----

----

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

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

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

| Large      Accelerated Filer o | Accelerated      Filer o         |
|--------------------------------|----------------------------------|
| Non-Accelerated      Filer o   | Smaller      Reporting Company x |

----

----

----

| INDEX                               |
|-------------------------------------|
|                                |
| PART      I - FINANCIAL INFORMATION |
|                                |   | Page No. |
|                                | Item      1.  Financial Statements  |   |
|                                | Consolidated      Balance Sheets at June 30, 2008 and December 31, 2007  | 1 |
|                                | Consolidated      Statements of Earnings (unaudited) for the Three Months and the Six Months      Ended June 30, 2008 and 2007  | 2 |
|                                | Consolidated      Statements of Comprehensive Income (Loss) (unaudited) for the Three Months      and the Six Months Ended June 30, 2008 and 2007  | 3 |
|                                | Consolidated      Statements of Cash Flows (unaudited) for the Six Months Ended June 30,      2008 and 2007  | 4 |
|                                | Notes      to Consolidated Financial Statements (unaudited)  | 6 |
|                                | Item 2.       Management’s      Discussion and Analysis of Financial Condition and Results of      Operations  | 9 |
|                                | Item      3.  Quantitative and Qualitative Disclosures about Market      Risk  | 13 |
|                                | Item      4.  Controls and Procedures  | 13 |
| PART      II - OTHER INFORMATION    |
|                                |   |   |
|                                | Item      1.    Legal Proceedings | 14 |
|                                |   |   |
|                                | Item      1A. Risk Factors | 14 |
|                                |   |   |
|                                | Item      2.    Unregistered Sales of Equity Securities and Use of      Proceeds | 14 |
|                                |   |   |
|                                | Item      3.    Defaults Upon Senior Securities | 14 |
|                                |   |   |
|                                | Item      4.    Submission of Matters to a Vote of Security      Holders | 14 |
|                                |   |   |
|                                | Item      5.    Other Information | 14 |
|                                |   |   |
|                                | Item      6.    Exhibits | 15 |

----

|                                                                                                                                                                    |   | June      30, 2008(unaudited) |        |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|-----------------------------|--------|
| Assets                                                                                                                                                                  |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |
| Cash      and due from banks, including reserve requirements of    $25,000                                                                                              |   | $                             | 9,906,692   |   |                        |   | 5,365,937 |   |
| Federal      funds sold                                                                                                                                                 |   |                          | 18,044,000  |   |                        |   | 15,524,000 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Cash      and cash equivalents                        |   |                          | 27,950,692  |   |                        |   | 20,889,937 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Investment      securities available for sale                                                                                                                           |   |                          | 81,638,019  |   |                        |   | 91,434,194 |   |
| Other      investments                                                                                                                                                  |   |                          | 679,229     |   |                        |   | 706,729 |   |
| Mortgage      loans held for sale                                                                                                                                       |   |                          | 3,578,110   |   |                        |   | 1,063,183 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Loans,      net of allowance for loan losses of $3,496,562 and    $3,335,825                                                                                            |   |                          | 186,747,700 |   |                        |   | 196,495,440 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Premises      and equipment, net                                                                                                                                        |   |                          | 7,184,820   |   |                        |   | 7,394,096 |   |
| Accrued      interest receivable and other assets                                                                                                                       |   |                          | 3,953,352   |   |                        |   | 3,329,403 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Total      assets                                     |   | $                             | 311,731,922 |   |                        |   | 321,312,982 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Liabilities and      Stockholders’ Equity                                                                                                                         |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Liabilities:                                                                                                                                                            |   |                          |        |   |                        |   |   |   |
|        Deposits                                                                                                                      |   |                          |        |   |                        |   |   |   |
|             Noninterest-bearing                                                                             |   | $                             | 31,789,678  |   |                        |   | 31,544,102 |   |
|             Interest-bearing                                                                                |   |                          | 246,271,031 |   |                        |   | 254,980,466 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Total      deposits                                   |   |                          | 278,060,709 |   |                        |   | 286,524,568 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|        Securities      sold under repurchase agreements                                                                              |   |                          | 3,436,467   |   |                        |   | 3,156,300 |   |
|        Accrued      interest payable and other liabilities                                                                           |   |                          | 1,078,101   |   |                        |   | 2,297,382 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Total      liabilities                                |   |                          | 282,575,277 |   |                        |   | 291,978,250 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
| Stockholders’      equity:                                                                                                                                        |   |                          |        |   |                        |   |   |   |
|        Common      stock, $2 par value;                                                                                              |   |                          |        |   |                        |   |   |   |
|              authorized      1,500,000 shares;                                                         |   |                          |        |   |                        |   |   |   |
|              issued      and outstanding 899,815 shares                                                |   |                          | 1,799,630   |   |                        |   | 1,799,630 |   |
|        Additional      paid-in capital                                                                                               |   |                          | 4,243,332   |   |                        |   | 4,243,332 |   |
|        Retained      earnings                                                                                                        |   |                          | 23,630,983  |   |                        |   | 22,927,131 |   |
|        Accumulated      other comprehensive income (loss)                                                                            |   |                          | (517,300    | )      |                        |   | 364,639 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Total      stockholders’ equity                 |   |                          | 29,156,645  |   |                        |   | 29,334,732 |   |
|                                                                                                                                                                    |   |                          |        |   |                        |   |   |   |
|                    Total      liabilities and stockholders’ equity |   | $                             | 311,731,922 |   |                        |   | 321,312,982 |   |

