----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**[X]  QUARTERLY      REPORT UNDER SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**[   ]  TRANSITION      REPORT UNDER SECTION 13 OR 15(d)**

**OF      THE EXCHANGE ACT**

| Oconee                Financial Corporation                                          |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Georgia                                                                 |   | 58-2442250                                                        |
|-------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                of Incorporation)                                 |   | (I.R.S.                EmployerIdentification                No.) |
|                                                                    |   |                                                              |
|                                                                    |   |                                                              |
| 35                North Main StreetWatkinsville,                Georgia |   |  30677                                                       |
| (Address                of principalexecutive                offices)   |   | (Zip                Code)                                         |

----

----

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**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

**INDEX**

|                            |                                                                                                                  | Page                No. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-------------------------|
| PART                I                                                                                                                                        | FINANCIAL                INFORMATION                                                                                  |                    |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                1.                                                                                                                                  | Financial                Statements                                                                                   |                    |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Balance Sheet (unaudited) at June 30, 2007                                                | 3                       |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Statements of Earnings (unaudited) for the Three Months and the Six                       |                    |
|                                                                                                                                                         |        Months                Ended June 30, 2007 and 2006                          | 4                       |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Statements of Comprehensive Income (Loss) (unaudited) for the Three                Months |                    |
|                                                                                                                                                         |        and                the Six Months Ended June 30, 2007 and 2006              | 5                       |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Statements of Cash Flows (unaudited) for the Six Months                                   |                    |
|                                                                                                                                                         |        Ended                June 30, 2007 and 2006                                 | 6-7                     |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Notes                to Consolidated Financial Statements (unaudited)                                                 | 8-9                     |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                2.                                                                                                                                  | Management's                Discussion and Analysis or Plan of Operations                                             | 10-13                   |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                3.                                                                                                                                  | Controls                and Procedures                                                                                | 14                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| PART                II                                                                                                                                       | OTHER                INFORMATION                                                                                      |                    |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                1.                                                                                                                                  | Legal                Proceedings                                                                                      | 15                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                2.                                                                                                                                  | Unregistered                Sales of Equity Securities and Use of Proceeds                                            | 15                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                3.                                                                                                                                  | Defaults                Upon Senior Securities                                                                        | 15                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                4.                                                                                                                                  | Submission                of Matters to a Vote of Security Holders                                                    | 15                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                5.                                                                                                                                  | Other                Information                                                                                      | 15                      |
|                                                                                                                                                         |                                                                                                                  |                    |
| Item                6.                                                                                                                                  | Exhibits                                                                                                              | 16                      |
|                                                                                                                                                         |                                                                                                                  |                    |

