UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20429

                                   FORM 10-QSB

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

                  For the Quarterly Period Ended June 30, 2000

                                       OR

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

                        For the Transition Period from to

                        Commission File number 000-25267

                          OCONEE FINANCIAL CORPORATION
                          ----------------------------
             (Exact name of registrant as specified in its charter)

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

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

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

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

                                    YES /XX/ NO   /   /

              Common stock, par value $10 per share: 179,979 shares
                        outstanding as of August 14, 2000

<PAGE>
                           OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                                              INDEX
<TABLE>
<CAPTION>

                                                                                        Page No.
                                                                                        --------
PART I               FINANCIAL INFORMATION
<S>     <S>          <S>                                                                   <C>
        Item 1.      Financial Statements

                     Consolidated Balance Sheet (unaudited) at June 30, 2000                 3

                     Consolidated Statements of Earnings (unaudited) for the Six
                          Months  Ended June 30, 2000 and 1999                               4

                     Consolidated Statements of Comprehensive Income (unaudited)
                          for the Six Months Ended June 30, 2000 and 1999                    5

                     Consolidated Statements of Cash Flows (unaudited) for the Six
                          Months Ended June 30, 2000 and 1999                                6

                     Notes to Financial Statements (unaudited)                               7

        Item 2.      Management's Discussion and Analysis of Financial
                          Condition and Results of Operations                               8-11

PART II              OTHER INFORMATION

        Item 1.      Legal Proceedings                                                       12

        Item 2.      Changes in Securities                                                   12

        Item 3.      Defaults Upon Senior Securities                                         12

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

        Item 5.      Other Information                                                       13

        Item 6.      Exhibits and Reports on Form 8-K                                        13
</TABLE>

                                               -2-
<PAGE>
                                  PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                           OCONEE FINANCIAL CORPORATION AND SUBSIDIARY
<TABLE>
<CAPTION>
                                   Consolidated Balance Sheet

                                          June 30, 2000
                                           (Unaudited)

                                             Assets
                                             ------

<S>                                <C>                                        <C>
Cash and due from banks, including $100,000 bearing interest                  $       3,090,578
Federal funds sold                                                                    1,430,000
Investment securities available for sale
  (amortized cost  of $ 34,121,259)                                                  32,904,296

Mortgage loans held for sale                                                          2,823,612

Loans                                                                               116,446,388
Less:  Allowance for loan losses                                                     (1,548,709)
                                                                                ----------------

         Loans, net                                                                 114,897,679
                                                                                ----------------

Premises and equipment, net                                                           1,982,338
Accrued interest receivable and other assets                                          3,560,265
                                                                                ----------------

                     Total Assets                                             $     160,688,768
                                                                                ================

                               Liabilities and Stockholders' Equity
                               ------------------------------------

Liabilities:
    Deposits:
        Noninterest-bearing                                                   $      23,017,574
        Interest-bearing                                                            121,189,416
                                                                                ----------------

            Total Deposits                                                          144,206,990

    Securities sold under repurchase agreements                                       1,373,247
    Federal funds purchased                                                                   0
    Accrued interest payable and other liabilities                                      985,759
                                                                                ----------------

            Total Liabilities                                                       146,565,996

Stockholders' equity:
    Common stock, $10 par value;
        authorized 300,000 shares;
        issued and outstanding 179,979 shares                                         1,799,790
    Additional paid-in capital                                                        4,247,150
    Retained earnings                                                                 8,830,836
Unrealized gain (loss) on investment securities, net of tax                            (755,004)
                                                                                ----------------

            Total stockholders' equity                                               14,122,772
                                                                                ----------------

                    Total liabilities and stockholders' equity                $     160,688,768
                                                                                ================
</TABLE>


See accompanying notes to financial statements.

