UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20429

                                   FORM 10-QSB

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the Quarterly Period Ended March 31, 2000

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        For the Transition Period from to

                        Commission File number 000-25267

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

       Georgia                                          58-2442250
------------------------                    -----------------------------------
(State of Incorporation)                    (I.R.S. Employer Identification No.)

35 North Main Street
Watkinsville, Georgia                                      30677
------------------------                        ----------------------------
(Address of principal                                    (Zip Code)
  executive offices)

                                  706-769-6611
                               ------------------
                               (Telephone Number)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant  was required to file such  reports),  and (2) has been  subjected to
such filing requirements for the past 90 days.

                                                           YES XX   NO
                                                               --      --

              Common stock, par value $10 per share: 179,979 shares
                         outstanding as of May 11, 2000


<PAGE>
                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                                      INDEX
<TABLE>
<CAPTION>

                                                                                                           Page No.
<S>      <S>              <C>                                                                                 <C>
PART I                    FINANCIAL INFORMATION

         Item 1.          Financial Statements

                          Consolidated Balance Sheet (unaudited) at March 31, 2000                            3

                          Consolidated Statements of Earnings (unaudited) for the Three
                               Months  Ended March 31, 2000 and 1999                                          4

                          Consolidated Statements of Comprehensive Income (unaudited)
                               for the Three Months Ended March 31, 2000 and 1999                             5

                          Consolidated Statements of Cash Flows (unaudited) for the Three
                               Months Ended March 31, 2000 and 1999                                           6

                          Notes to Financial Statements (unaudited)                                          7-8

         Item 2.          Management's Discussion and Analysis of Financial
                               Condition and Results of Operations                                           9-11

PART II                   OTHER INFORMATION

         Item 1.          Legal Proceedings                                                                   12

         Item 2.          Changes in Securities                                                               12

         Item 3.          Defaults Upon Senior Securities                                                     12

         Item 4.          Submission of Matters to a Vote of Security Holders                                 12

         Item 5.          Other Information                                                                   12

         Item 6.          Exhibits and Reports on Form 8-K                                                    12
</TABLE>



<PAGE>

                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                           Consolidated Balance Sheet

                                 March 31, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>

                                     Assets

<S>                                                                           <C>
Cash and due from banks                                                       $       7,003,810
Federal funds sold                                                                    4,590,000
Investment securities available for sale
  (amortized cost  of $ 40,765,210)                                                  39,270,458

Mortgage loans held for sale                                                            963,471

Loans                                                                                99,342,905
Less:  Allowance for loan losses                                                     (1,522,641)
                                                                                ----------------

         Loans, net                                                                  97,820,264
                                                                                ----------------

Premises and equipment, net                                                           1,847,211
Accrued interest receivable and other assets                                          3,649,961
                                                                                ----------------

                     Total Assets                                             $     155,145,175
                                                                                ================

                             Liabilities and Stockholders' Equity

Liabilities:
    Deposits:
        Noninterest-bearing                                                   $      19,894,003
        Interest-bearing                                                            120,228,960
                                                                                ----------------

            Total Deposits                                                          140,122,963

    Securities sold under repurchase agreements                                         930,925

    Accrued interest payable and other liabilities                                      731,232
                                                                                ----------------

            Total Liabilities                                                       141,785,120

Stockholders' equity:
    Common stock, $10 par value;
        authorized 300,000 shares;
        issued and outstanding 180,000 shares                                         1,799,790
    Additional paid-in capital                                                        4,247,150
    Retained earnings                                                                 8,240,459
Unrealized gain (loss) on investment securities, net of tax                            (927,344)
                                                                                ----------------

            Total stockholders' equity                                               13,360,055
                                                                                ----------------

                    Total liabilities and stockholders' equity                $     155,145,175
                                                                                ================
</TABLE>


See accompanying notes to financial statements.



                                              -3-
<PAGE>

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                       Consolidated Statements of Earnings

           For Each of the Three Months Ended March 31, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              2000               1999
                                                          --------------     --------------

<S>                                                    <C>                 <C>
Interest Income:
     Loans                                             $      2,378,062    $     1,864,910
     Investment securities:
          Tax exempt                                            208,092            202,998
          Taxable                                               387,275            291,789
     Federal funds sold and other                               103,000             85,022
                                                          --------------     --------------
             Total interest income                            3,076,429          2,444,719
                                                          --------------     --------------

Interest Expense:
     Deposits                                                 1,314,120            984,959
     Other                                                        8,515              5,809
                                                          --------------     --------------
             Total interest expense                           1,322,635            990,768
                                                          --------------     --------------

             Net interest income                              1,753,794          1,453,951

Provision for loan losses                                        51,900             12,600
                                                          --------------     --------------

