----

----

**U.      S. SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

| x | Quarterly                Report Under Section 13 or 15(d) of the Securities Exchange Act of                1934 |
|---|-----------------------------------------------------------------------------------------------------------------|

**September      30, 2006**

|  ̈ | Transition                Report under Section 13 or 15(d) of the Securities Exchange Act of                1934 |
|--------|------------------------------------------------------------------------------------------------------------------|

**Commission      File Number: 333-102971 **

|   | Freedom                  Bancshares, Inc.                                          |   |
|--------|------------------------------------------------------------------------------------|--------|
|   | (Exact                  name of small business issuer as specified in its charter) |   |

| **Georgia**                             |   | **06-1671382**                                   |
|-----------------------------------------|--------|--------------------------------------------------|
| (State                of Incorporation) |   | (IRS                Employer Identification No.) |

|   | **3165                    Maysville Road, Commerce, GA 30529**                                                                              |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | (Address                    of principal executive offices)                                                                                 |   |
|   |                                                                                                                                        |   |
|   | **(706)                    423-2500**                                                                                                       |   |
|   | (Issuer’s                    telephone number)                                                                                        |   |
|   |                                                                                                                                        |   |
|   | N/A                                                                                                                                         |   |
|   | (Former                    name, former address and former fiscal year, if changed since                    last                    report) |   |

**November      14, 2006: 1,238,789 shares outstanding, $1.00 par      value**

----

----

----

**FREEDOM      BANCSHARES, INC.**

**AND      SUBSIDIARY**

**Index**

|                                         |                                                                                                                                           |                                 |
|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                         |                                                                                                                                           | Page                                 |
|                                         |                                                                                                                                           |                                 |
| Part                I. Financial Information |                                                                                                                                           |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                1. Financial Statements (unaudited)                                                                                        |                                 |
|                                         |                                                                                                                                           |                                 |
|                                         | Consolidated                Balance Sheets - September 30, 2006 and December                31, 2005                                           | 2                                    |
|                                         |                                                                                                                                           |                                 |
|                                         | Consolidated                Statements of Operations - Three and Nine Months                Ended September 30, 2006 and 2005                  | 3                                    |
|                                         |                                                                                                                                           |                                 |
|                                         | Consolidated                Statements of Comprehensive Income (Loss) - Three                and Nine Months Ended September 30, 2006 and 2005 | 4                                    |
|                                         |                                                                                                                                           |                                 |
|                                         | Consolidated                Statements of Cash Flows - Nine Months Ended                September 30, 2006 and 2005                            | 5                                    |
|                                         |                                                                                                                                           |                                 |
|                                         | Notes                to Consolidated Financial                Statements                                                                       | 6                -                10 |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                2. Management's Discussion and                Analysis                                                                     | 11                - 18               |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                3. Controls and Procedures                                                                                                 | 18                                   |
|                                         |                                                                                                                                           |                                 |
|                                         |                                                                                                                                           |                                 |
| Part                II. Other Information    |                                                                                                                                           |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                1. Legal Proceedings                                                                                                       | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds                                              | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                3. Defaults Upon Senior Securities                                                                                         | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                4. Submission of Matters to a Vote of Security                Holders                                                      | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                5. Other Information                                                                                                       | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Item                6. Exhibits                                                                                                                | 19                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Signature                Page                                                                                                                  | 20                                   |
|                                         |                                                                                                                                           |                                 |
|                                         | Exhibit                Index                                                                                                                   |                                 |

----

*Index*

| **Part****I.** | **Financial                Information** |
|----------------|------------------------------------------|

| **Item                1.** | **Financial                Statements** |
|----------------------------|-----------------------------------------|

