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   JUNE 30, 2003
                                              ----------------

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

          For the transition period from __________ to __________

                       COMMISSION FILE NUMBER:  333-10909

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

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

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

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

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

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

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


State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 1, 2003:      1,810,000; no par value.

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


<PAGE>
                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY



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

                                      INDEX
                                      -----

                                                                            PAGE
                                                                            ----

PART  I.  FINANCIAL  INFORMATION

          ITEM  1.  FINANCIAL  STATEMENTS

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

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

            CONSOLIDATED  STATEMENT  OF  CASH  FLOWS  -  SIX
              MONTHS  ENDED  JUNE  30,  2003  AND  2002  . . . . . . . . . . . 5

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

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

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


PART  II. OTHER  INFORMATION

          ITEM  4  -  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. 16-17

          ITEM  6  -  EXHIBITS  AND  REPORTS  ON  FORM  8-K . . . . . . . . . 17

          SIGNATURES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18


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

                          ITEM 1.  FINANCIAL STATEMENTS

                     FORSYTH BANCSHARES, INC. AND SUBSIDIARY

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


                           ASSETS
                           ------
<S>                                                       <C>
Cash and due from banks                                   $  1,888
Interest-bearing deposits in banks                             219
Federal funds sold                                           1,158
Securities available-for-sale, at fair value                18,531
Restricted equity securities                                   277

Loans                                                       76,029
Less allowance for loan losses                                 954
                                                          --------
          Loans, net                                        75,075
                                                          --------

Premises and equipment                                       5,360
Other assets                                                   721
                                                          --------

          TOTAL ASSETS                                    $103,229
                                                          ========


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

DEPOSITS
    Noninterest-bearing                                   $ 13,003
    Interest-bearing                                        77,358
                                                          --------
          TOTAL DEPOSITS                                    90,361
Securities sold under repurchase agreements                    228
Other liabilities                                              301
                                                          --------
          TOTAL LIABILITIES                                 90,890
                                                          --------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
    Common stock, no par value; 10,000,000
     shares authorized, 1,810,000 issued and outstanding     9,745
    Retained earnings                                        2,282
    Accumulated other comprehensive income                     312
                                                          --------
          TOTAL STOCKHOLDERS' EQUITY                        12,339
                                                          --------

          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $103,229
                                                          ========
</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 JUNE 30, 2003 AND 2002
                         AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                         (UNAUDITED)
                                   (DOLLARS IN THOUSANDS,
                                   EXCEPT PER SHARE DATA)

                                                            THREE MONTHS ENDED  SIX MONTHS ENDED
                                                                 JUNE 30,           JUNE 30,
                                                             ----------------  -----------------
                                                               2003    2002      2003     2002
                                                             --------  ------  ---------  ------
<S>                                                          <C>       <C>     <C>        <C>
INTEREST INCOME
    Loans                                                    $1,292    $1,184    $2,525   $2,350
    Taxable securities                                          164       230       332      456
    Nontaxable securities                                        15        14        29       29
    Deposits in banks                                             4         3         6        6
    Federal funds sold                                           10        18        22       41
                                                             --------  ------  ---------  ------
      TOTAL INTEREST INCOME                                   1,485     1,449     2,914    2,882
                                                             --------  ------  ---------  ------

INTEREST EXPENSE
    Deposits                                                    444       522       919    1,076
    Other borrowings                                              1         -         1        1
                                                             --------  ------  ---------  ------
      TOTAL INTEREST EXPENSE                                    445       522       920    1,077
                                                             --------  ------  ---------  ------

      NET INTEREST INCOME                                     1,040       927     1,994    1,805
PROVISION FOR LOAN LOSSES                                        46        50        90       90
                                                             --------  ------  ---------  ------
      NET INTEREST INCOME AFTER
        PROVISION FOR LOAN LOSSES                               994       877     1,904    1,715
                                                             --------  ------  ---------  ------

