SENECA, S.C. - Oconee Federal Financial Corp. (OTCQX: OFED), the parent company of Oconee Federal Savings and Loan Association, has reported a decrease in net income for the quarter ending December 31, 2023. The company announced a net income of $320 thousand or $0.06 per diluted share, a decline from $1.1 million or $0.20 per diluted share for the same period in the previous year.
Despite the decline in net income, the company has seen a growth in total assets, which rose to $613.1 million, marking a 3.0% increase from $595.4 million reported at the end of June 2023. The total loans outstanding also increased to $428.9 million, up from $413.0 million at June 30, 2023.
The company's stock book value was $12.95, and the tangible book value was $12.49 as of December 31, 2023. Oconee Federal has maintained its practice of paying quarterly dividends, declaring its forty-ninth consecutive dividend of $0.10 per share since December 2011. The most recent dividend was paid on November 22, 2023, to shareholders of record as of November 9, 2023.
Curtis T. Evatt, President and Chief Executive Officer, acknowledged the challenges faced by the company, attributing the reduced net income to interest margin compression amidst the current rate environment. However, he noted the steady growth in loan and deposit balances, with a 2.4% increase in loans and a 2.8% increase in deposits compared to the quarter ending September 30, 2023. Evatt also mentioned the company's upcoming merger with Mutual Savings Bank as a strategic move to position the company for future success.
This article is based on a press release statement.
InvestingPro Insights
Oconee Federal Financial Corp. (OTCQX: OFED) has navigated a challenging quarter, as reflected in the reported decrease in net income. An important aspect for investors to consider is the company's stock volatility, which is notably high. This could present opportunities for investors with the appetite for such risk, but also warrants caution for those seeking more stability. Despite the decline in net income, Oconee Federal has displayed financial resilience by maintaining its dividend payments for 13 consecutive years, which is a testament to its commitment to shareholder returns.
The company's P/E ratio, standing at 23.12, suggests that the stock is trading at a multiple that is reflective of its earnings. Notably, the company's price is currently at 53.08% of its 52-week high, and it has experienced a strong return over the last three months, with a 21.01% price total return. These figures indicate a recent uptrend in the stock's performance, which may be of interest to potential investors. Additionally, the company's tangible book value is closely aligned with the InvestingPro Fair Value estimate of $12.88, which could suggest that the stock is fairly valued at its current price.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics that could further inform investment decisions. There are over 4 additional InvestingPro Tips available, which can be accessed through a subscription. With the New Year sale, subscriptions are now available at up to 50% off. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription, and unlock the full potential of these insights.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.