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

                                   FORM 10-QSB
Mark  One

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

          For  the  quarterly  period  ended    SEPTEMBER 30, 2002
                                             -------------------------

[ ]  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, 2002:      800,000;  no par value.

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


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



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

                                      INDEX
                                      -----



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

   ITEM 1.  FINANCIAL STATEMENTS

      CONSOLIDATED BALANCE SHEET - SEPTEMBER 30, 2002 . . . . .      3

      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
        INCOME - THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
        AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 . . .      4

      CONSOLIDATED STATEMENT OF CASH FLOWS - NINE
        MONTHS ENDED SEPTEMBER 30, 2002 AND 2001  . . . . . . .      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 5 - OTHER INFORMATION . . . . . . . . . . . . . . . . .     14

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

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

   CERTIFICATIONS . . . . . . . . . . . . . . . . . . . . . . .     16
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION

                          ITEM 1.  FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2002
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


                     ASSETS
                     ------
<S>                                                     <C>
Cash and due from banks                               $   1,607
Interest-bearing deposits in banks                          211
Federal funds sold                                        5,080
Securities available-for-sale, at fair value             18,711
Securities held-to-maturity, fair value of $48               48
Restricted equity securities                                206

Loans                                                    66,632
Less allowance for loan losses                              855
                                                       --------
            Loans, net                                   65,777
                                                       --------
                                                          4,684
Other assets                                                764
                                                       --------
          TOTAL ASSETS                                 $ 97,088
                                                       ========

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

DEPOSITS
   Noninterest-bearing                                  $10,486
   Interest-bearing                                      76,018
                                                       --------
          TOTAL DEPOSITS                                 86,504
Other liabilities                                           488
                                                       --------
          TOTAL LIABILITIES                              86,992
                                                       --------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
    Common stock, no par value; 10,000,000 shares
     shares authorized, 800,000 issued and outstanding    7,960
    Retained earnings                                     1,802
    Accumulated other comprehensive income                  334
                                                       --------
          TOTAL STOCKHOLDERS' EQUITY                     10,096
                                                       --------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 97,088
                                                       ========
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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

                                       CONSOLIDATED STATEMENTS OF INCOME
                                           AND COMPREHENSIVE INCOME
                                THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                               AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                                  (UNAUDITED)
                                            (DOLLARS IN THOUSANDS,
                                            EXCEPT PER SHARE DATA)


                                                                  THREE MONTHS ENDED         NINE MONTHS ENDED
                                                                     SEPTEMBER 30,             SEPTEMBER 30,
                                                              --------------------------  --------------------
                                                                  2002          2001          2002       2001
                                                              ------------  ------------  ------------  ------
<S>                                                           <C>           <C>           <C>           <C>
INTEREST INCOME
    Loans                                                     $      1,214  $      1,314  $      3,564  $3,827
    Taxable securities                                                 215           270           671     890
    Nontaxable securities                                               14            14            43      56
    Deposits in banks                                                    2             6             8      15
    Federal funds sold                                                  19            30            60     169
                                                              ------------  ------------  ------------  ------
              TOTAL INTEREST INCOME                                  1,464         1,634         4,346   4,957
                                                              ------------  ------------  ------------  ------

INTEREST EXPENSE
    Deposits                                                           553           811         1,629   2,654
    Other borrowings                                                     -             -             1       -
                                                              ------------  ------------  ------------  ------
              TOTAL INTEREST EXPENSE                                   553           811         1,630   2,654
                                                              ------------  ------------  ------------  ------

              NET INTEREST INCOME                                      911           823         2,716   2,303
PROVISION FOR LOAN LOSSES                                               55           136           145     259
                                                              ------------  ------------  ------------  ------
              NET INTEREST INCOME AFTER
                 PROVISION FOR LOAN LOSSES                             856           687         2,571   2,044
                                                              ------------  ------------  ------------  ------