                                               -3-

<PAGE>
<TABLE>
<CAPTION>
                                            OCONEE FINANCIAL CORPORATION AND SUBSIDIARY


                                                Consolidated Statements of Earnings

                               For the Three Months and the Six Months Ended June 30, 2000 and 1999
                                                            (Unaudited)

                                                                  Three Months                              Six Months
                                                                       Ended                                   Ended
                                                              2000               1999                 2000               1999
                                                          --------------     --------------       --------------     --------------
<S>                                                    <C>                 <C>               <C>                   <C>
Interest Income:
     Loans                                             $      2,748,521    $     2,035,831   $        5,126,583    $     3,900,742
     Investment securities:
          Tax exempt                                            212,938            202,652              421,029            405,650
          Taxable                                               384,426            287,237              771,701            579,026
     Federal funds sold and other                                66,681             37,166              169,682            122,187
                                                          --------------     --------------       --------------     --------------
             Total interest income                            3,412,566          2,562,886            6,488,995          5,007,605
                                                          --------------     --------------       --------------     --------------

Interest Expense:
     Deposits                                                 1,402,426            962,838            2,716,546          1,947,797
     Other                                                       15,342             11,628               23,857             17,437
                                                          --------------     --------------       --------------     --------------
             Total interest expense                           1,417,768            974,466            2,740,403          1,965,234
                                                          --------------     --------------       --------------     --------------

             Net interest income                              1,994,798          1,588,420            3,748,592          3,042,371

Provision for loan losses                                        51,900             12,600              103,800             25,200
                                                          --------------     --------------       --------------     --------------

     Net interest income after provision for loan losses      1,942,898          1,575,820            3,644,792          3,017,171
                                                          --------------     --------------       --------------     --------------

Other Income:

     Service charges on deposit accounts                        221,138            182,440              406,756            356,071
     Securities gains (losses), net                             (98,063)               (16)             (98,063)             8,822
     Other operating income                                     131,360            133,169              293,864            301,995
                                                          --------------     --------------       --------------     --------------
             Total other income                                 254,435            315,593              602,557            666,888
                                                          --------------     --------------       --------------     --------------

Other Expense:
     Salaries and other personnel expense                       805,919            696,207            1,591,965          1,299,110
     Net occupancy and equipment expense                        193,103            132,714              372,415            272,395
     Other operating expense                                    372,503            316,825              709,592            675,092
                                                          --------------     --------------       --------------     --------------
             Total other expense                              1,371,525          1,145,746            2,673,972          2,246,597
                                                          --------------     --------------       --------------     --------------

             Earnings before income taxes                       825,808            745,667            1,573,377          1,437,462

Income taxes                                                    235,433            189,076              444,312            397,308
                                                          --------------     --------------       --------------     --------------

             Net earnings                              $        590,375    $       556,591   $        1,129,065    $     1,040,154
                                                          ==============     ==============       ==============     ==============

Earnings per common share based on average outstanding
     shares of 179,979 in 2000 and 180,000 in1999:     $           3.28    $          3.09   $             6.27    $          5.78
                                                          ==============     ==============       ==============     ==============
</TABLE>


See accompanying notes to financial statements.


                                                                -4-
<PAGE>
                                OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                              Consolidated Statements of Comprehensive Income

                              For the Six Months Ended June 30, 2000 and 1999
                                                (Unaudited)
<TABLE>
<CAPTION>

                                                                             2000               1999
                                                                          -----------         ---------
<S>                                                                       <C>                  <C>
Net earnings                                                              $ 1,129,065          1,040,154

Other comprehensive income, net of tax:
     Unrealized gains (losses) on securities available for sale:
          Holding gains (losses) arising during period, net of tax
             of $25,770 and ($220,421)                                         42,046           (360,245)
          Reclassification adjustments for gains (losses) included
             in net earnings, net of tax of ($37,263) and $3,352              (60,800)             5,470
                                                                          -----------         ----------
          Total other comprensive income (loss)                               (18,754)          (354,775)
                                                                          -----------         ----------
          Comprehensive income                                            $ 1,110,311            685,379
                                                                          ===========         ==========

See accompanying notes to financial statements.