**FREEDOM      BANCSHARES, INC. AND      SUBSIDIARY**

**CONSOLIDATED          BALANCE SHEETS**

**SEPTEMBER          30, 2006 AND DECEMBER 31, 2005**

**(Unaudited)**

| **Assets**                                                                                                                                                          |   | **2006** |            | 2005         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------------|--------------|--------|
|                                                                                                                                                                |   |     |            |    |   |
| Cash                      and due from banks                                                                                                                        |   | $        | 1,821,605       |         | $      | 1,462,439 |   |
| Interest                      bearing deposits in banks                                                                                                             |   |     | **277,252**     |         |   | 51,627 |   |
| Federal                      funds sold                                                                                                                             |   |     | **1,926,708**   |         |   | 193,258 |   |
| Securities                      available for sale, at fair value                                                                                                   |   |     | **20,499,733**  |         |   | 16,119,530 |   |
| Loans,                      less allowance for loan losses of $1,113,711 and $830,678,                      respectively                                            |   |     | **91,060,451**  |         |   | 59,947,329 |   |
| Property                      and equipment, net                                                                                                                    |   |     | **2,872,782**   |         |   | 2,850,864 |   |
| Federal                      Home Loan Bank stock                                                                                                                   |   |     | **885,100**     |         |   | 325,700 |   |
| Accrued                      interest receivable                                                                                                                    |   |     | **1,135,664**   |         |   | 717,210 |   |
| Other                      assets                                                                                                                                   |   |     | **968,833**     |         |   | 939,059 |   |
|                                                                                                                                                                |   |     |                 |         |   |  |   |
| **Total                      assets**                                                                                                                               |   | $        | 121,448,128     |         | $      | 82,607,016 |   |
|                                                                                                                                                                |   |     |            |         |   |   |   |
| **Liabilities                      and Stockholders' Equity**                                                                                                       |   |     |            |         |   |   |   |
|                                                                                                                                                                |   |     |            |         |   |   |   |
| Liabilities:                                                                                                                                                        |   |     |            |         |   |   |   |
| Deposits:                                                                                                                                                           |   |     |            |         |   |   |   |
| Noninterest-bearing                                                                                                                                                 |   | $        | 7,143,887       |         | $      | 4,976,663 |   |
| Interest-bearing                                                                                                                                                    |   |     | **85,970,220**  |         |   | 61,549,630 |   |
| Total                      deposits                                                                                                                                 |   |     | **93,114,107**  |         |   | 66,526,293 |   |
| Federal                      funds purchased                                                                                                                        |   |     | **-**           |         |   | 185,000 |   |
| Federal                      Home Loan Bank advances                                                                                                                |   |     | **16,000,000**  |         |   | 4,500,000 |   |
| Accrued                      interest payable                                                                                                                       |   |     | **375,310**     |         |   | 175,904 |   |
| Other                      liabilities                                                                                                                              |   |     | **370,007**     |         |   | 67,423 |   |
| **Total                      liabilities**                                                                                                                          |   |     | **109,859,424** |         |   | 71,454,620 |   |
|                                                                                                                                                                |   |     |                 |         |   |  |   |
| Commitments                      and contingencies                                                                                                                  |   |     |            |         |   |   |   |
|                                                                                                                                                                |   |     |            |         |   |   |   |
| Stockholders'                      equity                                                                                                                           |   |     |            |         |   |   |   |
| Preferred                      stock, no par value; 2,000,000 shares authorized; no shares                      issued and                      outstanding         |   |     | **-**           |         |   | - |   |
| Common                      stock, $1.00 par value; 10,000,000 shares authorized; 1,238,789                      shares                      issued and outstanding |   |     | **1,238,789**   |         |   | 1,238,789 |   |
| Additional                      paid-in capital                                                                                                                     |   |     | **11,561,743**  |         |   | 11,281,743 |   |
| Accumulated                      deficit                                                                                                                            |   |     | **(991,633**    | **)**        |   | (1,155,622 | ) |
| Accumulated                      other comprehensive loss                                                                                                           |   |     | **(220,195**    | **)**        |   | (212,514 | ) |
| **Total                      stockholders' equity**                                                                                                                 |   |     | **11,588,704**  |         |   | 11,152,396 |   |
|                                                                                                                                                                |   |     |                 |         |   |  |   |
| **Total                      liabilities and stockholders' equity**                                                                                                 |   | $        | 121,448,128     |         | $      | 82,607,016 |   |

**See        Notes to Consolidated Financial Statements**

----

*Index*

**FREEDOM        BANCSHARES, INC. AND SUBSIDIARY**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**THREE        AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**

