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EX-31.2 - EXHIBIT 31.2 - Oconee Federal Financial Corp.ex-312.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q


x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended September 30, 2014

Or

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from              to             

Commission File Number 001-35033


Oconee Federal Financial Corp.

(Exact Name of Registrant as Specified in Charter)


 
 

Federal

 

32-0330122

(State of Other Jurisdiction
of Incorporation)

 

(I.R.S Employer
Identification Number)

 

 

 

201 East North Second Street, Seneca, South Carolina

 

29678

(Address of Principal Executive Officers)

 

(Zip Code)

(864) 882-2765

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No .

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No x

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock as of the latest practicable date.

There were 5,834,395 shares of Common Stock, par value $.01 per share, outstanding as of November 7, 2014.


OCONEE FEDERAL FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

(Unaudited)

 PART I​

ITEM 1.   FINANCIAL STATEMENTS

   
September 30,
2014
 
 
June 30,
2014 (*)
 
   
(Unaudited)
 
 
 
 
ASSETS
   
 
 
 
 
 
 
Cash and due from banks
 
$
923
 
 
$
1,365
 
Interest-bearing deposits
   
7,366
 
 
 
10,525
 
Total cash and cash equivalents
   
8,289
 
 
 
11,890
 
Securities available-for-sale
   
100,830
 
 
 
103,806
 
Loans, net of allowance for loan losses of $855 and $855
   
232,914
 
 
 
229,931
 
Premises and equipment, net
   
3,019
 
 
 
2,993
 
Real estate owned, net
   
596
 
 
 
744
 
Accrued interest receivable
   
 
 
 
 
 
 
Loans
   
846
 
 
 
811
 
Investments
   
344
 
 
 
251
 
Restricted equity securities
   
325
 
 
 
325
 
Bank owned life insurance
   
8,825
 
 
 
8,758
 
Other assets
   
1,108
 
 
 
992
 
Total assets
 
$
357,096
 
 
$
360,501
 
     
 
 
 
 
 
 
LIABILITIES
   
 
 
 
 
 
 
Deposits
   
 
 
 
 
 
 
Non-interest bearing
 
$
8,360
 
 
$
7,075
 
Interest bearing
   
269,588
 
 
 
273,940
 
Total deposits
   
277,948
 
 
 
281,015
 
Accrued interest payable and other liabilities
   
1,717
 
 
 
2,505
 
Total liabilities
   
279,665
 
 
 
283,520
 
     
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
   
 
 
 
 
 
 
Common stock, $0.01 par value, 100,000,000 shares authorized; 5,834,395 shares outstanding
   
64
 
 
 
64
 
Treasury stock, at par 600,699 shares    
(6
)
 
 
(6
)
Additional paid in capital
   
12,281
 
 
 
12,186
 
Retained earnings
   
67,166
 
 
 
66,705
 
Accumulated other comprehensive loss
   
(301
)
 
 
(147
)
Unearned ESOP shares
   
(1,773
)
 
 
(1,821
)
Total shareholders’ equity
   
77,431
 
 
 
76,981
 
Total liabilities and shareholders’ equity
 
$
357,096
 
 
$
360,501
 

_____________________________________

* Derived from audited consolidated financial statements

See accompanying notes to the consolidated financial statements

OCONEE FEDERAL FINANCIAL CORP.

 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Amounts in thousands, except share and per share data)

(Unaudited)

 
   
Three Months Ended
 
   
September 30,
2014
   
September 30,
2013
 
Interest and dividend income:
   
 
     
 
 
Loans, including fees
 
$
2,886
   
$
2,852
 
Securities, taxable
   
381
     
371
 
Securities, tax-exempt
   
36
     
 
Interest-bearing deposits and other
    7      
15
 
Total interest income
   
3,310
     
3,238
 
     
 
     
 
 
Interest expense:
   
 
     
 
 
Deposits
   
308
     
429
 
Total interest expense
   
308
     
429
 
Net interest income
   
3,002
     
2,809
 
Provision for loan losses
   
                           —
     
81
 
     
 
     
 
 
Net interest income after provision for loan losses
   
3,002
     
2,728
 
Noninterest income:
   
 
     
 
 
Service charges on deposit accounts
   
18
     
18
 
Income on bank owned life insurance
   
67
     
76
 
Gain on sales of securities
    5        
Total noninterest income
   
90
     
94
 
     
 