                                                   -5-
</TABLE>
<PAGE>
                               OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                                  Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
                         For Each of the Six Months Ended June 30, 2000 and 1999
                                               (Unaudited)


                                                                                 2000                 1999
                                                                              -----------         ------------
<S>                                                                          <C>                  <C>
Cash flows from operating activities:
     Net earnings                                                            $  1,129,065         $  1,040,154
         Adjustments to reconcile net earnings to net
            cash provided by operating activities:
                Provision for loan losses                                         103,800               25,200
                Depreciation, amortization and accretion                          146,371              119,876
                Loss (Gain) in sale of investment securities                       98,063               (8,822)
                Change in assets and liabilities:
                    Interest receivable and other assets                         (143,248)            (543,239)
                    Interest payable and other liabilities                        154,897            2,095,849
                    Mortgage loans held for sale                                 (956,222)            (438,611)
                                                                             ------------         ------------

                           Net cash used by operating activities                  532,726            2,290,407
                                                                             ------------         ------------

Cash flows from investing activities:
     Proceeds from maturities and paydowns of
         investment securities held to maturity                                         0              496,179
     Proceeds from maturities and paydowns of
         investment securities available for sale                               1,472,194            2,002,051
     Proceeds from sales of investment securities
         available for sale                                                     5,706,563              504,984
     Purchases of investment securities held to maturity                                0           (1,854,069)
     Purchases of investment securities available for sale                     (2,950,769)            (953,978)
     Net changes in loans                                                     (23,140,328)          (9,312,202)
     Purchases of premises and equipment                                         (512,587)            (156,894)
                                                                             ------------         ------------

                           Net cash used by investing activities              (19,424,927)          (9,273,929)
                                                                             ------------         ------------

Cash flows from financing activities:
     Net change in deposits                                                     7,679,781           (1,341,617)
     Net change in securities sold under repurchase agreements                    507,339              358,324
     Dividends paid                                                              (899,970)            (720,000)
     Purchase and retirement of stock                                              (2,160)                   0
                                                                             ------------         ------------

                            Net cash provided by financing activities           7,284,990           (1,703,293)
                                                                             ------------         ------------

Net increase (decrease) in cash and cash equivalents                          (11,607,211)          (8,686,815)

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

Cash and cash equivalents at end of period                                   $  4,520,578         $  5,619,025
                                                                             ============         ============

Supplemental cash flow information:
     Cash paid for interest                                                  $  2,205,217         $  1,643,219
</TABLE>


See accompanying notes to financial statements.

                                                   -6-
<PAGE>

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

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

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

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

(2)      Cash and Cash Equivalents
         -------------------------

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

(3)      Net Earnings Per Common Share
         -----------------------------

         Earnings per common share are based on the weighted  average  number of
         common  shares  outstanding  during  the  period  while the  effects of
         potential common shares  outstanding  during the period are included in
         diluted  earnings per share.  The Corporation  had no potential  common
         shares outstanding during 2000 and 1999.

(4)      Implementation of Recent Accounting Pronouncements
         --------------------------------------------------

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


                                       -7-

<PAGE>

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

                 For Each of the Six Months in the Periods Ended
                             June 30, 2000 and 1999


Forward-looking Statement

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

Financial Condition

         Total  assets  at June 30,  2000  were  $160,688,768,  representing  an
$8,550,200   (5.62%)  increase  from  December  31,  1999.   Deposits  increased
$7,679,781 (5.63%) from December 31, 1999. Loans increased $23,116,111 (24.77%).
The increase in loan volume is due primarily to and increase in loans to finance
commercial  real estate.  The allowance for loan losses at June 30, 2000 totaled
$1,548,709  compared to the December 31, 1999 total of $1,469,126,  representing
1.33% of total loans at June 30,  2000,  compared to 1.57% at December 31, 1999.
Cash and cash equivalents decreased $11,607,211 from December 31, 1999.

         The total of nonperforming  assets,  which includes  nonaccruing loans,
other real estate owned, repossessed collateral and loans for which payments are
more than 90 days  past due were  $109,140  at June 30,  2000,  representing  an
increase of $30,732 (39.19%) from December 31, 1999. There were no related party
loans which were considered nonperforming at June 30, 2000.

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


                                       -8-

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

                     For the Six Months in the Period Ended
                             June 30, 2000 and 1999

Results of Operations

         Net interest income increased $706,221 (23.21%) in the first six months
of 2000 compared to the same period for 1999.  Interest income for the first six
months of 2000 was $6,488,995,  representing an increase of $1,481,390  (29.58%)
over the same period in 1999.  Interest expense for the first six months of 2000
increased $775,169 (39.44%) compared to the same period in 1999. The increase in
net  interest  income  during the first six months of 2000  compared to the same
period in 1999 is primarily attributable to the increase in the volume of loans,
as well as a 100 basis point increase in the prime lending rate during the first
six months of 2000.