----

|                                                                                                                                         |   | Three      Months Ended |      |   | Six      Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|-----------------------|--------|
|                                                                                                                                         |   | 2008                    |      |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Interest      Income:                                                                                                                        |   |                    |      |   |                  |   |   |   |   |   |   |   |
|           Loans                                                                                                          |   | $                       | 2,870,703 |   |                  |   | 4,507,037 |   |   |   | 6,336,969 |   |   |   | 8,978,897 |   |
|           Investment securities:                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|         Tax      exempt                                                                              |   |                    | 216,313   |   |                  |   | 219,270 |   |   |   | 451,927 |   |   |   | 473,548 |   |
|         Taxable                                                                                      |   |                    | 949,739   |   |                  |   | 919,365 |   |   |   | 1,893,974 |   |   |   | 1,850,794 |   |
|           Federal funds sold and other                                                                                   |   |                    | 74,047    |   |                  |   | 125,926 |   |   |   | 229,409 |   |   |   | 207,884 |   |
|                 Total interest income                                                      |   |                    | 4,110,802 |   |                  |   | 5,771,598 |   |   |   | 8,912,279 |   |   |   | 11,511,123 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense:                                                                                                                       |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|           Deposits                                                                                                       |   |                    | 2,050,375 |   |                  |   | 2,766,009 |   |   |   | 4,472,631 |   |   |   | 5,524,442 |   |
|           Other                                                                                                          |   |                    | 16,638    |   |                  |   | 19,375 |   |   |   | 30,639 |   |   |   | 34,574 |   |
|                 Total interest expense                                                     |   |                    | 2,067,013 |   |                  |   | 2,785,384 |   |   |   | 4,503,270 |   |   |   | 5,559,016 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                 Net interest income                                                        |   |                    | 2,043,789 |   |                  |   | 2,986,214 |   |   |   | 4,409,009 |   |   |   | 5,952,107 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                                                                                                               |   |                    | 172,400   |   |                  |   | - |   |   |   | 230,000 |   |   |   | 80,000 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|               Net      interest income after provision for loan losses |   |                    | 1,871,389 |   |                  |   | 2,986,214 |   |   |   | 4,179,009 |   |   |   | 5,872,107 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income:                                                                                                                           |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|           Service charges on deposit accounts                                                                            |   |                    | 381,794   |   |                  |   | 409,543 |   |   |   | 751,889 |   |   |   | 745,371 |   |
|      Mortgage      origination fees                                                                                 |   |                    | 81,458    |   |                  |   | 131,099 |   |   |   | 159,173 |   |   |   | 217,655 |   |
|      Securities      gains, net                                                                                     |   |                    | 197,264   |   |                  |   | - |   |   |   | 197,264 |   |   |   | - |   |
|           Other operating income                                                                                         |   |                    | 198,929   |   |                  |   | 221,129 |   |   |   | 469,800 |   |   |   | 430,437 |   |
|                 Total other income                                                         |   |                    | 859,445   |   |                  |   | 761,771 |   |   |   | 1,578,126 |   |   |   | 1,393,463 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|  Other      Expense:                                                                                                                    |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|           Salaries and other personnel expense                                                                           |   |                    | 1,442,392 |   |                  |   | 1,436,834 |   |   |   | 2,926,098 |   |   |   | 2,946,681 |   |
|           Net occupancy and equipment expense                                                                            |   |                    | 345,678   |   |                  |   | 391,378 |   |   |   | 699,311 |   |   |   | 764,955 |   |
|           Other operating expense                                                                                        |   |                    | 680,836   |   |                  |   | 575,907 |   |   |   | 1,293,679 |   |   |   | 1,124,483 |   |
|                 Total other expense                                                        |   |                    | 2,468,906 |   |                  |   | 2,404,119 |   |   |   | 4,919,088 |   |   |   | 4,836,119 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                 Earnings before income taxes                                               |   |                    | 261,928   |   |                  |   | 1,343,866 |   |   |   | 838,047 |   |   |   | 2.429.451 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      taxes                                                                                                                            |   |                    | 12,925    |   |                  |   | 407,719 |   |   |   | 134,195 |   |   |   | 703,728 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                 Net earnings                                                          |   | $                       | 249,003   |   |                  |   | 936,147 |   |   |   | 703,852 |   |   |   | 1,725,723 |   |
|                                                                                                                                         |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per common share based on average outstanding                                                                                  |   |                    |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|           shares of 899,815                                                                                              |   | $                       | 0.28      |   |                  |   | 1.04 |   |   |   | 0.78 |   |   |   | 1.92 |   |

