Oconee Financial Corporation Reports Third Quarter 2023 Results

Rhea-AI Summary

Oconee Financial Corporation (OTCQX: OSBK) reports a 184% increase in net earnings for Q3 2023 compared to Q3 2022, driven by non-interest income and net interest income. YTD net earnings for 2023 also increased by 78% compared to the same period in 2022. Total assets increased by 8%, with total loans and deposits also showing significant growth. The company's book value per share increased to $37.81. The merger with Elberton Federal contributed to the increase in total deposits and total assets.

Positive

• 184% increase in net earnings for Q3 2023 compared to Q3 2022
• 78% increase in YTD net earnings for 2023 compared to the same period in 2022
• Total assets increased by 8%
• Total loans increased by 12.2% and total deposits increased by 2.0% versus December 31, 2022
• Book value per share increased to $37.81
• Merger with Elberton Federal contributed to the increase in total deposits and total assets

Negative

• None.

WATKINSVILLE, Ga., Nov. 9, 2023 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the third quarter of 2023.  Unaudited net income for the three months ending September 30, 2023, was $2.9 million or $3.19 per common share.  This compares to $1.0 million or $1.15 per common share for the third quarter of 2022, an increase of 184%.  The increase in net earnings for the third quarter 2023 was mainly attributable to increases in non-interest income of $2.1 million and net interest income of $947,000, offset by an increase in non-interest expense of $1.0 million over the same period of 2022.  The increase in non-interest income was due to the recording of a bargain purchase gain of $2.1 million from the merger with Elberton Federal Savings & Loan Association ("Elberton Federal").   $259,000 of the increase in non-interest expense was attributable to expenses related to the Elberton Federal merger.   The net interest income increase was mainly due to increases in interest income on loans of $1.2 million, interest income on investments of $546,000, and interest income on interest-bearing bank balances of $560,000, offset by increases in interest expense on deposits and interest expense on borrowings of $1.3 million. 

Unaudited net income, YTD as of September 30, 2023, was $5.1 million, or $5.52 per common share.  This compares to $2.9 million or $3.18 per common share for YTD as of September 30 of the prior year.  This represents an increase of 78% in year-to-date net earnings as compared to the same period in 2022.  YTD earnings for 2023 also includes expenses related to our merger with Elberton Federal of $556,000 and the recorded bargain purchase gain of $2.1 million. 

Total assets as of September 30, 2023, were $579.9 million, compared to total assets of $536.7 million as of December 31, 2022, an increase of 8%.  Total loans were $331.8 million and total deposits were $504.9 million as of September 30, 2023.  This compared to total loans of $295.6 million and total deposits of $494.9 million at December 31, 2022.  As of September 30, 2023, total loans increased 12.2% and total deposits increased 2.0% versus December 31, 2022.  The Increase in total deposits and total assets is primarily due to the merger with Elberton.  Elberton loans of $19.5 million and deposits of $16.1 million are included in the increase.   Book value per share at September 30, 2023 was $37.81 versus $32.43 at December 31, 2022.  The increase in book value per share during the year was largely due to retention of earnings, the bargain purchase gain noted above as well as a year-to-date increase in Other Comprehensive Income, which includes an increase in the fair value of derivatives offset by an increase in the Bank's unrealized loss in the investment portfolio, .

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the third quarter's results noted, "We were pleased with the third quarter results for 2023.  These results, even after excluding the bargain purchase gain and related merger expenses, compare favorably to last year's third quarter results.  We continue to successfully navigate a challenging interest rate environment and are seeing good loan production and sound credit quality.   

During third quarter, we expanded into the Northeast Georgia market with the merger and opening of our Elberton financial center.  Effective July 31, 2023, Oconee Financial Corporation completed its acquisition of Elberton Federal and its related common stock offering, in a conversion merger transaction. Stevens said "we welcome the addition of Elberton Federal, its team of experienced bankers, and our newest shareholders and customers in Elbert County.  We aim to provide them the same high level of service and care our current customers and shareholders enjoy".

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates six full-service financial centers in Georgia, located in Oconee, Athens Clarke, Gwinnett and Macon-Bibb counties, including its newest location in Elbert County.    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 proudly serves its communities, providing unparalleled commitment to personalized service, innovative products and solutions, and brings exceptional value to all stakeholders, through local ownership, involvement, and decision making. The bank strives to be essential to those it serves, by creating remarkable experiences that significantly mark the lives of others. Oconee Financial Corporation was established in January 1999 to serve as the holding company of Oconee State Bank.

Please visit Oconee State Bank's website, www.oconeestatebank.com for a full listing of products and services.