**(Unaudited)**

|                                                                     |   | **Three**                          |          |  Three                          |   |  **Nine**                           |   |  Nine                           |          |
|--------------------------------------------------------------------------|--------|------------------------------------|---------------|--------------------------------------|--------|------------------------------------------|--------|--------------------------------------|---------------|
|                                                                     |   | **Months**                         |          |  Months                         |   |  **Months**                         |   |  Months                         |          |
|                                                                     |   | **Ended**                          |          |  Ended                          |   |  **Ended**                          |   |  Ended                          |          |
|                                                                     |   | **September                  30,** |          |  September                  30, |   |  **September                  30,** |   |  September                  30, |          |
|                                                                     |   | **2006**                           |          |  2005                           |   |  **2006**                           |   |  2005                           |          |
| **Interest                  income:**                                    |   |                               |          |                            |   |                                |   |                            |          |
| Loans                                                                    |   | $                                  | 2,113,800     |                                 | $      | 1,056,021                                |   | $                                    | **5,346,103** |   | $ | 2,670,318 |   |
| Taxable                  securities                                      |   |                               | **240,834**   |                                 |   | 141,067                                  |   |                                 | **617,724**   |   |   | 384,278 |   |
| Federal                  funds sold                                      |   |                               | **64,957**    |                                 |   | 56,307                                   |   |                                 | **138,372**   |   |   | 86,747 |   |
| Other                                                                    |   |                               | **24,479**    |                                 |   | -                                        |   |                                 | **36,088**    |   |   | - |   |
| **Total                  interest income**                               |   |                               | **2,444,070** |                                 |   | 1,253,395                                |   |                                 | **6,138,287** |   |   | 3,141,343 |   |
|                                                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| **Interest                  expense:**                                   |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| Deposits                                                                 |   |                               | **1,028,635** |                                 |   | 508,560                                  |   |                                 | **2,548,502** |   |   | 1,233,552 |   |
| Other                  borrowings                                        |   |                               | **149,981**   |                                 |   | 43,841                                   |   |                                 | **252,782**   |   |   | 116,829 |   |
| **Total                  interest expense**                              |   |                               | **1,178,616** |                                 |   | 552,401                                  |   |                                 | **2,801,284** |   |   | 1,350,381 |   |
|                                                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| **Net                  interest income**                                 |   |                               | **1,265,454** |                                 |   | 700,994                                  |   |                                 | **3,337,003** |   |   | 1,790,962 |   |
| **Provision                  for loan losses**                           |   |                               | **94,000**    |                                 |   | 63,350                                   |   |                                 | **291,500**   |   |   | 257,350 |   |
| **Net                  interest income after provision for loan losses** |   |                               | **1,171,454** |                                 |   | 637,644                                  |   |                                 | **3,045,503** |   |   | 1,533,612 |   |
|                                                                     |   |                               |               |                                 |   |                                          |   |                                 |               |   |   |  |   |
| **Other                  income:**                                       |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| Service                  charges on deposit accounts                     |   |                               | **31,445**    |                                 |   | 12,871                                   |   |                                 | **81,539**    |   |   | 41,143 |   |
| Other                  operating income                                  |   |                               | **15,709**    |                                 |   | 7,302                                    |   |                                 | **48,516**    |   |   | 23,968 |   |
| **Total                  other income**                                  |   |                               | **47,154**    |                                 |   | 20,173                                   |   |                                 | **130,055**   |   |   | 65,111 |   |
|                                                                     |   |                               |               |                                 |   |                                          |   |                                 |               |   |   |  |   |
| **Other                  expenses:**                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| Salaries                  and other employee benefits                    |   |                               | **519,156**   |                                 |   | 336,842                                  |   |                                 | **1,474,116** |   |   | 917,246 |   |
| Occupancy                  and equipment expenses                        |   |                               | **124,828**   |                                 |   | 86,953                                   |   |                                 | **359,737**   |   |   | 243,951 |   |
| Other                  operating expenses                                |   |                               | **315,724**   |                                 |   | 179,708                                  |   |                                 | **905,316**   |   |   | 537,452 |   |
| **Total                  other expenses**                                |   |                               | **959,708**   |                                 |   | 603,503                                  |   |                                 | **2,739,169** |   |   | 1,698,649 |   |
|                                                                     |   |                               |               |                                 |   |                                          |   |                                 |               |   |   |  |   |
| **Income                  (loss) before income taxes**                   |   |                               | **258,900**   |                                 |   | 54,314                                   |   |                                 | **436,389**   |   |   | (99,926 | ) |
|                                                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| **Income                  tax expense**                                  |   |                               | **129,000**   |                                 |   | -                                        |   |                                 | **272,400**   |   |   | - |   |
|                                                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| **Net                  income (loss)**                                   |   | $                                  | 129,900       |                                 | $      | 54,314                                   |   | $                                    | **163,989**   |   | $ | (99,926 | ) |
|                                                                     |   |                               |          |                                 |   |                                     |   |                                 |          |   |   |   |   |
| **Basic                  earnings (losses) per share**                   |   | $                                  | 0.10          |                                 | $      | 0.06                                     |   | $                                    | **0.13**      |   | $ | (0.10 | ) |
|                                                                     |   |                               |               |                                 |   |                                          |   |                                 |               |   |   |  |   |
| **Diluted                  earnings (losses) per share**                 |   | $                                  | 0.10          |                                 | $      | 0.05                                     |   | $                                    | **0.13**      |   | $ | (0.10 | ) |
|                                                                     |   |                               |               |                                 |   |                                          |   |                                 |               |   |   |  |   |
| **Cash                  dividends per share**                            |   | $                                  | -             |                                 | $      | -                                        |   | $                                    | -             |   | $ | - |   |

**See        Notes to Consolidated Financial Statements**

----

*Index*

**FREEDOM        BANCSHARES, INC. AND SUBSIDIARY**

**CONSOLIDATED        STATEMENTS OF COMPREHENSIVE INCOME        (LOSS)**

**THREE        AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**

**(Unaudited)**

|                                                                                      |   | **Three**                            |        |  Three                            |   |  **Nine**                             |   |  Nine                             |        |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------|-------------|----------------------------------------|--------|--------------------------------------------|--------|----------------------------------------|-------------|
|                                                                                      |   | **Months**                           |        |  Months                           |   |  **Months**                           |   |  Months                           |        |
|                                                                                      |   | **Ended**                            |        |  Ended                            |   |  **Ended**                            |   |  Ended                            |        |
|                                                                                      |   | **September                    30,** |        |  September                    30, |   |  **September                    30,** |   |  September                    30, |        |
|                                                                                      |   | **2006**                             |        |  2005                             |   |  **2006**                             |   |  2005                             |        |
|                                                                                      |   |                                 |        |                              |   |                                  |   |                              |        |
| Net                    imcome (loss)                                                      |   | $                                    | 129,900     |                                   | $      | 54,314                                     |   | **$**                                  | **163,989** |   | $ | (99,926 | ) |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
| Other                    comprehensive income (loss)                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
| Unrealized                    gains (losses) on securities available for sale, net of tax |   |                                 | **275,298** |                                   |   | (104,397                                   | )      |                                   | **12,886**  |   |   | (114,057 | ) |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
| Unrealized                    loss on interest rate floor, net of tax                     |   |                                 | **-**       |                                   |   | -                                          |   |                                   | **(20,567** | **)** |   | - |   |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
| Other                    comprehensive income (loss)                                      |   |                                 | **275,298** |                                   |   | (104,397                                   | )      |                                   | **(7,681**  | **)** |   | (114,057 | ) |
|                                                                                      |   |                                 |        |                                   |   |                                       |   |                                   |        |   |   |   |   |
| Comprehensive                    income (loss)                                            |   | $                                    | 405,198     |                                   | $      | (50,083                                    | )      | **$**                                  | **156,308** |   | $ | (213,983 | ) |