----

|                                                                                                             |   | Three      Months Ended |       |   | Six      Months Ended |   |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|
|                                                                                                             |   | 2008                    |       |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                                                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |
| Net      earnings                                                                                           |   | $                       | 249,003    |   |                  |   | 936,147 |   |   |   | 703,852 |   |   |   | 1,725,723 |   |
|                                                                                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive loss, net of taxes:                                                                     |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|     Unrealized      losses on securities available for sale:                                 |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|               Holding losses arising during period, net of               |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                   benefit of ($712,386), ($628,224), |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|              ($464,745),      and ($611,479)    |   |                    | (1,164,289 | )      |                  |   | (1,026,739 | ) |   |   | (759,556 | ) |   |   | (999,370 | ) |
|                                                                                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|     Reclassification      adjustments for gains included in net                         |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|          earnings,      net of tax of $74,881, $0, $74,881 and $0   |   |                    | (122,383   | )      |                  |   | - |   |   |   | (122,383 | ) |   |   | - |   |
|                                                                                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|               Total other comprehensive loss                             |   |                    | (1,286,672 | )      |                  |   | (1,026,739 | ) |   |   | (881,939 | ) |   |   | (999,370 | ) |
|                                                                                                             |   |                    |       |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|               Comprehensive income (loss)                                |   | $                       | (1,037,669 | )      |                  |   | (90,592 | ) |   |   | (178,087 | ) |   |   | 726,353 |   |

