UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

OF THE SECURITIES EXCHANGE ACT OF 1934For the Transition Period from ______________ to _____________.
Commission file number 2-94292FNB Banking Company(Exact name of registrant as specified in its charter)



|Georgia                                  | 58-1479370                          
|---------------------------------------- | ------------------------------------
|(State of Incorporation)                 | (I.R.S. Employer Identification No.)
|                                         |                                     
|318 South Hill Street                    |                                     
|Griffin, Georgia                         | 30224                               
|(Address of principal executive offices) | (Zip Code)                          



770-227-2251(Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 XX     NO

Common stock, par value $1 per share: 784,744 shares
outstanding as of November 1, 2000





---



FNB BANKING COMPANY AND SUBSIDIARY

INDEX

|           |                                                                 |                                                                   
|---------- | --------------------------------------------------------------- | ------------------------------------------------------------------
|PART I     | FINANCIAL INFORMATION                                          
|           |                                                                 |                                                                   
|           | Financial Statements                                           
|           |                                                                 |                                                                   
|           |                                                                 | Consolidated Balance Sheet (unaudited) at September 30, 2000      
|           |                                                                 |                                                                   
|           |                                                                 | Consolidated Statements of Earnings(unaudited) for the Three      
|           |                                                                 | Months and the Nine Months Ended September 30, 2000 and 1999      
|           |                                                                 |                                                                   
|           |                                                                 | Consolidated Statements of Comprehensive Income(unaudited) for the
|           |                                                                 | Three Months and the Nine Months Ended September 30, 2000 and 1999
|           |                                                                 |                                                                   
|           |                                                                 | Consolidated Statements of Cash Flows(unaudited) for the Nine     
|           |                                                                 | Months Ended September 30, 2000 and 1999                          
|           |                                                                 |                                                                   
|           |                                                                 | Notesto Consolidated Financial Statements (unaudited)             
|           |                                                                 |                                                                   
|           | Management's Discussion and Analysis of Financial Condition and
|           |                                                                 | Results of Operations                                             
|           |                                                                 |                                                                   
|           |                                                                 |                                                                   
|Signatures







---



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

|FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
September 30, 2000
(Unaudited)
|--------------------------------------------------------------------------------------------
|Assets                                                                                      
|                                                                                            
|Cash and due from banks                                                                     
|Federal funds sold                                                                          
|Interest-bearing deposits with other banks                                                  
|Investment securities available for sale                                                    
|Other investments                                                                           
|Mortgage loans held for sale                                                                
|Loans                                                                                       
|Less:    Unearned income                                                                    
|Allowance for loan losses                                                                   
|Loans, net                                                                                  
|Premises and equipment, net                                                                 
|Other assets                                                                                
|                                                                                            
|                                                                                            
|Liabilities and Stockholders' Equity                                                        
|                                                                                            
|Liabilities:                                                                                
|Deposits:                                                                                   
|Noninterest-bearing                                                                         
|Interest-bearing                                                                            
|Total deposits                                                                              
|                                                                                            
|Securities sold under repurchase agreements                                                 
|FHLB advances                                                                               
|Notes payable                                                                               
|Other liabilities                                                                           
|Total liabilities                                                                           
|                                                                                            
|Stockholders' equity:                                                                       
|Common stock, $1 par value; authorized 5,000,000 shares;                                    
|issued and outstanding 784,912 shares                                                       
|Retained earnings                                                                           
|Accumulated other comprehensive income                                                      
|Total stockholders' equity                                                                  
|                                                                                            





See accompanying notes to consolidated financial statements.



---



FNB BANKING COMPANY AND SUBSIDIARY

Consolidated Statements of Earnings

For the Three Months and the Nine Months Ended September 30, 2000 and 1999
(Unaudited)