OTHER INCOME
    Service charges on deposit accounts                          63        62       135      127
    Gains on sales of securities available-for-sale               -         -         9        5
    Other operating income                                      182       137       360      307
                                                             --------  ------  ---------  ------
      TOTAL OTHER INCOME                                        245       199       504      439
                                                             --------  ------  ---------  ------

OTHER EXPENSES
    Salaries and other employee benefits                        555       454     1,059      932
    Occupancy and equipment expenses                            110       121       249      245
    Other operating expenses                                    342       260       620      506
                                                             --------  ------  ---------  ------
      TOTAL OTHER EXPENSES                                    1,007       835     1,928    1,683
                                                             --------  ------  ---------  ------

      INCOME  BEFORE INCOME TAXES                               232       241       480      471

INCOME TAX EXPENSE                                               80        81       163      159
                                                             --------  ------  ---------  ------

      NET INCOME                                                152       160       317      312
                                                             --------  ------  ---------  ------

OTHER COMPREHENSIVE INCOME (LOSS)
    Unrealized gains (losses) on securities
      available-for-sale arising during period, net of tax       23       179       (51)      69
                                                             --------  ------  ---------  ------

      COMPREHENSIVE INCOME                                   $  175    $  339    $  266   $  381
                                                             ========  =======  ========  ======
BASIC AND DILUTED EARNINGS PER SHARE                         $ 0.08    $ 0.10    $ 0.18   $ 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
                      SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                    (UNAUDITED)
                               (DOLLARS IN THOUSANDS)

                                                                   2003      2002
                                                                 --------  --------
<S>                                                              <C>       <C>
OPERATING ACTIVITIES
    Net income                                                   $   317   $   312
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                 158       123
        Provision for loan losses                                     90        90
        Gain on sales of securities available-for-sale                (9)       (5)
        Net other operating activities                              (152)      138
                                                                 --------  --------

              Net cash provided by operating activities              404       658
                                                                 --------  --------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                    (7,272)   (7,905)
    Proceeds from maturities of securities available-for-sale      4,587     2,774
    Proceeds from sales of securities available-for-sale           2,792     2,356
    Proceeds from maturities held-to-maturity                         32       103
    Purchases of restricted equity securities                        (71)       (6)
    Net increase in interest-bearing deposits in banks                (5)      (23)
    Net decrease in federal funds sold                             2,303     2,438
    Net increase in loans                                         (5,504)   (3,051)
    Purchase of premises and equipment                              (184)     (828)
                                                                 --------  --------

              Net cash used in investing activities               (3,322)   (4,142)
                                                                 --------  --------

FINANCING ACTIVITIES
    Net increase in deposits                                       2,394     2,549
    Net increase in securities sold under repurchase agreements      212         9
    Proceeds from exercise of stock options                          297         -
                                                                 --------  --------

              Net cash provided by financing activities            2,903     2,558
                                                                 --------  --------

Net decrease in cash and due from banks                              (15)     (926)

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

Cash and due from banks at end of period                         $ 1,888   $ 1,855
                                                                 ========  ========
</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 six month periods ended
          June  30,  2003  are  not  necessarily indicative of the results to be
          expected  for  the  full  year.


NOTE 2.   STOCK  COMPENSATION  PLANS

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

<TABLE>
<CAPTION>
                                                  THREE MONTHS ENDED JUNE 30,
                                                 ------------------------------
                                                     2003            2002
                                                 -------------  ---------------
<S>                                              <C>            <C>
Net income, as reported                          $         152  $           160
Deduct: Total stock-based employee compensation
   expense determined under fair value based
   method for all awards, net of tax                         6                0
                                                 -------------  ---------------
Pro forma net income                             $         146  $           160
                                                 =============  ===============
Earnings per share:
  Basic - as reported                            $         .08  $           .10
                                                 =============  ===============
  Basic - pro forma                              $         .08  $           .10
                                                 =============  ===============
  Diluted - as reported                          $         .08  $           .10
                                                 =============  ===============
  Diluted - pro forma                            $         .08  $           .10
                                                 =============  ===============
</TABLE>