----

|                                                                                                                                                                                                                       |   | 2008   |        |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Cash      flows from operating activities:                                                                                                                                                                                 |   |   |        |   |   |   |
|      Net      earnings                                                                                                                                                                            |   | $      | 703,852     |   |   |   | 1,725,723 |   |
|          Adjustments      to reconcile net earnings to net                                                                                                                    |   |   |        |   |   |   |   |   |
|             cash      (used) provided by operating activities:                                                                                                 |   |   |        |   |   |   |   |   |
|                 Provision      for loan losses                                                                                             |   |   | 230,000     |   |   |   | 80,000 |   |
|                 Depreciation,      amortization and accretion                                                                              |   |   | 315,560     |   |   |   | 302,274 |   |
|                 Gains      on sales of securities                                                                                          |   |   | (197,264    | )      |   |   | - |   |
|                 Change      in assets and liabilities:                                                                                     |   |   |        |   |   |   |   |   |
|                     Interest      receivable and other assets                                                          |   |   | (241,628    | )      |   |   | 378,029 |   |
|                     Interest      payable and other liabilities                                                        |   |   | (184,494    | )      |   |   | 238,702 |   |
|                     Mortgage      loans held for sale                                                                  |   |   | (2,514,927  | )      |   |   | 164,103 |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
|                            Net      cash (used in) provided by operating activities |   |   | (1,888,901  | )      |   |   | 2,888,831 |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                 |   |   |        |   |   |   |   |   |
|      Proceeds      from sales of investment securities available for sale                                                                                                                         |   |   | 7,320,481   |   |   |   | - |   |
|      Proceeds      from calls, maturities, and paydowns of                                                                                                                                        |   |   |        |   |   |   |   |   |
|          investment      securities available for sale                                                                                                                        |   |   | 22,362,201  |   |   |   | 5,939,664 |   |
|      Purchases      of investment securities available for sale                                                                                                                                   |   |   | (21,066,435 | )      |   |   | (4,910,511 | ) |
|      Purchases      of other investments                                                                                                                                                          |   |   | -           |   |   |   | (36,400 | ) |
|      Proceeds      from sale of other investments                                                                                                                                                 |   |   | 27,500      |   |   |   | - |   |
|      Net      change in loans                                                                                                                                                                     |   |   | 9,517,740   |   |   |   | 7,387,192 |   |
|      Purchases      of premises and equipment                                                                                                                                                     |   |   | (150,658    | )      |   |   | (843,140 | ) |
|      Proceeds      from sales of other real estate                                                                                                                                                |   |   | 157,306     |   |   |   | - |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
|                                  Net cash provided by investing activities          |   |   | 18,168,135  |   |   |   | 7,536,805 |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                 |   |   |        |   |   |   |   |   |
|      Net      change in deposits                                                                                                                                                                  |   |   | (8,463,859  | )      |   |   | (2,030,183 | ) |
|      Net      change in securities sold under repurchase agreements                                                                                                                               |   |   | 280,167     |   |   |   | 969,510 |   |
|      Dividends      paid                                                                                                                                                                          |   |   | (1,034,787  | )      |   |   | (1,124,769 | ) |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
|                            Net      cash used in financing activities               |   |   | (9,218,479  | )      |   |   | (2,185,442 | ) |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                                                                                                                                                             |   |   | 7,060,755   |   |   |   | 8,240,194 |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                      |   |   | 20,889,937  |   |   |   | 15,077,988 |   |
|                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                            |   | $      | 27,950,692  |   |   |   | 23,318,182 |   |

----

|                                                                                        |   | 2008   |      |    | 2007   |   |
|---------------------------------------------------------------------------------------------|--------|--------|-----------|---------|--------|--------|
|                                                                                        |   |   |      |    |   |   |
|                                                                                        |   |   |      |    |   |   |
| Supplemental      cash flow information:                                                    |   |   |      |    |   |   |
|      Cash      paid for interest                                   |   | $      | 4,728,526 |    |   | $      | 5,429,205 |   |
|     Cash      paid for taxes                                            |   | $      | 167,500   |    |   | $      | 407,000 |   |
|                                                                                        |   |   |      |    |   |   |   |   |
|                                                                                        |   |   |      |    |   |   |   |   |
| Noncash      investing and financing activities:                                            |   |   |      |    |   |   |   |   |
|      Transfer      from loans to other real estate owned           |   | $      | 155,920   |    |   | $      | - |   |
|      Change      in net unrealized losses on investment securities |   |   |      |    |   |   |   |   |
|        available      for sale, net of taxes             |   | $      | (881,939  | )  |   | $      | (999,370 | )  |

----

|                                              |   | Six      Months Ended June 30, |      |
|---------------------------------------------------|--------|--------------------------------|-----------|
|                                              |   | 2008                           |      |   | 2007 |   |
|                                              |   |                           |      |   |   |   |
| Balance      at beginning of year                 |   | $                              | 3,335,825 |   |   |   | 3,080,661 |   |
| Amounts      charged off                          |   |                           | (85,141   | ) |   |   | (89,894 | ) |
| Recoveries      on amounts previously charged off |   |                           | 15,878    |   |   |   | 19,374 |   |
| Provision      for loan losses                    |   |                           | 230,000   |   |   |   | 80,000 |   |
|                                              |   |                           |      |   |   |   |   |   |
| Balance      at June 30                           |   | $                              | 3,496,562 |   |   |   | 3,090,141 |   |

