PR Newswire·May 8, 2023, 4:01 PM ET

Oconee Financial Corporation Reports First Quarter 2023 Results

WATKINSVILLE, Ga., May 8, 2023 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX:OSBK) is pleased to report results for the first quarter of 2023. Unaudited net income for the three months ending March 31, 2023, was $1,127,683 or $1.26 per common share. This compares to $590,376 or $0.66 per common share for the first quarter of the prior year, an increase of 91%. The increase in net earnings for the first quarter 2023 was mainly attributable to an increase in net interest income of $1,246,000 compared to the same period of 2022. This was mainly due to increases in interest income on loans of $669,000, interest income on investments of $696,000 and interest income on interest-bearing bank balances of $268,000.

Total assets as of March 31, 2023, were $526.1 million, compared to total assets of $536.7 million as of December 31, 2022, a decrease of 2%. Total loans were $298.8 million and total deposits were $466.2 million as of March 31, 2023. This compared to total loans of $295.6 million and total deposits of $494.9 million at December 31, 2022. As of March 31, 2023, total loans increased 1.08% and total deposits decreased 5.8% versus December 31, 2022. The decrease in total deposits and total assets is primarily due to a seasonal decline in municipal deposits. Book value per share at March 31, 2023 was $35.06 versus $32.43 at December 31, 2022. The increase in book value per share during the year was due to improvement in the unrealized loss position in the Bank's investment portfolio.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the first quarter's results noted "We were very pleased with the first quarter results for 2023. Our first quarter 2023 results, in comparison to first quarter results of 2022, show that we're successfully navigating a challenging interest rate environment. We continue to see good loan production and sound credit quality. We were pleased to announce and pay an annual dividend of $0.85 per share in April. This 21% increase over the dividend paid in 2022 reflects our overall financial strength. We were also pleased to announce the recent opening of our Macon branch and expansion into the Central Georgia market."

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates five 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

				3/31/2023	12/31/2022
				(Unaudited)
ASSETS
		Cash and due from banks		$ 32,200,859	$ 51,430,016
		Securities available for sale (at fair value)		162,671,878	159,640,457
		Other investment		905,800	285,500
		Mortgage loans held for sale		1,789,420	140,409

		Loans, net of unearned income		303,106,377	300,130,642
		Allowance for loan loss		(4,333,414)	(4,549,357)
			Loans, net	298,772,963	295,581,285

		Premises and equipment		8,066,029	8,000,576
		Other assets		21,674,245	21,669,411
			Total Assets	$ 526,081,194	$ 536,747,654

LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities:
		Deposits		$ 466,175,844	$ 494,869,684
		Subordinated debenture, net of capitalized expenses		9,824,380	9,818,393
		Dividends payable		762,022	--
		Accrued expenses and other liabilities		2,884,858	2,976,386
			Total Liabilities	494,647,105	507,664,463

	Stockholder's Equity:
		Common Stock		1,796,746	1,795,900
		Restricted Stock		(72,695)	(43,528)
		Additional Paid in Capital		4,192,523	4,176,342
		Retained earnings		37,130,422	36,764,762
		Unrealized gain/loss on securities		(11,612,906)	(13,610,285)
			Total Stockholder's Equity	31,434,089	29,083,191

			Total Liabilities and Stockholder's Equity	$ 526,081,194	$ 536,747,654

			Book Value Per Share	$ 35.06	$ 32.43

OCONEE FINANCIAL CORPORATION
STATEMENT OF INCOME-YTD

				3/31/2023	3/31/2022
				(Unaudited)
	Interest Income:
		Loans		$ 3,958,727	$ 3,290,023
		Securities available for sale
			State, County & Municipal	189,681	195,025
			Treasuries & Agencies	1,003,901	302,064
			Corporate	94,766	94,974
		Federal funds sold & other		305,658	37,654
				5,552,733	3,919,740

	Interest Expense:
		Deposits		518,556	170,881
		Other		195,091	155,987
		Total Interest Expense		713,647	326,868

			Net interest income	4,839,086	3,592,872

	Provision for loan losses			--	--

		Net income after provision for loan losses		4,839,086	3,592,872

	Noninterest income
		Service charges on deposit accounts		161,787	162,946
		Loss on Sale of Assets		3,900	--
		Securities gains (losses), net		--	--
		Mortgage banking income		137,985	378,500
		SBA loan related income		448,940	102,525
		Commissions on investment sales		25,081	23,745
		Other		396,074	401,071
		Total noninterest income		1,173,767	1,068,787

	Noninterest expense
		Salaries and employee benefits		2,604,784	2,300,196
		Occupancy		301,090	302,906
		Other operating		1,594,033	1,296,419
		Total noninterest expense		4,499,906	3,899,521

			Income before provision for income taxes	1,512,947	762,138

	Provision for income taxes			385,264	171,762

			Net Income	$ 1,127,683	$ 590,376

			Period-Ending Outstanding Shares	896,497	896,074
			Weighted Average Shares Outstanding	897,245	896,822
			YTD Earnings Per Common Share	$ 1.26	$ 0.66

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SOURCE Oconee Financial Corporation