U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                  FORM 10-QSB
Mark One

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

          For the quarterly period ended      SEPTEMBER 30, 2003
                                         -----------------------

[   ]     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: 333-10909

                            Forsyth Bancshares, Inc.
                            ------------------------

        (Exact name of small business issuer as specified in its charter)

           Georgia                                         58-2231953
(State or other jurisdiction of                          (IRS Employer
incorporation or organization)                         Identification No.)

            651 VETERANS MEMORIAL BOULEVARD, CUMMING, GEORGIA 30040
        -----------------------------------------------------------------
                    (Address of principal executive offices)

                                 (770) 886-9500
                          ---------------------------
                          (Issuer's telephone number)

                                      N/A
                  --------------------------------------------
      (Former name, former address and former fiscal year, if changed since
                                  last report)

Check  whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 12 months (or for such shorter
period  that  the registrant was required to file such reports) and (2) has been
subject  to  such  filing  requirements  for  the  past  90  days.
Yes    X      No
     ----


State the number of shares outstanding of each of the issuer's classes of common
equity, as of
November 1, 2003:      1,822,500; no par value.

Transitional Small Business Disclosure Format          Yes      No   X
                                                                    ----


<PAGE>
                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY


================================================================================


                                      INDEX
                                      -----


                                                                            PAGE
                                                                            ----

PART I.   FINANCIAL INFORMATION

          ITEM 1.  FINANCIAL STATEMENTS

               CONSOLIDATED BALANCE SHEET - SEPTEMBER 30, 2003 . . . . . . . . 3

               CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME -
                    THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 AND NINE
                    MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 . . . . . . . . . 4

               CONSOLIDATED STATEMENT OF CASH FLOWS - NINE MONTHS ENDED
                    SEPTEMBER 30, 2003 AND 2002. . . . . . . . . . . . . . . . 5

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. . . . . . . . . . . 6

          ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . 9

          ITEM 3.  CONTROLS AND PROCEDURES. . . . . . . . . . . . . . . . . . 15


PART II.  OTHER INFORMATION

          ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . 16

          SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17


<PAGE>
<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION

                          ITEM 1.  FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2003
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

                          ASSETS
                          ------
<S>                                                       <C>
Cash and due from banks                                   $  2,747
Interest-bearing deposits in banks                             222
Federal funds sold                                          10,434
Securities available-for-sale, at fair value                24,621
Restricted equity securities                                   277

Loans                                                       79,085
Less allowance for loan losses                                 993
                                                          --------
          Loans, net                                        78,092
                                                          --------

Premises and equipment                                       5,314
Other assets                                                   918
                                                          --------

          TOTAL ASSETS                                    $122,625
                                                          ========

          LIABILITIES AND STOCKHOLDERS' EQUITY
          ------------------------------------

DEPOSITS
    Noninterest-bearing                                   $ 14,006
    Interest-bearing                                        95,379
                                                          --------
          TOTAL DEPOSITS                                   109,385
Securities sold under repurchase agreements                    321
Other liabilities                                              386
                                                          --------
          TOTAL LIABILITIES                                110,092
                                                          --------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
    Common stock, no par value; 10,000,000
     shares authorized, 1,822,500 issued and outstanding     9,851
    Retained earnings                                        2,541
    Accumulated other comprehensive income                     141
                                                          --------
        TOTAL STOCKHOLDERS' EQUITY                          12,533
                                                          --------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $122,625
                                                          ========
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                        3
<PAGE>
<TABLE>
<CAPTION>
                              FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                                 CONSOLIDATED STATEMENTS OF INCOME
                                      AND COMPREHENSIVE INCOME
                           THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                         AND NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                            (UNAUDITED)
                                       (DOLLARS IN THOUSANDS,
                                       EXCEPT PER SHARE DATA)

                                                            THREE MONTHS ENDED   NINE MONTHS ENDED
                                                               SEPTEMBER 30,       SEPTEMBER 30,
                                                             ------------------  ------------------
                                                              2003      2002      2003      2002
                                                             -------  ---------  -------  ---------
<S>                                                          <C>      <C>        <C>      <C>
INTEREST INCOME
    Loans                                                    $1,306   $   1,214  $3,831   $   3,564
    Taxable securities                                          179         215     511         671
    Nontaxable securities                                        14          14      43          43
    Deposits in banks                                             2           2       8           8
    Federal funds sold                                           11          19      33          60
                                                             -------  ---------  -------  ---------
          TOTAL INTEREST INCOME                               1,512       1,464   4,426       4,346
                                                             -------  ---------  -------  ---------

