----

----

**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 September 30, 2007                                           | 3                       |
|                                                                                                                                                         |                                                                                                                  |                    |   |
|                                                                                                                                                         | Consolidated                Statements of Earnings (unaudited) for the Three Months and the                Nine       |                    |
|                                                                                                                                                         |        Months                Ended September 30, 2007 and 2006                     | 4                       |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Statements of Comprehensive Income (Loss) (unaudited) for the Three                Months |                    |
|                                                                                                                                                         |        and                the Nine Months Ended September 30, 2007 and 2006        | 5                       |
|                                                                                                                                                         |                                                                                                                  |                    |
|                                                                                                                                                         | Consolidated                Statements of Cash Flows (unaudited) for the Nine Months                                  |                    |
|                                                                                                                                                         |        Ended                September 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                                                                                  |   | $ | 6,776,244 |   |
| Federal                funds sold                                                                                                                                                 |   |   | 14,009,000 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Cash                and cash equivalents                        |   |   | 20,785,244 |   |
|                                                                                                                                                                              |   |   |   |   |
| Investment                securities available for sale                                                                                                                           |   |   | 98,406,569 |   |
| Other                investments                                                                                                                                                  |   |   | 706,729 |   |
| Mortgage                loans held for sale                                                                                                                                       |   |   | 734,000 |   |
|                                                                                                                                                                              |   |   |   |   |
| Loans,                net of allowance for loan losses of $3,078,071                                                                                                              |   |   | 197,476,905 |   |
|                                                                                                                                                                              |   |   |   |   |
| Premises                and equipment, net                                                                                                                                        |   |   | 7,432,959 |   |
| Accrued                interest receivable and other assets                                                                                                                       |   |   | 4,239,420 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                assets                                     |   | $ | 329,791,826 |   |
|                                                                                                                                                                              |   |   |   |   |
| Liabilities                and Stockholders’ Equity                                                                                                                         |   |
|                                                                                                                                                                              |   |   |   |   |
| Liabilities:                                                                                                                                                                      |   |   |   |   |
|        Deposits                                                                                                                                |   |   |   |   |
|             Noninterest-bearing                                                                                       |   | $ | 33,918,415 |   |
|             Interest-bearing                                                                                          |   |   | 260,956,572 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                deposits                                   |   |   | 294,874,987 |   |
|                                                                                                                                                                              |   |   |   |   |
|        Securities                sold under repurchase agreements                                                                              |   |   | 3,912,895 |   |
|        Accrued                interest payable and other liabilities                                                                           |   |   | 1,626,399 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                liabilities                                |   |   | 300,414,281 |   |
|                                                                                                                                                                              |   |   |   |   |
| 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                                                                                                        |   |   | 23,312,385 |   |
|        Accumulated                other comprehensive income                                                                                   |   |   | 22,198 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                stockholders’ equity                 |   |   | 29,377,545 |   |
|                                                                                                                                                                              |   |   |   |   |
|                    Total                liabilities and stockholders’ equity |   | $ | 329,791,826 |   |