OTHER INCOME
    Service charges on deposit accounts                                 67            57           194     158
    Gains on sales of securities available-for-sale                      -             -             5       6
    Other operating income                                             153           162           460     197
                                                              ------------  ------------  ------------  ------
              TOTAL OTHER INCOME                                       220           219           659     361
                                                              ------------  ------------  ------------  ------

OTHER EXPENSES
    Salaries and other employee benefits                               460           448         1,392   1,135
    Occupancy and equipment expenses                                   118           127           363     358
    Other operating expenses                                           252           224           758     670
                                                              ------------  ------------  ------------  ------
              TOTAL OTHER EXPENSES                                     830           799         2,513   2,163
                                                              ------------  ------------  ------------  ------

              INCOME  BEFORE INCOME TAXES                              246           107           717     242

INCOME TAX EXPENSE                                                      83            36           242      80
                                                              ------------  ------------  ------------  ------

              NET INCOME                                               163            71           475     162
                                                              ------------  ------------  ------------  ------

OTHER COMPREHENSIVE INCOME
    Unrealized gains on securities
      available-for-sale arising during period, net of tax             101           168           170     392
                                                              ------------  ------------  ------------  ------
              COMPREHENSIVE INCOME                            $        264  $        239  $        645  $  554
                                                              ============  ============  ============  ======
BASIC AND DILUTED EARNINGS PER SHARE                          $       0.20  $       0.09  $       0.59  $ 0.20
                                                              ============  ============  ============  ======
CASH DIVIDENDS PER SHARE                                      $          -  $          -  $          -  $    -
                                                              ============  ============  ============  ======
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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

                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                   NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                    (UNAUDITED)
                              (DOLLARS IN THOUSANDS)


                                                                 2002      2001
                                                               --------  ---------
<S>                                                            <C>       <C>
OPERATING ACTIVITIES
    Net income                                                 $   475   $    162
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                               179        188
        Provision for loan losses                                  145        259
        Gain on sales of securities available-for-sale              (5)        (6)
        Net other operating activities                             196        (17)
                                                               --------  ---------

              Net cash provided by operating activities            990        586
                                                               --------  ---------
INVESTING ACTIVITIES
    Purchases of securities available-for-sale                  (9,460)    (9,205)
    Proceeds from maturities of securities available-for-sale    4,582     11,163
    Proceeds from sales of securities available-for-sale         2,356      4,037
    Proceeds from maturities held-to-maturity                      205        557
    Purchases of restricted equity securities                       (6)         -
    Net increase in interest-bearing deposits in banks             (25)       (11)
    Net (increase)decrease in federal funds sold                 2,286     (2,661)
    Net increase in loans                                       (6,006)   (10,542)
    Purchase of premises and equipment                          (1,815)      (721)
                                                               --------  ---------

              Net cash used in investing activities             (7,883)    (7,383)
                                                               --------  ---------
FINANCING ACTIVITIES
    Net increase in deposits                                     5,719      6,618
                                                               --------  ---------
              Net cash provided by financing activities          5,719      6,618
                                                               --------  ---------
Net decrease in cash and due from banks                         (1,174)      (179)

Cash and due from banks at beginning of period                   2,781      2,575
                                                               --------  ---------
Cash and due from banks at end of period                       $ 1,607   $  2,396
                                                               ========  =========
</TABLE>


SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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




NOTE 1.   BASIS OF PRESENTATION

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

          The  results  of operations for the three and nine month periods ended
          September 30, 2002 are not necessarily indicative of the results to be
          expected  for  the  full  year.


NOTE 2.   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  (the  "Bank"),  during  the  periods  included  in  the  accompanying
consolidated  financial  statements.

SPECIAL  CAUTIONARY  NOTICE  REGARDING  FORWARD  LOOKING  STATEMENTS

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

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

CRITICAL  ACCOUNTING  POLICIES

We  have  adopted  various  accounting  policies which govern the application of
accounting principles generally accepted in the United States in the preparation
of  our  financial statements. Our significant accounting policies are described
in  the  footnotes to the consolidated financial statements at December 31, 2001
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.