INTEREST EXPENSE
    Deposits                                                    415         553   1,334       1,629
    Other borrowings                                              1           -       2           1
                                                             -------  ---------  -------  ---------
          TOTAL INTEREST EXPENSE                                416         553   1,336       1,630
                                                             -------  ---------  -------  ---------

          NET INTEREST INCOME                                 1,096         911   3,090       2,716
PROVISION FOR LOAN LOSSES                                        47          55     137         145
                                                             -------  ---------  -------  ---------
          NET INTEREST INCOME AFTER
            PROVISION FOR LOAN LOSSES                         1,049         856   2,953       2,571
                                                             -------  ---------  -------  ---------

OTHER INCOME
    Service charges on deposit accounts                          67          67     202         194
    Gains on sales of securities available-for-sale               -           -       9           5
    Other operating income                                      192         153     552         460
                                                             -------  ---------  -------  ---------
          TOTAL OTHER INCOME                                    259         220     763         659
                                                             -------  ---------  -------  ---------

OTHER EXPENSES
    Salaries and other employee benefits                        539         460   1,598       1,392
    Occupancy and equipment expenses                            124         118     373         363
    Other operating expenses                                    248         252     868         758
                                                             -------  ---------  -------  ---------
          TOTAL OTHER EXPENSES                                  911         830   2,839       2,513
                                                             -------  ---------  -------  ---------

          INCOME  BEFORE INCOME TAXES                           397         246     877         717

INCOME TAX EXPENSE                                              139          83     302         242
                                                             -------  ---------  -------  ---------

          NET INCOME                                            258         163     575         475
                                                             -------  ---------  -------  ---------

OTHER COMPREHENSIVE INCOME (LOSS)
    Unrealized gains (losses) on securities
      available-for-sale arising during period, net of tax     (171)        101    (222)        170
                                                             -------  ---------  -------  ---------

          COMPREHENSIVE INCOME                               $   87   $     264  $  353   $     645
                                                             =======  =========  =======  =========
BASIC AND DILUTED EARNINGS PER SHARE                         $ 0.14   $    0.10  $ 0.32   $    0.30
                                                             =======  =========  =======  =========

CASH DIVIDENDS PER SHARE                                     $    -   $       -  $    -   $       -
                                                             =======  =========  =======  =========
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                        4
<PAGE>
<TABLE>
<CAPTION>
                       FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                    NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                     (UNAUDITED)
                               (DOLLARS IN THOUSANDS)

                                                                   2003       2002
                                                                 ---------  --------
<S>                                                              <C>        <C>
OPERATING ACTIVITIES
    Net income                                                   $    575   $   475
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                  223       179
        Provision for loan losses                                     137       145
        Gain on sales of securities available-for-sale                 (9)       (5)
        Net other operating activities                               (160)      196
                                                                 ---------  --------

              Net cash provided by operating activities               766       990
                                                                 ---------  --------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                    (15,433)   (9,460)
    Proceeds from maturities of securities available-for-sale       6,383     4,582
    Proceeds from sales of securities available-for-sale            2,792     2,356
    Proceeds from maturities held-to-maturity                          32       205
    Purchases of restricted equity securities                         (71)       (6)
    Net increase in interest-bearing deposits in banks                 (8)      (25)
    Net (increase) decrease in federal funds sold                  (6,973)    2,286
    Net increase in loans                                          (8,568)   (6,006)
    Purchase of premises and equipment                               (203)   (1,815)
                                                                 ---------  --------

              Net cash used in investing activities               (22,049)   (7,883)
                                                                 ---------  --------

FINANCING ACTIVITIES
    Net increase in deposits                                       21,418     5,719
    Net increase in securities sold under repurchase agreements       305         -
    Proceeds from exercise of stock options                           404         -
                                                                 ---------  --------

              Net cash provided by financing activities            22,127     5,719
                                                                 ---------  --------

Net increase (decrease) in cash and due from banks                    844    (1,174)

Cash and due from banks at beginning of period                      1,903     2,781
                                                                 ---------  --------

Cash and due from banks at end of period                         $  2,747   $ 1,607
                                                                 =========  ========
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                        5
<PAGE>
                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1.   BASIS  OF  PRESENTATION

          The  consolidated  financial  information for Forsyth Bancshares, Inc.
          (the  "Company")  included  herein  is  unaudited;  however,  such
          information  reflects  all  adjustments  (consisting  solely of normal
          recurring  adjustments)  which  are,  in  the  opinion  of management,
          necessary  for  a  fair  statement  of results for the interim period.