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


NOTE 2.   STOCK  COMPENSATION  PLANS  (CONTINUED)

<TABLE>
<CAPTION>
                                                   SIX MONTHS ENDED JUNE 30,
                                                 -----------------------------
                                                      2003           2002
                                                 -----------------------------
<S>                                              <C>             <C>
Net income, as reported                          $          317  $         312
Deduct: Total stock-based employee compensation
   expense determined under fair value based
   method for all awards, net of tax                          6              0
                                                 --------------  -------------
Pro forma net income                             $          311  $         312
                                                 ==============  =============
Earnings per share:
  Basic - as reported                            $         0.18  $        0.20
                                                 ==============  =============
  Basic - pro forma                              $         0.17  $        0.20
                                                 ==============  =============
  Diluted - as reported                          $         0.18  $        0.20
                                                 ==============  =============
  Diluted - pro forma                            $         0.17  $        0.20
                                                 ==============  =============
</TABLE>

NOTE 3.   EARNINGS  PER  SHARE

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

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

Basic Earnings Per Share:
  Weighted average common shares outstanding       1,804,396        1,600,000
                                               =============  ===============
  Net income                                   $         152  $           160
                                               =============  ===============

  Basic earnings  per share                    $        0.08  $          0.10
                                               =============  ===============

Diluted Earnings Per Share:
  Weighted average common shares outstanding       1,804,396        1,600,000
  Net effect of the assumed exercise of stock
    options based on the treasury stock method
    using average market prices for the year               0                0
                                               -------------  ---------------
  Total weighted average common shares and
    common stock equivalents outstanding           1,804,396        1,600,000
                                               =============  ===============
  Net income                                   $         152  $           160
                                               =============  ===============
  Diluted earnings per share                   $        0.08  $          0.10
                                               =============  ===============
</TABLE>


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


NOTE 3.   EARNINGS PER SHARE (CONTINUED)

<TABLE>
<CAPTION>
                                                 SIX MONTHS ENDED JUNE 30,
                                               -----------------------------
                                                   2003            2002
                                               -------------  --------------
<S>                                            <C>            <C>
Basic Earnings Per Share:
  Weighted average common shares outstanding       1,793,494       1,600,000
                                               =============  ==============
  Net income                                   $         317  $          312
                                               =============  ==============

  Basic earnings  per share                    $        0.18  $         0.20
                                               =============  ==============

Diluted Earnings Per Share:
  Weighted average common shares outstanding       1,793,494       1,600,000
  Net effect of the assumed exercise of stock
    options based on the treasury stock method
    using average market prices for the year               0               0
                                               -------------  --------------
  Total weighted average common shares and
    common stock equivalents outstanding           1,793,494       1,600,000
                                               =============  ==============

  Net income                                   $         317  $          312
                                               =============  ==============

  Diluted earnings per share                   $        0.18  $         0.20
                                               =============  ==============
</TABLE>

NOTE 4.   CURRENT  ACCOUNTING  DEVELOPMENTS

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


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

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

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS

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

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

CRITICAL  ACCOUNTING  POLICIES

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

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

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


                                        9
<PAGE>
LIQUIDITY  AND  CAPITAL  RESOURCES

We  consider  our  liquidity  to  be adequate to meet operating and loan funding
requirements at June 30, 2003. At June 30, 2003, the liquidity ratio (i.e. cash,
short-term  assets  and marketable assets divided by deposits) was approximately
23.80%  and  the  loan  to  deposit ratio was approximately 84.1%.   As the loan
portfolio  grows, we will continue to monitor the liquidity and make adjustments
as  deemed  necessary.  Investing  our  available  funds in loans and other high
yielding  securities  will  increase  earnings  potential.