----

**PART      I. FINANCIAL INFORMATION**

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

| Assets                                                                                                                                                                            |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                              |   |   |   |
| Cash                and due from banks, including reserve requirements of                $25,000                                                                                  |   | $ | 5,439,182 |   |
| Federal                funds sold                                                                                                                                                 |   |   | 17,879,000 |   |
|                                                                                                                                                                              |   |   |   |   |
|                             Cash and cash equivalents                                                                 |   |   | 23,318,182 |   |
|                                                                                                                                                                              |   |   |   |   |
| Investment                securities available for sale                                                                                                                           |   |   | 89,778,048 |   |
| Other                investments                                                                                                                                                  |   |   | 706,729 |   |
| Mortgage                loans held for sale                                                                                                                                       |   |   | 1,811,897 |   |
|                                                                                                                                                                              |   |   |   |   |
| Loans,                net of allowance for loan losses of $3,090,141                                                                                                              |   |   | 207,339,556 |   |
|                                                                                                                                                                              |   |   |   |   |
| Premises                and equipment, net                                                                                                                                        |   |   | 6,953,590 |   |
| Accrued                interest receivable and other assets                                                                                                                       |   |   | 5,379,689 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                assets                                     |   | $ | 335,287,691 |   |
|                                                                                                                                                                              |   |   |  |   |
| Liabilities                and Stockholders’ Equity                                                                                                                         |
|                                                                                                                                                                              |   |   |  |   |
| Liabilities:                                                                                                                                                                      |   |   |  |   |
|        Deposits                                                                                                                                |   |   |  |   |
|             Noninterest-bearing                                                                                       |   | $ | 35,281,439 |   |
|             Interest-bearing                                                                                          |   |   | 266,683,329 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                deposits                                   |   |   | 301,964,768 |   |
|                                                                                                                                                                              |   |   |   |   |
|        Securities                sold under repurchase agreements                                                                              |   |   | 4,129,085 |   |
|        Accrued                interest payable and other liabilities                                                                           |   |   | 1,754,309 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                liabilities                                |   |   | 307,848,162 |   |
|                                                                                                                                                                              |   |   |   |   |
| Stockholders’                equity:                                                                                                                                        |   |   |   |   |
|        Common                stock, $2 par value;                                                                                              |   |   |   |   |
|              authorized                1,500,000 shares;                                                         |   |   |   |   |
|              issued                and outstanding 899,815 shares                                                |   |   | 1,799,630 |   |
|        Additional                paid-in capital                                                                                               |   |   | 4,243,332 |   |
|        Retained                earnings                                                                                                        |   |   | 22,419,171 |   |
|        Accumulated                other comprehensive loss                                                                                     |   |   | (1,022,604 | ) |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                stockholders’ equity                 |   |   | 27,439,529 |   |
|                                                                                                                                                                              |   |   |  |   |
|                    Total                liabilities and stockholders’ equity |   | $ | 335,287,691 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                                                                                 |    |  **Three                Months Ended**     |   |  **Six                Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------|--------|-------------------------------------------|
|                                                                                                                                                                                 |    | **2007**                                        |   | **2006**                                  |   | **2007** |   | **2006** |
| Interest                Income:                                                                                                                                                      |    |                                            |   |                                      |   |   |   |   |
|                     Loans                                                                                                                                        | $       | 4,507,037                                       |   | 4,219,017                                 |   | 8,978,897 |   | 8,204,169 |
|                     Investment securities:                                                                                                                       |    |                                            |   |                                      |   |   |   |   |
|                          Tax exempt                                                                                                     |    | 219,270                                         |   | 206,778                                   |   | 473,548 |   | 425,422 |
|                          Taxable                                                                                                        |    | 919,365                                         |   | 388,546                                   |   | 1,850,794 |   | 759,328 |
|                     Federal funds sold and other                                                                                                                 |    | 125,926                                         |   | 151,158                                   |   | 207,884 |   | 337,768 |
|                             Total interest income                                                                        |    | 5,771,598                                       |   | 4,965,499                                 |   | 11,511,123 |   | 9,726,687 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
| Interest                Expense:                                                                                                                                                     |    |                                            |   |                                      |   |   |   |   |
|                     Deposits                                                                                                                                     |    | 2,766,009                                       |   | 1,923,090                                 |   | 5,524,442 |   | 3,692,282 |
|                     Other                                                                                                                                        |    | 19,375                                          |   | 15,406                                    |   | 34,574 |   | 26,853 |
|                             Total interest expense                                                                       |    | 2,785,384                                       |   | 1,938,496                                 |   | 5,559,016 |   | 3,719,135 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|                             Net interest income                                                                          |    | 2,986,214                                       |   | 3,027,003                                 |   | 5,952,107 |   | 6,007,552 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
| Provision                for loan losses                                                                                                                                             |    | -                      |   | -           |   | 80,000 |   | 120,000 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|                    Net                interest income after provision for loan losses |    | 2,986,214                                       |   | 3,027,003                                 |   | 5,872,107 |   | 5,887,552 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
| Other                Income:                                                                                                                                                         |    |                                            |   |                                      |   |   |   |   |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|                     Service charges on deposit accounts                                                                                                          |    | 409,543                                         |   | 384,580                                   |   | 745,371 |   | 756,859 |
|      Mortgage                origination fees                                                                                                               |    | 131,099                                         |   | 88,004                                    |   | 217,655 |   | 163,018 |
| Gains                on sales and disposal of premises and equipment                                                                                                                 |    | -                      |   | -           |   | -       |   | 62,959 |
| Gains                on sales of other real estate owned                                                                                                                             |    | -                 |   | -           |   | -       |   | 384,006 |
|                     Other operating income                                                                                                                       |    | 221,129                                         |   | 126,098                                   |   | 430,437 |   | 285,701 |
|                             Total other income                                                                           |    | 761,771                                         |   | 598,682                                   |   | 1,393,463 |   | 1,652,543 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|  Other                Expense:                                                                                                                                                  |    |                                            |   |                                      |   |   |   |   |
|                     Salaries and other personnel expense                                                                                                         |    | 1,436,834                                       |   | 1,359,454                                 |   | 2,946,681 |   | 2,768,375 |
|                     Net occupancy and equipment expense                                                                                                          |    | 391,378                                         |   | 301,340                                   |   | 764,955 |   | 629,265 |
|                     Other operating expense                                                                                                                      |    | 575,907                                         |   | 611,984                                   |   | 1,124,483 |   | 1,173,365 |
|                             Total other expense                                                                          |    | 2,404,119                                       |   | 2,272,778                                 |   | 4,836,119 |   | 4,571,005 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|                             Earnings before income taxes                                                                 |    | 1,343,866                                       |   | 1,352,907                                 |   | 2,429,451 |   | 2,969,090 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
| Income                taxes                                                                                                                                                          |    | 407,719                                         |   | 431,310                                   |   | 703,728 |   | 959,458 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
|                             Net earnings                                                                            |  $ | 936,147                                         |   | 921,597                                   |   | 1,725,723 |   | 2,009,632 |
|                                                                                                                                                                                 |    |                                            |   |                                      |   |   |   |   |
| Earnings                per common share based on average outstanding                                                                                                                |    |                                            |   |                                      |   |   |   |   |
|                     shares of 899,815                                                                                                                            |  $ | 1.04                                            |   | 1.02                                      |   | 1.92 |   | 2.23 |