          The  results  of operations for the three and nine month periods ended
          September 30, 2003 are not necessarily indicative of the results to be
          expected  for  the  full  year.


NOTE 2.   STOCK COMPENSATION PLANS

          At  September  30,  2003,  the  Company  has  two stock-based employee
          compensation  plans.  The  Company  accounts for those plans under the
          recognition  and  measurement  principles  of  APB  Opinion  No.  25,
          Accounting for Stock Issued to Employees, and related Interpretations.
          No  stock-based employee compensation cost is reflected in net income,
          as  all  options granted under those plans had an exercise price equal
          to  the market value of the underlying stock on the date of grant. The
          following  table illustrates the effect on net income and earnings per
          share if the Company had applied the fair value recognition provisions
          of SFAS Statement No. 123, Accounting for Stock-Based Compensation, to
          stock-based  employee  compensation.

<TABLE>
<CAPTION>
                                                   THREE MONTHS ENDED
                                                     SEPTEMBER 30,
                                                 ----------------------
                                                    2003        2002
                                                 ----------  ----------
<S>                                              <C>         <C>
Net income, as reported                          $      258  $      163
Deduct: Total stock-based employee compensation
   expense determined under fair value based
   method for all awards, net of tax                      0           0
                                                 ----------  ----------
Pro forma net income                             $      258  $      163
                                                 ==========  ==========
Earnings per share:
Basic - as reported                              $     0.14  $     0.10
                                                 ==========  ==========
Basic - pro forma                                $     0.14  $     0.10
                                                 ==========  ==========
Diluted - as reported                            $     0.14  $     0.10
                                                 ==========  ==========
Diluted - pro forma                              $     0.14  $     0.10
                                                 ==========  ==========
</TABLE>


                                        6
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 2.   STOCK  COMPENSATION  PLANS  (CONTINUED)

<TABLE>
<CAPTION>
                                                   NINE MONTHS ENDED
                                                     SEPTEMBER 30,
                                                 ---------------------
                                                    2003       2002
                                                 ----------  ---------
<S>                                              <C>         <C>
Net income, as reported                          $      575  $     475
Deduct: Total stock-based employee compensation
   expense determined under fair value based
   method for all awards, net of tax                      6          0
                                                 ----------  ---------
Pro forma net income                             $      569  $     475
                                                 ==========  =========
Earnings per share:
  Basic - as reported                            $     0.32  $    0.30
                                                 ==========  =========
  Basic - pro forma                              $     0.32  $    0.30
                                                 ==========  =========
  Diluted - as reported                          $     0.32  $    0.30
                                                 ==========  =========
  Diluted - pro forma                            $     0.32  $    0.30
                                                 ==========  =========
</TABLE>


NOTE 3.   EARNINGS  PER  SHARE

          Presented below is a summary of the components used to calculate basic
          and  diluted  earnings  per  common  share.

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED
                                                   SEPTEMBER 30,
                                               ----------------------
                                                  2003        2002
                                               ----------  ----------
<S>                                            <C>         <C>

Basic Earnings Per Share:
  Weighted average common shares outstanding    1,815,299   1,600,000
                                               ==========  ==========

  Net income                                   $  258,000  $  163,000
                                               ==========  ==========

  Basic earnings  per share                    $     0.14  $     0.10
                                               ==========  ==========

Diluted Earnings Per Share:
  Weighted average common shares outstanding    1,815,299   1,600,000
  Net effect of the assumed exercise of stock
    options based on the treasury stock method
    using average market prices for the year            0           0
                                               ----------  ----------
  Total weighted average common shares and
    common stock equivalents outstanding        1,815,299   1,600,000
                                               ==========  ==========

  Net income                                   $  258,000  $  163,000
                                               ==========  ==========

  Diluted earnings per share                   $     0.14  $     0.10
                                               ==========  ==========
</TABLE>


                                        7
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 3.     EARNINGS PER SHARE (CONTINUED)

<TABLE>
<CAPTION>
                                                  NINE MONTHS ENDED
                                                    SEPTEMBER 30,
                                               ----------------------
                                                  2003        2002
                                               ----------  ----------
<S>                                            <C>         <C>
Basic Earnings Per Share:
  Weighted average common shares outstanding    1,800,842   1,600,000
                                               ==========  ==========