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

<TABLE>
<CAPTION>
                                   ACTUAL
                            ---------------------
                                                    REGULATORY
                                                     MINIMUM
                            CONSOLIDATED    BANK   REQUIREMENT
                            -------------  ------  ------------
<S>                         <C>            <C>     <C>
Leverage capital ratios            11.39%   8.38%         4.00%
Risk-based capital ratios:
  Tier I capital                   14.22   10.34          4.00
  Total capital                    15.35   11.48          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:

                                                  JUNE 30,
                                                    2003
                                           (Dollars in Thousands)
                                           ----------------------
             Commitments to extend credit  $               15,333
             Letters of credit                                215
                                           ----------------------
                                           $               15,548
                                           ======================


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


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

FINANCIAL  CONDITION

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

<TABLE>
<CAPTION>
                                               JUNE 30,     DECEMBER 31,
                                                 2003           2002
                                             ------------  --------------
                                                (DOLLARS IN THOUSANDS)
                                             ----------------------------
<S>                                          <C>           <C>
Cash and due from banks                      $      1,888  $        1,903
Interest-bearing deposits in banks                    219             214
Federal funds sold                                  1,158           3,461
Securities                                         18,808          18,950
Loans, net                                         75,075          69,661
Premises and equipment                              5,360           5,334
Other assets                                          721             686
                                             ------------  --------------
                                             $    103,229  $      100,209
                                             ============  ==============

Deposits                                     $     90,361  $       87,967
Securities sold under repurchase agreements           228              16
Other liabilities                                     301             450
Stockholders' equity                               12,339          11,776
                                             ------------  --------------
                                             $    103,229  $      100,209
                                             ============  ==============
</TABLE>

Our  total assets grew at a consistent rate of 3.01% for the first six months of
2003.  Deposit  growth  of  $2,394,000  coupled  with  decreases  of $142,000 in
securities,  $2,303,000  in  federal  funds  sold  and  a  $212,000  increase in
repurchase  accounts  was  invested in loans which increased by $5,414,000.  Our
loan  to  deposit ratio increased to 84.1% since December 31, 2002.  Our current
federal  funds,  securities  and  deposit  balances should provide the funds for
expected  loan  growth  in  the  future.  Stockholders'  equity has increased by
$563,000  due  to  net  income  of $317,000, proceeds from the exercise of stock
options  of  $297,000  and  decreases of unrealized gains on sales of securities
available-for-sale,  net  of  tax,  of  $51,000.


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

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

<TABLE>
<CAPTION>
                                 THREE MONTHS ENDED
                                      JUNE 30,
                                2003          2002
                           --------------  -----------
                              (DOLLARS IN THOUSANDS)
                           ---------------------------
<S>                        <C>             <C>
Interest income            $        1,485  $     1,449
Interest expense                      445          522
                           --------------  -----------
Net interest income                 1,040          927
Provision for loan losses              46           50
Other income                          245          199
Other expense                       1,007          835
                           --------------  -----------
Pretax income                         232          241
Income taxes                           80           81
                           --------------  -----------
Net income                 $          152  $       160
                           ==============  ===========
</TABLE>

<TABLE>
<CAPTION>
                                SIX MONTHS ENDED
                                    JUNE 30,
                               2003         2002
                           ------------  -----------
                             (DOLLARS IN THOUSANDS)
                           -------------------------
<S>                        <C>           <C>
Interest income            $      2,914  $     2,882
Interest expense                    920        1,077
                           ------------  -----------
Net interest income               1,994        1,805
Provision for loan losses            90           90
Other income                        504          439
Other expense                     1,928        1,683
                           ------------  -----------
Pretax income                       480          471
Income taxes                        163          159
                           ------------  -----------
Net income                 $        317  $       312
                           ============  ===========
</TABLE>

Our  net  interest  income has increased by $113,000 and $189,000 for the second
quarter  and  first  six  months  of 2003, respectively, as compared to the same
periods  in  2002.  Our  net interest margin increased to 4.23% during the first
six  months  of 2003 as compared to 4.22% for the first six months of 2002.  The
decreases  in  interest expense  and the increase in the net interest margin are
due primarily to long term  certificate of deposit and IRA products expiring and
repricing  at  lower  rates  while  loan  rates  remain  relatively  constant.


