<PAGE>   1


                UNITED STATES 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      JUNE 30, 2000
                                             -----------------------

[ ]   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.)


         501 TRI-COUNTY PLAZA, HIGHWAYS 9 AND 20, 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 August 1, 2000: 800,000; no par value.

Transitional Small Business Disclosure Format          Yes [ ]  No [X]


<PAGE>   2

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY





--------------------------------------------------------------------------------

                                      INDEX

<TABLE>
<CAPTION>

                                                                                                                        PAGE
                                                                                                                        ----
<S>               <C>                                                                                                   <C>
PART I.           FINANCIAL INFORMATION

                  Item 1.  Financial Statements

                     Consolidated Balance Sheet - June 30, 2000...........................................................3

                     Consolidated Statements of Income and Comprehensive
                        Income (Loss) - Three Months Ended June 30, 2000 and 1999
                        and Six Months Ended June 30, 2000 and 1999.......................................................4

                     Consolidated Statement of Cash Flows - Six
                        Months Ended June 30, 2000 and 1999...............................................................5

                     Notes to Consolidated Financial Statements...........................................................6

                  Item 2.  Management's Discussion and Analysis of
                             Financial Condition and Results of Operations................................................7


PART II.          OTHER INFORMATION

                  Item 4 - Submission of Matters to a Vote of Security Holders........................................14-15

                  Item 5 - Other Information.............................................................................15

                  Item 6 - Exhibits and Reports on Form 8-K..............................................................15

                  Signatures.............................................................................................16
</TABLE>


                                       2
<PAGE>   3

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2000
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                 ASSETS
<S>                                                                     <C>
Cash and due from banks                                                 $ 2,371
Interest-bearing deposits in banks                                          163
Federal funds sold                                                        6,580
Securities available-for-sale, at fair value                             19,957
Securities held-to-maturity, fair value of $893                             906

Loans                                                                    43,668
Less allowance for loan losses                                              548
                                                                        -------
          Loans, net                                                     43,120
                                                                        -------

Premises and equipment                                                    1,293
Other assets                                                              1,349
                                                                        -------

          TOTAL ASSETS                                                  $75,739
                                                                        =======

            LIABILITIES AND STOCKHOLDERS' EQUITY

DEPOSITS
    Noninterest-bearing demand                                          $ 7,804
    Interest-bearing demand                                              16,140
    Savings                                                                 864
    Time                                                                 42,502
                                                                        -------
          TOTAL DEPOSITS                                                 67,310
Other liabilities                                                           389
                                                                        -------
          TOTAL LIABILITIES                                              67,699
                                                                        -------

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS' EQUITY
    Common stock; no par value; 10,000,000 shares
      authorized, 800,000 issued and outstanding                          7,960
    Retained earnings                                                       681
    Accumulated other comprehensive loss                                   (601)
                                                                        -------
          TOTAL STOCKHOLDERS' EQUITY                                      8,040
                                                                        -------

          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $75,739
                                                                        =======
</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                       3
<PAGE>   4

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                        CONSOLIDATED STATEMENTS OF INCOME
                         AND COMPREHENSIVE INCOME (LOSS)
                    THREE MONTHS ENDED JUNE 30, 2000 AND 1999
                   AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS,
                             EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                  THREE MONTHS ENDED          SIX MONTHS ENDED
                                                                       JUNE 30                      JUNE 30
                                                               ------------------------     ------------------------

                                                                   2000           1999         2000          1999
                                                               -----------     --------     ---------    -----------
<S>                                                            <C>             <C>          <C>          <C>
INTEREST INCOME
    Loans                                                        $  1,064      $    730      $  2,064      $  1,405
    Taxable securities                                                294           335           595           670
    Nontaxable securities                                              20            13            40            25
    Deposits in banks                                                   5            --             6            --
    Federal funds sold                                                 76            44           105           113
                                                                 --------      --------      --------      --------
              TOTAL INTEREST INCOME                                 1,459         1,122         2,810         2,213
                                                                 --------      --------      --------      --------