     
 
 
Noninterest expense:    
   
 
     
 
 
Salaries and employee benefits
   
910
     
861
 
Occupancy and equipment
   
167
     
155
 
Data processing
   
67
     
63
 
Professional and supervisory fees
   
113
     
112
 
Office expense
   
43
     
29
 
Advertising
   
23
     
21
 
FDIC deposit insurance
   
38
     
40
 
Charitable contributions
           
Provision for real estate owned and related expenses
   
19
     
32
 
Other
   
103
     
77
 
Total noninterest expense
   
1,483
     
1,390
 
     
 
     
 
 
Income before income taxes
   
1,609
     
1,432
 
Income tax expense
   
565
     
513
 
Net income
 
$
1,044
   
$
919
 
     
 
     
 
 
Other comprehensive income (loss)
   
 
     
 
 
Unrealized loss on securities available-for-sale
 
$
(243
)
 
$
(9
)
Tax effect
   
92
      3  
Reclassification adjustment for gains realized in net income
   
(5
)
   
                           —
 
Tax effect
    2      
                           —
 
Total other comprehensive loss
   
(154
)
   
(6
)
Comprehensive income
 
$
890
   
$
913
 
     
 
     
 
 
Basic net income per share: (Note 2)
 
$
0.18
   
$
0.16
 
Diluted net income per share: (Note 2)
 
$
0.18
   
$
0.16
 
Dividends declared per share:
 
$
0.10
   
$
0.10
 

See accompanying notes to the consolidated financial statements

OCONEE FEDERAL FINANCIAL CORP.

 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Amounts in thousands, except share and per share data)

 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
Additional
 
 
 
 
 
 
 
Other
 
 
 
Unearned
 
 
 
 
 
   
Common
 
 
Treasury
 
 
 
Paid-In
 
 
 
Retained
 
 
 
Comprehensive
 
 
 
ESOP
 
 
 
 
 
   
Stock
 
 
Stock
 
 
 
Capital
 
 
 
Earnings
 
 
 
Loss
 
 
 
Shares
 
 
 
Total
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1, 2013
 
$
64
 
 
$
(5
)
 
 
$
13,413
 
 
 
$
65,315
 
 
 
$
(559
)
 
 
$
(2,066
)
 
 
$
76,162
 
Net income
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
919
 
 
   
                           —
 
 
   
                         —
 
 
   
919
 
Other comprehensive income
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
                         —
 
 
   
(6
)
 
   
                         —
 
 
   
(6
)
Purchase of 89,900 shares of treasury stock
   
                  —
 
   
(1
)
 
   
(1,423
)
 
   
                         —
 
 
   
                           —
 
 
   
                         —
 
 
   
(1,424
)
Stock-based compensation expense
   
                  —
 
   
                  —
 
 
   
57
 
 
   
                         —
 
 
   
                           —
 
 
   
                         —
 
 
   
57
 
Dividends
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
(584
)
 
   
                           —
 
 
   
                         —
 
 
   
(584
)
ESOP shares earned
   
                  —
 
   
                  —
 
 
   
21
 
 
   
                         —
 
 
   
                           —
 
 
   
46
 
 
   
67
 
Balance at September 30, 2013
 
$
64
 
 
$
(6
)
 
 
$
12,068
 
 
 
$
65,650
 
 
 
$
(565
)
 
 
$
(2,020
)
 
 
$
75,191
 
     
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
Balance at July 1, 2014
 
$
64
 
 
$
(6
)
 
 
$
12,186
 
 
 
$
66,705
 
 
 
$
(147
)
 
 
$
(1,821
)
 
 
$
76,981
 
Net income
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
1,044
 
 
   
                           —
 
 
   
                         —
 
 
   
1,044
 
Other comprehensive loss
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
                         —
 
 
   
(154
)
 
   
                         —
 
 
   
(154
)
Stock-based compensation expense
   
                  —
 
   
                  —
 
 
   
66
 
 
   
                         —
 
 
   
                           —
 
 
   
                         —
 
 
   
66
 
Dividends (1)
   
                  —
 
   
                  —
 
 
   
                         —
 
 
   
(583
)
 
   
                           —
 
 
   
                         —
 
 
   
(583
)
ESOP shares earned
   
                  —
 
   
                  —
 
 
   
29
 
 
   
                         —
 
 
   
                           —
 
 
   
48
 
 
   
77
 
Balance at September 30, 2014
 
$
64
 
 
$
(6
)
 
 
$
12,281
 
 
 
$
67,166
 
 
 
$
(301
)
 
 
$
(1,773
)
 
 
$
77,431
 

(1)      Cash dividends declared on July 24, 2014 were paid on August 21, 2014.

