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Oconee Federal Financial Corp. Announces Year End Financial Results

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Oconee Federal Financial Corp. (NASDAQ:OFED) (the "Company"), the
holding company for Oconee Federal Savings and Loan Association ("Oconee
Federal"), announced today net income of $3.0 million, or $0.52 per
diluted share, for the year ended June 30, 2018, compared to net income
of $5.5 million, or $0.95 per diluted share, for the year ended June 30,
2017.

June 30, 2018 Year End Highlights:

  • Twenty-seven consecutive quarterly dividends of $0.10 per share since
    the quarter ending December 2011.
  • Total assets were $488.0 million, an increase of 1.4% from $481.3
    million at June 30, 2017;
  • Total loans outstanding were $327.8 million, up from $307.6 million at
    June 30, 2017; and

"Despite a decrease in net income from the prior year, fiscal year 2018
was a good year for Oconee Federal. Net income was lower for 2018 as
compared to 2017 due to several unrelated items," stated Curtis T.
Evatt, President and Chief Executive Officer. "Our margins tightened as
interest rates have adjusted over the past year and as a result, the
income we derive from our margin declined $582 thousand compared to
fiscal year 2017. Also, we did not have the same opportunities for gains
on the sale of investments and on the disposition of purchase credit
impaired loans, the total of which was $739 thousand higher in 2017 than
in 2018. Lastly, we also had to absorb the effects of the 2017 Tax Cut
and Jobs Act, resulting in approximately $917 thousand in tax expense
related to the remeasurement of our deferred tax assets and liabilities.
However, we view our current financial statement position as stable and
we look forward to our opportunities in the coming year."

Cash Dividend Declared

Total dividends paid during the year ended June 30, 2018 were $2.3
million. On July 19, 2018, the Board of Directors of the Company
declared a quarterly cash dividend of $0.10 per share of the Company's
common stock payable to stockholders of record as of August 2, 2018,
which was paid on August 16, 2018.

About Oconee Federal

Oconee Federal Financial Corp. (NASDAQ Capital Market: OFED) is the
holding company of Oconee Federal Savings and Loan Association. Oconee
Federal Savings and Loan Association is a federally chartered savings
and loan association founded in 1924 and headquartered in Seneca, South
Carolina. Oconee Federal Savings and Loan Association is a community
oriented financial institution operating seven full-service branch
locations in Oconee County, South Carolina, Stephens County, Georgia and
Rabun County, Georgia.

Forward-Looking Statements

This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that are
based on current expectations, estimates and projections about the
Company's and the Association's industry, and management's beliefs and
assumptions. Words such as anticipates, expects, intends, plans,
believes, estimates and variations of such words and expressions are
intended to identify fiscal year forward-looking statements. Such
statements are not guarantees of future performance and are subject to
certain risks, uncertainties and assumptions that are difficult to
forecast. Therefore, actual results may differ materially from those
expressed or forecast in such forward-looking statements. The Company
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information or otherwise.

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