INTEREST EXPENSE
    Deposits                                                          717           540         1,348         1,104
    Other borrowings                                                   --            --             2            --
                                                                 --------      --------      --------      --------
              TOTAL INTEREST EXPENSE                                  717           540         1,350         1,104
                                                                 --------      --------      --------      --------

              NET INTEREST INCOME                                     742           582         1,460         1,109
PROVISION FOR LOAN LOSSES                                              32            34            73            36
                                                                 --------      --------      --------      --------
              NET INTEREST INCOME AFTER
                 PROVISION FOR LOAN LOSSES                            710           548         1,387         1,073
                                                                 --------      --------      --------      --------

OTHER INCOME
    Service charges on deposit accounts                                31            26            56            50
    Other operating income                                              4             9            14            19
                                                                 --------      --------      --------      --------
              TOTAL OTHER INCOME                                       35            35            70            69
                                                                 --------      --------      --------      --------

OTHER EXPENSES
    Salaries and other employee benefits                              272           194           532           371
    Occupancy and equipment expenses                                   89            71           169           138
    Loss on sale of securities available-for-sale                      --            --            14            --
    Other operating expenses                                          208           153           384           287
                                                                 --------      --------      --------      --------
              TOTAL OTHER EXPENSES                                    569           418         1,099           796
                                                                 --------      --------      --------      --------

              INCOME  BEFORE INCOME TAXES                             176           165           358           346

INCOME TAX EXPENSE                                                     65            60           136           123
                                                                 --------      --------      --------      --------

              NET INCOME                                              111           105           222           223
                                                                 --------      --------      --------      --------

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
    Unrealized gains (losses) on securities available-for-
      sale arising during period                                       16          (265)          111          (438)
                                                                 --------      --------      --------      --------

              COMPREHENSIVE INCOME (LOSS)                        $    127      $   (160)     $    333      $   (215)
                                                                 ========      ========      ========      ========

BASIC AND DILUTED EARNINGS PER COMMON SHARE                      $   0.14      $   0.13      $   0.28      $   0.28
                                                                 ========      ========      ========      ========

WEIGHTED AVERAGE SHARES OUTSTANDING
  (BASIC AND DILUTED)                                            $800,000      $800,000      $800,000      $800,000
                                                                 ========      ========      ========      ========

CASH DIVIDENDS PER SHARE OF COMMON STOCK                         $     --      $     --      $     --      $     --
                                                                 ========      ========      ========      ========

</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                       4

<PAGE>   5

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                               2000              1999
                                                                             -------            -------
<S>                                                                          <C>                <C>
OPERATING ACTIVITIES
    Net income                                                               $   222            $   223
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Loss on sale of securities available-for-sale                             14                 --
        Depreciation                                                              80                 31
        Provision for loan losses                                                 73                 36
        Other operating activities                                              (197)               (95)
                                                                             -------            -------

              Net cash provided by operating activities                          192                195
                                                                             -------            -------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                                  (186)            (4,916)
    Proceeds from maturities of securities available-for-sale                    249                 --
    Proceeds from sales of securities available-for-sale                         987                 --
    Proceeds from maturities of securities held-to-maturity                       27                609
    Net increase in interest-bearing deposits in banks                          (163)                --
    Net (increase)  decrease in Federal funds sold                            (4,520)             7,500
    Net increase in loans                                                     (5,121)            (4,279)
    Purchase of premises and equipment                                          (322)               (77)
                                                                             -------            -------

              Net cash used in investing activities                           (9,049)            (1,163)
                                                                             -------            -------

FINANCING ACTIVITIES
    Net increase in deposits                                                   9,269              2,742
                                                                             -------            -------

              Net cash provided by financing activities                        9,269              2,742
                                                                             -------            -------

Net increase  in cash and due from banks                                         412              1,774

Cash and due from banks at beginning of period                                 1,959              1,326
                                                                             -------            -------

Cash and due from banks at end of period                                     $ 2,371            $ 3,100
                                                                             =======            =======
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                       5

<PAGE>   6
                    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 six month periods ended
         June 30, 2000 are not necessarily indicative of the results to be
         expected for the full year.