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**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                                         |   |  **Three                Months Ended** |       | **Six                Months Ended** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|-------------------------------------|--------|
|                                                                                                                                         |   | **2007**                                    |       | **2006**                            |   | **2007** |   | **2006** |   |
|                                                                                                                                         |   |                                        |       |                                |   |   |   |   |   |
| Net                earnings                                                                                                             |   | $                                           | 936,147    |                                |   | 921,597 |   |   | 1,725,723 |   |   | 2,009,632 |   |
|                                                                                                                                         |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
| Other                comprehensive loss, net of benefit:                                                                                     |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
|                     Unrealized losses on securities available for sale:                                                  |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
|                          Holding losses arising during period, net of benefit                   |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
|                             of ($628,224), ($139,198), ($611,479) and ($207,715) |   |                                        | (1,026,739 | )                                   |   | (227,500 | ) |   | (999,370 | ) |   | (339,478 | ) |
|                                                                                                                                         |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
|                          Total other comprehensive loss                                         |   |                                        | (1,026,739 | )                                   |   | (227,500 | ) |   | (999,370 | ) |   | (339,478 | ) |
|                                                                                                                                         |   |                                        |       |                                |   |   |   |   |   |   |   |   |   |
|                          Comprehensive income (loss)                                            |   | $                                           | (90,592    | )                                   |   | 694,097 |   |   | 726,353 |   |   | 1,670,154 |   |

