Oconee Federal Completes Acquisition of Mutual Savings Bank

Oconee Federal Financial Corp. (OTC: OFED) (“the Company”), the holding company for Oconee Federal Savings and Loan Association (“Oconee Federal”), and the majority-owned subsidiary of Oconee Federal, MHC (“the MHC”), has completed its acquisition of Mutual Savings Bank (“Mutual”).

Mutual’s office has become a branch office of Oconee Federal. As part of the transaction, the Company has issued 230,215 shares of its common stock to the MHC, or $3.2 million, which is equal to the fair value of Mutual as determined by a third-party appraisal. The transaction has increased the Company’s consolidated assets to approximately $660 million. Furthermore, the transaction was immediately accretive to the Company’s earnings and is expected to be going forward, and immediately accretive to the Company’s tangible book value per share. Oconee Federal’s capital ratios continue to exceed “well capitalized” regulatory standards.

Oconee Federal has established an Advisory Board and offered membership on it to the current directors of Mutual. Oconee Federal will also support the Hartsville, South Carolina community through charitable grants from the Oconee Federal Foundation based on recommendations of the Advisory Board.

Curtis Evatt, President and Chief Executive Officer of Oconee Federal, stated “We are pleased to announce the completion of our merger with Mutual Savings Bank. Each institution has worked diligently to prepare for the integration of our two companies, and we welcome Mutual’s customers to the combined company.”

Thomas Goodson, former Chairman of the Board of Mutual, said “We are excited to join the Oconee Federal team and work together to benefit all of our customers. The merger will enable us to provide customers with a larger suite of products and service capabilities while we continue to support our community.”

Luse Gorman, PC, Washington, D.C., acted as legal counsel to Oconee Federal and Hinman, Howard & Kattell, LLP acted as legal counsel to Mutual. Capital Resources Group, Inc. served as financial advisor to Oconee Federal.

Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that the Company and Oconee Federal anticipated in its forward-looking statements, and future results could differ materially from historical performance. Factors that could cause or contribute to such differences include, but are not limited to: increased economic pressures; increased competition, interest rate or legislative or regulatory changes; reputational risks and the reaction of the companies’ customers to the transaction; and diversion of management time on merger-related issues. Neither the Company nor Oconee Federal assumes any duty and do not undertake to update forward-looking statements.

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Curtis T. Evatt President and Chief Executive Officer Oconee Federal Savings and Loan Association 864-882-2675