NOTE 2.  CURRENT ACCOUNTING DEVELOPMENTS

         In June 1998, the Financial Accounting Standards Board issued SFAS No.
         133, "Accounting for Derivative Instruments and Hedging Activities".
         The effective date of this statement has been deferred by SFAS No. 137
         until fiscal years beginning after June 15, 2000. However, the
         statement permits early adoption as of the beginning of any fiscal
         quarter after its issuance. The Company expects to adopt this statement
         effective January 1, 2001. SFAS No. 133 requires the Company to
         recognize all derivatives as either assets or liabilities in the
         balance sheet at fair value. For derivatives that are not designated as
         hedges, the gain or loss must be recognized in earnings in the period
         of change. For derivatives that are designated as hedges, changes in
         the fair value of the hedged assets, liabilities, or firm commitments
         must be recognized in earnings or recognized in other comprehensive
         income until the hedged item is recognized in earnings, depending on
         the nature of the hedge. The ineffective portion of a derivative's
         change in fair value must be recognized in earnings immediately.
         Management has not yet determined what effect the adoption of SFAS No.
         133 will have on the Company's earnings or financial position.

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


                                       6
<PAGE>   7

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 the Company and its bank subsidiary, The Citizens
         Bank of Forsyth County (the "Bank"), during the periods included in the
         accompanying consolidated financial statements.

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

         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 the Company 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 the Company's 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.


                                       7
<PAGE>   8
LIQUIDITY AND CAPITAL RESOURCES

Management considers the Company's liquidity to be adequate to meet operating
and loan funding requirements at June 30, 2000. At June 30, 2000, the liquidity
ratio (i.e. cash, short-term assets and marketable assets divided by deposits)
for the Bank was approximately 45% and the loan to deposit ratio was
approximately 65%. As the portfolio grows, management will continue to monitor
the liquidity of the Bank and the Company and make adjustments as deemed
necessary. Investing the Bank's available funds in loans and other high yielding
securities will increase the Bank's earning 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. The Bank and the Company exceed the regulatory minimums on
capital requirements and ratios. However, as the Company and the Bank 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 for the Company and
the Bank are as follows:

<TABLE>
<CAPTION>
                                                                   ACTUAL
                                                         ----------------------------
                                                                         THE CITIZENS
                                                            FORSYTH         BANK OF        REGULATORY
                                                          BANCSHARES        FORSYTH         MINIMUM
                                                             INC.           COUNTY        REQUIREMENT
                                                         ------------    ------------    -------------
                         <S>                             <C>             <C>             <C>
                         Leverage capital ratios              11.87%          10.30%            4.00%
                         Risk-based capital ratios:
                            Tier I capital                    17.54           15.21             4.00
                            Total capital                     18.65           16.35             8.00

</TABLE>

FINANCIAL CONDITION

Following is a summary of the Company's balance sheets for the periods
indicated:


<TABLE>
<CAPTION>
                                     JUNE 30,       DECEMBER 31,
                                       2000             1999          INCREASE (DECREASE)
                                   -----------      ------------    ----------------------
                                       (DOLLARS IN THOUSANDS)        AMOUNT        PERCENT
                                   -----------------------------    ---------     --------
<S>                                <C>              <C>             <C>             <C>
Cash and due from banks            $     2,534      $    1,959      $     575       29.35%
Federal funds sold                       6,580           2,060          4,520      219.42
Securities                              20,863          21,843           (980)      (4.49)
Loans                                   43,120          38,072          5,048       13.26
Premises and equipment                   1,293           1,051            242       23.03
Other assets                             1,349           1,224            125       10.21
                                   -----------      ----------      ---------
                                   $    75,739      $   66,209      $   9,530       14.39
                                   ===========      ==========      =========