  Net income                                   $  575,000  $  475,000
                                               ==========  ==========

  Basic earnings  per share                    $     0.32  $     0.30
                                               ==========  ==========

Diluted Earnings Per Share:
  Weighted average common shares outstanding    1,800,842   1,600,000
  Net effect of the assumed exercise of stock
    options based on the treasury stock method
    using average market prices for the year            0           0
                                               ----------  ----------
  Total weighted average common shares and
    common stock equivalents outstanding        1,800,842   1,600,000
                                               ==========  ==========

  Net income                                   $  575,000  $  475,000
                                               ==========  ==========

  Diluted earnings per share                   $     0.32  $     0.30
                                               ==========  ==========
</TABLE>


NOTE 4.   CURRENT  ACCOUNTING  DEVELOPMENTS

          There  are  no  recent accounting pronouncements that have had, or are
          expected  to  have,  a  material  effect  on  the  Company's financial
          statements.


                                        8
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF  OPERATIONS

The  following  is  management's  discussion and analysis of certain significant
factors  which  have  affected  the  financial position and operating results of
Forsyth  Bancshares,  Inc. and its bank subsidiary, The Citizens Bank of Forsyth
County  (the  "Bank"),  during  the  periods  included  in  the  accompanying
consolidated  financial  statements.

SPECIAL  CAUTIONARY  NOTICE  REGARDING  FORWARD  LOOKING  STATEMENTS

Certain of the statements made herein under the caption "Management's Discussion
and  Analysis  of  Financial  Condition  and Results of Operations" ("MD&A") are
forward-looking  statements  for  purposes  of  the  Securities  Act of 1933, as
amended  (the  "Securities  Act")  and  the  Securities Exchange Act of 1934, as
amended  (the  "Exchange Act"), and as such may involve known and unknown risks,
uncertainties  and other factors which may cause the actual results, performance
or  achievements  of  Forsyth  Bancshares,  Inc. to be materially different from
future  results,  performance  or  achievements  expressed  or  implied  by such
forward-looking  statements.  Such forward looking statements include statements
using  words  such as "may," "will," "anticipate," "should," "would," "believe,"
"contemplate,"  "expect,"  "estimate,"  "continue,"  "may,"  "intend,"  or other
similar  words  and  expressions  of  the future.  Our actual results may differ
significantly  from  the results we discuss in these forward-looking statements.

These  forward-looking statements involve risks and uncertainties and may not be
realized  due  to  a  variety  of  factors,  including, without limitation:  the
effects  of  future  economic  conditions;  governmental  monetary  and  fiscal
policies, as well as legislative and regulatory changes; the risks of changes in
interest  rates  on  the level and composition of deposits, loan demand, and the
values  of  loan collateral, securities, and other interest-sensitive assets and
liabilities;  interest  rate  risks;  the  effects  of  competition  from  other
commercial  banks,  thrifts, mortgage banking firms, consumer finance companies,
credit unions, securities brokerage firms, insurance companies, money market and
other mutual funds and other financial institutions operating in our market area
and  elsewhere,  including  institutions  operating  regionally, nationally, and
internationally,  together  with  such competitors offering banking products and
services  by  mail,  telephone,  computer,  and  the  Internet.

CRITICAL ACCOUNTING POLICIES

We  have  adopted  various  accounting  policies which govern the application of
accounting principles generally accepted in the United States in the preparation
of  our financial statements.  Our significant accounting policies are described
in  the  footnotes to the consolidated financial statements at December 31, 2002
as  filed  on  our  annual  report  on  Form  10-KSB.

Certain  accounting policies involve significant judgments and assumptions by us
which  have  a  material  impact  on  the  carrying  value of certain assets and
liabilities.  We  consider  these  accounting policies to be critical accounting
policies.  The  judgments  and  assumptions  we  use  are  based  on  historical
experience  and  other  factors,  which  we  believe  to be reasonable under the
circumstances.  Because  of the nature of the judgments and assumptions we make,
actual  results could differ from these judgments and estimates which could have
a  material  impact  on  our  carrying  values of assets and liabilities and our
results  of  operations.

We  believe  the  allowance for loan losses is a critical accounting policy that
requires the most significant judgments and estimates used in preparation of our
consolidated financial statements.  Refer to the portion of this discussion that
addresses  our  allowance for loan losses for a description of our processes and
methodology  for  determining  our  allowance  for  loan  losses.