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**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                                                                                 |   | **Three                Months Ended** |                      |   | **Nine                Months Ended** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------------------------|--------|--------------------------------------|--------|
|                                                                                                                                                                                 |   | **2007**                              |                      |   | **2006**                             |   |   | **2007** |   |   | **2006** |   |
| Interest                Income:                                                                                                                                                      |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |
|                     Loans                                                                                                                                        |   | $                                     | 4,306,863                 |   |                                 |   | 4,481,176 |   |   |   | 13,285,760 |   |   |   | 12,685,345 |   |
|                     Investment securities:                                                                                                                       |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                          Tax exempt                                                                                                     |   |                                  | 239,446                   |   |                                 |   | 218,608 |   |   |   | 712,994 |   |   |   | 644,030 |   |
|                          Taxable                                                                                                        |   |                                  | 999,993                   |   |                                 |   | 432,024 |   |   |   | 2,850,787 |   |   |   | 1,191,352 |   |
|                     Federal funds sold and other                                                                                                                 |   |                                  | 181,707                   |   |                                 |   | 132,010 |   |   |   | 389,591 |   |   |   | 469,778 |   |
|                             Total interest income                                                                        |   |                                  | 5,728,009                 |   |                                 |   | 5,263,818 |   |   |   | 17,239,132 |   |   |   | 14,990,505 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest                Expense:                                                                                                                                                     |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                     Deposits                                                                                                                                     |   |                                  | 2,807,179                 |   |                                 |   | 2,117,727 |   |   |   | 8,331,621 |   |   |   | 5,810,009 |   |
|                     Other                                                                                                                                        |   |                                  | 21,192                    |   |                                 |   | 20,582 |   |   |   | 55,766 |   |   |   | 47,435 |   |
|                             Total interest expense                                                                       |   |                                  | 2,828,371                 |   |                                 |   | 2,138,309 |   |   |   | 8,387,387 |   |   |   | 5,857,444 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                             Net interest income                                                                          |   |                                  | 2,899,638                 |   |                                 |   | 3,125,509 |   |   |   | 8,851,745 |   |   |   | 9,133,061 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                                                                                                                                             |   |                                  | -     |   |                                 |   | 40,000 |   |   |   | 80,000 |   |   |   | 160,000 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                    Net                interest income after provision for loan losses |   |                                  | 2,899,638                 |   |                                 |   | 3,085,509 |   |   |   | 8,771,745 |   |   |   | 8,973,061 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income:                                                                                                                                                         |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                     Service charges on deposit accounts                                                                                                          |   |                                  | 384,017                   |   |                                 |   | 343,431 |   |   |   | 1,129,388 |   |   |   | 1,100,290 |   |
|      Mortgage                origination fees                                                                                                               |   |                                  | 113,210                   |   |                                 |   | 114,737 |   |   |   | 330,865 |   |   |   | 277,755 |   |
|      Gains                on sales and disposal of premises and equipment                                                                                   |   |                                  | -     |   |                                 |   | -     |   |   |   | -     |   |   |   | 62,959 |   |
|      Gains                (losses) on sales of other real estate owned                                                                                      |   |                                  | (25,758                   | )      |                                 |   | -     |   |   |   | (25,758 | ) |   |   | 384,006 |   |
|                     Other operating income                                                                                                                       |   |                                  | 186,695                   |   |                                 |   | 148,960 |   |   |   | 617,132 |   |   |   | 434,661 |   |
|                             Total other income                                                                           |   |                                  | 658,164                   |   |                                 |   | 607,128 |   |   |   | 2,051,627 |   |   |   | 2,259,671 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|  Other                Expense:                                                                                                                                                  |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                     Salaries and other personnel expense                                                                                                         |   |                                  | 1,420,778                 |   |                                 |   | 1,375,769 |   |   |   | 4,367,459 |   |   |   | 4,144,144 |   |
|                     Net occupancy and equipment expense                                                                                                          |   |                                  | 390,348                   |   |                                 |   | 327,704 |   |   |   | 1,155,303 |   |   |   | 956,969 |   |
|                     Other operating expense                                                                                                                      |   |                                  | 481,534                   |   |                                 |   | 490,523 |   |   |   | 1,606,017 |   |   |   | 1,663,888 |   |
|                             Total other expense                                                                          |   |                                  | 2,292,660                 |   |                                 |   | 2,193,996 |   |   |   | 7,128,779 |   |   |   | 6,765,001 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                             Earnings before income taxes                                                                 |   |                                  | 1,265,142                 |   |                                 |   | 1,498,641 |   |   |   | 3,694,593 |   |   |   | 4,467,731 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income                taxes                                                                                                                                                          |   |                                  | 371,928                   |   |                                 |   | 478,450 |   |   |   | 1,075,656 |   |   |   | 1,437,908 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                             Net earnings                                                                            |   | $                                     | 893,214                   |   |                                 |   | 1,020,191 |   |   |   | 2,618,937 |   |   |   | 3,029,823 |   |
|                                                                                                                                                                                 |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per common share based on average outstanding                                                                                                                |   |                                  |                      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                     shares of 899,815                                                                                                                            |   | $                                     | 0.99                      |   |                                 |   | 1.13 |   |   |   | 2.91 |   |   |   | 3.37 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                              |   | **Three                Months Ended** |      |   | **Nine                Months Ended** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------|--------|
|                                                                                                                              |   | **2007**                              |      |   | **2006**                             |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                              |   |                                  |      |   |                                 |   |   |   |   |   |   |   |
| Net                earnings                                                                                                  |   | $                                     | 893,214   |   |                                 |   | 1,020,191 |   |   |   | 2,618,937 |   |   |   | 3,029,823 |   |
