Oconee Federal Financial Corp. (Nasdaq: OFED) (the “Company”), the holding company for Oconee Federal Savings and Loan Association (the “Association”), announced today net income of $1.1 million, or $0.18 per diluted share, for the three months ended June 30, 2013, compared to net income of $1.2 million, or $0.19 per diluted share, for the three months ended June 30, 2012. The Company had net income of $4.0 million, or $0.67 per diluted share, for the year ended June 30, 2013, compared to net income of $4.0 million, or $0.65 per diluted share, for the same period in 2012.
June 30, 2013 Three Months and Year Ended:
- Continued strong earnings amidst a challenging economy and low interest rates.
- Continued strong asset quality as evidenced by decreased levels of nonperforming loans to total loans and nonperforming assets to total assets.
- Decreases in our provision for real estate owned and other related expenses to $142,000 for the year ended June 30, 2013 from $594,000 for the year ended June 30, 2012.
- Four quarterly dividends of $0.10 per share for the year ended June 30, 2013 and three quarterly dividends of $0.10 for the year ended June 30, 2012.
- Repurchased 147,800 shares of common stock during the three months ended June 30, 2013, which brought the total shares of common stock repurchased to 500,350 during the year ended June 30, 2013.
“Despite the tightening of our margins, we continue to experience strong earnings by limiting loan and real estate owned losses to a low level and keeping our operating costs low,” stated T. Rhett Evatt, President and Chief Executive Officer. “Loan demand continues to be weak during this time of economic recovery, and the continued environment of very low interest rates have made it difficult to maintain the same interest rate margins that we experienced in the prior year. We do see signs of recovery, albeit slow, in the housing market, and with the increases in the long-term Treasury yield, we should begin to see gradual improvements in our net interest margins in the future.”