**See          Notes to Consolidated Financial Statements**

----

*Index*

**FREEDOM        BANCSHARES, INC. AND SUBSIDIARY**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**NINE        MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**

**(Unaudited)**

|                                                                                                                       |   | **2006** |            |  2005 |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------------|------------|--------|
| **OPERATING                  ACTIVITIES**                                                                                  |   |     |            |       |   |
| Net                  income (loss)                                                                                         |   | $        | 163,989         |       | $      | (99,926 | ) |
|                                                                                                                       |   |     |            |       |   |   |   |
| Adjustments                  to reconcile net income (loss) to net cash provided by operating                  activities: |   |     |            |       |   |   |   |
| Amortization                  and accretion on securities                                                                  |   |     | **123,171**     |       |   | 12,431 |   |
| Depreciation                                                                                                               |   |     | **216,947**     |       |   | 139,505 |   |
| Provision                  for loan losses                                                                                 |   |     | **291,500**     |       |   | 257,350 |   |
| Stock                  compensation expense                                                                                |   |     | **280,000**     |       |   | - |   |
| Loss                  on disposal of equipment                                                                             |   |     | **4,817**       |       |   | - |   |
| Increase                  in interest receivable                                                                           |   |     | **(418,454**    | **)**      |   | (205,600 | ) |
| Increase                  in interest payable                                                                              |   |     | **199,406**     |       |   | 107,182 |   |
| Increase                  in other assets                                                                                  |   |     | **(58,929**     | **)**      |   | (17,418 | ) |
| Increase                  in other liabilities                                                                             |   |     | **302,584**     |       |   | 62,996 |   |
| Net                  cash provided by operating activities                                                                 |   |     | **1,105,031**   |       |   | 256,520 |   |
|                                                                                                                       |   |     |            |       |   |   |   |
| **INVESTING                  ACTIVITIES**                                                                                  |   |     |            |       |   |   |   |
| Purchases                  of securities available for sale                                                                |   |     | **(6,350,867**  | **)**      |   | (8,984,839 | ) |
| Proceeds                  from maturities and paydowns of securities available for                  sale                   |   |     | **1,868,967**   |       |   | 1,760,797 |   |
| Purchase                  of Federal Home Loan Bank stock                                                                  |   |     | **(559,400**    | **)**      |   | (76,500 | ) |
| Net                  increase in loans                                                                                     |   |     | **(31,404,622** | **)**      |   | (19,513,291 | ) |
| Purchases                  of premises and equipment                                                                       |   |     | **(243,682**    | **)**      |   | (799,276 | ) |
| Net                  cash used in investing activities                                                                     |   |     | **(36,689,604** | **)**      |   | (27,613,109 | ) |
|                                                                                                                       |   |     |            |       |   |   |   |
| **FINANCING                  ACTIVITIES**                                                                                  |   |     |            |       |   |   |   |
| Net                  increase in deposits                                                                                  |   |     | **26,587,814**  |       |   | 24,096,116 |   |
| Proceeds                  from FHLB advances                                                                               |   |     | **11,500,000**  |       |   | 1,300,000 |   |
| Decrease                  in federal funds purchased                                                                       |   |     | **(185,000**    | **)**      |   | - |   |
| Proceeds                  from sale of common stock                                                                        |   |     | **-**           |       |   | 3,116,500 |   |
| Net                  cash provided by financing activities                                                                 |   |     | **37,902,814**  |       |   | 28,512,616 |   |
|                                                                                                                       |   |     |            |       |   |   |   |
| Net                  increase in cash and cash equivalents                                                                 |   |     | **2,318,241**   |       |   | 1,156,027 |   |
|                                                                                                                       |   |     |            |       |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                          |   |     | **1,707,324**   |       |   | 4,408,655 |   |
|                                                                                                                       |   |     |                 |       |   |  |   |
| Cash                  and cash equivalents at end of period                                                                |   | $        | 4,025,565       |       | $      | 5,564,682 |   |
|                                                                                                                       |   |     |            |       |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURE OF CASH FLOW INFORMATION**                                                      |   |     |            |       |   |   |   |
| Cash                  paid for:                                                                                            |   |     |            |       |   |   |   |
| Interest                                                                                                                   |   | $        | 2,601,878       |       | $      | 1,243,199 |   |

**See        Notes to Consolidated Financial Statements**

----

*Index*

**FREEDOM        BANCSHARES, INC. AND SUBSIDIARY**

**NO**
**TES**
**      TO CONSOLIDATED FINANCIAL      STATEMENTS**

**September      30, 2006**

**(Unaudited)**

| NOTE                1. | BASIS                OF PRESENTATION |
|------------------------|--------------------------------------|

| NOTE                2. | SUMMARY                OF ORGANIZATION |
|------------------------|----------------------------------------|

----

*Index*

| NOTE                3. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES |
|------------------------|-----------------------------------------------------------|

*Basis      of Accounting. *

*Cash      and Cash Equivalents. *

*Property      and Equipment. *

*Income      Taxes. *

*Stock-Based      Compensation. *
*Accounting      for Stock Issued to Employees*
*Accounting      for Stock-Based Compensation*
*Share-Based      Payment*