|                                                                                                                              |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income, net of taxes:                                                                          |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                     Unrealized gains on securities available for sale:                                        |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                          Holding gains arising during period, net of taxes           |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                             of $639,276, $216,969, $27,798 and $9,254 |   |                                  | 1,044,802 |   |                                 |   | 354,602 |   |   |   | 45,432 |   |   |   | 15,124 |   |
|                                                                                                                              |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                          Total other comprehensive income                            |   |                                  | 1,044,802 |   |                                 |   | 354,602 |   |   |   | 45,432 |   |   |   | 15,124 |   |
|                                                                                                                              |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                          Comprehensive income                                        |   | $                                     | 1,938,016 |   |                                 |   | 1,374,793 |   |   |   | 2,664,369 |   |   |   | 3,044,947 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                                                                                                                                               |   | **2007** |        |   | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------|--------|----------|--------|
| Cash                flows from operating activities:                                                                                                                                                                               |   |     |        |   |     |   |
|      Net                earnings                                                                                                                                                                          |   | $        | 2,618,937   |   |     |   | 3,029,823 |   |
|          Adjustments                to reconcile net earnings to net                                                                                                                  |   |     |        |   |     |   |   |   |
|             cash                provided by operating activities:                                                                                                      |   |     |        |   |     |   |   |   |
|                 Provision                for loan losses                                                                                           |   |     | 80,000      |   |     |   | 160,000 |   |
|                 Depreciation,                amortization and accretion                                                                            |   |     | 475,844     |   |     |   | 467,449 |   |
|                 Gain                on sales and disposals of fixed assets                                                                         |   |     | -           |   |     |   | (62,959 | ) |
|                 Loss                (gain) on sale of other real estate owned                                                                      |   |     | 25,758      |   |     |   | (384,006 | ) |
|                 Change                in assets and liabilities:                                                                                   |   |     |        |   |     |   |   |   |
|                     Interest                receivable and other assets                                                        |   |     | 129,246     |   |     |   | (1,181,408 | ) |
|                     Interest                payable and other liabilities                                                      |   |     | 110,792     |   |     |   | (106,495 | ) |
|                     Mortgage                loans held for sale                                                                |   |     | 1,242,000   |   |     |   | (668,503 | ) |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
|                            Net                cash provided by operating activities         |   |     | 4,682,577   |   |     |   | 1,253,901 |   |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
| Cash                flows from investing activities:                                                                                                                                                                               |   |     |        |   |     |   |   |   |
|      Proceeds                from calls, maturities, and paydowns of                                                                                                                                      |   |     |        |   |     |   |   |   |
|          investment                securities available for sale                                                                                                                      |   |     | 7,525,195   |   |     |   | 6,118,832 |   |
|      Purchases                of investment securities available for sale                                                                                                                                 |   |     | (13,431,167 | )      |     |   | (13,479,832 | ) |
|      Purchases                of other securities                                                                                                                                                         |   |     | (36,400     | )      |     |   | (55,900 | ) |
|      Net                change in loans                                                                                                                                                                   |   |     | 17,249,843  |   |     |   | (895,703 | ) |
|      Purchases                of premises and equipment                                                                                                                                                   |   |     | (1,505,397  | )      |     |   | (1,152,259 | ) |
|      Proceeds                from sale of premises and equipment                                                                                                                                          |   |     | -           |   |     |   | 139,184 |   |
|      Proceeds                from sale of other real estate owned                                                                                                                                         |   |     | 714,018     |   |     |   | 665,497 |   |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
|                                            Net cash provided (used) by investing activities |   |     | 10,516,092  |   |     |   | (8,660,181 | ) |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
| Cash                flows from financing activities:                                                                                                                                                                               |   |     |        |   |     |   |   |   |
|      Net                change in deposits                                                                                                                                                                |   |     | (9,119,964  | )      |     |   | 3,946,906 |   |
|      Net                change in securities sold under repurchase agreements                                                                                                                             |   |     | 753,320     |   |     |   | 1,778,303 |   |
|      Dividends                paid                                                                                                                                                                        |   |     | (1,124,769  | )      |     |   | (989,797 | ) |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
|                            Net                cash (used) provided by financing activities  |   |     | (9,491,413  | )      |     |   | 4,735,412 |   |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                                                                                |   |     | 5,707,256   |   |     |   | (2,670,868 | ) |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
| Cash                and cash equivalents at beginning of period                                                                                                                                                                    |   |     | 15,077,988  |   |     |   | 19,064,659 |   |
|                                                                                                                                                                                                                               |   |     |        |   |     |   |   |   |
| Cash                and cash equivalents at end of period                                                                                                                                                                          |   | $        | 20,785,244  |   |     |   | 16,393,791 |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                                                                  |   | **2007** |      |   | **2006** |   |
|-------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
|                                                                                                  |   |     |      |   |     |   |
|                                                                                                  |   |     |      |   |     |   |
| Supplemental                cash flow information:                                                    |   |     |      |   |     |   |
|      Cash                paid for interest                                   |   | $        | 8,321,531 |   |     | $      | 5,546,043 |   |
|      Cash                paid for taxes                                      |   | $        | 786,500   |   |     | $      | 1,708,000 |   |
|                                                                                                  |   |     |      |   |     |   |   |   |
| Noncash                investing and financing activities:                                            |   |     |      |   |     |   |   |   |
|      Change                in net unrealized losses on investment securities |   |     |      |   |     |   |   |   |
|         available                for sale, net of taxes       |   | $        | 45,432    |   |     | $      | 15,124 |   |
|      Change                in dividends payable                              |   | $        | 1,124,769 |   |     | $      | 989,797 |   |
|                                                                                                  |   |     |      |   |     |   |   |   |
|                                                                                                  |   |     |      |   |     |   |   |   |