                                        9
<PAGE>
LIQUIDITY  AND  CAPITAL  RESOURCES

We  consider  our  liquidity  to  be adequate to meet operating and loan funding
requirements  at  September 30, 2003. At September 30, 2003, the liquidity ratio
(i.e.  cash,  short-term  assets  and marketable assets divided by deposits) was
approximately 34.24% and the loan to deposit ratio was approximately 72.3%.  The
liquidity ratio increased from 23.80% in June 2003 due to an increase of federal
funds  sold  of  $6,973,000.  As  the  loan portfolio grows, we will continue to
monitor  the  liquidity  and make adjustments as deemed necessary. Investing our
available  funds  in  loans  and  other  high  yielding securities will increase
earnings  potential.

Requirements  by banking regulators include the monitoring of risk-based capital
guidelines  for  banks  and  holding companies that are designed to make capital
requirements  more sensitive to differences in risk profiles and account for off
balance  sheet  items. We exceed the regulatory minimums on capital requirements
and  ratios.  However,  as we continue to grow and the loan portfolio increases,
these  ratios  should adjust downward. Management will monitor these amounts and
ratios  on  a continuous basis.  The minimum capital requirements and the actual
capital  ratios  on  a  consolidated  and  bank-only  basis  are  as  follows:

<TABLE>
<CAPTION>
                                   ACTUAL
                            ---------------------
                                                   REGULATORY
                                                    MINIMUM
                            CONSOLIDATED    BANK   REQUIREMENT
                            -------------  ------  ------------
<S>                         <C>            <C>     <C>
Leverage capital ratios            11.20%   8.12%         4.00%
Risk-based capital ratios:
  Tier I capital                   13.59    9.86          4.00
  Total capital                    14.68   10.96          8.00
</TABLE>

OFF-BALANCE  SHEET  RISK

We  are  a  party  to  financial  instruments with off-balance sheet risk in the
normal  course  of business to meet the financing needs of our customers.  These
financial  instruments  include commitments to extend credit and standby letters
of  credit.  Such  commitments  involve,  to varying degrees, elements of credit
risk  and  interest  rate risk in excess of the amount recognized in the balance
sheets.

Our exposure to credit loss in the event of nonperformance by the other party to
the financial instrument for commitments to extend credit and standby letters of
credit  is  represented  by the contractual amount of those instruments.  We use
the same credit policies in making commitments and conditional obligations as we
do  for  on-balance  sheet  instruments.  A  summary  of  our  commitments is as
follows:

                                                               SEPTEMBER 30,
                                                                   2003
                                                          ----------------------
                                                          (Dollars in Thousands)
           Commitments to extend credit                        $     13,615
           Letters of credit                                            172
                                                               ------------
                                                               $     13,787
                                                               ============

Commitments  to  extend  credit  are agreements to lend to a customer as long as
there  is no violation of any condition established in the contract.  Since many
of  the  commitments  are expected to expire without being drawn upon, the total
commitment  amounts  do not necessarily represent future cash requirements.  The
amount  of  collateral  obtained,  if  deemed  necessary by us upon extension of
credit,  is  based  on  our  credit  evaluation  of  the  customer.


                                       10
<PAGE>
Standby  letters of credit are conditional commitments issued by us to guarantee
the  performance  of  a  customer to a third party.  Those letters of credit are
primarily  issued  to  support  public  and private borrowing arrangements.  The
credit  risk  involved  in  issuing letters of credit is essentially the same as
that  involved  in  extending  loans  to  customers.  Collateral  is required in
instances  which  we  deem  necessary.

FINANCIAL  CONDITION

Following is a summary of our balance sheets for the periods indicated:

<TABLE>
<CAPTION>
                                              SEPTEMBER 30,   DECEMBER 31,
                                                  2003            2002
                                             ---------------  -------------
                                                 (DOLLARS IN THOUSANDS)
                                             ------------------------------
<S>                                          <C>              <C>
Cash and due from banks                      $         2,747  $       1,903
Interest-bearing deposits in banks                       222            214
Federal funds sold                                    10,434          3,461
Securities                                            24,898         18,950
Loans, net                                            78,092         69,661
Premises and equipment                                 5,314          5,334
Other assets                                             918            686
                                             ---------------  -------------
                                             $       122,625  $     100,209
                                             ===============  =============

Deposits                                     $       109,385  $      87,967
Securities sold under repurchase agreements              321             16
Other liabilities                                        386            450
Stockholders' equity                                  12,533         11,776
                                             ---------------  -------------
                                             $       122,625  $     100,209
                                             ===============  =============
</TABLE>

Our  total  assets  grew  at  a rate of 22.4% for the first nine months of 2003.
Deposit  growth  of  $21,418,000 coupled with increase of $305,000 in repurchase
accounts were invested in an increase in securities of $5,948,000, $6,973,000 in
federal  funds  sold and an $8,431,000 increase in loans.  Deposit growth is due
in part to a special offering of deposit accounts with a percentage rate tied to
the  prime  rate  during  the  third quarter.  The interest offered to our money
market  customers  was  65%  of  the prime rate on savings balances of $2,500 or
more.  This special offering was discontinued in August of 2003 after generating
$8 million in deposits. Another $10 million in deposit growth was generated from
depositors  seeking  a  temporary  investment.  We  do  not anticipate these $10
million  in  deposits  being  retained  by the bank for a period longer than six
months.  Our  loan  to deposit ratio decreased to 72.3% since December 31, 2002.
Our  current  federal  funds,  securities  and deposit balances will provide the
funds  for  expected  loan  growth  in  the  future.  Stockholders'  equity  has
increased  by $757,000 due to net income of $575,000, proceeds from the exercise
of  stock  options  of  $404,000  and  decreases of unrealized gains on sales of
securities  available-for-sale,  net  of  tax,  of  $222,000.


                                       11
<PAGE>
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 AND
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

Following is a summary of our operations for the periods indicated.

<TABLE>
<CAPTION>
                              THREE MONTHS ENDED
                                 SEPTEMBER 30,
                              2003         2002
                           -----------  ----------
                           (DOLLARS IN THOUSANDS)
                           -----------------------
<S>                        <C>          <C>
Interest income            $     1,512  $    1,464
Interest expense                   416         553
                           -----------  ----------
Net interest income              1,096         911
Provision for loan losses           47          55
Other income                       259         220
Other expense                      911         830
                           -----------  ----------
Pretax income                      397         246
Income taxes                       139          83
                           -----------  ----------
Net income                 $       258  $      163
                           ===========  ==========

                               NINE MONTHS ENDED
                                 SEPTEMBER 30,
                               2003        2002
                           -----------  ----------
                           (DOLLARS IN THOUSANDS)
                           -----------------------

Interest income            $     4,426  $    4,346
Interest expense                 1,336       1,630
                           -----------  ----------
Net interest income              3,090       2,716
Provision for loan losses          137         145
Other income                       763         659
Other expense                    2,839       2,513
                           -----------  ----------
Pretax income                      877         717
Income taxes                       302         242
                           -----------  ----------
Net income                 $       575  $      475
                           ===========  ==========
</TABLE>

Our  net  interest  income  has increased by $185,000 and $374,000 for the third
quarter  and  first  nine  months of 2003, respectively, as compared to the same
periods  in  2002.  Our  net interest margin increased to 4.23% during the first
nine months of 2003 as compared to 4.16% for the first nine months of 2002.  The
increase  in  interest  income  of $48,000 and $80,000 for the third quarter and
first nine months of 2003, respectively, as compared to the same periods in 2002
is due to the increase in higher yielding securities and the increase in federal
funds  sold  along  with  increased  loan  interest  and  fees.  The decrease in
interest  expense of $137,000 and $294,000 is due to the repricing of high yield
certificate  of  deposit  accounts to lower market rates along with lower market
rates  for  all  deposit  accounts.


                                       12
<PAGE>
The provision for loan losses decreased by $8,000 for both the third quarter and
first  nine  months  of  2003,  respectively, as compared to the same periods in
2002. We incurred net charge-offs of $29,000 in the first nine months of 2003 as
compared  to $46,000 in the first nine months of 2002. Based upon our evaluation
of  the  loan portfolio, we believe the allowance for loan losses to be adequate
to absorb losses on existing loans that may become uncollectible. Our evaluation
considers  significant  factors relative to the credit risk and loss exposure in
the  loan  portfolio,  including  past  due  and  classified  loans,  historical
experience,  underlying  collateral values, and current economic conditions that
may  affect  the  borrower's  ability to repay. The allowance for loan losses is
evaluated  by  segmenting  the  loan  portfolio into unclassified and classified
loans. An allowance percentage is applied to the unclassified loans to establish
a  general  allowance  for  loan  losses. The allowance percentage determined is
based  upon  our  experience  specifically  and the historical experience of the
banking  industry generally. The classified loans, including impaired loans, are
analyzed  individually  in  order  to  establish  a  specific allowance for loan
losses.  The  total  of  these  allowances are compared to the minimum allowance
level  range  in accordance with internal policy, (1.20% to 1.30% of total loans
outstanding),  with  the greater amount being recorded as the allowance for loan
losses.