                                       12
<PAGE>
The  provision  for  loan losses decreased by $4,000  for the second quarter and
remained the same for the first six months of 2003, respectively, as compared to
the  same  periods  in 2002. We incurred net charge-offs of $21,000 in the first
six  months  of  2003  as  compared  to $26,000 in the first six months of 2002.
Based  upon  our  evaluation of the loan portfolio, we believe the allowance for
loan  losses  to  be adequate to absorb losses on existing loans that may become
uncollectible.  Our  evaluation  considers  significant  factors relative to the
credit  risk  and  loss  exposure  in the loan portfolio, including past due and
classified  loans,  historical  experience,  underlying  collateral  values, and
current  economic  conditions  that  may affect the borrower's ability to repay.
The allowance for loan losses is evaluated by segmenting the loan portfolio into
unclassified  and  classified  loans.  An allowance percentage is applied to the
unclassified  loans  to  establish  a  general  allowance  for loan losses.  The
allowance  percentage  determined  is based upon our experience specifically and
the  historical  experience  of  the  banking industry generally. The classified
loans, including impaired loans, are analyzed individually in order to establish
a specific allowance for loan losses. The total of these allowances are compared
to  the minimum allowance level range in accordance with internal policy, (1.20%
to  1.30% of total loans outstanding), with the greater amount being recorded as
the  allowance  for  loan  losses.

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

<TABLE>
<CAPTION>
                                                                                 JUNE 30,
                                                                        -------------------------
                                                                            2003         2002
                                                                        ------------  -----------
                                                                          (DOLLARS IN THOUSANDS)
                                                                        -------------------------
<S>                                                                     <C>           <C>
Nonaccrual loans                                                        $         91  $         2
Loans contractually past due ninety days or more as to interest
  or principal payments and still accruing                                        28            0
Restructured loans                                                                 0            0
Potential problem loans                                                            0            0
Interest income that would have been recorded on nonaccrual
  and restructured loans under original terms                                      3            1
Interest income that was recorded on nonaccrual and restructured loans             0            0
</TABLE>

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

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


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

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

<TABLE>
<CAPTION>
                                                                         SIX MONTHS ENDED
                                                                             JUNE 30,
                                                                        2003           2002
                                                                   ---------------  ----------
                                                                      (DOLLARS IN THOUSANDS)
                                                                   ---------------------------
<S>                                                                <C>              <C>
Average amount of loans outstanding                                $       72,753   $  61,703
                                                                   ===============  ==========

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

Loans charged off
Commercial and financial                                           $            0   $      20
Real estate mortgage                                                            0           0
Installment                                                                    32          10
                                                                   ---------------  ----------
                                                                               32          30
                                                                   ---------------  ----------

Loans recovered
Commercial and financial                                                        0           0
Real estate mortgage                                                            0           0
Installment                                                                    11           4
                                                                   ---------------  ----------
                                                                               11           4
                                                                   ---------------  ----------

Net charge-offs                                                                21          26
                                                                   ---------------  ----------

Additions to allowance charged to operating expense during period              90          90
                                                                   ---------------  ----------

Balance of allowance for loan losses at end of period              $          954   $     820
                                                                   ===============  ==========

Ratio of net loans charged off during the period to
average loans outstanding                                                    0.03%        .04%
                                                                   ===============  ==========
</TABLE>

Other  income has increased by $46,000 and $65,000 during the second quarter and
first six months of 2003, respectively, as compared to the same periods in 2002.
The increases are due to increased service charges on deposit accounts of $1,000
and  $8,000,  respectively, and increased mortgage loan origination fees $47,000
and  $64,000,  respectively.