LIQUIDITY  AND  CAPITAL  RESOURCES


                                        7
<PAGE>
We  consider  our  liquidity  to  be adequate to meet operating and loan funding
requirements  at  September 30, 2002. At September 30, 2002, the liquidity ratio
(i.e.  cash,  short-term  assets  and marketable assets divided by deposits) was
approximately  30%  and  the loan to deposit ratio was approximately 77%. As the
loan  portfolio  grows,  we  will  continue  to  monitor  the liquidity and make
adjustments  as  deemed  necessary.  Investing  our available funds in loans and
other  high  yielding  securities  will  increase  earnings  potential.

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

<TABLE>
<CAPTION>
                                                   ACTUAL
                                          ---------------------
                                                                  REGULATORY
                                                                   MINIMUM
                                          CONSOLIDATED    BANK   REQUIREMENT
                                          -------------  ------  ------------
<S>                                       <C>            <C>     <C>
              Leverage capital ratios           10.13%    8.48%        4.00 %
              Risk-based capital ratios:
                Tier I capital                  12.78    10.73         4.00
                Total capital                   13.90    11.86         8.00
</TABLE>

OFF-BALANCE  SHEET  RISK

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

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

<TABLE>
<CAPTION>
                                            SEPTEMBER 30,
                                                 2002
                                            -------------
<S>                                         <C>
              Commitments to extend credit  $      11,711
              Letters of credit                       115
                                            -------------
                                            $      11,826
                                            =============
</TABLE>

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.

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.


                                        8
<PAGE>
FINANCIAL  CONDITION

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


<TABLE>
<CAPTION>
                                             SEPTEMBER 30,   DECEMBER 31,
                                                  2002           2001
                                             --------------  -------------
                                                (DOLLARS IN THOUSANDS)
                                             -----------------------------
<S>                                          <C>             <C>
Cash and due from banks                      $        1,607  $       2,781
Interest-bearing deposits in banks                      211            186
Federal funds sold                                    5,080          7,366
Securities                                           18,965         16,362
Loans, net                                           65,777         59,916
Premises and equipment                                4,684          3,048
Other assets                                            764            927
                                             --------------  -------------
                                             $       97,088  $      90,586
                                             ==============  =============

Deposits                                     $       86,504  $      80,785
Securities sold under repurchase agreements               -              -
Other liabilities                                       488            350
Stockholders' equity                                 10,096          9,451
                                             --------------  -------------
                                             $       97,088  $      90,586
                                             ==============  =============
</TABLE>


Our total assets grew by 7.2% for the first nine months of 2002.  Deposit growth
of  $5,719,000  coupled  with decreases in federal funds sold and cash positions
totaling $3,460,000 was invested primarily in securities and loans.  Our loan to
deposit ratio has remained steady since December 31, 2001, holding in the 75-77%
range.  Our  current  federal  funds  and securities balances should provide the
funds  for  expected  loan  growth  in  the  future.  Stockholders'  equity  has
increased  by $645,000 due to net income of $475,000 and increases of unrealized
gains  on  sales  of  securities  available-for-sale,  net  of tax, of $170,000.

We  are  in process of building new main office facilities to replace the leased
facilities  we  currently occupy.  We anticipate moving into the new location in
November  2002.  At  September  30,  3002  we had approximately $500 thousand of
commitments  for  capital  expenditures  to  complete  the construction process.


                                        9
<PAGE>
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 AND
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

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

<TABLE>
<CAPTION>
                             THREE MONTHS ENDED
                                SEPTEMBER 30,
                              2002        2001
                           ----------  ----------
                           (DOLLARS IN THOUSANDS)
                           ----------------------
<S>                        <C>         <C>
Interest income            $    1,464  $    1,634
Interest expense                  553         811
                           ----------  ----------
Net interest income               911         823
Provision for loan losses          55         136
Other income                      220         219
Other expense                     830         799
                           ----------  ----------
Pretax income                     246         107
Income taxes                       83          36
                           ----------  ----------
Net income                 $      163  $       71
                           ==========  ==========
</TABLE>

