<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    SEPTEMBER 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 November 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>
PART I.  FINANCIAL INFORMATION

         ITEM 1. FINANCIAL STATEMENTS

           CONSOLIDATED BALANCE SHEET - SEPTEMBER 30, 2000.....................................       3

           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
              INCOME (LOSS) - THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
              AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999................................       4

           CONSOLIDATED STATEMENT OF CASH FLOWS - NINE
              MONTHS ENDED SEPTEMBER 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

         ITEM 5 - OTHER INFORMATION............................................................      14

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

         SIGNATURES............................................................................      15
</TABLE>


                                       2
<PAGE>   3

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

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

<TABLE>
<S>                                                              <C>
                        ASSETS

Cash and due from banks                                          $  2,895
Interest-bearing deposits in banks                                    168
Federal funds sold                                                  7,430
Securities available-for-sale, at fair value                       20,149
Securities held-to-maturity, fair value of $884                       893

Loans                                                              44,877
Less allowance for loan losses                                        562
                                                                 --------
          Loans, net                                               44,315
                                                                 --------

Premises and equipment                                              1,489
Other assets                                                        1,326
                                                                 --------

          TOTAL ASSETS                                           $ 78,665
                                                                 ========

         LIABILITIES AND STOCKHOLDERS' EQUITY

DEPOSITS
    Noninterest-bearing demand                                   $  8,379
    Interest-bearing demand                                        15,376
    Savings                                                           918
    Time                                                           45,062
                                                                 --------
          TOTAL DEPOSITS                                           69,735
Other liabilities                                                     530
                                                                 --------
          TOTAL LIABILITIES                                        70,265
                                                                 --------

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS' EQUITY
    Common stock, no par value; 10,000,000 shares
     shares authorized, 800,000 issued and outstanding              7,960
    Retained earnings                                                 831
    Accumulated other comprehensive loss                             (391)
                                                                 --------
          TOTAL STOCKHOLDERS' EQUITY                                8,400
                                                                 --------

          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $ 78,665
                                                                 ========
</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 SEPTEMBER 30, 2000 AND 1999
                AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS,
                             EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                  SEPTEMBER 30,                 SEPTEMBER 30,
                                                            -------------------------     -------------------------

                                                               2000           1999           2000           1999
                                                            ----------     ----------     ----------     ----------

<S>                                                         <C>            <C>            <C>            <C>
INTEREST INCOME
    Loans                                                   $    1,143     $      836     $    3,207     $    2,241
    Taxable securities                                             290            319            885            989
    Nontaxable securities                                           20             20             60             45
    Deposits in banks                                                6             --             12             --
    Federal funds sold                                             134              9            239            122
                                                            ----------     ----------     ----------     ----------
              TOTAL INTEREST INCOME                              1,593          1,184          4,403          3,397
                                                            ----------     ----------     ----------     ----------

INTEREST EXPENSE
    Deposits                                                       827            526          2,176          1,630
    Other borrowings                                                --             --              2             --
                                                            ----------     ----------     ----------     ----------
              TOTAL INTEREST EXPENSE                               827            526          2,178          1,630
                                                            ----------     ----------     ----------     ----------

              NET INTEREST INCOME                                  766            658          2,225          1,767
PROVISION FOR LOAN LOSSES                                           14             94             87            130
                                                            ----------     ----------     ----------     ----------
              NET INTEREST INCOME AFTER
                 PROVISION FOR LOAN LOSSES                         752            564          2,138          1,637
                                                            ----------     ----------     ----------     ----------

OTHER INCOME
    Service charges on deposit accounts                             39             25             95             75
    Gain on sales of securities available-for-sale                  --              7             --              7
    Other operating income                                           4              3             18             22
                                                            ----------     ----------     ----------     ----------
              TOTAL OTHER INCOME                                    43             35            113            104
                                                            ----------     ----------     ----------     ----------

OTHER EXPENSES
    Salaries and other employee benefits                           281            207            813            578
    Occupancy and equipment expenses                               105             73            274            211
    Loss on sales of securities available-for-sale                  --             --             14             --
    Other operating expenses                                       169            176            553            463
                                                            ----------     ----------     ----------     ----------
              TOTAL OTHER EXPENSES                                 555            456          1,654          1,252
                                                            ----------     ----------     ----------     ----------

              INCOME BEFORE INCOME TAXES                           240            143            597            489

INCOME TAX EXPENSE                                                  90             61            226            184
                                                            ----------     ----------     ----------     ----------

              NET INCOME                                           150             82            371            305
                                                            ----------     ----------     ----------     ----------

