Oconee Financial Corporation Reports Third Quarter 2022 Results

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Oconee Financial Corporation (OTCQX: OSBK) reported a strong third quarter of 2022, with net income of $1,032,230 or $1.15 per common share, marking a 57.7% increase from $654,692 or $0.73 per share in Q3 2021. Year-to-date net income reached $2,852,083 or $3.18 per share, up 24.5% from the prior year. The growth was driven by a $489,000 increase in interest income on investments, while total assets decreased 6.7% to $533 million, largely due to seasonal municipal deposit declines. Book value per share dropped to $30.54 from $43.88 at the end of 2021.

Positive

• Net income for Q3 2022 increased 57.7% to $1,032,230.
• Year-to-date net income rose 24.5% to $2,852,083.
• Increase in interest income on investments by $489,000.

Negative

• Total assets decreased by 6.7% to $533 million.
• Total loans decreased 2.3% and total deposits declined 6.0% from December 2021.
• Book value per share fell from $43.88 to $30.54 due to unrealized losses.

WATKINSVILLE, Ga., Nov. 2, 2022 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the third quarter of 2022.  Unaudited net income for the three months ending September 30, 2022, was $1,032,230 or $1.15 per common share.  This compares to $654,692 or $0.73 per common share for the third quarter of the prior year, an increase of 57.7%.  The increase in net earnings for the third quarter was mainly attributable to an increase in interest income on investments of $489,000.  Net interest income increased $459,000 for the third quarter 2022 compared to the same period of 2021.  This was mainly due to the increase in interest income on investments, which is attributed to the investment of excess funds into available-for-sale investment securities.  In addition, interest expense on deposits and borrowings decreased $54,000, primarily due to lower interest rates on deposits versus a year ago.

Unaudited net income YTD as of September 30, 2022 was $2,852,083 or $3.18 per common share.  This compares to $2,291,330 or $2.56 per common share for YTD as of September 30 of the prior year.  This represents an increase of 24.5% in net earnings YTD September 30, 2022 as compared to the same period in 2021.  Excluding an after-tax gain on sale of bank premises in the second quarter of $167 thousand, net earnings YTD September 30, 2022 were $2,685,083 or $2.99 per share.

Total assets as of September 30, 2022 were $533.0 million, compared to total assets of $571.1 million as of December 31, 2021, a decrease of 6.7%.  Total loans were $291.1 million and total deposits were $488.4 million as of September 30, 2022.  This compared to total loans of $298.0 million and deposits of $519.7 million at December 31, 2021.  As of September 30, 2022, total loans decreased 2.3% and total deposits decreased 6.0% versus December 31, 2021.  The decrease in total deposits and total assets is due to a seasonal decline in municipal deposits.  Book value per share at September 30, 2022 was $30.54 versus $43.88 at December 31, 2021.  The decrease in book value per share during the year was due to the recording of unrealized losses in the Bank's investment portfolio.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the third quarter's results noted "we were very pleased with our third quarter and year-to-date results.  Earnings are substantially improved over the comparable periods and reflect the outstanding efforts of our team members in the day to day execution of our strategic plan."

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service financial centers and one loan production office.  In February 2022, Oconee State bank celebrated 62 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
				9/30/2022		12/31/2021
				(Unaudited)
ASSETS
		Cash and due from banks		$          50,506,172		$           85,774,514
		Securities available for sale (at fair value)		161,449,262		162,165,152
		Other investment		473,000		247,400
		Mortgage loans held for sale		721,050		1,212,617
		Loans, net of unearned income		295,671,869		302,523,687
		Allowance for loan loss		(4,549,277)		(4,542,292)
			Loans, net	291,122,592		297,981,395
		Premises and equipment		7,862,995		8,602,518
		Other assets		20,829,860		15,158,402
			Total Assets	$        532,964,932		$         571,141,998
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$        488,440,786		$         519,693,969
		Federal Home Loan Bank Advances		5,000,000		--
		Subordinated debenture, net of capitalized expenses		9,812,406		9,794,445
		Dividends payable		--		--
		Accrued expenses and other liabilities		2,349,083		2,320,963
			Total Liabilities	505,602,276		531,809,377
	Stockholder's Equity:
		Common Stock		1,795,900		1,795,076
		Restricted Stock		(70,523)		(38,311)
		Additional Paid in Capital		4,176,342		4,159,822
		Retained earnings		35,493,159		33,268,328
		Unrealized gain/loss on securities and derivatives		(14,032,222)		147,706
			Total Stockholder's Equity	27,362,656		39,332,621
			Total Liabilities and Stockholder's Equity	$        532,964,932		$         571,141,998
			Book Value Per Share	$                   30.54		$                    43.88