See accompanying notes to the consolidated financial statements

OCONEE FEDERAL FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Amounts in thousands, except share and per share data)

   
Three Months Ended
 
   
September 30,
2014
   
September 30,
2013
 
Cash Flows From Operating Activities
   
 
     
 
 
Net income 
 
$
1,044
   
$
919
 
Adjustments to reconcile net income to net cash provided by operating activities:
   
 
     
 
 
Provision for loan losses
   
     
81
 
Depreciation and amortization, net
   
221
     
252
 
Deferred loan fees, net
   
17
      6  
Deferred income tax expense
   
22
     
                         —
 
Loss on sales of real estate owned
    8      
14
 
Gain on sales of securities
   
(5
)
   
                         —
 
Increase in cash surrender value of bank owned life insurance
   
(67
)
   
(76
)
ESOP compensation expense
   
77
     
67
 
Stock based compensation expense
   
66
     
57
 
Net change in operating assets and liabilities:
   
 
     
 
 
Accrued interest receivable
   
(128
)
   
(77
)
Accrued interest payable
   
(309
)
   
(1
)
Other
   
622
     
387
 
Net cash provided by operating activities
   
1,568
     
1,629
 
     
 
     
 
 
Cash Flows From Investing Activities
   
 
     
 
 
Purchases of premises and equipment
   
(84
)
   
(19
)
Purchases of securities held-to-maturity
         
(1,494
)
Purchases of securities available-for-sale
   
(3,399
)
   
(5,324
)
Proceeds from maturities, paydowns and calls of securities available-for-sale
   
3,323
     
2,218
 
Proceeds from maturities, paydowns and calls of securities held-to-maturity
         
797
 
Proceeds from sales of securities available-for-sale
   
1,501
       
Proceeds from sale of real estate owned
   
199
     
176
 
Loan originations and repayments, net
   
(3,059
)
   
(782
)
Net cash used in investing activities
   
(1,519
)
   
(4,428
)
     
 
     
 
 
Cash Flows from Financing Activities
   
 
     
 
 
Net change in deposits
   
(3,067
)
   
(3,638
)
Dividends paid
   
(583
)
   
(584
)
Purchase of treasury stock
         
(1,431
)
Net cash used in financing activities
   
(3,650
)
   
(5,653
)
     
 
     
 
 
Change in cash and cash equivalents
   
(3,601
)
   
(8,452
)
     
 
     
 
 
Cash and cash equivalents, beginning of year
   
11,890
     
37,942
 
     
 
     
 
 
Cash and cash equivalents, end of period
 
$
8,289
   
$
29,490
 
 

See accompanying notes to the consolidated financial statements

5

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

(1)     BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Oconee Federal Financial Corp., which include the accounts of its wholly owned subsidiary Oconee Federal Savings and Loan Association (the “Association”) (referred to herein as “the Company,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.  Intercompany accounts and transactions are eliminated during consolidation. The Company is majority owned (70.74%) by Oconee Federal, MHC.  These financial statements do not include the transactions and balances of Oconee Federal, MHC.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2014 and June 30, 2014 and the results of operations and cash flows for the interim periods ended September 30, 2014 and 2013. All interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for the year.  These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Form 10-K Annual Report of Oconee Federal Financial Corp. for the year ended June 30, 2014.