----

----

|                               |   |                    |   |   | Fair      Value Measurements at June 30, 2008 Using                                                   |   |
|------------------------------------|--------|-------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|
|                               |   |                    |   |   | (in      thousands)                                                                                   |   |
| Description                        |   | June      30, 2008 |   |   | Quoted      Prices In      ActiveMarkets      for Identical      Assets (Level      1) |   |   | Significant Other Observable Inputs (Level      2) |   |   | SignificantUnobservableInputs (Level      3) |   |
|                               |   |                    |   |   |                                                                                                  |   |   |   |   |   |   |   |
| Securities      Available for Sale |   | $                       | 81,638 |   |                                                                                                  | $      | - |   |   | $ | 81,638 |   |   | $ | - |   |
|                               |   |                    |   |   |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Loans      Available for Sale      |   |                    | 3,578  |   |                                                                                                  |   | - |   |   |   | - |   |   |   | 3,578 |   |
|                               |   |                    |   |   |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Other      Real Estate Owned       |   |                    | -      |   |                                                                                                  |   | - |   |   |   | - |   |   |   | - |   |
|                               |   |                    |   |   |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Impaired      Loans                |   |                    | 14,507 |   |                                                                                                  |   | - |   |   |   | - |   |   |   | 14,507 |   |

----

|                                         |   | June      30, 2008 |   |   | December      31, 2007 |   |   | June      30, 2007 |   |
|----------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|--------------------|--------|
| Other      real estate                       |   | $                  | -      |   |                   |   | -      |               |   |   | 740 |   |
| Repossessions                                |   |               | 6      |   |                   |   | -      |               |   |   | - |   |
| Non-accrual      loans                       |   |               | 16,287 |   |                   |   | 9,057  |               |   |   | 1,213 |   |
| Accruing      loans 90 days or more past due |   |               | 16     |   |                   |   | -      |               |   |   | 124 |   |

----

----

----

| Risk-Based Capital      Ratios               |
|----------------------------------------------|
|                                         |
| Tier      1 Capital, Actual                  |   | 13.7% |
| Tier      1 Capital minimum requirement      |   | 4.0% |
|                                         |   |   |
| Excess                                       |   | 9.7% |
|                                         |   |   |
| Total      Capital, Actual                   |   | 15.0% |
| Total      Capital minimum requirement       |   | 8.0% |
|                                         |   |   |
| Excess                                       |   | 7.0% |
|                                         |   |   |
| Leverage      Ratio                          |   |   |
|                                         |   |   |
| Tier      1 Capital to adjusted total assets |   | 9.5% |
| Minimum      leverage requirement            |   |  3.0% |
|                                         |   |   |
| Excess                                       |   | 6.5% |

----

----

Item 1A.  RiskFactors

Item 3.  Defaults Upon SeniorSecurities

Item 4.  Submission of Matters to aVote of Security Holders

|   | (a) | Oconee      Financial Corporation’s annual meeting of stockholders was held on May 5,      2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

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

| 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                                                                                                  | 698,853                |
| Shares      voted in person against                                                                                         |  0                |
| Shares      abstained from voting                                                                                           |  0                |
|                                                                                                                        |                   |
| Total      shares represented                                                                                               | 698,853                |
| Total      shares outstanding                                                                                               | 899,815                |
|                                                                                                                        |                   |
| *  Directors      were elected by slate, not individually.  Vote tabulation is      therefore by slate. |

----

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 Steven A. Rogers, 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.                                            |
|            |     |                                                                                                                                                                                         |

----

|   |           OCONEE      FINANCIAL CORPORATION  By:       /s/ B.      Amrey Harden, President                       B.      Amrey Harden, President and CEO       (Principal      Executive Officer)  Date:         August 14,      2008                                By:        /s/   Steven A. Rogers                                                Steven      A. Rogers, Vice President and CFO        Date:         August 14,      2008                                       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----