----

*Index*

|                                                                                                                                                               |   | Three                  MonthsEndedSeptember                  30, |     |  Nine                  MonthsEndedSeptember                  30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|----------|-----------------------------------------------------------------------|--------|
|                                                                                                                                                               |   | 2005                                                             |     |  2005                                                            |   |
|                                                                                                                                                               |   |                                                             |     |                                                             |   |
| Net                  income (loss), as reported                                                                                                                    |   | $                                                                | 54,314   |                                                                  | $      | (99,926 | ) |
|                                                                                                                                                               |   |                                                             |     |                                                                  |   |   |   |
|                                                                                                                                                               |   |                                                             |     |                                                                  |   |   |   |
| Deduct:                  Total stock-based employee compensation expense determined under                  fair                  value based method for all awards |   |                                                             | (279,902 | )                                                                     |   | (400,920 | ) |
|                                                                                                                                                               |   |                                                             |     |                                                                  |   |   |   |
| Pro                  forma net loss                                                                                                                                |   | $                                                                | (225,588 | )                                                                     | $      | (500,846 | ) |
|                                                                                                                                                               |   |                                                             |     |                                                                  |   |   |   |
| Earnings                  (losses) per share:                                                                                                                      |   |                                                             |     |                                                                  |   |   |   |
| Basic                  - as reported                                                                                                                               |   | $                                                                | 0.06     |                                                                  | $      | (0.10 | ) |
| Basic                  - pro forma                                                                                                                                 |   | $                                                                | (0.21    | )                                                                     | $      | (0.52 | ) |
| Diluted                  - as reported                                                                                                                             |   | $                                                                | 0.05     |                                                                  | $      | (0.10 | ) |
| Diluted                  - pro forma                                                                                                                               |   | $                                                                | (0.21    | )                                                                     | $      | (0.52 | ) |

|                                                                               | **Nine                Months Ended****September                30,** |
|------------------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                                               | **2006**                                                             |   | 2005 |
| Risk-free                interest rate                                             | **4.60%**                                                            |   | 4.49% |
| Expected                life of the options                                        | **6.93                years**                                        |   | 10                years |
| Expected                dividends (as a percentage of the fair value of the stock) | **0%**                                                               |   | 0% |
| Expected                volatility                                                 | **24%**                                                              |   | 18% |
| Weighted-average                grant date fair value                              | **$4.27**                                                            |   | $4.79 |

----

*Index*

|                                               |   | Three                  Months EndedSeptember                  30, 2006 |    |
|----------------------------------------------------|--------|------------------------------------------------------------------------|---------|
|                                               |   | Number                                                                 |    | Weighted-                  average Exercise Price |   |  Weighted-average                  Remaining Contractual Life |   |
| Under                  option, beginning of period |   |                                                                   | 303,640 |   | $ | 10.16 |   |   |   |   |
| Granted                                            |   |                                                                   | -       |   |   | - |   |   |   |   |
| Exercised                                          |   |                                                                   | -       |   |   | - |   |   |   |   |
| Forfeited                                          |   |                                                                   | -       |   |   | - |   |   |   |   |
| Under                  option, end of period       |   |                                                                   | 303,640 |   |   | 10.16 |   |   | 7.54                  years |   |
| Exercisable                  at end of period      |   |                                                                   | 181,793 |   |   | 10.04 |   |   | 7.39                  years |   |

|                                               |   | Nine                  Months EndedSeptember                  30, 2006 |    |
|----------------------------------------------------|--------|-----------------------------------------------------------------------|---------|
|                                               |   | Number                                                                |    | Weighted-                  average Exercise Price |   |
| Under                  option, beginning of period |   |                                                                  | 280,840 |   | $ | 10.05 |   |
| Granted                                            |   |                                                                  | 23,300  |   |   | 11.50 |   |
| Exercised                                          |   |                                                                  | -       |   |   | - |   |
| Forfeited                                          |   |                                                                  | (500    | ) |   | 11.50 |   |
| Under                  option, end of period       |   |                                                                  | 303,640 |   |   | 10.16 |   |
| Exercisable                  at end of period      |   |                                                                  | 181,793 |   |   | 10.04 |   |

|                                          |   | Three                Months EndedSeptember                30, 2006 |    |  Nine                Months EndedSeptember                30, 2006 |   |
|-----------------------------------------------|--------|--------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|
|                                          |   | Number                                                             |    | Weighted-                average Grant-Date Fair Value                  |   |  Number |   | Weighted-                average Grant-Date Fair Value |   |
| Nonvested,                beginning of period |   |                                                               | 122,200 |                                                                    | $      | 4.51 |   |   | 187,689 |   | $ | 4.56 |   |
| Granted                                       |   |                                                               | -       |                                                                    |   | - |   |   | 23,300 |   |   | 4.27 |   |
| Vested                                        |   |                                                               | (353    | )                                                                       |   | 4.67 |   |   | (88,642 | ) |   | 4.56 |   |
| Forfeited                                     |   |                                                               |    |                                                                    |   | - |   |   | (500 | ) |   | 4.79 |   |
| Nonvested,                end of period       |   |                                                               | 121,847 |                                                                    |   | 4.51 |   |   | 121,847 |   |   | 4.51 |   |