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
    Unrealized gains (losses) on securities
      available-for-sale arising during period                     210           (125)           322           (563)
                                                            ----------     ----------     ----------     ----------

              COMPREHENSIVE INCOME (LOSS)                   $      360     $      (43)    $      693     $     (258)
                                                            ==========     ==========     ==========     ==========

BASIC AND DILUTED EARNINGS PER COMMON SHARE                 $     0.19     $     0.10     $     0.46     $     0.38
                                                            ==========     ==========     ==========     ==========

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
                  NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                        2000         1999
                                                                      --------     --------

<S>                                                                   <C>          <C>
OPERATING ACTIVITIES
    Net income                                                        $    371     $    305
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                       136           95
        Provision for loan losses                                           87          130
        (Gain) loss on sales of securities available-for-sale               14           (7)
        Other operating activities                                        (161)        (107)
                                                                      --------     --------

              Net cash provided by operating activities                    447          416
                                                                      --------     --------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                            (186)      (5,416)
    Proceeds from maturities of securities available-for-sale              396          674
    Proceeds from sales of securities available-for-sale                   987        2,250
    Proceeds from maturities held-to-maturity                               40          666
    Net increase in interest-bearing deposits in banks                    (168)          --
    Net (increase) decrease in Federal funds sold                       (5,370)       6,730
    Net increase in loans                                               (6,331)      (8,412)
    Purchase of premises and equipment                                    (574)        (119)
                                                                      --------     --------

              Net cash used in investing activities                    (11,206)      (3,627)
                                                                      --------     --------

FINANCING ACTIVITIES
    Net increase in deposits                                            11,695        3,012
                                                                      --------     --------

              Net cash provided by financing activities                 11,695        3,012
                                                                      --------     --------

Net increase (decrease) in cash and due from banks                         936         (199)

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

Cash and due from banks at end of period                              $  2,895     $  1,127
                                                                      ========     ========
</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 nine month periods ended
         September 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 September 30, 2000. At September 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 64%. 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             11.30%           9.80%           4.00%
         Risk-based capital ratios:
            Tier I capital                   17.17           15.01            4.00
            Total capital                    17.82           16.13            8.00
</TABLE>

FINANCIAL CONDITION

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

<TABLE>
<CAPTION>
                                  SEPTEMBER 30,   DECEMBER 31,
                                       2000          1999            INCREASE (DECREASE)
                                  -------------   ------------     -----------------------
                                     (DOLLARS IN THOUSANDS)         AMOUNT        PERCENT
                                  ----------------------------     --------       --------

<S>                               <C>             <C>              <C>            <C>
Cash and due from banks              $  3,063       $  1,959       $  1,104          56.36%
Federal funds sold                      7,430          2,060          5,370         260.68
Securities                             21,042         21,843           (801)         (3.67)
Loans                                  44,315         38,072          6,243          16.40
Premises and equipment                  1,489          1,051            438          41.67
Other assets                            1,326          1,224            102           8.33
                                     --------       --------       --------
                                     $ 78,665       $ 66,209       $ 12,456          18.81
                                     ========       ========       ========

Deposits                             $ 69,735       $ 58,040       $ 11,695          20.15%
Other liabilities                         530            462             68          14.72
Stockholders' equity                    8,400          7,707            693           8.99
                                     --------       --------       --------
                                     $ 78,665       $ 66,209       $ 12,456          18.81
                                     ========       ========       ========
</TABLE>


                                       8
<PAGE>   9

As indicated in the above table, the Company's total assets grew at a rate of
18.81%. Deposit growth of $11,695,000 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 and
the purchase of land for future branch expansion. Stockholders' equity has
increased by $693,000 due to net income of $371,000 and decreases of unrealized
losses on securities available-for-sale, net of tax, of $322,000.


                                       9
<PAGE>   10

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 AND
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

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

<TABLE>
<CAPTION>
                                   THREE MONTHS ENDED
                                     SEPTEMBER 30,
                                  2000            1999         INCREASE (DECREASE)
                                 ------          ------      -----------------------
                                 (DOLLARS IN THOUSANDS)      AMOUNT          PERCENT
                                 ----------------------      ------          -------

<S>                              <C>             <C>         <C>             <C>
Interest income                  $1,593          $1,184      $  409           34.54%
Interest expense                    827             526         301           57.22
                                 ------          ------      ------
Net interest income                 766             658         108           16.41
Provision for loan losses            14              94         (80)         (85.11)
Other income                         43              35           8           22.86
Other expense                       555             456          99           21.71
                                 ------          ------      ------
Pretax income                       240             143          97           67.83
Income taxes                         90              61          29           47.54
                                 ------          ------      ------
Net income                       $  150          $   82      $   68           82.93
                                 ======          ======      ======