     Net interest income after provision for loan losses      1,701,894          1,441,351
                                                          --------------     --------------

Other Income:

     Service charges on deposit accounts                        185,619            173,631
     Securities gains (losses), net                                   0              8,838
     Other operating income                                     162,504            177,665
                                                          --------------     --------------
             Total other income                                 348,123            360,134
                                                          --------------     --------------

Other Expense:
     Salaries and other personnel expense                       786,045            602,903
     Net occupancy and equipment expense                        179,312            139,683
     Other operating expense                                    337,091            367,104
                                                          --------------     --------------
             Total other expense                              1,302,448          1,109,690
                                                          --------------     --------------

             Earnings before income taxes                       747,569            691,795

Income taxes                                                    208,879            208,232
                                                          --------------     --------------

             Net earnings                                $      538,690    $       483,563
                                                          ==============     ==============

Earnings per common share based on average outstanding
     shares of 179,979 in 2000 and 180,000 in 1999:    $           2.99    $          2.69
                                                          ==============     ==============
</TABLE>


See accompanying notes to financial statements.



                         -4-
<PAGE>
                OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

          Consolidated Statements of Comprehensive Income

         For the Three Months Ended March 31, 2000 and 1999
                            (Unaudited)
<TABLE>
<CAPTION>
                                                                                2000                1999
                                                                            --------------      --------------

<S>                                                                       <C>                         <C>
Net earnings                                                              $       538,690             483,563

Other comprehensive income, net of tax:
     Unrealized gains (losses) on securities availble for sale:
          Holding gains (losses) arising during period, net of tax
             of ($116,924) and ($86,832)                                         (191,094)           (141,915)
          Reclassification adjustments for (gains) losses included
             in net earnings, net of tax of $0 and $3,358                               0               5,480
                                                                            --------------      --------------

          Total other comprensive income (loss)                                  (191,094)           (136,435)
                                                                            --------------      --------------

          Comprehensive income                                            $       347,596             347,128
                                                                            ==============      ==============
</TABLE>




See accompanying notes to financial statements.




                                -5-

<PAGE>
                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                      Consolidated Statements of Cash Flows

           For Each of the Three Months Ended March 31, 2000 and 1999
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                  2000                         1999
                                                                            -----------------            -----------------
Cash flows from operating activities:
<S>                                                                       <C>                          <C>
     Net earnings                                                         $          538,690           $          483,563
         Adjustments to reconcile net earnings to net
            cash provided by operating activities:
                Provision for loan losses                                             51,900                       12,600
                Depreciation, amortization and accretion                              68,447                       61,374
                Change in assets and liabilities:
                    Interest receivable and other assets                            (133,803)                    (247,159)
                    Interest payable and other liabilities                           (99,629)                    (157,239)
                    Mortgage loans held for sale                                     903,919                      327,761
                                                                            -----------------            -----------------

                           Net cash used by operating activities                   1,329,524                      480,900
                                                                            -----------------            -----------------

Cash flows from investing activities:
     Proceeds from maturities and paydowns of
         investment securities held to maturity                                            0                      496,162
     Proceeds from maturities and paydowns of
         investment securities available for sale                                    634,044                    1,667,057
     Purchases of investment securities held to maturity                                   0                   (1,458,433)
     Purchases of investment securities available for sale                        (2,950,769)                    (507,188)
     Net changes in loans                                                         (6,011,013)                  (3,242,396)
     Purchases of premises and equipment                                            (294,406)                     (26,072)
                                                                            -----------------            -----------------

                           Net cash used by investing activities                  (8,622,144)                  (3,070,870)
                                                                            -----------------            -----------------

Cash flows from financing activities:
     Net change in deposits                                                        3,595,754                   (2,154,607)
     Net change in securities sold under repurchase agreements                        65,017                      177,803
     Dividends paid                                                                 (899,970)                    (720,000)
     Purchase and retirement of stock                                                 (2,160)                           0
                                                                            -----------------            -----------------

                            Net cash provided by financing activities              2,758,641                   (2,696,804)
                                                                            -----------------            -----------------

Net increase (decrease) in cash and cash equivalents                              (4,533,979)                  (5,286,774)

Cash and cash equivalents at beginning of period                                  16,127,789                   14,305,840
                                                                            -----------------            -----------------

Cash and cash equivalents at end of period                                $       11,593,810           $        9,019,066
                                                                            =================            =================

Supplemental cash flow information:
     Cash paid for interest                                               $          766,718           $          650,765
</TABLE>


See accompanying notes to financial statements.