(2)     EARNINGS PER SHARE (“EPS”)

Basic EPS is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. ESOP shares are considered outstanding for this calculation unless unearned. The factors used in the earnings per common share computation follow:
 
 
   
Three Months Ended
 
   
September 30,
2014
   
September 30,
2013
 
Earnings per share
   
 
     
 
 
Net income
 
$
1,044
   
$
919
 
Less:  distributed earnings allocated to participating securities
   
(7
)
   
(7
)
Less:  (undistributed income) dividends in excess of earnings allocated to participating securities
   
(5
)
   
(4
)
Net earnings available to common shareholders
 
$
1,032
   
$
908
 
     
 
     
 
 
Weighted average common shares outstanding including participating securities
   
5,834,395
     
5,850,522
 
Less:  participating securities
   
(67,699
)
   
(71,095
)
Less: average unearned ESOP shares
   
(179,111
)
   
(204,302
)
Weighted average common shares outstanding
   
5,587,585
     
5,575,125
 
     
 
     
 
 
Basic earnings per share
 
$
0.18
   
$
0.16
 
     
 
     
 
 
Weighted average common shares outstanding
   
5,587,585
     
5,575,125
 
Add:  dilutive effects of assumed exercises of stock options
   
54,644
     
47,856
 
Average shares and dilutive potential common shares
   
5,642,229
     
5,622,981
 
     
 
     
 
 
Diluted earnings per share
 
$
0.18
   
$
0.16
 
 

During the three months ended September 30, 2014, 7,700 shares were considered anti-dilutive.  During the three months ended September 30, 2013, no shares were considered anti-dilutive.

 
6

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

(3)     SECURITIES AVAILABLE-FOR-SALE AND HELD-TO-MATURITY

Debt, mortgage-backed and equity securities have been classified in the consolidated balance sheets according to management’s intent.  U.S. Government agency mortgage-backed securities consist of securities issued by U.S. Government agencies and U.S. Government sponsored enterprises.  Investment securities at September 30, 2014 and June 30, 2014 are as follows:

   
 
 
Gross
 
Gross
   
 
   
Amortized
 
Unrealized
 
Unrealized
   
Fair
   
Cost
 
Gains
 
Losses
   
Value
September 30, 2014
   
 
   
 
   
 
     
 
Available-for-sale:
   
 
   
 
   
 
     
 
FHLMC common stock
 
$
20
 
$
195
 
$
   
$
215
Preferred stock (1)
   
271
   
27
   
                        —
     
298
Certificates of deposit
   
6,972
   
26
   
(8
)
   
6,990
Municipal securities
   
6,087
   
12
   
(31
)
   
6,068
U.S. Government agency mortgage-backed securities
   
59,520
   
327
   
(805
)
   
59,042
U.S. Government agency bonds
   
28,448
   
151
   
(382
)
   
28,217
Total available-for-sale
 
$
101,318
 
$
738
 
$
(1,226
)
 
$
100,830
     
 
   
 
   
 
     
 
June 30, 2014
   
 
   
 
   
 
     
 
Available-for-sale:
   
 
   
 
   
 
     
 
FHLMC common stock
 
$
20
 
$
294
 
$
   
$
314
Preferred stock (1)
   
271
   
27
   
                        —
     
298
Certificates of deposit
   
7,221
   
24
   
(8
)
   
7,237
Municipal securities    
5,846
    2    
(39
)
   
5,809
U.S. Government agency mortgage-backed securities    
60,742
   
428
   
(730
)
   
60,440
U.S. Government agency bonds    
29,946
   
181
   
(419
)
   
29,708
Total available-for-sale  
$
104,046
 
$
956
 
$
(1,196
)
 
$
103,806

(1) Consists of 300 shares of Southern First Bancshares, Inc. cumulative perpetual preferred stock, series T.
 
7

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

 

The following tables show the fair value and unrealized loss of  securities that have been in unrealized loss positions for less than twelve months and for more than twelve months at September 30, 2014 and June 30, 2014. The table also shows the number of securities in an unrealized loss position for each category of investment security as of the respective dates.

   
Less than 12 Months
   
12 Months or More
   
Total
 
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
 
September 30, 2014
   
 
   
 
   
 
     
 
   
 
   
 
     
 
   
 
   
 
 
Available for Sale:
   
 
   
 
   
 
     
 
   
 
   
 
     
 
   
 
   
 
 
Certificates of deposit
 
$
992
 
$
(4
)
  2    
$
494
 
$
(4
)
  2    
$
1,486
 
$
(8
)
  4  
Municipal securities
   
3,254
   
(31
)
  9      
 —
   
 —
         
3,254
   
(31
)
  9  
U.S. Government agency mortgage-backed securities
   
12,815
   
(66
)
 
17
     
19,417
   
(739
)
 
17
     
32,232
   
(805
)
 