                                       14
<PAGE>
Other  expenses increased by $172,000 and $245,000 during the second quarter and
first six months of 2003, respectively, as compared to the same periods in 2002.
The  increases  are  due to increased salaries and employee benefits of $101,000
and  $127,000,  respectively, a decrease of $11,000 for the second quarter and a
$4,000 increase for the first six months of 2003 for the occupancy and equipment
expense  and  increased  other  operating  expenses  of  $82,000  and  $114,000,
respectively.  Salaries  and  employee  and  benefits  have  increased  due  to
increased  salaries  associated with mortgage loan origination activities and to
other annual salary increases.  Occupancy and equipment expense decreased in the
second  quarter  due  to  the  bank  no  longer  leasing its main branch.  Other
operating  expenses have increased due to $36,000 paid to terminate the lease of
the  old  main  office  along  with the legal expense of the termination.  Other
operating  expenses also increased due to the higher FDIC and State assessments,
higher  mortgage  expense  and  other  expenses  due  to the growth of the Bank.

The  provision  for  income  taxes was $163,000 for the first six months of 2003
(effective  tax rate of 34%) as compared to $159,000 for the first six months of
2002  (effective  tax  rate  of  34%).

Overall, net income has decreased by $8,000 for the second quarter and increased
$5,000  for  the first six months of 2003, respectively, as compared to the same
periods  in  2002.  The  second  quarter  decrease is due to higher salaries and
operating  expenses  offset by an increase in net interest income as compared to
2002.  The increase in net income for the first six month is due to the increase
net  interest  income  offset by the increase in mortgage salaries in the second
quarter.

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


ITEM 3.  CONTROLS  AND  PROCEDURES

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

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


                                       15
<PAGE>
                           PART II - OTHER INFORMATION



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

          (a)  The  Annual  Meeting  of  Shareholders  was held on May 20, 2003.

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

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

          (c)  The  following  matters  were  voted  on  at  the  meeting as was
               previously  identified  in  the Proxy materials forwarded to each
               shareholder.  The shares represented at the meeting (1,185,836 or
               66.1%)  voted  as  follows:

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

          Director                 For        Against     Abstain
          --------                 ---        -------     -------

     Catherine  M.  Amos         1,183,304     2,532           0
     Jeffrey  S.  Bagley         1,184,836     1,000           0
     Danny  M.  Bennett          1,184,836     1,000           0
     Michael  P.  Bennett        1,184,836     1,000           0
     Bryan  L.  Bettis           1,184,836     1,000           0
     Talmadge  W.  Bolton        1,184,836     1,000           0
     Thomas  L.  Bower,  III     1,184,836     1,000           0
     Charles  R.  Castleberry    1,184,836     1,000           0


                                       16
<PAGE>
                           PART II - OTHER INFORMATION



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

          Director                For        Against       Abstain
          --------                ---        -------       -------

     Charles  D.  Ingram        1,184,836     1,000             0
     Herbert  A.  Lang,  Jr.    1,184,836     1,000             0
     John  P.  McGruder         1,184,836     1,000             0
     James  J.  Myers           1,184,836     1,000             0
     Timothy  M.  Perry         1,184,836     1,000             0
     Danny  L.  Reid            1,184,836     1,000             0
     Charles  R.  Smith         1,183,304     2,532             0
     Wyatt  L.  Willingham      1,184,836     1,000             0
     Jerry  M.  Wood            1,184,836     1,000             0

               2.   Proposal to approve the issuance of certain stock options to
                    one  of  the  directors as a correction to the plan that was
                    previously  approved  by  the  Company's shareholders at the
                    2001  Annual  Meeting.

                        For                Against              Abstain
                        ---                -------              -------
                     1,137,904              37,232              10,700

ITEM 6.   EXHIBITS  AND  REPORTS  ON  FORM  8-K

          (a)  Exhibits.

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

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

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

          (b)  Reports  on  Form  8-K.

               None.


                                       17
<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:  August 13, 2003            BY:  /s/  Timothy M. Perry
       ---------------               -------------------------------------------
                                          Timothy M. Perry, President and C.E.O.
                                          (Principal  Executive  Officer)


DATE:  August 13, 2003            BY:  /s/  Timothy D. Foreman
       ---------------               -------------------------------------------
                                          Timothy D. Foreman, Vice President,
                                          Secretary  and  Treasurer
                                          (Principal  Financial  and  Accounting
                                          Officer)


                                       18
<PAGE>