         The Bank analyzes its allowance for loan losses on a monthly basis.  As
of June 30,  2000,  that  analysis  indicated an  allowance  reserve  surplus of
$1,019,951.  Due to this surplus,  the Bank has provided the budgeted  provision
for 2000.  It is  management's  belief  that the  allowance  for loan  losses is
adequate to absorb possible losses in the portfolio.

         Other expenses for the six months of 2000 increased  $427,375  (19.02%)
compared  to the  first  six  months  in 1999.  The net  increase  is  primarily
attributable  to additional  salary and benefits  expense as a result of opening
two new branches during 1999.

Liquidity

         The Corporation  must maintain,  on a daily basis,  sufficient funds to
cover the withdrawals from depositors' accounts and to supply new borrowers with
funds. To meet these obligations,  the Corporation keeps cash on hand, maintains
account balances with its  correspondent  banks, and purchases and sells federal
funds and other  short-term  investments.  Asset and  liability  maturities  are
monitored in an attempt to match these to meet liquidity needs. It is the policy
of the Corporation to monitor its liquidity to meet regulatory  requirements and
their local funding requirements.

         The Corporation  maintains  relationships with correspondent banks that
can provide funds to it on short notice, if needed.  Presently,  the Corporation
has arrangements with a commercial bank for short term unsecured  advances up to
$4,000,000.   Additional  liquidity  is  provided  to  the  Corporation  through
available Federal Home Loan Bank advances up to $22,800,000.





                                       -9-

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

                     For the Six Months Ended June 30, 2000


Year 2000 Compliance

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

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















                                      -10-


<PAGE>



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

                     For the Six Months Ended June 30, 2000


CAPITAL

The following tables present Oconee State Bank's regulatory  capital position at
June 30, 2000, based on the regulatory  capital  requirements of federal banking
agencies.

               Risk-Based Capital Ratios
               -------------------------

               Tier 1 Tangible Capital, Actual                           12.1%
               Tier 1 Tangible Capital minimum requirement                4.0%
                                                                       -------

               Excess                                                     8.1%
                                                                       =======


               Total Capital, Actual                                     13.3%
               Total Capital minimum requirement                          8.0%
                                                                       -------

               Excess                                                     5.3%
                                                                       ======


               Leverage Ratio
               ---------------

               Tier 1 Tangible Capital to adjusted total assets
                 (Leverage Ratio)                                         9.6%

               Minimum leverage requirement                               3.0%
                                                                       ------

               Excess                                                     6.6%
                                                                       =======











                                      -11-


<PAGE>


                           PART II. OTHER INFORMATION

                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

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

                  None

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------
                  None

Item 3.  Defaults Upon Senior Securities
         -------------------------------
                  None

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

         (a)      Oconee Financial  Corporation's annual meeting of stockholders
                  was held on May 1, 2000.

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

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

                           G. Robert Bishop                   Henry C. Maxey
                           Steve W. Denman                    Carl R. Nichols
                           Douglas D. Dickens                 Ann B. Powers
                           Walter T. Evans, Sr.               Jerry K. Wages
                          John A. Hale                       Virginia S. Wells
                          B. Amrey Harden

                  A  tabulation  of  votes  concerning  the  above  issue  is as
                  follows:

                  Shares voted by proxy in favor              121,941
                  Shares voted in person in favor               6,278
                  Shares voted in person against                    0
                  Shares abstained from voting                      0

                  Total shares represented                    128,219
                  Total shares outstanding                    179,979

                 *         Directors  were elected by slate,  not  individually.
                           Vote tabulation is therefore by slate.


                                      -12-


Item 5.  Other Information
         -----------------
                  None

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

            (a)   Exhibits
                  --------

                  The  following  exhibits  are  required  to be filed with this
                  Report on 10-QSB by Item 601 of Regulation S-B:

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

            (b)   Reports on Form 8-K

                       There were no 8-K filings during the quarter.









                                      -13-



                   OCONEE FINANCIAL CORPORATION AND SUBSIDIARY

                                   SIGNATURES
<PAGE>



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

                                      OCONEE FINANCIAL CORPORATION


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


                                      Date:    August 14, 2000





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


                                       Date:   August 14, 2000




                                      -14-