34
 
U.S. Government agency bonds
   
5,459
   
(18
)
  7      
11,626
   
(364
)
  7      
17,085
   
(382
)
 
14
 
   
$
22,520
 
$
(119
)
 
35
   
$
31,537
 
$
(1,107
)
 
26
   
$
54,057
 
$
(1,226
)
 
61
 
     
 
   
 
   
 
     
 
   
 
   
 
     
 
   
 
   
 
 
   
 
 
 
   
 
   
 
 
 
   
 
   
 
 
 
   
 
 
   
Less than 12 Months
   
12 Months or More
   
Total
 
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
   
Fair Value
 
Unrealized
Loss
   
Number in
Unrealized
Loss (1)
 
June 30, 2014
   
 
   
 
   
 
     
 
   
 
     
 
     
 
   
 
   
 
 
Available for Sale:
   
 
   
 
   
 
     
 
   
 
     
 
     
 
   
 
   
 
 
Certificates of deposit
 
$
1,237
 
$
(8
)
  5    
$
 
$
   
$
   
$
1,237
 
$
(8
)
  5  
Municipal securities
   
4,263
   
(39
)
 
11
     
 —
   
 —
           
4,263
   
(39
)
 
11
 
U.S. Government agency mortgage-backed securities
   
7,241
   
(24
)
  6      
21,464
   
(706
)
   
18
     
28,705
   
(730
)
 
24
 
U.S. Government agency bonds
   
3,467
   
(5
)
  3      
12,574
   
(414
)
    8      
16,041
   
(419
)
 
11
 
   
$
16,208
 
$
(76
)
 
25
   
$
34,038
 
$
(1,120
)
   
26
   
$
50,246
 
$
(1,196
)
 
51
 

(1)     Actual amounts

 
8

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

None of the unrealized losses at September 30, 2014 were recognized into net income for the three months ended September 30, 2014 because the issuer’s bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates.  The fair value of these securities is expected to recover as they approach their maturity date or reset date.  None of the unrealized losses at June 30, 2014 were recognized as having other-than-temporary impairments (“OTTI”) during the three months ended September 30, 2014.

The Company evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  The Company considers the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer.  Additionally, the Company considers its intent to sell or whether it will be more likely than not it will be required to sell the security prior to the security’s anticipated recovery in fair value.  In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal Government agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The amortized cost and fair value of debt securities classified available-for-sale at September 30, 2014 and June 30, 2014 by contractual maturity are summarized as follows:

   
September 30,
2014
 
June 30,
2014
   
Amortized
 
Fair
 
Amortized
 
Fair
   
Cost
 
Value
 
Cost
 
Value
Less than one year
 
$
3,998
 
$
4,015
 
$
4,002
 
$
4,029
Due from one to five years
   
18,183
   
18,296
   
18,717
   
18,836
Due from five to ten years
   
13,211
   
12,961
   
13,297
   
13,047
Due after ten years
   
6,115
   
6,003
   
6,997
   
6,842
Mortgage backed securities
   
59,520
   
59,042
   
60,742
   
60,440
Total
 
$
101,027
 
$
100,317
 
$
103,755
 
$
103,194

The following table presents the gross proceeds from sales of securities available-for-sale and held-to-maturity and gains or losses recognized for the three months ended September 30, 2014 and 2013:

   
Three Months Ended
 
 
September 30,
2014
 
September 30,
2013
Available for Sale:
   
 
   
 
Proceeds
 
$
1,501
 
$
Gross gains
    5    
 —
Gross losses
       
 
9

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

(4)               LOANS

The components of loans at September 30, 2014 and June 30, 2014 were as follows:

 
   
September 30,
2014
   
June 30,
2014
 
Real estate loans:
   
 
     
 
 
One-to-four family
 
$
217,597
   
$
214,735
 
Multi-family
   
253
     
254
 
Home equity
   
214
     
227
 
Nonresidential
   
8,434
     
8,408
 
Construction and land
   
7,902
     
7,661
 
 Total real estate loans
   
234,400
     
231,285
 
Consumer and other loans
   
632
     
747
 
Total loans
   
235,032
     
232,032
 
Net deferred loan fees
   
(1,263
)
   
(1,246
)
Allowance for loan losses
   
(855
)
   