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

----

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

|                                                        |   | **Nine                Months Ended September 30** |      |
|-------------------------------------------------------------|--------|---------------------------------------------------|-----------|
|                                                        |   | **2007**                                          |      |   | **2006** |   |
|                                                        |   |                                              |      |   |   |   |
| Balance                at beginning of year                 |   | $                                                 | 3,080,661 |   |   |   | 2,945,256 |   |
| Amounts                charged off                          |   |                                              | (115,443  | ) |   |   | (36,184 | ) |
| Recoveries                on amounts previously charged off |   |                                              | 32,853    |   |   |   | 42,815 |   |
| Provision                for loan losses                    |   |                                              | 80,000    |   |   |   | 160,000 |   |
|                                                        |   |                                              |      |   |   |   |   |   |
| Balance                at September 30                      |   | $                                                 | 3,078,071 |   |   |   | 3,111,887 |   |

----

**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                  |   |   | 13.0 | % |
| Tier                1 Capital minimum requirement      |   |   | 4.0 | % |
|                                                   |   |   |   |   |
| Excess                                                 |   |   | 9.0 | % |
|                                                   |   |   |   |   |
| Total                Capital, Actual                   |   |   | 14.2 | % |
| Total                Capital minimum requirement       |   |   | 8.0 | % |
|                                                   |   |   |   |   |
| Excess                                                 |   |   | 6.2 | % |
|                                                   |   |   |   |   |
| Leverage                Ratio                          |   |   |   |   |
|                                                   |   |   |   |   |
|                                                   |   |   |   |   |
| Tier                1 Capital to adjusted total assets |   |   | 8.8 | % |
| Minimum                leverage requirement            |   |   | 3.0 | % |
|                                                   |   |   |   |   |
| Excess                                                 |   |   | 5.8 | % |

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**CONTROLS      AND PROCEDURES**

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**PART      II.  OTHER INFORMATION**

**OCONEE      FINANCIAL CORPORATION AND SUBSIDIARY**

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

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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**

**SIGNATURE**

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