market value of available-for-sale securities. These losses were the result of the decrease in market values in the portfolio of securities available for sale during the six months ended June 30, 2022, derived from the increase in market interest rates.
The Bank’s regulatory capital ratios were 15.49% in Common Equity Tier 1 and Total Tier 1 Capital, 16.38% in Total Capital and 9.85% in Leverage Ratio for the quarter ended June 30, 2022. These ratios exceeded well capitalized thresholds. for the period.
About Oak View Bankshares, Inc. and Oak View National Bank
Oak View Bankshares, Inc. is the parent bank holding company of Oak View National Bank, a locally owned and operated community bank serving Fauquier, Culpeper, Rappahannock and surrounding counties. For more information about Oak View Bankshares, Inc. and Oak View National Bank, visit our website at www.oakviewbank.com. Member FDIC.
For additional information, please contact Tammy Frazier, Executive Vice President and Chief Financial Officer of Oak View Bankshares, Inc., at 540-359-7155.
FONT: Oak View Bankshares, Inc.
See source version at access cable.com:
https://www.accesswire.com/710108/Oak-View-Bankshares-Inc-Announces-Financial-Results-for-Second-Quarter-2022