----

*Index*

|                                    |   | Options                and Warrants Outstanding |    | Options                and Warrants Exercisable           |   |
|-----------------------------------------|--------|-------------------------------------------------|---------|-----------------------------------------------------------|--------|
| Range                of Exercise Prices |   | Number                                          |    | Weighted-average                Contractual Life in Years |   | Weighted-Average                Exercise Price |   | Number |   | Weighted-Average                Exercise Price |   |
|                                    |   |                                            |    |                                                      |   |    |   |   |   |    |   |
| $10.00                - $11.50          |   |                                            | 303,640 |                                                      |   | 7.54                years |   | $ | 10.16 |   |   | 181,793 |   | $ | 10.04 |   |

*Statement      of Cash Flows. *

| NOTE                4. | EARNINGS                (LOSSES) PER SHARE |
|------------------------|--------------------------------------------|

| NOTE                5. | RECENT                ACCOUNTING PRONOUNCEMENTS |
|------------------------|-------------------------------------------------|

----

*Index*

| **Part                I.** | **Financial                Information** |
|----------------------------|------------------------------------------|

| **Item****2.** | **Management's                Discussion and Analysis** |
|----------------|---------------------------------------------------------|

**SPECIAL      CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS**

|   | · | significant                increases in competitive pressure in the banking and financial services                industries; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                in the interest rate environment which could reduce anticipated or                actual                margins; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                in political conditions or the legislative or regulatory environment; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | general                economic conditions, either nationally or regionally and especially                in our                primary service area, becoming less favorable than expected resulting                in,                among other things, a deterioration in credit                quality; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                occurring in business conditions and                inflation; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | changes                in technology; |
|--------|--------|---------------------------------------|

|   | · | changes                in monetary and tax policies; |
|--------|--------|------------------------------------------------------|

|   | · | the                level of allowance for loan loss; |
|--------|--------|------------------------------------------------------|

|   | · | the                rate of delinquencies and amounts of                charge-offs; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | the                rates of loan growth; |
|--------|--------|------------------------------------------|

|   | · | adverse                changes in asset quality and resulting credit risk-related losses                and                expenses; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                in the securities markets; and |
|--------|--------|-------------------------------------------------------|

|   | · | other                risks and uncertainties detailed from time to time in our filings                with the                Securities and Exchange Commission. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Policies**

----

*Index*

*Allowance      for Loan Losses*

*Deferred      Income Taxes*

**Overview**

----

*Index*

**Financial      Condition**

**Composition      of Loan Portfolio**

**September      30, 2006**

| Category                                   |   | Amount |       |  Percent                  of Total |   |
|--------------------------------------------|--------|--------|------------|-----------------------------------------|--------|
|                                       |   |   |       |                               |   |
| Construction                  loans        |   | $      | 41,858,000 |                                    |   | 45.41 | % |
| Other                  real estate loans   |   |   | 39,630,000 |                                    |   | 42.99 | % |
| Commercial                  loans          |   |   | 7,361,000  |                                    |   | 7.99 | % |
| Other                  loans               |   |   | 3,325,162  |                                    |   | 3.61 | % |
|                                       |   |   | 92,174,162 |                                    |   | 100.00 | % |
| Allowance                  for loan losses |   |   | (1,113,711 | )                                       |   |   |   |
|                                       |   | $      | 91,060,451 |                                    |   |   |   |

**Results      of Operations for the Nine Months Ended September 30, 2006 and      2005**

----

*Index*

|   | a. | Interest                income, which represents interest received on interest earning assets,                was                $6,138,287 for the nine month period ended September 30, 2006 and                $3,141,343 for the nine month period ended September 30, 2005. The                cost of                funds, which represents interest paid on deposits and borrowings,                was $                2,801,284 for the nine month period ended September 30, 2006 and                $1,350,381 for the nine month period ended September 30,                2005. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars                  in thousands)      |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   |   |   |   |
| Description                                  |   | Avg                  Assets/Liabilities |   | Interest                  Income/Expense |   | Yield/Cost |   |
|                                         |   |    |   |    |   |    |   |
| Federal                  funds sold          |   | $ | 3,571 |   | $ | 138 |   |   | 5.17 | % |
| Securities                                   |   |   | 18,624 |   |   | 618 |   |   | 4.42 | % |
| Loans                                        |   |   | 74,363 |   |   | 5,346 |   |   | 9.59 | % |
| Other                                        |   |   | 746 |   |   | 36 |   |   | 6.45 | % |
| Total                                        |   | $ | 97,304 |   |   | 6,138 |   |   | 8.41 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Transactional                  accounts      |   | $ | 7,636 |   |   | 129 |   |   | 2.25 | % |
| Savings                                      |   |   | 827 |   |   | 9 |   |   | 1.44 | % |
| CDs                                          |   |   | 83,385 |   |   | 2,410 |   |   | 3.85 | % |
| Other                  borrowings            |   |   | 7,947 |   |   | 253 |   |   | 4.24 | % |
| Total                                        |   | $ | 99,795 |   |   | 2,801 |   |   | 3.74 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income         |   |   |   |   | $ | 3,337 |   |   |   |   |
| Net                  yield on earning assets |   |   |   |   |   |   |   |   | 4.57 | % |