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD
				9/30/2022		9/30/2021
				(Unaudited)
	Interest Income:
		Loans		$          10,157,749		$           11,358,766
		Securities available for sale
			State, County & Municipal	576,141		517,609
			Treasuries & Agencies	1,178,880		610,697
			Corporate	284,505		251,273
		Federal funds sold & other		311,793		65,700
				12,509,068		12,804,045
	Interest Expense:
		Deposits		507,950		783,570
		Other		472,330		467,962
		Total Interest Expense		980,280		1,251,532
			Net interest income	11,528,788		11,552,513
	Provision for loan losses			--		235,500
		Net income after provision for loan losses		11,528,788		11,317,013
	Noninterest income
		Service charges on deposit accounts		486,663		332,215
		Gain (loss) on Sale of Assets		218,227		(64,151)
		Securities gains (losses), net		749		172,312
		Mortgage banking income		863,766		1,662,571
		SBA loan related income		985,214		155,713
		Commissions on investment sales		100,484		163,080
		Other		1,225,014		1,055,703
		Total noninterest income		3,880,117		3,477,442
	Noninterest expense
		Salaries and employee benefits		6,867,311		6,867,084
		Occupancy		891,742		1,049,283
		Other operating		3,952,804		4,000,890
		Total noninterest expense		11,711,857		11,917,257
			Income before provision for income taxes	3,697,048		2,877,198
	Provision for income taxes			844,965		585,868
			Net Income	$            2,852,083		$             2,291,330
			Period-Ending Outstanding Shares	896,074		895,662
			Weighted Average Shares Outstanding	896,823		895,662
			YTD Earnings Per Common Share	$                     3.18		$                      2.56

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD
				9/30/2022		9/30/2021
				(Unaudited)
	Interest Income:
		Loans		$            3,534,167		$             3,618,485
		Securities available for sale
			State, County & Municipal	188,176		163,671
			Treasuries & Agencies	553,324		249,781
			Corporate	94,766		92,651
		Federal funds sold & other		184,664		25,746
				4,555,096		4,150,335
	Interest Expense:
		Deposits		178,823		236,938
		Other		160,356		155,988
		Total Interest Expense		339,179		392,926
			Net interest income	4,215,916		3,757,409
	Provision for loan losses			--		--
		Net income after provision for loan losses		4,215,916		3,757,409
	Noninterest income
		Service charges on deposit accounts		163,274		117,081
		Gain (loss) on Sale of Assets		--		(27,690)
		Securities gains (losses), net		749		--
		Mortgage banking income		246,891		459,902
		SBA loan related income		169,851		37,168
		Commissions on investment sales		38,849		23,738
		Other		412,861		306,231
		Total noninterest income		1,032,476		916,430
	Noninterest expense
		Salaries and employee benefits		2,304,341		2,221,805
		Occupancy		283,741		387,877
		Other operating		1,334,835		1,256,915
		Total noninterest expense		3,922,917		3,866,597
			Income before provision for income taxes	1,325,475		807,242
	Provision for income taxes			293,244		152,550
			Net Income	$            1,032,230		$                654,692
			Period-Ending Outstanding Shares	896,074		895,662
			Weighted Average Shares Outstanding	896,823		895,662
			QTD Earnings Per Common Share	$                     1.15		$                      0.73

 

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SOURCE Oconee Financial Corporation

FAQ

What were Oconee Financial Corporation's third quarter 2022 earnings?

Oconee Financial Corporation reported net income of $1,032,230 or $1.15 per common share for Q3 2022.

How did Oconee Financial's year-to-date earnings perform in 2022?

Year-to-date net income for Oconee Financial in 2022 was $2,852,083 or $3.18 per share, a 24.5% increase from the prior year.

What factors contributed to the increase in Oconee Financial's net income?

The increase in net income was primarily driven by a $489,000 boost in interest income on investments.

What is the current book value per share for Oconee Financial Corporation?

The book value per share for Oconee Financial as of September 30, 2022, was $30.54.

Did Oconee Financial's total assets increase or decrease in 2022?

Total assets for Oconee Financial decreased by 6.7% to $533 million as of September 30, 2022.