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**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                                                                                                                               |   | **2007** |                                  | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------------------------------|----------|--------|
| Cash                flows from operating activities:                                                                                                                                                                               |   |     |                                  |     |   |   |   |
|      Net                earnings                                                                                                                                                                          |   | $        | 1,725,723                             |     |   | 2,009,632 |   |
|          Adjustments                to reconcile net earnings to net                                                                                                                  |   |     |                                  |     |   |   |   |
|             cash                provided (used) by operating activities:                                                                                               |   |     |                                  |     |   |   |   |
|                 Provision                for loan losses                                                                                           |   |     | 80,000                                |     |   | 120,000 |   |
|                 Depreciation,                amortization and accretion                                                                            |   |     | 302,274                               |     |   | 308,428 |   |
|                 Gain                on sales and disposals of fixed assets                                                                         |   |     | -       |     |   | (62,959 | ) |
|                 Gain                on sale of other real estate owned                                                                             |   |     | -       |     |   | (384,006 | ) |
|                 Change                in assets and liabilities:                                                                                   |   |     |                                  |     |   |   |   |
|                     Interest                receivable and other assets                                                        |   |     | 378,029                               |     |   | (363,570 | ) |
|                     Interest                payable and other liabilities                                                      |   |     | 238,702                               |     |   | (216,478 | ) |
|                     Mortgage                loans held for sale                                                                |   |     | 164,103                               |     |   | (1,928,252 | ) |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
|                            Net                cash provided (used) by operating activities  |   |     | 2,888,831                             |     |   | (517,205 | ) |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Cash                flows from investing activities:                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Proceeds                from calls, maturities, and paydowns of                                                                                                                                                                    |   |     |                                  |     |   |   |   |
|          investment                securities available for sale                                                                                                                      |   |     | 5,939,664                             |     |   | 2,679,715 |   |
| Purchases                of investment securities available for sale                                                                                                                                                               |   |     | (4,910,511                            | )        |   | (6,737,670 | ) |
| Purchases                of other securities                                                                                                                                                                                       |   |     | (36,400                               | )        |   | (55,900 | ) |
| Net                change in loans                                                                                                                                                                                                 |   |     | 7,387,192                             |     |   | (3,616,909 | ) |
| Purchases                of premises and equipment                                                                                                                                                                                 |   |     | (843,140                              | )        |   | (1,081,773 | ) |
| Proceeds                from sale of premises and equipment                                                                                                                                                                        |   |     | -       |     |   | 139,184 |   |
| Proceeds                from sale of other real estate owned                                                                                                                                                                       |   |     | -       |     |   | 665,497 |   |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
|                                            Net cash provided (used) by investing activities |   |     | 7,536,805                             |     |   | (8,007,856 | ) |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Cash                flows from financing activities:                                                                                                                                                                               |   |     |                                  |     |   |   |   |
|      Net                change in deposits                                                                                                                                                                |   |     | (2,030,183                            | )        |   | 5,220,864 |   |
|      Net                change in securities sold under repurchase agreements                                                                                                                             |   |     | 969,510                               |     |   | 1,063,950 |   |
|      Dividends                paid                                                                                                                                                                        |   |     | (1,124,769                            | )        |   | (989,797 | ) |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
|                            Net                cash (used) provided by financing activities  |   |     | (2,185,442                            | )        |   | 5,295,017 |   |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                                                                                |   |     | 8,240,194                             |     |   | (3,230,044 | ) |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Cash                and cash equivalents at beginning of period                                                                                                                                                                    |   |     | 15,077,988                            |     |   | 19,064,659 |   |
|                                                                                                                                                                                                                               |   |     |                                  |     |   |   |   |
| Cash                and cash equivalents at end of period                                                                                                                                                                          |   | $        | 23,318,182                            |     |   | 15,834,615 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                  |   | **2007**  |      | **2006**  |   |
|-------------------------------------------------------------------------------------------------------|--------|----------------|-----------|----------------|--------|
|                                                                                                  |   |           |      |           |   |
| Supplemental                cash flow information:                                                    |   |           |      |           |   |   |   |
|      Cash                paid for interest                                   |   | $              | 5,429,205 |           | $      | 3,574,230 |   |
|      Cash                paid for taxes                                      |   | $              | 407,000   |           | $      | 1,055,000 |   |
|                                                                                                  |   |           |      |           |   |   |   |
| Noncash                investing and financing activities:                                            |   |           |      |           |   |   |   |
|      Change                in net unrealized losses on investment securities |   |           |      |           |   |   |   |
|         available                for sale, net of benefit     |   | $              | (999,370  | )              | $      | (339,478 | ) |
|      Change                in dividends payable                              |   | $              | 1,124,769 |           | $      | 989,797 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

| (1) | Basis                of Presentation |
|-----|--------------------------------------|

| (2) | Net                Earnings Per Common Share |
|-----|----------------------------------------------|

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

| (3) | Allowance                for Loan Losses |
|-----|------------------------------------------|

|                                                        |   | **2007** |      | **2006** |   |
|-------------------------------------------------------------|--------|----------|-----------|----------|--------|
|                                                        |   |     |      |     |   |
| Balance                at beginning of year                 |   | $        | 3,080,661 |     |   | 2,945,256 |   |
| Amounts                charged off                          |   |     | (89,894   | )        |   | (35,390 | ) |
| Recoveries                on amounts previously charged off |   |     | 19,374    |     |   | 38,213 |   |
| Provision                for loan losses                    |   |     | 80,000    |     |   | 120,000 |   |
|                                                        |   |     |      |     |   |   |   |
| Balance                at June 30                           |   | $        | 3,090,141 |     |   | 3,068,079 |   |