| (Dollars                  in thousands)      |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   |   |   |   |
| Description                                  |   | Avg                  Assets/Liabilities |   | Interest                  Income/Expense |   | Yield/Cost |   |
|                                         |   |    |   |    |   |    |   |
| Federal                  funds sold          |   | $ | 3,619 |   | $ | 87 |   |   | 3.20 | % |
| Securities                                   |   |   | 12,902 |   |   | 384 |   |   | 3.97 | % |
| Loans                                        |   |   | 45,180 |   |   | 2,670 |   |   | 7.88 | % |
| Total                                        |   | $ | 61,701 |   |   | 3,141 |   |   | 6.79 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Transactional                  accounts      |   | $ | 1,803 |   |   | 16 |   |   | 1.21 | % |
| Savings                                      |   |   | 6,900 |   |   | 103 |   |   | 1.99 | % |
| CDs                                          |   |   | 41,235 |   |   | 1,114 |   |   | 3.60 | % |
| Other                  borrowings            |   |   | 4,524 |   |   | 117 |   |   | 3.44 | % |
| Total                                        |   | $ | 54,462 |   |   | 1,350 |   |   | 3.31 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income         |   |   |   |   | $ | 1,791 |   |   |   |   |
| Net                  yield on earning assets |   |   |   |   |   |   |   |   | 3.87 | % |

----

*Index*

|   | b. | For                the nine month period ended September 30, 2006, non-interest income                amounted to $130,055 or .13% of average assets. For the nine month                period                ended September 30, 2005, non-interest income amounted to $65,111                or .12%                of average assets. Because the Bank is in a growth mode, it prices                its                services very competitively in order to grow                deposits. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | During                the nine month period ended September 30, 2006, the provision for                loan                losses was $291,500. We had net charge-offs of $8,467 for the nine                months                ended September 30, 2006. During the nine month period ended September                30,                2005, the provision for loan losses was $257,350. The allowance for                loan                losses as a percentage of gross loans was at 1.22% on September 30,                2006. Management considers the allowance for loan losses to be adequate                and sufficient to absorb possible future losses; however, there can                be no                assurance that charge-offs in future periods will not exceed the                allowance                for loan losses or that additional provisions to the allowance will                not be                required. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | The                Company adopted the fair value recognition provisions of FASB Statement                No. 123 (R), *Share                Based Payment*                effective January 1, 2006, using the modified- prospective-transition                method. For options and warrants outstanding as of December 31, 2005,                the                impact upon adoption was to reduce net income for the nine months                ended                September 30, 2006 by $280,000. Net income is anticipated to be                approximately $395,000 lower for the year ended December 31, 2006                related                to those options and warrants. The Company granted an additional                23,300                options in the first nine months of 2006. In prior periods, the Company                accounted for stock options and warrants under the provisions of                APB No.                25, *Accounting                for Stock Issued to Employees*.                Because the options and warrants were granted at fair market value                on the                date of grant, no expense was recorded for stock options and warrant                in                prior periods. No modifications were made to outstanding options                and                warrants prior to the adoption of Statement 123R and there have been                no                significant changes to valuation methodologies or assumptions. There                have                not been any significant changes in the quantity, types or terms                of                instruments used in share-based payment programs. At September 30,                2006,                total compensation cost related to nonvested awards not yet recognized                is                approximately $254,000 which is expected to be recognized over a                weighted                average period of 1.2 years. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | The                provision for income taxes for the nine months ended September 30,                2006                was $272,400. The amount provided takes into account $280,000 of                stock                compensation expense for which an income tax benefit will not be                received. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Results      of Operations for the Three Months Ended September 30, 2006 and      2005**

|   | a. | Interest                income, which represents interest received on interest earning assets,                was                $2,444,070 for the three month period ended September 30, 2006 and                $1,253,395 for the three month period ended September 30, 2005. The                cost                of funds, which represents interest paid on deposits and borrowings,                was                $1,178,116 for the three month period ended September 30, 2006 and                $552,401 for the three month period ended September 30,                2005. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| (Dollars                  in thousands)      |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   |   |   |   |
| Description                                  |   | Avg                  Assets/Liabilities |   | Interest                  Income/Expense |   | Yield/Cost |   |
|                                         |   |    |   |    |   |    |   |
| Federal                  funds sold          |   | $ | 4,771 |   | $ | 65 |   |   | 5.45 | % |
| Securities                                   |   |   | 20,679 |   |   | 241 |   |   | 4.66 | % |
| Loans                                        |   |   | 85,243 |   |   | 2,114 |   |   | 9.92 | % |
| Other                                        |   |   | 1,175 |   |   | 24 |   |   | 8.33 | % |
| Total                                        |   | $ | 111,868 |   |   | 2,444 |   |   | 8.74 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Transactional                  accounts      |   | $ | 7,419 |   |   | 49 |   |   | 2.64 | % |
| Savings                                      |   |   | 852 |   |   | 3 |   |   | 1.47 | % |
| CDs                                          |   |   | 77,838 |   |   | 977 |   |   | 5.02 | % |
| Other                  borrowings            |   |   | 12,698 |   |   | 150 |   |   | 4.72 | % |
| Total                                        |   | $ | 98,807 |   |   | 1,179 |   |   | 4.77 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income         |   |   |   |   | $ | 1,265 |   |   |   |   |
| Net                  yield on earning assets |   |   |   |   |   |   |   |   | 4.52 | % |

