Oconee Financial Corporation Reports Fourth Quarter 2022 Results

Rhea-AI Summary

Oconee Financial Corporation (OSBK) reported a 79.6% increase in net income for Q4 2022, totaling $1,271,602 or $1.42 per share, compared to $708,199 or $0.79 per share in Q4 2021. The YTD net income as of December 31, 2022, rose 37.5% to $4,123,685 or $4.60 per share, compared to $2,999,529 in 2021. Total assets decreased 6.0% to $536.7 million, with total loans declining 0.8% and total deposits down 4.8%. Book value per share dropped from $43.88 to $32.43 due to unrealized investment losses. CEO Neil Stevens expressed confidence in the bank's performance amid a challenging interest rate environment.

Positive

• Net income increased 79.6% in Q4 2022, reaching $1,271,602.
• Year-to-date net income rose 37.5%, totaling $4,123,685.
• Net interest income grew by $852,000 compared to Q4 2021, driven by higher interest income on investments.

Negative

• Total assets decreased 6.0% year-over-year to $536.7 million.
• Total loans decreased by 0.8% to $295.6 million.
• Total deposits fell 4.8% to $494.9 million, primarily due to a decline in retail and municipal deposits.
• Book value per share dropped from $43.88 to $32.43 due to unrealized losses in the investment portfolio.

WATKINSVILLE, Ga., Feb. 10, 2023 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the fourth quarter of 2022.  Unaudited net income for the three months ending December 31, 2022, was $1,271,602 or $1.42 per common share.  This compares to $708,199 or $0.79 per common share for the fourth quarter of the prior year, an increase of 79.6%.  The increase in net earnings for the fourth quarter 2022 was mainly attributable to an increase in net interest income of $852,000 compared to the same period of 2021.  This was mainly due to increases in interest income on investments of $660,000 and interest income on interest-bearing bank balances of $395,000.

Unaudited net income YTD as of December 31, 2022 was $4,123,685 or $4.60 per common share.  This compares to $2,999,529 or $3.35 per common share for the year ended December 31, 2021.  This represents an increase of 37.5% in net earnings YTD December 31, 2022 as compared to the same period in 2021. 

Total assets as of December 31, 2022 were $536.7 million, compared to total assets of $571.1 million as of December 31, 2021, a decrease of 6.0%.  Total loans were $295.6 million and total deposits were $494.9 million as of December 31, 2022.  This compared to total loans of $298.0 million and deposits of $519.7 million at December 31, 2021.  As of December 31, 2022, total loans decreased 0.8% and total deposits decreased 4.8% versus December 31, 2021.  The decrease in total deposits and total assets is primarily due to a decline in retail and municipal deposits.  Book value per share at December 31, 2022 was $32.43 versus $43.88 at December 31, 2021.  The decrease in book value per share during the year was due to unrealized losses in the Bank's investment portfolio.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the fourth quarter's results noted, "We were very pleased with both the fourth quarter and full year results for 2022.  We believe we're successfully navigating a very challenging interest rate environment.  We continue to see good loan production and sound credit quality."   

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service financial centers and one loan production office.  In February 2023, Oconee State bank celebrated 63 years of service and continues to be the only locally owned and operated community bank headquartered in Oconee County. Oconee State Bank has proudly served the local community, providing an unparalleled commitment to personalized service, innovative products and solutions, and strives to bring exceptional value to our customers through local ownership, involvement, and decision-making. We continuously strive to create remarkable experiences that significantly mark the lives of others. 

 

OCONEE FINANCIAL CORPORATION
BALANCE SHEET
				12/31/2022		12/31/2021
				(Unaudited)
ASSETS
		Cash and due from banks		$          51,430,016		$           85,774,514
		Securities available for sale (at fair value)		159,640,457		162,165,152
		Other investment		285,500		247,400
		Mortgage loans held for sale		140,409		1,212,617
		Loans, net of unearned income		300,130,642		302,523,687
		Allowance for loan loss		(4,549,357)		(4,542,292)
			Loans, net	295,581,285		297,981,395
		Premises and equipment		8,000,576		8,602,518
		Other assets		21,669,411		15,158,402
			Total Assets	$        536,747,653		$         571,141,998
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$        494,869,684		$         519,693,969
		Federal Home Loan Bank Advances		--		--
		Subordinated debenture, net of capitalized expenses		9,818,393		9,794,445
		Dividends payable		--		--
		Accrued expenses and other liabilities		2,976,385		2,320,963
			Total Liabilities	507,664,463		531,809,377
	Stockholder's Equity:
		Common Stock		1,795,900		1,795,076
		Restricted Stock		(43,528)		(38,311)
		Additional Paid in Capital		4,176,342		4,159,822
		Retained earnings		36,764,762		33,268,328
		Unrealized gain/loss on securities and derivatives		(13,610,285)		147,706
			Total Stockholder's Equity	29,083,191		39,332,621
			Total Liabilities and Stockholder's Equity	$        536,747,653		$         571,141,998
			Book Value Per Share	$                   32.43		$                    43.88