Deposits                           $    67,310      $   58,040      $   9,270       15.97%
Other liabilities                          389             462            (73)     (15.80)
Stockholders' equity                     8,040           7,707            333        4.32
                                   -----------      ----------      ---------
                                   $    75,739      $   66,209      $   9,530       14.39
                                   ===========      ==========      =========
</TABLE>



                                       8
<PAGE>   9
As indicated in the above table, the Company's total assets grew at a rate of
14.39%. Deposit growth of $9,270,000 was primarily invested in loans with the
majority of the remainder invested in Federal funds sold. The Company's loan to
deposit ratio has remained consistent since December 31, 1999 at approximately
65%. Premises and equipment has increased due to fixed asset purchases
associated with the Company's new branch which opened in February of 2000.
Stockholders' equity has increased by $333,000 due to net income of $222,000 and
decreases of unrealized losses on securities available-for-sale, net of tax, of
$111,000.


                                       9
<PAGE>   10
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999 AND FOR
THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999

Following is a summary of the Company's operations for the periods indicated.

<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED
                                                  JUNE 30,
                                          2000              1999                INCREASE (DECREASE)
                                     --------------     ------------      -------------------------------
                                          (DOLLARS IN THOUSANDS)             AMOUNT            PERCENT
                                     -------------------------------      ------------      -------------
<S>                                  <C>                <C>               <C>               <C>
Interest income                      $       1,459      $      1,122      $        337         30.04 %
Interest expense                               717               540               177         32.78
                                     -------------      ------------      ------------
Net interest income                            742               582               160         27.49
Provision for loan losses                       32                34                (2)        (5.88)
Other income                                    35                35                 0            --
Other expense                                  569               418               151         36.12
                                     -------------      ------------      ------------
Pretax income                                  176               165                11          6.67
Income taxes                                    65                60                 5          8.33
                                     -------------      ------------      ------------
Net income                           $         111      $        105      $          6          5.71
                                     =============      ============      ============
</TABLE>

<TABLE>
<CAPTION>

                                                          SIX MONTHS ENDED
                                                              JUNE 30,
                                                        2000            1999             INCREASE (DECREASE)
                                                     ----------      -----------      -------------------------
                                                        (DOLLARS IN THOUSANDS)          AMOUNT        PERCENT
                                                     ---------------------------      ----------     ----------
<S>                                                  <C>             <C>              <C>            <C>
Interest income                                      $    2,810      $     2,213      $      597         26.98%
Interest expense                                          1,350            1,104             246         22.28
                                                     ----------      -----------      ----------
Net interest income                                       1,460            1,109             351         31.65
Provision for loan losses                                    73               36              37        102.78
Other income                                                 70               69               1          1.45
Other expense                                             1,099              796             303         38.07
                                                     ----------      -----------      ----------
Pretax income                                               358              346              12          3.47
Income taxes                                                136              123              13         10.57
                                                     ----------      -----------      ----------
Net income                                           $      222      $       223      $       (1)        (0.45)
                                                     ==========      ===========      ==========
</TABLE>

As indicated in the above table, the Company's net interest income has increased
by $160,000 and $351,000 for the second quarter and first six months of 2000 as
compared to the same periods in 1999. The Company's net interest margin
increased to 4.33% during the first six months of 2000 as compared to 3.83% for
the first six months of 1999 and 4.08% for the entire year of 1999. The increase
in net interest income and net interest margin is due primarily to the increased
volume of average loans. The Company has been able to offset higher interest
rates paid on deposits with higher yields earned on loans.