                                       -6-
<PAGE>

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

(1)      Basis of Presentation

         The  financial  statements  include the  accounts  of Oconee  Financial
         Corporation (the "Corporation") and its wholly-owned subsidiary, Oconee
         State Bank (the  "Bank").  All  significant  intercompany  accounts and
         transactions have been eliminated in consolidation.

         The consolidated  financial  information  furnished herein reflects all
         adjustments  which are,  in the  opinion of  management,  necessary  to
         present a fair  statement of the results of  operations  and  financial
         position for the periods covered herein.  All such adjustments are of a
         normal recurring nature.

(2)      Cash and Cash Equivalents

         For presentation in the financial statements, cash and cash equivalents
         include cash on hand and amounts due from banks.

(3)      Comprehensive Income

         In 1997, the Financial  Accounting and Standards Board issued Statement
         of Financial  Accounting  Standards No. 130,  "Reporting  Comprehensive
         Income" (SFAS 130").  SFAS 130 established  standards for the reporting
         and display of comprehensive income and its components in a full set of
         general-purpose  financial statements.  The Bank has elected to present
         comprehensive  income in a separate statement of comprehensive  income.
         Accumulated other comprehensive  income is solely related to the net of
         tax effect of unrealized  gains and losses on securities  available for
         sale.

(4)      Holding Company Formation

         On  December  15,  1998,  the  Bank's  shareholders  approved a Plan of
         Reorganization  and  Agreement of Merger (the  "Plan"),  providing  for
         conversion of the Bank to a holding  company form of operation  whereby
         the  Corporation  became the parent of the Bank.  The  holding  company
         conversion was completed  successfully  on January 1, 1999. As a result
         of the conversion, each share of Bank stock was exchanged for one share
         of Oconee Financial Corporation stock.




                                       -7-
<PAGE>

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

             Notes to Consolidated Financial Statements (Continued)
                                   (Unaudited)


(5)               Implementation of Recent Accounting Pronouncements

         The Corporation adopted Statement of Financial Accounting Standards No.
         133,  "Accounting for Derivative  Instruments and Hedging  Activities",
         (SFAS No.  133") during the third  quarter of 1999.  As allowed by SFAS
         No. 133, an entity may transfer any held to maturity  security into the
         available for sale or trading  category  without  calling into question
         the entity's intent to hold other securities to maturity in the future.
         The  result  of the  transfer  of held to  maturity  securities  to the
         available  for  sale  category  was to  increase  stockholders'  equity
         approximately   $22,000  which   represented  the  net  effect  of  the
         unrealized  gain  associated  with  the  held to  maturity  investments
         transferred. There were no other financial statement effects associated
         with the implementation of SFAS No. 133.



                                       -8-


<PAGE>


Item 2.
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

                For Each of the Three Months in the Periods Ended
                             March 31, 2000 and 1999


Forward-Looking Statement

         This discussion contains  forward-looking  statements under the private
Securities  Litigation  Reform Act of 1995 that involve risk and  uncertainties.
Although  the  Corporation   believes  that  the   assumptions   underlying  the
forward-looking  statements  contained in the discussion are reasonable,  any of
the  assumptions  could be inaccurate,  and therefore,  no assurance can be made
that any of the  forward-looking  statements included in this discussion will be
accurate.  Factors  that  could  cause  actual  results to differ  from  results
discussed  in  forward-looking  statements  include,  but  are not  limited  to:
economic  conditions  (both  generally and in the markets where the  Corporation
operates); competition from other providers of financial services offered by the
Corporation;  government regulations and legislation; changes in interest rates;
material  unforeseen  changes in the  financial  stability  and liquidity of the
Corporation's credit customers,  all of which are difficult to predict and which
may be beyond the control of the  Corporation.  The  Corporation  undertakes  no
obligation to revise  forward-looking  statements  to reflect  events or changes
after the date of this discussion or to reflect the occurrence of  unanticipated
events.

Financial Condition

         Total  assets  at March  31,  2000 were  $155,145,175,  representing  a
$3,006,607   (1.98%)  increase  from  December  31,  1999.   Deposits  increased
$3,595,754 (2.63%) from December 31, 1999. Loans increased  $6,012,628  (6.44%).
The allowance for loan losses at March 31, 2000 totaled  $1,522,641  compared to
the December 31, 1999 total of $1,469,126,  representing 1.53% of total loans at
March  31,  2000,  compared  to  1.57%  at  December  31,  1999.  Cash  and cash
equivalents decreased $4,533,979 from December 31, 1999.

         The total of nonperforming  assets,  which includes  nonaccruing loans,
other real estate owned, repossessed collateral and loans for which payments are
more than 90 days past due were  $117,019  at March 31,  2000,  representing  an
increase of $38,611 (49.24%) from December 31, 1999. There were no related party
loans which were considered nonperforming at March 31, 2000.