<TABLE>
<CAPTION>
                               NINE MONTHS ENDED
                                 SEPTEMBER 30,
                              2002         2001
                           -----------  -----------
                            (DOLLARS IN THOUSANDS)
                           ------------------------
<S>                        <C>          <C>
Interest income            $     4,346  $     4,957
Interest expense                 1,630        2,654
                           -----------  -----------
Net interest income              2,716        2,303
Provision for loan losses          145          259
Other income                       659          361
Other expense                    2,513        2,163
                           -----------  -----------
Pretax income                      717          242
Income taxes                       242           80
                           -----------  -----------
Net income                 $       475  $       162
                           ===========  ===========
</TABLE>

Our  net  interest  income  has  increased by $88,000 and $413,000 for the third
quarter  and  first  nine  months of 2002, respectively, as compared to the same
periods  in  2001.  Our  net interest margin increased to 4.16% during the first
nine  months  of 2002 as compared to 3.80% for the first nine months of 2001 and
3.84% for the entire year of 2001.  The increases in net interest income and the
net  interest  margin are due primarily to the repricing of our interest-bearing
liabilities  at  lower  rates.



                                       10
<PAGE>
The  provision  for  loan losses decreased by $81,000 and $114,000 for the third
quarter  and  first  nine  months of 2002, respectively, as compared to the same
periods  in  2001.  The  decreases  are  due  primarily  to a lower rate of loan
growth,  lower  net loan charge-offs, and our assessment of inherent risk in the
loan portfolio.  We incurred net charge-offs of $46,000 in the first nine months
of  2002  as  compared to $111,000 in the first nine months of 2001.  Based upon
our  evaluation  of the loan portfolio, we believe the allowance for loan losses
to be adequate to absorb losses on existing loans that may become uncollectible.
Our  evaluation  considers  significant  factors relative to the credit risk and
loss  exposure  in  the loan portfolio, including past due and classified loans,
historical  experience,  underlying  collateral  values,  and  current  economic
conditions  that  may affect the borrower's ability to repay.  The allowance for
loan  losses is evaluated by segmenting the loan portfolio into unclassified and
classified  loans.  An allowance percentage is applied to the unclassified loans
to  establish  a  general  allowance  for loan losses.  The allowance percentage
determined  is  based  upon  our  experience  specifically  and  the  historical
experience  of  the  banking industry generally. The classified loans, including
impaired  loans,  are  analyzed  individually  in  order to establish a specific
allowance  for  loan  losses.  The total of these allowances are compared to the
minimum  allowance  level  range  in  accordance with internal policy, (1.20% to
1.30% of total loans outstanding), with the greater amount being recorded as the
allowance  for  loan  losses.

Information  with  respect  to  nonaccrual,  past  due and restructured loans at
September  30,  2002  and  2001  is  as  follows:

<TABLE>
<CAPTION>
                                                                             SEPTEMBER 30,
                                                                           2002         2001
                                                                        -----------  -----------
                                                                         (DOLLARS IN THOUSANDS)
                                                                        ------------------------
<S>                                                                     <C>          <C>
Nonaccrual loans                                                        $        36  $        44
Loans contractually past due ninety days or more as to interest
  or principal payments and still accruing                                        0            1
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 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.


                                       11
<PAGE>
Loans  classified  for  regulatory  purposes  as loss, doubtful, substandard, or
special  mention that have not been included in the table above do not represent
or  result from trends or uncertainties which management reasonably expects will
materially  impact  future  operating  results,  liquidity or capital resources.
These  classified loans do not represent material credits about which management
is aware of any information which causes management to have serious doubts as to
the  ability  of  such  borrowers  to  comply  with  the  loan  repayment terms.

