Oconee Financial Corporation, the holding company for Oconee State Bank (the "Bank"), today announced that it has completed the private placement of $10 million in fixed-to-floating rate subordinated notes due August 7, 2030 (the "Notes") to institutional accredited investors. Oconee Financial Corporation intends to use the net proceeds from this placement to support organic growth, and for general corporate purposes.

The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory purposes and will bear interest at a fixed rate of 6.00% per annum until August 7, 2025. For the remainder of the term, the subordinated notes, which mature on August 7, 2030, will bear interest at a rate equal to 3-month Secured Overnight Financing Rate ("SOFR") plus 596 basis points. The subordinated notes are redeemable by the Company at its option, in whole or in part, on or after August 7, 2025, or in whole or in part from time to time under certain other circumstances.

President and Chief Executive Officer Neil Stevens remarked: "We are pleased to announce the successful completion of this capital raise. This debt at the holding company can be downstreamed to the bank as equity capital without the dilutive impact of issuing new shares of stock. While the Bank is well-capitalized by regulatory standards, we believe this transaction provides an additional source of capital strength should our borrowers be more negatively impacted than we currently anticipate. In addition, should our current expectations be correct, this capital will give us the flexibility to continue to grow and to be essential to the lives, businesses and communities we serve."