                                       10
<PAGE>   11

The provision for loan losses decreased by $2,000 and increased by $37,000 for
the second quarter and first six months of 2000 as compared to the same periods
in 1999. The amounts provided are due primarily to loan growth and inherent risk
in the loan portfolio. The Company's allowance for loan losses as a percentage
of total loans amounted to 1.25% at June 30, 2000 and December 31, 1999. The
allowance for loan losses is maintained at a level that is considered
appropriate by management to adequately cover all known and inherent risks in
the loan portfolio. Management's evaluation of the loan portfolio includes a
continuing review of loan loss experience, current economic conditions which may
affect the borrower's ability to repay and the underlying collateral value.

Information with respect to nonaccrual, past due and restructured loans at June
30, 2000 and 1999 is as follows:

<TABLE>
<CAPTION>
                                                                                                        JUNE 30,
                                                                                            ---------------------------------
                                                                                                 2000              1999
                                                                                            ---------------   ---------------
                                                                                                 (DOLLARS IN THOUSANDS)
                                                                                            ---------------------------------

<S>                                                                                         <C>               <C>
Nonaccrual loans                                                                            $           17    $           27
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                                                             17                 4
Restructured loans                                                                                       0                 0
Loans, now current about which there are serious doubts as to the
   ability of the borrower to comply with loan repayment terms                                           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>


It is the policy of the Bank to discontinue the accrual of interest income when,
in the opinion of management, collection of such interest becomes doubtful. This
status is accorded such 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>   12

Information regarding certain loans and allowance for loan loss data through
June 30, 2000 and 1999 is as follows:

<TABLE>
<CAPTION>
                                                                                                  SIX MONTHS ENDED
                                                                                                      JUNE 30,
                                                                                          --------------------------------
                                                                                               2000              1999
                                                                                          ---------------   --------------
                                                                                               (DOLLARS IN THOUSANDS)
                                                                                          --------------------------------
<S>                                                                                       <C>               <C>
Average amount of loans outstanding                                                       $       41,835    $       28,612
                                                                                          ==============    ==============

Balance of allowance for loan losses at beginning of period                               $          482    $          360
                                                                                          --------------    --------------

Loans charged off
   Commercial and financial                                                               $            0    $            0
   Real estate mortgage                                                                                0                 0
   Instalment                                                                                          7                 0
                                                                                          --------------    --------------
                                                                                                       7                 0
                                                                                          --------------    --------------

Loans recovered
   Commercial and financial                                                                            0                 0
   Real estate mortgage                                                                                0                 0
   Instalment                                                                                          0                 2
                                                                                          --------------    --------------
                                                                                                       0                 2
                                                                                          --------------    --------------

Net charge-offs (recoveries)                                                                           7                (2)
                                                                                          --------------    --------------

Additions to allowance charged to operating expense during period                                     73                36
                                                                                          --------------    --------------

Balance of allowance for loan losses at end of period                                     $          548    $          398
                                                                                          ==============    ==============

Ratio of net loans charged off during the period to
   average loans outstanding                                                                        0.02%            (0.01)%
                                                                                          ==============    ==============
</TABLE>

Other income has remained virtually unchanged for the second quarter and first
six months of 2000 as compared to the same periods in 1999 as slightly higher
service charges on deposit accounts have been offset by slightly lower other
miscellaneous fees.

Other expenses increased during the second quarter and first six months of 2000
by $151,000 and $303,000 as compared to the same periods in 1999 due primarily
to increased salaries and employee benefits and other operating expenses.
Salaries and employee and benefits have increased due to a gradual increase of
full time equivalent employees from 14 at the beginning of 1999 to 24 as of June
30, 2000. Other operating expenses have increased due to the overall growth of
the Company and the opening of the new branch in 2000. Occupancy and equipment
expenses are expected to increase during the remainder of the year as costs
associated with the new branch are incurred. The Company also incurred losses on
sale of securities available-for-sale of $14,000 during the first six months of
2000 as compared to none during the first six months of 1999.

