Oconee Financial Corporation (OSBK) Reports Second Quarter 2023 Results

WATKINSVILLE, Ga., Aug. 10, 2023 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the second quarter of 2023.  Unaudited net income for the three months ending June 30, 2023, was $1,018,744 or $1.14 per common share.  This compares to $1,229,477 or $1.37 per common share for the second quarter of the prior year, a decrease of 17.2%.  The decrease in net earnings for the second quarter 2023 was mainly attributable to a decrease in non-interest income of $917,000 and an increase of non-interest expense of $555,000 over the same period of 2022, offset by an increase in net interest income of $1,200,000 compared to the same period of 2022.  The decrease in non-interest income was due to a reduction of $650,000 in SBA loan related income.  $327,000 of the increase in non-interest expense was expenses related to our merger with Elberton Federal Savings & Loan Association ("Elberton Federal").   The net interest income increase was mainly due to increases in interest income on loans of $1,016,000, interest income on investments of $719,000, and interest income on interest-bearing bank balances of $284,000.  Second quarter of 2022 also included an after tax gain on sale of bank premises of $167,000. 

Unaudited net income, YTD as of June 30, 2023, was $2,146,427, or $2.39 per common share.  This compares to $1,819,853 or $2.03 per common share for YTD as of June 30 of the prior year.  This represents an increase of 17.9% in net earnings YTD as of June 30, 2023 as compared to the same period in 2022.  YTD earnings for 2023 also includes after tax project expenses related to our merger with Elberton Federal of $325,000.

Total assets as of June 30, 2023, were $526.2 million, compared to total assets of $536.7 million as of December 31, 2022, a decrease of 2%.  Total loans were $297.7 million and total deposits were $463.5 million as of June 30, 2023.  This compared to total loans of $295.6 million and total deposits of $494.9 million at December 31, 2022.  As of June 30, 2023, total loans increased 0.73% and total deposits decreased 6.3% 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 June 30, 2023 was $40.79 versus $32.43 at December 31, 2022.  The increase in book value per share during the year was largely due to retention of earnings, as well as improvement in the unrealized loss position in the Bank's investment portfolio.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the second quarter's results noted, "We were pleased with the second quarter results for 2023.  These results, in comparison to second quarter results of 2022, show that we continue to successfully navigate a challenging interest rate environment.  We continue to see good loan production and credit quality remains very sound.   

During second quarter, we expanded into the Central Georgia market with the opening of our Macon financial center.  During the second quarter, we also commenced an offering of common stock in conjunction with our acquisition of Elberton Federal.  The offering was oversubscribed and raised $4.3 million." 

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.

SOURCE Oconee Financial Corporation