Oconee Financial Corporation Reports First Quarter 2022 Results

WATKINSVILLE, Ga., May 5, 2022 /PRNewswire/ -- Oconee Financial Corporation ("Oconee") (OTCQX: OSBK) is pleased to report results for the first quarter of 2022.  Unaudited net income for the three months ending March 31, 2022, was $590,376 or $0.66 per common share.  This compares to $824,221 or $0.92 per common share for the first quarter of the prior year, a decrease of 28.4%.  The decrease in net earnings for the first quarter was mainly attributable to a decrease in net interest income of $314,000.  Interest income on loans decreased $563,000 primarily due to a decline in loan fees from the Paycheck Protection Program (PPP) of $485,000 versus the first quarter of 2021.  Interest income on investments increased $249,000 due to the investment of excess funds into available-for-sale investment securities.  The first quarter of 2021 reflected a gain on sale of investments of $196,000, versus no gain in the first quarter of 2022.  In addition, interest expense on deposits and borrowings decreased $115,000, primarily due to lower interest rates on deposits.  Provision for loan losses decreased $235,500 due to no loan loss provision being recorded in the first quarter of 2022.  Noninterest income decreased $345,000 primarily due to a decrease in mortgage income of $207,000. 

Total assets as of March 31, 2022, were $557.1 million, compared to total assets of $571.1 million as of December 31, 2021, a decrease of 2.5%.  Total loans were $288.3 million and total deposits were $512.1 million as of March 31, 2022.  This compared to total loans of $298.0 million and deposits of $519.7 million at December 31, 2021.  As of March 31, 2022, total loans decreased 3.3% and total deposits decreased 1.5% versus December 31, 2021.  Excluding the effect of paydowns on PPP loans that has continued into 2022, loans decreased $6.5 million, or 2.2%.  Book value per share at March 31, 2022 was $36.49 versus $43.88 at December 31, 2021.  The decrease in book value per share during the first quarter was due to recording unrealized losses in the Bank's investment portfolio of $6.6 million.

Neil Stevens, President and Chief Executive Officer of Oconee, commenting on the first quarter's results noted, "the decline in earnings for the first quarter compared to last year's first quarter reflects the decline in PPP fee income over this period.  We believe the first quarter 2022 results are representative of the true earnings of the bank given the relatively small amount of PPP fee income recognized in this year's first quarter.  The recording of unrealized losses in the bond portfolio is due to the recent unprecedented rise in interest rates in the first quarter.  This is a prevalent issue in the banking industry.  These losses are unrealized and do not impact regulatory capital ratios."

Stevens continued "we continue to realign our distribution system to reflect changes in customer preferences.  On April 15^th, we closed our Butler's Crossing financial center.  Our customers can use either our Main Office or Bogart financial centers if they want to come into one of our locations in Oconee County. Also, we recently implemented our Digital Solutions Center, which will be the central touch point for all digital banking services and our customer call center."

Oconee Financial Corporation is headquartered in Watkinsville, Georgia and operates four full-service financial centers.  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. 

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SOURCE Oconee Financial Corporation