<CAPTION>
                                          NINE MONTHS ENDED
                                            SEPTEMBER 30,
                                         2000            1999            INCREASE (DECREASE)
                                        ------          ------          ----------------------
                                        (DOLLARS IN THOUSANDS)          AMOUNT         PERCENT
                                        ----------------------          ------         -------

<S>                                     <C>             <C>             <C>            <C>
Interest income                         $4,403          $3,397          $1,006           29.61%
Interest expense                         2,178           1,630             548           33.62
                                        ------          ------          ------
Net interest income                      2,225           1,767             458           25.92
Provision for loan losses                   87             130             (43)         (33.08)
Other income                               113             104               9            8.65
Other expense                            1,654           1,252             402           32.11
                                        ------          ------          ------
Pretax income                              597             489             108           22.09
Income taxes                               226             184              42           22.83
                                        ------          ------          ------
Net income                              $  371          $  305          $   66           21.64
                                        ======          ======          ======
</TABLE>

As indicated in the above table, the Company's net interest income has increased
by $108,000 and $458,000 for the third quarter and first nine months of 2000 as
compared to the same periods in 1999. The Company's net interest margin
increased to 4.26% during the first nine months of 2000 as compared to 3.99% for
the first nine 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 $80,000 and $43,000 for the third
quarter and first nine 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 September 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
September 30, 2000 and 1999 is as follows:

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

<S>                                                                         <C>               <C>
Nonaccrual loans                                                            $ 16               $ 26
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                                    8                  2
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                                 2                  2
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
September 30, 2000 and 1999 is as follows:

<TABLE>
<CAPTION>
                                                                             NINE MONTHS ENDED
                                                                               SEPTEMBER 30,
                                                                           ----------------------
                                                                             2000          1999
                                                                           --------      --------
                                                                           (DOLLARS IN THOUSANDS)
                                                                           ----------------------

<S>                                                                        <C>           <C>
Average amount of loans outstanding                                        $ 42,621      $ 31,171
                                                                           ========      ========

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

Loans charged off
   Commercial and financial                                                $      0      $     40
   Real estate mortgage                                                           0            --
   Instalment                                                                     7             1
                                                                           --------      --------
                                                                                  7            41
                                                                           --------      --------

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

Net charge-offs                                                                   7            39
                                                                           --------      --------

Additions to allowance charged to operating expense during period                87           130
                                                                           --------      --------

Balance of allowance for loan losses at end of period                      $    562      $    451
                                                                           ========      ========

Ratio of net loans charged off during the period to
   average loans outstanding                                                    .02%         0.13%
                                                                           ========      ========
</TABLE>

Other income has increased slightly for the third quarter and first nine months
of 2000 as compared to the same periods in 1999 due to primarily to increased
service charges on deposit accounts.

Other expenses increased during the third quarter and first nine months of 2000
by $99,000 and $402,000 as compared to the same periods in 1999 due primarily to
increased salaries and employee benefits and other operating expenses. Salaries
and employee benefits have increased due to a gradual increase of full time
equivalent employees from 14 at the beginning of 1999 to 25 as of September 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 have increased and are expected to continue 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 nine months of 2000 as compared to none during the first nine
months of 1999.

The Company's provision for income taxes has increased during the third quarter
and first nine months of 2000 by $29,000 and $42,000 as compared to the same
periods in 1999 due to higher pretax income.


                                       12
<PAGE>   13

Overall, net income has increased by $68,000 and $66,000 for the third quarter
and first nine months of 2000 as compared to the same periods in 1999 as
increased net interest income and reduced loan loss provisions have been offset
by increased operating expenses.


                                       13
<PAGE>   14

                           PART II - OTHER INFORMATION

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

                  None.

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.


                                       14
<PAGE>   15

                                   SIGNATURES

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

                                FORSYTH BANCSHARES, INC.
                                (Registrant)


DATE: November 10, 2000         BY: /s/ Timothy M. Perry
      -----------------             --------------------------------------------
                                    Timothy M. Perry, President and C.E.O.
                                    (Principal Executive Officer)


DATE: November 10, 2000         BY: /s/ Holly R. Hunt
      -----------------             --------------------------------------------
                                    Holly R. Hunt, Vice President, Secretary
                                    and Treasurer
                                    (Principal Financial and Accounting Officer)


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