| (Dollars                  in thousands)      |   |
|----------------------------------------------|--------|
|                                         |   |   |   |   |   |   |   |
| Description                                  |   | AvgAssets/Liabilities |   | InterestIncome/Expense |   | Yield/Cost |   |
|                                         |   |    |   |    |   |    |   |
| Federal                  funds sold          |   | $ | 6,240 |   | $ | 56 |   |   | 3.61 | % |
| Securities                                   |   |   | 14,120 |   |   | 141 |   |   | 4.00 | % |
| Loans                                        |   |   | 51,260 |   |   | 1,056 |   |   | 8.24 | % |
| Total                                        |   | $ | 71,620 |   |   | 1,253 |   |   | 7.00 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Transactional                  accounts      |   | $ | 1,943 |   |   | 6 |   |   | 1.20 | % |
| Savings                                      |   |   | 6,846 |   |   | 35 |   |   | 2.07 | % |
| CDs                                          |   |   | 48,757 |   |   | 467 |   |   | 3.83 | % |
| Other                  borrowings            |   |   | 5,002 |   |   | 44 |   |   | 3.51 | % |
| Total                                        |   | $ | 62,548 |   |   | 552 |   |   | 3.53 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income         |   |   |   |   | $ | 701 |   |   |   |   |
| Net                  yield on earning assets |   |   |   |   |   |   |   |   | 3.92 | % |

|   | b. | For                the three month period ended September 30, 2006, non-interest income                amounted to $47,154, or .04% of average assets. For the three month                period                ended September 30, 2005, non-interest income amounted to $20,173                or .03%                of average assets. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | During                the three month period ended September 30, 2006, the provision for                loan                losses was $94,000. We had net charge-offs of $5,861 for the three                months                ended September 30, 2006. During the three month period ended September                30, 2005, the provision for loan losses was                $63,350. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

|   | d. | The                Company adopted the fair value recognition provisions of FASB Statement                No. 123 (R), *Share                Based Payment*                effective January 1, 2006, using the modified- prospective-transition                method. For options and warrants outstanding as of December 31, 2005,                the                impact upon adoption was to reduce net income for the three months                ended                September 30, 2006 by $80,000. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | The                provision for income taxes for the three months ended September 30,                2006                was $129,000. The amount provided takes into account $80,000 of stock                compensation expense for which an income tax benefit will not be                received. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liquidity      **

**Capital      Resources**

----

*Index*

|                               |   | Freedom                Bank September 30, 2006 |   | Freedom                Bancshares, Inc. September 30, 2006 |   | Regulatory                Requirement |   |
|------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------------------|--------|---------------------------------------|--------|
|                               |   |                                      |   |                                                  |   |                             |   |
| Leverage                ratio      |   |                                           | 9.71   | %                                                          |   | 10.05                                 | %      |   | 4.0 | % |
| Risk                weighted ratio |   |                                           | 11.59  | %                                                          |   | 11.99                                 | %      |   | 8.0 | % |

**Regulatory      Matters**
** **

| **Part                I.** | **Financial                Information** |
|----------------------------|------------------------------------------|

| **Item****3.** | **Controls                and Procedures** |
|----------------|--------------------------------------------|

----

*Index*

**FREEDOM      BANCSHARES, INC.**

**AND      SUBSIDIARY**

| **Part****II.** | **Other                Information** |
|-----------------|--------------------------------------|

| **I****tem****1.** | **Legal                Proceedings** |
|--------------------|--------------------------------------|

| **I****tem****2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds** |
|--------------------|-----------------------------------------------------------------------------------------------|

| **I****tem****3.** | **Defaults                Upon Senior Securities** |
|--------------------|----------------------------------------------------|

| **I****tem****4.** | **Submission                of Matters to a Vote of Security                Holders** |
|--------------------|---------------------------------------------------------------------------------------|

| **I****tem****5.** | **Other                Information** |
|--------------------|--------------------------------------|

| **I****tem****6.** | **Exhibits** |
|--------------------|--------------|

| Number |   | Description                                                                                                                                                                                                                |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                       |
| 31.1   |   | Certification                of the Chief Executive Officer, pursuant to Rule 15d-14(a) under                the                Securities Exchange Act of 1934.                                                           |
| 31.2   |   | Certification                of the Chief Financial Officer, pursuant to Rule 15d-14(a) under                the                Securities Exchange Act of 1934.                                                           |
| 32.1   |   | Certification                of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Rule 15d-14(b) under the Securities Exchange Act of                1934. |
| 32.2   |   | Certification                of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Rule 15d-14(b) under the Securities Exchange Act of                1934. |

----

*Index*

**FREEDOM**
**      BANCSHARES, INC.**

**AND      SUBSIDIARY**

|                             | Freedom                Bancshares, Inc.              |
|----------------------------------|------------------------------------------------------|
|                             | (Registrant)                                         |
|                             |                                                 |
|                             |                                                 |
| November                14, 2006 | /s/                Vincent D. Cater                  |
|                             | President                and Chief Executive Officer |
|                             | (Principal                Executive Officer)         |
|                             |                                                 |
|                             |                                                 |
| November                14, 2006 | /s/                Clyde A. McArthur                 |
|                             | Chief                Financial Officer               |
|                             | (Principal                Accounting Officer)        |

----