----

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**

**Forward-Looking      Statements**

**Financial      Condition**

----

**Results      of Operations**

** **

**Interest      rate sensitivity **

----

** **

**Liquidity**

----

**Contractual      Obligations and Commitments**

**Capital**

| Risk-Based                Capital Ratios               |
|--------------------------------------------------------|
|                                                   |
| Tier                1 Capital, Actual                  |   | 12.1% |
| Tier                1 Capital minimum requirement      |   | 4.0% |
|                                                   |   |   |
| Excess                                                 |   | 8.1% |
|                                                   |   |   |
| Total                Capital, Actual                   |   | 13.3% |
| Total                Capital minimum requirement       |   | 8.0% |
|                                                   |   |   |
| Excess                                                 |   | 5.3% |
|                                                   |   |   |
| Leverage                Ratio                          |   |   |
|                                                   |   |   |
| Tier                1 Capital to adjusted total assets |   | 8.5% |
| Minimum                leverage requirement            |   |  3.0% |
|                                                   |   |   |
| Excess                                                 |   | 5.5% |

----

**CONTROLS      AND PROCEDURES**

----

**PART      II. OTHER INFORMATION**

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

Item      1.          Legal      Proceedings

Item      2.          Unregistered      Sales of Equity Securities and Use of Proceeds

Item      3.          Defaults      Upon Senior Securities

Item      4.         Submission      of Matters to a Vote of Security Holders

| (a)   | Oconee                Financial Corporation’s annual meeting of stockholders was held on May 7,                2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (b)   | The                following is a summary of matters submitted to a vote of security                holders: |
|-----------------|--------------------------------------------------------------------------------------------------------------|

|  | 1. | The                election * of the following directors to serve the current year                term: |
|--|----|---------------------------------------------------------------------------------------------------------|

| G.                Robert Bishop                                                               |   |  Carl              R. Nichols   |    |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|
| Jimmy                L. Christopher                                                           |   |  Ann              B. Powers     |    |
| Douglas                D. Dickens                                                             |   |  Jerry              K. Wages    |    |
| John                A. Hale                                                                   |   |  Virginia              S. Wells |    |
| B.                Amrey Harden                                                                |   |  Tom              F. Wilson     |    |
| Henry                C. Maxey                                                                 |   |                                 |    |   |
|                                                                                          |   |                                 |    |   |
| A                tabulation of votes concerning the above issue is as                follows: |   |                                 |    |   |
|                                                                                          |   |                                 |    |   |
| Shares                voted in favor                                                          |   |                                 | 663,892 |   |
| Shares                voted in person against                                                 |   |                                 | 0       |   |
| Shares                abstained from voting                                                   |   |                                 | 0       |   |
|                                                                                          |   |                                 |    |   |
| Total                shares represented                                                       |   |                                 | 663,892 |   |
| Total                shares outstanding                                                       |   |                                 | 899,815 |   |

----

Item      6.         Exhibits      

| (a)   | Exhibits |   |                                                                                                                                                                                                                                               |
|-----------------|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            | 31.1     |   | Certification                by B. Amrey Harden, CEO and President of the Corporation, as adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002.                                                         |
|            | 31.2     |   | Certification                by Jerry K. Wages, Senior Executive Vice President and Chief Financial                Officer of the Corporation, as adopted pursuant to Section 302 of                the                Sarbanes-Oxley Act of 2002. |
|            | 32       |   | Certification                of the Chief Executive Officer and the Chief Financial Officer pursuant                to                Section 906 of the Sarbanes-Oxley Act of 2002.                                                               |
|            |     |   |                                                                                                                                                                                                                                               |

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**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

**SIGNATURES**

|   |           OCONEE                FINANCIAL CORPORATION  By:                 /s/ B. Amrey Harden       B.                Amrey Harden, President and CEO       (Principal                Executive Officer) Date:                   August 14, 2007   By:                 /s/ Jerry K. Wages       Jerry                K. Wages, Sr. Executive Vice President and CFO        Date:                     August 14, 2007                                                                                   By:                 /s/ Steven A. Rogers       Steven                A. Rogers       Vice                President and Controller       (Principal                Accounting Officer)  Date:                     August 14,                2007                               |
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