The Company's provision for income taxes have increased to an effective tax rate
of 38% for 2000 as compared to 35% for 1999 as the Company anticipates increased
state income taxes in 2000.



                                       12
<PAGE>   13
Overall, net income has remained virtually the same for the second quarter and
first six months of 2000 as compared to the same periods in 1999 as increased
net interest income has been substantially offset by increased operating
expenses.



                                       13
<PAGE>   14

                           PART II - OTHER INFORMATION



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

         (a)      The Annual Meeting of Shareholders was held on May 16, 2000.

         (b)      The following directors were elected for a term of one year
                  and until a successor is duly qualified and elected:

                  Catherine M. Amos
                  Jeffrey S. Bagley
                  Danny M. Bennett
                  Michael P. Bennett
                  Bryan L. Bettis
                  Talmadge W. Bolton
                  Thomas L. Bower, III
                  Charles R. Castleberry
                  Charles D. Ingram
                  Herbert A. Lang, Jr.
                  John P. McGruder
                  James J. Myers
                  Timothy M. Perry
                  Danny L. Reid
                  Charles R. Smith
                  Wyatt L. Willingham
                  Jerry M. Wood

         (c)      The following matters were voted on at the meeting as was
                  previously identified in the Proxy materials forwarded to each
                  shareholder. The shares represented at the meeting (453,654 or
                  56.71%) voted as follows:

                  1.       Proposal to elect the 17 individuals nominated by
                           management as Directors.

<TABLE>
<CAPTION>
                           Director                          For               Against          Abstain
                           --------                          ---               -------          -------
                           <S>                              <C>                <C>              <C>
                           Catherine M. Amos                450,154               0              3,500
                           Jeffrey S. Bagley                450,154               0              3,500
                           Danny M. Bennett                 450,154               0              3,500
                           Michael P. Bennett               450,154               0              3,500
                           Bryan L. Bettis                  450,154               0              3,500
                           Talmadge W. Bolton               450,154               0              3,500
                           Thomas L. Bower, III             450,154               0              3,500
                           Charles R. Castleberry           450,154               0              3,500

</TABLE>


                                       14
<PAGE>   15

                           PART II - OTHER INFORMATION





ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (CONTINUED).

<TABLE>
<CAPTION>
                           Director                          For            Against           Abstain
                           --------                          ---            -------           -------
                           <S>                              <C>             <C>               <C>
                           Charles D. Ingram                450,154             0              3,500
                           Herbert A. Lang, Jr.             450,154             0              3,500
                           John P. McGruder                 450,154             0              3,500
                           James J. Myers                   450,154             0              3,500
                           Timothy M. Perry                 450,154             0              3,500
                           Danny L. Reid                    450,154             0              3,500
                           Charles R. Smith                 450,154             0              3,500
                           Wyatt L. Willingham              450,154             0              3,500
                           Jerry M. Wood                    450,154             0              3,500
</TABLE>

                  2.       Proposal to approve long-term incentive plan.

<TABLE>
<CAPTION>
                                                             For            Against           Abstain
                                                             ---            -------           -------
                                                            <S>             <C>               <C>
                                                            448,104            0               5,550

</TABLE>

ITEM 5.  OTHER INFORMATION

         None.


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

         (a)      Exhibits.

                  27. Financial Data Schedule, (for SEC use only).

         (b)      Reports on Form 8-K.

                  None.



                                       15
<PAGE>   16
                                   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:  August 11, 2000        BY:  /s/ Timothy M. Perry
       ---------------             --------------------------------------------
                                   Timothy M. Perry, President and C.E.O.
                                   (Principal Executive Officer)


DATE:  August 11, 2000        BY:  /s/ Holly R. Hunt
       ---------------             --------------------------------------------
                                   Holly R. Hunt, Vice President, Secretary
                                     and Treasurer
                                   (Principal Financial and Accounting Officer)


                                       16