Oconee Financial Corporation Reports Third Quarter 2022 Results
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 | ||||
SOURCE Oconee Financial Corporation
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