Information  regarding  certain  loans  and allowance for loan loss data through
September  30,  2002  and  2001  is  as  follows:

<TABLE>
<CAPTION>
                                                                      NINE MONTHS ENDED
                                                                        SEPTEMBER 30,
                                                                   ------------------------
                                                                     2002         2001
                                                                   -----------  -----------
                                                                    (DOLLARS IN THOUSANDS)
                                                                   ------------------------
<S>                                                                <C>          <C>

Average amount of loans outstanding                                $    63,182  $    53,489
                                                                   ===========  ===========
Balance of allowance for loan losses at beginning of period        $       756  $       604
                                                                   -----------  -----------
Loans charged off
  Commercial and financial                                         $        34  $        15
  Real estate mortgage                                                       0            0
  Installment                                                               15          100
                                                                   -----------  -----------
                                                                            49          115
                                                                   -----------  -----------

Loans recovered
  Commercial and financial                                                   0            0
  Real estate mortgage                                                       0            0
  Installment                                                                3            4
                                                                   -----------  -----------
                                                                             3            4
                                                                   -----------  -----------

Net charge-offs                                                             46          111
                                                                   -----------  -----------
Additions to allowance charged to operating expense during period          145          259
                                                                   -----------  -----------
Balance of allowance for loan losses at end of period              $       855  $       752
                                                                   ===========  ===========
Ratio of net loans charged off during the period to
  average loans outstanding                                            0.07  %       . 21 %
                                                                   ===========  ===========
</TABLE>


Other  income  has increased by $1,000 and $298,000 during the third quarter and
first  nine  months  of  2002,  respectively, as compared to the same periods in
2001.  The  year to date increase is due to increased service charges on deposit
accounts  of  $36,000 and increased mortgage loan origination fees $258,000.  We
commenced  mortgage  loan  origination activities in the second quarter of 2001.


                                       12
<PAGE>
Other  expenses  increased  by $31,000 and $350,000 during the third quarter and
first  nine  months  of  2002,  respectively, as compared to the same periods in
2001.  The  increases  are  due  to  increased salaries and employee benefits of
$12,000  and  $257,000,  respectively, and increased other operating expenses of
$28,000  and  $88,000,  respectively.  Salaries  and  employee and benefits have
increased  due  to  increased salaries associated with mortgage loan origination
activities  and to other annual salary increases.  Other operating expenses have
increased  due  to  the  overall  growth  of  the  Bank.

The  provision  for  income taxes was $242,000 for the first nine months of 2002
(effective  tax rate of 34%) as compared to $80,000 for the first nine months of
2001  (effective  tax rate of 33%).  The increase in amount is due to higher pre
tax  income  in  2002.

Overall,  net income has increased by $92,000 and $313,000 for the third quarter
and  first nine months of 2002, respectively, as compared to the same periods in
2001. The increases are due to higher net interest margins, decreased loans loss
provisions,  and  higher other income due substantially in part to mortgage loan
origination  activities.

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

Within  90  days  prior  to the date of filing of this report, we carried out an
evaluation,  under  the  supervision  and  with  the  participation of our Chief
Executive  Officer  and the Chief Financial Officer, of the design and operation
of  our disclosure controls and procedures.  Based on this evaluation, our Chief
Executive  Officer  and  Chief  Financial  Officer concluded that our disclosure
controls  and  procedures  are effective for gathering, analyzing and disclosing
the  information  that  we are required to disclose in the reports we file under
the  Securities  Exchange  Act of 1934, within the time periods specified in the
SEC's  rules and forms.  Our Chief Executive Officer and Chief Financial Officer
also  concluded  that  our  disclosure  controls and procedures are effective in
timely alerting them to material information relating to our company required to
be  included  in our periodic SEC filings.  In connection with the new rules, we
are  in the process of further reviewing and documenting our disclosure controls
and  procedures,  including  our  internal controls and procedures for financial
reporting,  and  may  from  time  to time make changes designed to enhance their
effectiveness  and  to  ensure  that  our  systems  evolve  with  our  business.

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


                                       13
<PAGE>
                           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.

               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:  November 13, 2002             BY: /s/ Timothy M. Perry
       -------------------              ---------------------------------------
                                        Timothy M. Perry, President and C.E.O.
                                        (Principal Executive Officer)


Date:  November 13, 2002             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:  November 13, 2002
       -----------------


                                   /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:  November 13, 2002
       -----------------


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


                                       19
<PAGE>