(855
)
 Loans, net
 
$
232,914
   
$
229,931
 
 
10

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

The following tables present the activity in the allowance for loan losses for the three months ended September 30, 2014 and 2013 and the balances in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method at September 30, 2014 and 2013:

Three Months Ended September 30, 2014

   
Real estate
   
 
   
 
   
One-to-four
 
 
 
Home
 
 
 
Construction
   
 
   
 
   
family
 
Multi-family
 
Equity
 
Nonresidential
 
and land
   
Consumer
   
Total
Beginning balance
 
$
736
 
$
4
 
$
1
 
$
52
 
$
59
   
$
3
   
$
855
Provision
   
35
   
   
   
   
(33
)
   
(2
)
   
Charge-offs
   
   
   
   
   
     
     
Recoveries
   
   
   
   
   
     
     
Ending balance
 
$
771
 
$
4
 
$
1
 
$
52
 
$
26
   
$
1
   
$
855
     
 
   
 
   
 
   
 
   
 
     
 
     
 
Allowance for loan losses:
   
 
   
 
   
 
   
 
   
 
     
 
     
 
Ending allowance attributed to loans:
   
 
   
 
   
 
   
 
   
 
     
 
     
 
Individually evaluated for impairment
 
$
45
 
$
 
$
 
$
 
$
   
$
   
$
45
Collectively evaluated for impairment
   
726
    4     1    
52
   
26
      1      
810
Total ending allowance balance
 
$
771
 
$
4
 
$
1
 
$
52
 
$
26
   
$
1
   
$
855
     
 
   
 
   
 
   
 
   
 
     
 
     
 
Loans:
   
 
   
 
   
 
   
 
   
 
     
 
     
 
Loans individually evaluated for impairment
 
$
1,579
 
$
 
$
 
$
 
$
   
$
   
$
1,579
Loans collectively evaluated for impairment
   
216,018
   
253
   
214
   
8,434
   
7,902
     
632
     
233,453
Total ending loans balance
 
$
217,597
 
$
253
 
$
214
 
$
8,434
 
$
7,902
   
$
632
   
$
235,032
 
11

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

Three Months Ended September 30, 2013

   
Real estate
 
 
 
 
   
One-to-four
 
 
 
Home
 
 
   
Construction
 
 
 
 
   
family
 
Multi-family
 
Equity
 
Nonresidential
   
and land
 
Consumer
 
Total
Beginning balance
 
$
665
 
$
4
 
$
1
 
$
52
   
$
27
 
$
2
 
$
751
Provision
   
82
   
   
   
(2
)
    1    
   
81
Charge-offs
   
   
   
   
     
   
   
Recoveries
   
   
   
   
     
   
   
Ending balance
 
$
747
 
$
4
 
$
1
 
$
50
   
$
28
 
$
2
 
$
832
     
 
   
 
   
 
   
 
     
 
   
 
   
 
Allowance for loan losses:
   
 
   
 
   
 
   
 
     
 
   
 
   
 
Ending allowance attributed to loans:
   
 
   
 
   
 
   
 
     
 
   
 
   
 
Individually evaluated for impairment
 
$
110
 
$
 
$
 
$
   
$
 
$
 
$
110
Collectively evaluated for impairment
   
637
    4     1    
50
     
28
    2    
722
Total ending allowance balance
 
$
747
 
$
4
 
$
1
 
$
50
   
$
28
 
$
2
 
$
832
     
 
   
 
   
 
   
 
     
 
   
 
   
 
Loans:
   
 
   
 
   
 
   
 
     
 
   
 
   
 
Loans individually evaluated for impairment
 
$
3,203
 
$
 
$
 
$
   
$
 
$
 
$
3,203
Loans collectively evaluated for impairment
   
202,068
   
256
   
268
   
8,365
     
8,818
   
932
   
220,707
Total ending loans balance
 
$
205,271
 
$
256
 
$
268
 
$
8,365
   
$
8,818
 
$
932
 
$
223,910
 
12

 

Table of Contents

OCONEE FEDERAL FINANCIAL CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share and per share data)

The following table presents the balances in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method at June 30, 2014:

June 30, 2014

 
   
Real estate
 
 
 
 
   
One-to-four
 
 
 
Home
 
 
 
Construction
 
 
 
 
   
family
 
Multi-family
 
Equity
 
Nonresidential
 
and land
 
Consumer
 
Total
Allowance for loan losses: