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

                                  FORM 10-QSB


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

          For the quarterly period ended    MARCH 31, 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)

                  501 Tri County Plaza, Cumming, Georgia 30040
      ---------------------------------------------------------------------
      (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 May 9,2003:    1,797,500;  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 - MARCH 31, 2003. . . . . . . . .     3

      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
          INCOME - THREE MONTHS ENDED MARCH 31, 2003 AND 2002. . .     4

      CONSOLIDATED STATEMENTS OF CASH FLOWS - THREE
          MONTHS ENDED MARCH 31, 2003 AND 2002 . . . . . . . . . .     5

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

      ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS. . .     7

      ITEM 3.  CONTROLS AND PROCEDURES . . . . . . . . . . . . . .    13


PART II.   OTHER INFORMATION

      ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS    14

      ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . . .    14

      SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . .    15


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

                          ITEM 1.  FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2003
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

                                     ASSETS
                                     ------

<S>                                                   <C>
Cash and due from banks                               $  3,231
Interest-bearing deposits in banks                         217
Federal funds sold                                       5,283
Securities available-for-sale, at fair value            17,565
Securities held-to-maturity, fair value of $22              22
Restricted equity securities                               277

Loans                                                   72,088
Less allowance for loan losses                             898
                                                      --------
       Loans, net                                       71,190
                                                      --------

Premises and equipment                                   5,277
Other assets                                               776
                                                      --------

       TOTAL ASSETS                                   $103,838
                                                      ========

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

DEPOSITS
  Noninterest-bearing                                 $ 11,853
  Interest-bearing                                      79,317
                                                      --------
       TOTAL DEPOSITS                                   91,170
Securities sold under repurchase agreements                194
Other liabilities                                          425
                                                      --------
       TOTAL LIABILITIES                                91,789
                                                      --------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Common stock, no par value; 10,000,000 shares
   authorized, 1,797,500 issued and outstanding          9,639
  Retained earnings                                      2,121
  Accumulated other comprehensive income                   289
                                                      --------
       TOTAL STOCKHOLDERS' EQUITY                       12,049
                                                      --------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $103,838
                                                      ========
</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 MARCH 31, 2003 AND 2002
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS,
                             EXCEPT PER SHARE DATA)


                                                            THREE MONTHS ENDED
                                                                 MARCH 31,
                                                            ------------------
                                                               2003     2002
                                                            ---------  -------
<S>                                                         <C>        <C>
INTEREST INCOME
    Loans                                                   $  1,233   $1,165
    Taxable securities                                           168      227
    Nontaxable securities                                         14       14
    Deposits in banks                                              2       24
    Federal funds sold                                            12        3
                                                            ---------  -------
              TOTAL INTEREST INCOME                            1,429    1,433
                                                            ---------  -------

INTEREST EXPENSE
    Deposits                                                     475      554
    Other borrowings                                               -        1
                                                            ---------  -------
              TOTAL INTEREST EXPENSE                             475      555
                                                            ---------  -------

              NET INTEREST INCOME                                954      878
PROVISION FOR LOAN LOSSES                                         44       40
                                                            ---------  -------
              NET INTEREST INCOME AFTER
                PROVISION FOR LOAN LOSSES                        910      838
                                                            ---------  -------

OTHER INCOME
    Service charges on deposit accounts                           72       65
    Gains (losses) on sales of securities available-for-sale       -        5
    Other operating income                                       178      170
                                                            ---------  -------
              TOTAL OTHER INCOME                                 250      240
                                                            ---------  -------

OTHER EXPENSES
    Salaries and other employee benefits                         504      479
    Occupancy and equipment expenses                             139      124
    Other operating expenses                                     278      246
                                                            ---------  -------
              TOTAL OTHER EXPENSES                               921      849
                                                            ---------  -------

              INCOME  BEFORE INCOME TAXES                        239      229

INCOME TAX EXPENSE                                                83       77
                                                            ---------  -------

              NET INCOME                                         156      152
                                                            ---------  -------

OTHER COMPREHENSIVE LOSS
    Unrealized losses on securities
      available-for-sale arising during period, net of tax       (74)    (110)
                                                            ---------  -------

              COMPREHENSIVE INCOME                          $     82   $   42
                                                            =========  =======
BASIC AND DILUTED EARNINGS PER SHARE                        $   0.09   $ 0.10
                                                            =========  =======
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
                      THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                     (UNAUDITED)
                                (DOLLARS IN THOUSANDS)


                                                                     2003      2002
                                                                   --------  --------
<S>                                                                <C>       <C>
OPERATING ACTIVITIES
    Net income                                                     $   156   $   152
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                    81        62
        Provision for loan losses                                       44        40
        Gain on sales of securities available-for-sale                   -        (5)
        Net other operating activities                                 (69)      105
                                                                   --------  --------

              Net cash provided by operating activities                212       354
                                                                   --------  --------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                      (2,032)   (6,871)
    Proceeds from maturities of securities available-for-sale        3,059     1,399
    Proceeds from sales of securities available-for-sale                 -     2,356
    Proceeds from maturities of securities held-to-maturity             10        38
    Purchases of restricted equity securities                          (71)       (6)
    Net (increase) decrease in interest-bearing deposits in banks       (3)        3
    Net (increase)decrease in federal funds sold                    (1,822)      599
    Net increase in loans                                           (1,573)      (74)
    Purchase of premises and equipment                                 (24)     (141)
                                                                   --------  --------

              Net cash used in investing activities                 (2,456)   (2,697)
                                                                   --------  --------

FINANCING ACTIVITIES
    Net increase in deposits                                         3,203     1,112
    Net increase in securities sold under repurchase agreements        178       104
    Proceeds from exercise of stock options                            191         -
                                                                   --------  --------

              Net cash provided by financing activities              3,572     1,216
                                                                   --------  --------

Net increase (decrease) in cash and due from banks                   1,328    (1,127)

Cash and due from banks at beginning of period                       1,903     2,575
                                                                   --------  --------

Cash and due from banks at end of period                           $ 3,231   $ 1,448
                                                                   ========  ========
</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 month period ended March 31,
          2003  are not necessarily indicative of the results to be expected for
          the  full  year.

NOTE 2.   STOCK COMPENSATION PLANS

          At  March  31,  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.  There  was  no  stock-based
          compensation  during  the  first  quarter  of  2003.

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED MARCH 31,
                                                      --------------------------------
                                                            2003             2002
                                                      -----------------  -------------
<S>                                                   <C>                <C>
Net income, as reported                               $             156  $         152
Deduct: Total stock-based employee compensation
   expense determined under fair value based
   method for all awards, net of related tax effects                  0              0
                                                      -----------------  -------------
Pro forma net income                                  $             156  $         152
                                                      =================  =============
Earnings per share:
   Basic - as reported                                $            0.09  $        0.10
                                                      =================  =============
   Basic - pro forma                                  $            0.09  $        0.10
                                                      =================  =============
   Diluted - as reported                              $            0.09  $        0.10
                                                      =================  =============
   Diluted - pro forma                                $            0.09  $        0.10
                                                      =================  =============
</TABLE>


NOTE 3.   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.


                                        6
<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,  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  the  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.


                                        7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

We  consider  our  liquidity  to  be adequate to meet operating and loan funding
requirements  at  March  31, 2003.  At March 31, 2003, the liquidity ratio (i.e.
cash,  short-term  assets  and marketable assets divided by deposits) was 28.44%
and the loan to deposit ratio was 79.07%.   As the loan portfolio grows, we will
continue  to  monitor  liquidity  and  make  adjustments  as  deemed  necessary.
Investing  our  available  funds  in  loans  and  other  high  yielding interest
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. We 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:

                                             ACTUAL
                                     ---------------------
                                                              MINIMUM
                                                             REGULATORY
                                     CONSOLIDATED    BANK   REQUIREMENT
                                     -------------  -------  ------------
         Leverage capital ratios           10.53 %   8.44 %        4.00 %
         Risk-based capital ratios:
           Tier I capital                  14.20    10.30          4.00
           Total capital                   15.28    11.39          8.00

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:

                                             MARCH 31,2003
                                              (DOLLARS IN
                                              THOUSANDS)
                                            ---------------

         Commitments to extend credit       $        12,949
         Letters of credit                              127
                                            ---------------
                                            $        13,076
                                            ===============

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.


                                        8
<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>
                                               MARCH 31,     DECEMBER 31,
                                                  2003           2002
                                             --------------  -------------
<S>                                          <C>             <C>
                                                (DOLLARS IN THOUSANDS)
                                             -----------------------------

Cash and due from banks                      $        3,231  $       1,903
Interest-bearing deposits in banks                      217            214
Federal funds sold                                    5,283          3,461
Securities                                           17,864         18,950
Loans, net                                           71,190         69,661
Premises and equipment                                5,277          5,334
Other assets                                            776            686
                                             --------------  -------------
                                             $      103,838  $     100,209
                                             ==============  =============
Deposits                                     $       91,170  $      87,967
Securities sold under repurchase agreements             194             16
Other liabilities                                       425            450
Stockholders' equity                                 12,049         11,776
                                             --------------  -------------
                                             $      103,838  $     100,209
                                             ==============  =============
</TABLE>

Our total assets grew at a rate of 3.62% for the first quarter of 2003.  Deposit
growth of $3,200,000 coupled with a $1,085,000 decrease in investment securities
was  invested in loans ($1,529,000) federal funds sold ($1,822,000) and cash and
due from banks ($1,328,000). Our loan to deposit ratio increased to 79.07% since
December  31,  2002.  Our  current  federal funds and securities balances should
provide  the funds for expected loan growth in the future.  Stockholders' equity
has  increased  by  $273,000  due  to  net income of $156,000, several directors
exercising  their  stock  options to purchase 22,500 shares raising $191,000 and
decreases  of  unrealized gains on securities available-for-sale, net of tax, of
$74,000.


                                        9
<PAGE>
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

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

<TABLE>
<CAPTION>
                               THREE MONTHS ENDED
                                   MARCH 31,
                           -------------------------
                               2003         2002
                           ------------  -----------
<S>                        <C>           <C>

                             (DOLLARS IN THOUSANDS)
                           -------------------------

Interest income            $      1,429  $     1,433

Interest expense                    475          555
                           ------------  -----------

Net interest income                 954          878

Provision for loan losses            44           40

Other income                        250          240

Other expense                       921          849
                           ------------  -----------

Pretax income                       239          229

Income taxes                         83           77
                           ------------  -----------

Net income                 $        156  $       152
                           ============  ===========
</TABLE>


Our  net  interest  income  has increased by $76,000 during the first quarter of
2003  as compared to the same period in 2002.  Our net interest margin decreased
to  4.14%  during  the  first quarter of 2003 as compared to 4.18% for the first
quarter  of  2002.  The smaller increase in net interest income is due primarily
to  a 5.8% increase in loan interest coupled with a 24.5% decrease in investment
income  and  the decrease in interest expense due to the repricing of the larger
yield  CD's  and  IRA  accounts  to  the  lower  current  market  rates.

The  provision for loan losses increased by $ 4,000 in the first quarter of 2003
when compared to the same period in 2002.  This increase is due primarily to the
growth of the loan portfolio by $1.5 million during the first quarter of 2003 as
compared to growth of $74,000 in the first quarter of 2002 and our assessment of
inherent  risk in the loan portfolio.  We incurred net charge-offs of $31,000 in
the  first  quarter of 2003 as compared to $30,000 in the first quarter 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


                                       10
<PAGE>
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 March
31,  2003  and  2002  is  as  follows:

<TABLE>
<CAPTION>
                                                                                 MARCH 31,
                                                                        -------------------------
                                                                            2003         2002
                                                                        ------------  -----------
                                                                         (DOLLARS IN THOUSANDS)
                                                                        -------------------------
<S>                                                                     <C>           <C>
Nonaccrual loans                                                        $         10  $        11
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                                      130            0
Restructured loans                                                                 0            0

Potential problem loans                                                            0            0
Interest income that would have been recorded on nonaccrual
   and restructured loans under original terms                                     1            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 such 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.

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.


                                       11
<PAGE>
Information  regarding  certain  loans  and allowance for loan loss data through
March  31,  2003  and  2002  is  as  follows:

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED
                                                                            MARCH 31,
                                                                   --------------------------
                                                                       2003          2002
                                                                   -------------  -----------
                                                                      (DOLLARS IN THOUSANDS)
                                                                   --------------------------
<S>                                                                <C>            <C>
Average amount of loans outstanding                                $     71,189   $   60,388
                                                                   =============  ===========

Balance of allowance for loan losses at beginning of period        $        885   $      756
                                                                   -------------  -----------

Loans charged off
   Commercial and financial                                                  31           20
   Real estate mortgage                                                       0            -
   Installment                                                                0           10
                                                                   -------------  -----------
                                                                             31           30
                                                                   -------------  -----------

Loans recovered
   Commercial and financial                                                   0            -
   Real estate mortgage                                                       0            -
   Installment                                                                0            6
                                                                   -------------  -----------
                                                                              0            6
                                                                   -------------  -----------

Net charge-offs                                                              31           24
                                                                   -------------  -----------

Additions to allowance charged to operating expense during period            44           40
                                                                   -------------  -----------

Balance of allowance for loan losses at end of period              $        898   $      772
                                                                   =============  ===========
Ratio of net loans charged off during the period to
   average loans outstanding                                                .04%         .04%
                                                                   =============  ===========
</TABLE>

Other  income  has  increased  by  $10,000  during  the first quarter of 2003 as
compared  to  the same period in 2002 due to increased mortgage loan origination
fees  of $17,000 and a decrease in other customer service fees of $2,000 in fees
collected  and  $5,000  in  the gain of sales of securities.  No securities have
been  sold  at  a  loss  or  gain  in  the  year  2003.

Other expenses increased by $72,000 during the first quarter of 2003 as compared
to  the  same  period  in  2002 due primarily to increased salaries and employee
benefits  of  $25,000  and  occupancy  expenses  of  $15,000 and other operating
expenses  of  $15,000.  Salaries  and employee benefits have increased due to an
increase  in  the number of full time equivalent employees to 34 as of March 31,
2003  from  33  as  of  March  31,  2002  and  to other annual salary increases.
Occupancy  expenses  have  increased  due to the depreciation expense of the new
Main  Office building, finished in November 2002.  We are continuing to pay rent
on the leased old main office facility.  We are in negotiation with the landlord
of  the  facility to terminate the lease.  We expect to finalize the termination
agreement  during  the  second  quarter  of 2003.  Other operating expenses have
increased  due  the  overall  growth  of  the  Bank.


                                       12
<PAGE>
Our  provision  for  income  taxes  was  $83,000  for  the first quarter of 2003
(effective tax rate of 35%) as compared to $77,000 for the first quarter of 2002
(effective  tax  rate  of 34%).  The increase in amount is due to higher pre tax
income  in  2003  and  the  rise  in  the  effective  tax  rate.

Overall,  net income has increased by $4,000 during the first quarter of 2003 as
compared  to  the  same  period  in 2002 due primarily to increased net interest
income.

Our  earnings  per  share  decreased  due  to  the  additional  number of shares
outstanding.  During  the  fourth quarter of 2002 and the first quarter of 2003,
several  of our directors exercised their stock options and purchased a total of
197,500  shares,  increasing  stockholders'  equity  by  $1.7  million.

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

The  Company's  Principal  Executive  and  Financial Officers have evaluated the
Company's  disclosure  controls  and  procedures within 90 days of the filing of
this  report.  That  evaluation  concluded  that  the  disclosure  controls  and
procedures  are  effective  as  of  the  filing of this Quarterly Report on Form
10-QSB  for  the  quarter  ended  March  31,  2003.

There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their  evaluation, including any significant deficiencies or material weaknesses
of  internal  controls  that  would  require  corrective  action.


                                       13
<PAGE>
                           PART II - OTHER INFORMATION



ITEM 4.   SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

          None.


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

          (a)  Exhibits.

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

               99.2      Certification  of the 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.


                                       14
<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:    May 9, 2003           BY:  /s/ Timothy M. Perry
      ----------------              --------------------------------------------
                                    Timothy M. Perry, President and C.E.O.
                                    (Principal Executive Officer)


DATE:    May 9, 2003           BY:  /s/ Timothy D. Foreman
      ----------------              --------------------------------------------
                                    Timothy D. Foreman, Vice President,
                                      Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)


                                       15
<PAGE>
     CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy M. Perry, President and C.E.O., certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Forsyth Bancshares,
     Inc.

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officer  and  I  are  responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a.   designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiary,  is  made  known to us by others within that
          entity,  particularly during the period in which this quarterly report
          is  being  prepared;

     b.   evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing of this
          quarterly  report  (the  "Evaluation  Date");  and

     c.   presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other  certifying officer and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of  directors:

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b.   any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and


                                       16
<PAGE>
6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  May 9, 2003
       -----------

                                   /s/ Timothy M. Perry
                                   --------------------------------------
                                   Timothy M. Perry, President and C.E.O.
                                   (Principal Executive Officer)


                                       17
<PAGE>
     CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy D. Foreman, Vice President, Secretary and Treasurer, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Forsyth Bancshares,
     Inc.

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officer  and  I  are  responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a.   designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiary,  is  made  known to us by others within that
          entity,  particularly during the period in which this quarterly report
          is  being  prepared;

     b.   evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing of this
          quarterly  report  (the  "Evaluation  Date");  and

     c.   presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other  certifying officer and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of  directors:

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b.   any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and


                                       18
<PAGE>
6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  May 9, 2003
       -----------


                                   /s/ Timothy D. Foreman
                                   ---------------------------------
                                   Timothy D. Foreman, Vice President,
                                   Secretary and Treasurer
                                   (Principal Financial and Accounting Officer)


                                       19
<PAGE>