Oconee Financial Corporation Reports Third Quarter 2023 Results

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.

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SOURCE Oconee Financial Corporation