Information  with  respect  to  nonaccrual,  past  due and restructured loans at
September  30,  2003  and  2002  is  as  follows:

<TABLE>
<CAPTION>
                                                                             SEPTEMBER 30,
                                                                        ----------------------
                                                                           2003        2002
                                                                        -----------  --------
                                                                        (DOLLARS IN THOUSANDS)
                                                                        ----------------------
<S>                                                                     <C>          <C>
Nonaccrual loans                                                        $        71  $     36
Loans contractually past due ninety days or more as to interest
  or principal payments and still accruing
Restructured loans                                                                0         0
Potential problem loans                                                           0         0
Interest income that would have been recorded on nonaccrual
  and restructured loans under original terms                                     2         1
Interest income that was recorded on nonaccrual and restructured loans            0         0
</TABLE>


Potential  problem loans are defined as loans about which we have serious doubts
as  to  the  ability  of  the borrower to comply with the present loan repayment
terms  and which may cause the loan to be placed on nonaccrual status, to become
past  due  more  than  ninety  days,  or  to  be  restructured.

It  is  our  policy  to  discontinue the accrual of interest income when, in the
opinion  of  management, collection of interest becomes doubtful. This status is
accorded interest when (1) there is a significant deterioration in the financial
condition  of  the  borrower and full repayment of principal and interest is not
expected  and  (2)  the principal or interest is more than ninety days past due,
unless  the  loan  is  both  well-secured  and  in  the  process  of collection.


                                       13
<PAGE>
Loans  classified  for  regulatory  purposes  as loss, doubtful, substandard, or
special  mention that have not been included in the table above do not represent
or  result from trends or uncertainties which management reasonably expects will
materially  impact  future  operating  results,  liquidity or capital resources.
These  classified loans do not represent material credits about which management
is aware of any information which causes management to have serious doubts as to
the  ability  of  such  borrowers  to  comply  with  the  loan  repayment terms.

Information  regarding  certain  loans  and allowance for loan loss data through
September  30,  2003  and  2002  is  as  follows:

<TABLE>
<CAPTION>
                                                                      NINE MONTHS ENDED
                                                                        SEPTEMBER 30,
                                                                   ----------------------
                                                                      2003        2002
                                                                   -----------  ---------
                                                                   (DOLLARS IN THOUSANDS)
                                                                   ----------------------
<S>                                                                <C>          <C>
Average amount of loans outstanding                                $   74,374   $ 63,182
                                                                   ===========  =========
Balance of allowance for loan losses at beginning of period        $      885   $    756
                                                                   -----------  ---------

Loans charged off
  Commercial and financial                                         $        0   $     34
  Real estate mortgage                                                      0          0
  Installment                                                              41         15
                                                                   -----------  ---------
                                                                           41         49
                                                                   -----------  ---------

Loans recovered
  Commercial and financial                                                  0          0
  Real estate mortgage                                                      0          0
  Installment                                                              12          3
                                                                   -----------  ---------
                                                                           12          3
                                                                   -----------  ---------

Net charge-offs                                                            29         46
                                                                   -----------  ---------

Additions to allowance charged to operating expense during period         137        145
                                                                   -----------  ---------

Balance of allowance for loan losses at end of period              $      993   $    855
                                                                   ===========  =========

Ratio of net loans charged off during the period to
  average loans outstanding                                              0.04%       .07%
                                                                   ===========  =========
</TABLE>

Other  income has increased by $39,000 and $104,000 during the third quarter and
first  nine  months  of  2003,  respectively, as compared to the same periods in
2002.  The  quarterly  increase is due to increases in mortgage loan origination
fees  of  $24,000, credit life income of $11,000 and other customer service fees
of  $4,000.  The  nine  month  increase  is  due  to  increased in mortgage loan
origination  fees  of $88,000, credit life income of $10,000 and service charges
on  deposit  accounts  of  $8,000.


