August 2, 2021
Oak View reports modest 2Q profit of $215,600
File Photo/Lawrence Emerson
Oak View National Bank in May spent $585,000 to buy this 1.2-acre site on Waterloo Street for a new headquarters and Warrenton branch.
Warrenton-based Oak View National Bank reported a $215,600 profit for the quarter ended June 30, down 68 percent from $673,600 in the second quarter of 2020.
While second quarter financial performance was below prior quarters, our one-time expenses incurred during the period were the result of major investments into the bank’s efforts to improve our customers’ online banking experience and increase our presence in the communities in which we serve.
— Vice Chairman and CEO Michael Ewing
Net income for the six months of 2021 totaled $980,500, compared to $860,100 for the same period last year.
“While second quarter financial performance was below prior quarters, our one-time expenses incurred during the period were the result of major investments into the bank’s efforts to improve our customers’ online banking experience and increase our presence in the communities in which we serve,” Vice Chairman and CEO Michael Ewing said. “During the period we converted to a new data processing system, purchased property for future branch expansion, increased our employee base and began working on an enhanced organization structure, all of which will provide growth opportunities for our future.
These are very exciting times for our organization,” Mr. Ewing added. “We are encouraged by the business opportunities we are seeing and are excited to provide products and services that contribute to our focus of delivering best-in-class community banking services.”
The bank incurred several one-time expenses in the second quarter, including $435,000 for conversion of its core data processing system and legal expenses of $95,000 for legal expenses related to its planed establishment a holding company.
Oak View’s total assets stood at $313.7 million on June 30, up $14.1 million since March 31, when the first quarter ended.
Total loans reached $245 million versus $240.4 million on March 31. The bank had one non-performing loan, totaling $14,800, as of June 30 and no past-due loans.
Total deposits increased to $270.2 million on June 30, compared to $254.3 million on March 31.
Because of the pandemic, the bank during 2020 granted payment deferrals on 94 loans with an outstanding principal balance of $24.3 million, representing approximately 9 percent of the loan portfolio. As of June 30, all loans have returned to their normal payment cycle, Mr. Ewing said.
Stockholders will meet Tuesday, Aug. 17, to consider the proposal to form Oak View Bankshares Inc., a holding company that would give the company greater flexibility in business operations.
Founded as an independent, community bank in 2009, Oak View has banking offices in Warrenton, Marshall and Culpeper and a loan production office in Washington, Va.
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