OCONEE FINANCIAL CORPORATION
BALANCE SHEET
				9/30/2023		12/31/2022
				(Unaudited)
ASSETS
		Cash and due from banks		$         52,077,900		$          51,430,016
		Securities available for sale (at fair value)		155,731,434		159,640,457
		Other investment		1,458,674		285,500
		Mortgage loans held for sale		2,879,547		140,409
		Loans, net of unearned income		336,308,650		300,130,642
		Allowance for loan loss		(4,477,382)		(4,549,357)
			Loans, net	331,831,268		295,581,285
		Premises and equipment		8,781,786		8,000,576
		Other assets		27,127,018		21,669,411
			Total Assets	$       579,887,626		$        536,747,654
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$       504,868,729		$        494,869,684
		Federal Home Loan Bank Advances		22,250,000		--
		Subordinated debenture, net of capitalized expenses		9,336,355		9,818,393
		Dividends payable		--		--
		Accrued expenses and other liabilities		3,905,768		2,976,386
			Total Liabilities	540,360,851		507,664,463
	Stockholder's Equity:
		Common Stock		2,094,776		1,795,900
		Restricted Stock		(72,695)		(43,528)
		Additional Paid in Capital		7,043,013		4,176,342
		Stock Subscription		--		--
		Retained earnings		43,007,068		36,764,762
		Unrealized gain/loss on securities and derivatives		(12,545,387)		(13,610,285)
			Total Stockholder's Equity	39,526,775		29,083,191
			Total Liabilities and Stockholder's Equity	$       579,887,626		$        536,747,654
			Book Value Per Share	$                  37.81		$                   32.43

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-QTD
				9/30/2023		9/30/2022
				(Unaudited)
	Interest Income:
		Loans		$           4,733,783		$            3,534,167
		Securities available for sale
			State, County & Municipal	189,440		188,176
			Treasuries & Agencies	1,087,633		553,324
			Corporate	104,790		94,766
		Federal funds sold & other		744,849		184,664
		Total Interest Income		6,860,496		4,555,096
	Interest Expense:
		Deposits		1,289,891		178,823
		Other		407,967		160,356
		Total Interest Expense		1,697,858		339,179
			Net interest income	5,162,637		4,215,916
	Provision for loan losses			75,998		--
		Net income after provision for loan losses		5,086,639		4,215,916
	Noninterest income
		Service charges on deposit accounts		161,756		163,274
		Gain (loss) on Sale of Assets		--		0
		Bargain Purchase Gain - Elberton Federal		2,058,797		--
		Securities gains (losses), net		2,237		749
		Mortgage banking income		329,546		246,892
		SBA loan related income		200,259		169,851
		Commissions on investment sales		42,660		38,849
		Other		350,720		412,861
		Total noninterest income		3,145,975		1,032,476
	Noninterest expense
		Salaries and employee benefits		2,850,574		2,304,341
		Occupancy		367,261		283,741
		Other operating		1,750,251		1,334,835
		Total noninterest expense		4,968,086		3,922,917
			Income before provision for income taxes	3,264,528		1,325,475
	Provision for income taxes			331,629		293,244
			Net Income	$           2,932,899		$            1,032,230
			Period-Ending Outstanding Shares	1,045,512		896,074
			Weighted Average Shares Outstanding	920,582		896,823
			QTD Earnings Per Common Share	$                    3.19		$                     1.15

 

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD
				9/30/2023		9/30/2022
				(Unaudited)
	Interest Income:
		Loans		$         13,042,308		$          10,157,749
		Securities available for sale
			State, County & Municipal	568,664		576,141
			Treasuries & Agencies	3,137,208		1,178,880
			Corporate	294,322		284,505
		Federal funds sold & other		1,424,397		311,793
		Total Interest Income		18,466,899		12,509,068
	Interest Expense:
		Deposits		2,644,659		507,950
		Other		878,002		472,330
		Total Interest Expense		3,522,660		980,280
			Net interest income	14,944,239		11,528,788
	Provision for loan losses			102,141		--
		Net income after provision for loan losses		14,842,098		11,528,788
	Noninterest income
		Service charges on deposit accounts		483,374		486,663
		Gain (loss) on Sale of Assets		3,900		218,227
		Bargain Purchase Gain - Elberton Federal		2,058,797		--
		Securities gains (losses), net		2,237		749
		Mortgage banking income		702,065		863,766
		SBA loan related income		712,006		985,214
		Commissions on investment sales		103,452		100,484
		Other		1,115,537		1,225,014
		Total noninterest income		5,181,368		3,880,117
	Noninterest expense
		Salaries and employee benefits		8,027,456		6,867,311
		Occupancy		986,627		891,742
		Other operating		4,898,714		3,952,804
		Total noninterest expense		13,912,797		11,711,857
			Income before provision for income taxes	6,110,669		3,697,048
	Provision for income taxes			1,031,341		844,965
			Net Income	$           5,079,328		$            2,852,083
			Period-Ending Outstanding Shares	1,045,512		896,074
			Weighted Average Shares Outstanding	920,582		896,823
			YTD Earnings Per Common Share	$                    5.52		$                     3.18

 

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SOURCE Oconee Financial Corporation

FAQ

What is Oconee Financial Corporation's ticker symbol?

The ticker symbol for Oconee Financial Corporation is OTCQX: OSBK.

What contributed to the increase in net earnings for Q3 2023?

The increase in net earnings for Q3 2023 was mainly attributable to increases in non-interest income of $2.1 million and net interest income of $947,000.

What caused the increase in total assets?

The increase in total assets is primarily due to the merger with Elberton Federal, which contributed to the increase in total deposits and total assets.

What is the book value per share for Oconee Financial Corporation at September 30, 2023?

The book value per share at September 30, 2023 was $37.81.