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD
				12/31/2022		12/31/2021
				(Unaudited)
	Interest Income:
		Loans		$          13,924,934		$           15,281,802
		Securities available for sale
			State, County & Municipal	765,942		685,752
			Treasuries & Agencies	2,103,601		875,535
			Corporate	379,271		346,038
		Federal funds sold & other		743,302		102,278
				17,917,050		17,291,405
	Interest Expense:
		Deposits		783,609		1,001,740
		Other		639,116		623,949
		Total Interest Expense		1,422,725		1,625,689
			Net interest income	16,494,326		15,665,716
	Provision for loan losses			--		456,000
		Net income after provision for loan losses		16,494,326		15,209,716
	Noninterest income
		Service charges on deposit accounts		645,856		458,943
		Gain (loss) on Sale of Assets		218,227		(268,123)
		Securities gains (losses), net		749		172,312
		Mortgage banking income		1,017,698		2,067,991
		SBA loan related income		1,245,249		339,651
		Commissions on investment sales		122,104		187,329
		Other		1,616,323		1,434,421
		Total noninterest income		4,866,206		4,392,523
	Noninterest expense
		Salaries and employee benefits		9,496,173		9,300,150
		Occupancy		1,181,164		1,425,137
		Other operating		5,354,838		5,145,490
		Total noninterest expense		16,032,175		15,870,776
			Income before provision for income taxes	5,328,357		3,731,463
	Provision for income taxes			1,204,672		731,934
			Net Income	$            4,123,685		$             2,999,529
			Period-Ending Outstanding Shares	896,824		896,412
			Weighted Average Shares Outstanding	896,823		896,412
			YTD Earnings Per Common Share	$                     4.60		$                      3.35

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD
				12/31/2022		12/31/2021
				(Unaudited)
	Interest Income:
		Loans		$            3,767,185		$             3,923,036
		Securities available for sale
			State, County & Municipal	189,802		168,142
			Treasuries & Agencies	924,721		264,838
			Corporate	94,766		94,766
		Federal funds sold & other		431,509		36,578
				5,407,982		4,487,360
	Interest Expense:
		Deposits		275,659		218,171
		Other		166,786		155,987
		Total Interest Expense		442,444		374,158
			Net interest income	4,965,538		4,113,203
	Provision for loan losses			--		220,500
		Net income after provision for loan losses		4,965,538		3,892,703
	Noninterest income
		Service charges on deposit accounts		159,193		126,728
		Gain (loss) on Sale of Assets		--		(203,971)
		Securities gains (losses), net		--		--
		Mortgage banking income		153,933		405,419
		SBA loan related income		260,035		183,938
		Commissions on investment sales		21,619		24,249
		Other		391,309		378,718
		Total noninterest income		986,089		915,081
	Noninterest expense
		Salaries and employee benefits		2,628,861		2,433,066
		Occupancy		289,423		375,854
		Other operating		1,402,034		1,144,600
		Total noninterest expense		4,320,318		3,953,519
			Income before provision for income taxes	1,631,308		854,265
	Provision for income taxes			359,706		146,066
			Net Income	$            1,271,602		$                708,199
			Period-Ending Outstanding Shares	896,824		896,412
			Weighted Average Shares Outstanding	896,823		896,412
			QTD Earnings Per Common Share	$                     1.42		$                      0.79

 

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SOURCE Oconee Financial Corporation

FAQ

What were Oconee Financial Corporation's net income results for Q4 2022?

Oconee Financial Corporation reported a net income of $1,271,602 for Q4 2022, translating to $1.42 per share.

How much did Oconee Financial Corporation's net income increase year-over-year?

The net income for the fourth quarter of 2022 increased by 79.6% compared to Q4 2021.

What was the total assets of Oconee Financial Corporation as of December 31, 2022?

As of December 31, 2022, Oconee Financial Corporation's total assets were $536.7 million.

What is the book value per share of Oconee Financial Corporation?

The book value per share dropped to $32.43 as of December 31, 2022, down from $43.88 the previous year.

What were the primary factors for the increase in net earnings for Oconee Financial Corporation?

The increase in net earnings was mainly due to a $852,000 rise in net interest income, attributed to higher interest income on investments.