                                       14
<PAGE>
Other  expenses  increased  by $81,000 and $326,000 during the third quarter and
first  nine  months  of  2003,  respectively, as compared to the same periods in
2002.  The  quarterly  increase  is  due to an increase in salaries and employee
benefits  of  $79,000.  The  yearly increase is due to increases in salaries and
employee  benefits  of  $206,000,  other  operating  expenses  of  $110,000, and
occupancy  and equipment expense of $10,000.  Salaries and employee and benefits
have  increased  due  to  increased  salaries  associated  with  mortgage  loan
origination  activities  and  to other annual salary increases.  The increase in
occupancy  and  equipment  expense  is  due  to  the  expenses  associated  with
terminating the lease for our old main office facility during the second quarter
of  this  year.  Other  operating expenses have increased due to $36,000 paid to
terminate  the  lease of the old main office along with the legal expense of the
termination.  Other operating expenses also increased due to the higher FDIC and
State  assessments, mortgage expense, data processing expense, marketing expense
and  charitable  contributions.

The  provision  for  income taxes was $302,000 for the first nine months of 2003
(effective tax rate of 34%) as compared to $242,000 for the first nine months of
2002  (effective  tax  rate  of  34%).

Overall, net income has increased by $95,000 for the third quarter and increased
$100,000  for  the  first  nine months of 2003, respectively, as compared to the
same  periods  in  2002. The increases are due to increased net interest income,
higher  mortgage loan origination activities, decreased loan loss provisions and
increased  other  income.

We  are  not  aware of any known trends, events or uncertainties, other than the
effect  of  events  as  described  above,  that will have or that are reasonably
likely  to  have  a  material  effect  on  its  liquidity,  capital resources or
operations.  We  are  also  not  aware  of  any  current  recommendations by the
regulatory  authorities  which,  if  they  were  implemented, would have such an
effect.


ITEM 3.   CONTROLS  AND  PROCEDURES

As  of  the  end  of  the  period  covered  by  this  report,  we carried out an
evaluation,  under  the  supervision  and  with  the  participation of our Chief
Executive  Officer  and the Chief Financial Officer, of the design and operation
of  our disclosure controls and procedures.  Based on this evaluation, our Chief
Executive and Chief Financial Officer concluded that our disclosure controls and
procedures are effective for gathering, analyzing and disclosing the information
that  we  are  required  to disclose in the reports we file under the Securities
Exchange  Act  of 1934, within the time periods specified in the SEC's rules and
forms.  Our  Chief  Executive Officer and Chief Financial Officer also concluded
that  our  disclosure  controls  and procedures are effective in timely alerting
them  to material information relating to our company required to be included in
our  periodic  SEC  filings.  In  connection  with  the new rules, we are in the
process  of  further  reviewing  and  documenting  our  disclosure  controls and
procedures,  including  our  internal  controls  and  procedures  for  financial
reporting,  and  may  from  time  to time make changes designed to enhance their
effectiveness  and  to  ensure  that  our  systems  evolve  with  our  business.

There  have  been  no  significant  changes in our internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of  this  evaluation.


                                       15
<PAGE>
                          PART II - OTHER INFORMATION


ITEM 6.   EXHIBITS  AND  REPORTS  ON  FORM  8-K

          (a)  Exhibits.

               31.1      Certification  of the Chief Executive Officer, Pursuant
                         to  Rule 13a-14(c) under the Securities Exchange Act of
                         1934,  as  amended.

               31.2      Certification  of the Chief Financial Officer, Pursuant
                         to  Rule 13a-14(c) under the Securities Exchange Act of
                         1934,  as  amended.

               32        Certification  of the Chief Executive Officer and Chief
                         Financial  Officer, Pursuant to 18 U.S.C. Section 1350,
                         as  Adopted  Pursuant  to  Section  906  of  the
                         Sarbanes-Oxley  Act  of  2002.

          (b)  Reports on Form 8-K.

               None.


                                       16
<PAGE>
                                   SIGNATURES




          In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.


                                  FORSYTH BANCSHARES, INC.
                                        (Registrant)



DATE:  November 10, 2003          BY:/s/ Timothy M. Perry
       -----------------             --------------------------------------
                                     Timothy M. Perry, President and C.E.O.
                                     (Principal Executive Officer)


DATE:  November 10, 2003          BY:/s/ Timothy D. Foreman
       -----------------              -------------------------------------
                                     Timothy D. Foreman, Vice President,
                                     Secretary and Treasurer
                                     (Principal Financial and Accounting
                                     Officer)


                                       17
<PAGE>