         The  Corporation's  subsidiary  bank was most recently  examined by its
primary  regulatory  authority in October of 1999. There were no recommendations
by the  regulatory  authority  that in  management's  opinion will have material
effects on the Company's liquidity, capital resources or operations.


                                       -9-

<PAGE>

Item 2.
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS, continued

                    For the Three Months in the Period Ended
                             March 31, 2000 and 1999

Results of Operations

         Net  interest  income  increased  $299,843  (20.62%) in the first three
months of 2000  compared  to the same period for 1999.  Interest  income for the
first three months of 2000 was $3,076,429,  representing an increase of $631,710
(25.84%)  over the same  period in 1999.  Interest  expense  for the first three
months of 2000 increased  $331,867 (33.50%) compared to the same period in 1999.
The  increase  in net  interest  income  during the first  three  months of 2000
compared to the same period in 1999 is primarily attributable to the increase in
the volume of loans.

         The Bank analyzes its allowance for loan losses on a monthly basis.  As
of March 31, 2000,  that  analysis  indicated an  allowance  reserve  surplus of
$1,036,732.  Due to this surplus,  the Bank has provided the budgeted  provision
for 2000.  It is  management's  belief  that the  allowance  for loan  losses is
adequate to absorb possible losses in the portfolio.

         Other expenses for the three months of 2000 increased $192,758 (17.37%)
compared  to the first  three  months in 1999.  The net  increase  is  primarily
attributable  to additional  salary and benefits  expense as a result of opening
two new branches during 1999.

Year 2000 Compliance

         The Bank did not experience any material  disruptions in its operations
or activities as a result of the so-called "Year 2000" problem. Nor did the Bank
incur material expenses in correcting perceived or suspected Year 2000 problems.
In addition,  the Bank is not aware that any of its  suppliers or customers  has
experienced any material disruptions in their operations or activities.

         The  Bank  does not  expect  to  encounter  any  such  problems  in the
foreseeable future, although it continues to monitor its computer operations for
signs or indications  of such problems and will do so through future  identified
critical  dates in 2000 and 2001. The Bank has developed  contingency  plans for
back up  systems  and  business  functions  should  any  technical  problems  be
encountered.  Specific guidelines have been established in case critical systems
or communications  interruptions  occur.  Assignments have been established,  as
well as  step-by-step  instructions  should any  system or process  malfunction.
Based on information  currently available,  management does not believe that the
Bank will incur significant additional costs for Year 2000 issues.






                                      -10-


<PAGE>

Item 2.
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS, continued

                    For the Three Months Ended March 31, 2000


Capital

The following tables present Oconee State Bank's regulatory  capital position at
March 31, 2000:

         Risk-Based Capital Ratios

         Tier 1 Tangible Capital, Actual                                13.1%
         Tier 1 Tangible Capital minimum requirement                     4.0%
                                                                       ------

         Excess                                                          9.1%
                                                                       ======

         Total Capital, Actual                                          14.3%
         Total Capital minimum requirement                               8.0%
                                                                       ------

         Excess                                                          6.3%
                                                                       ======


         Leverage Ratio

         Tier 1 Tangible Capital to adjusted total assets
           (Leverage Ratio)                                             9.5%

         Minimum leverage requirement                                   3.0%
                                                                      ------

         Excess                                                         6.5%
                                                                      ======





                                      -11-



<PAGE>


                           PART II. OTHER INFORMATION

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

Item 1.  Legal Proceedings
         -----------------

                  None

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                  None

Item 3.  Defaults Upon Senior Securities
         -------------------------------

                  None

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

                  None

Item 5.  Other Information
         -----------------

                  None

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

         (a)      Exhibits

                  Exhibit 27 - Financial Data Schedule (for SEC use only)

         (b)      Reports on Form 8-K

                  None




                                      -12-
<PAGE>



                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                                   SIGNATURES



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                          OCONEE FINANCIAL CORPORATION


                                      By:   /s/ B. Amrey Harden
                                          -------------------------------------
                                          B. Amrey Harden, President and C.E.O.
                                          (Principal Executive Officer)


                                      Date: May 11, 2000
                                           ------------------------------------




                                      By:    /s/ Jerry K. Wages
                                           -------------------------------------
                                           Jerry K. Wages
                                           Executive Vice-President and C.F.O.
                                           (Principal Accounting Officer)


                                       Date: May 11, 2000
                                            ------------------------------------



                                      -13-



<PAGE>

                                 EXHIBITS INDEX
                                 --------------


Exhibit No.      Description
-----------      -----------

    27           Financial Data Schedule (for SEC use only)