|                                                                                |   | Three Months Ended | Nine Months Ended
|------------------------------------------------------------------------------- | - | ------------------ | -----------------
|                                                                                |   | 2000               | 1999             
|Interest income:                                                                |   |                    |                  
|Loans                                                                           | $ | 4,429,282          | 3,843,104        
|Investment securities:                                                          |   |                    |                  
|Tax exempt                                                                      |   | 113,507            | 108,997          
|Taxable                                                                         |   | 493,914            | 377,373          
|Federal funds                                                                   |   | 12,915             | 90,725           
|                                                                                |   |                    |                  
|Total interest income                                                           |   | 5,049,618          | 4,420,199        
|                                                                                |   |                    |                  
|Interest expense:                                                               |   |                    |                  
|Deposits                                                                        |   | 1,853,297          | 1,562,733        
|Federal funds purchased and FHLB advances                                       |   | 55,486             | 21,392           
|Notes payable                                                                   |   | 3,690              | 5,933            
|Total interest expense                                                          |   | 1,912,473          | 1,590,058        
|Net interest income                                                             |   | 3,137,145          | 2,830,141        
|Provision for loan losses                                                       |   | 165,498            | 250,000          
|Net interest income after provision for loan losses                             |   | 2,971,647          | 2,580,141        
|                                                                                |   |                    |                  
|Other income:                                                                   |   |                    |                  
|Service charges on deposit accounts                                             |   | 496,154            | 394,389          
|Fees for trust services                                                         |   | 75,000             | 30,000           
|Other operating income                                                          |   | 132,445            | 146,163          
|Total other income                                                              |   | 703,599            | 570,552          
|                                                                                |   |                    |                  
|Other expense:                                                                  |   |                    |                  
|Salaries and other personnel expense                                            |   | 1,294,668          | 1,315,883        
|Net occupancy and equipment expense                                             |   | 404,665            | 424,608          
|Other operating expense                                                         |   | 596,044            | 510,342          
|Total other expense                                                             |   | 2,295,377          | 2,250,833        
|                                                                                |   |                    |                  
|Earnings before income taxes                                                    |   | 1,379,869          | 899,860          
|Income taxes                                                                    |   | 469,286            | 301,986          
|Net earnings                                                                    | $ | 910,583            | 597,874          
|                                                                                |   | =======            | ========         
|                                                                                |   |                    |                  
|Earnings per common share based on average                                      |   |                    |                  
|outstanding shares of 786,099, 789,255, 787,218, and
     798,294 respectively: |   |                    |                  
|Net earnings per share                                                          | $ | 1.16               | 0.76             
|                                                                                |   | =======            | ========         
|Dividends per share                                                             | $ | -                  | -                
|                                                                                |   | =======            | ========         
|                                                                                |   |                    |                  

See accompanying notes to consolidated financial statements.



---



FNB BANKING COMPANY AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

For the Three Months and the Nine Months Ended September 30, 2000 and 1999

(Unaudited)

|                                                       |   | Three Months      | Nine Months    
|------------------------------------------------------ | - | ----------------- | ---------------
|                                                       |   | Ended             | Ended          
|                                                       |   | 2000              | 1999           
|Net earnings                                           | $ | 910,583           | 597,874        
|Other comprehensive income, net of tax:                |   |                   |                
|Unrealized gains on securities available for sale:     |   |                   |                
|Holding gains (loss) arising during period, net of tax |   |                   |                
|of $217,394, $246,410, $73,075, and $423,861           |   | 354,696           | (402,037)      
|Comprehensive income                                   | $ | 1,265,279
======= | 195,837 
======



See accompanying notes to consolidated financial statements.





---

FNB BANKING COMPANY AND SUBSIDIARY

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)

|                                                                                  |   | Nine Months Ended
September 30,
|--------------------------------------------------------------------------------- | - | -------------------------------
|                                                                                  |   | 2000                           
|Cash flows from operating activities:                                             |   |                                
|Net earnings                                                                      | $ | 2,518,062                      
|Adjustments to reconcile net earnings to net                                      |   |                                
|cash provided by operating activities:                                            |   |                                
|Provision for loan losses                                                         |   | 465,084                        
|Depreciation, amortization and accretion                                          |   | 440,018                        
|Gain on sale of repossessed 
collateral                                           |   | -                              
|Change in assets and liabilities:                                                 |   |                                
|Interest receivable                                                               |   | (46,997)                       
|Interest payable                                                                  |   | 138,134                        
|Other, net                                                                        |   | 406,034                        
|Mortgage loans held for sale                                                      |   | 359,329                        
|                                                                                  |   |                                
|Net cash provided by operating activities                                         |   | 4,279,664                      
|                                                                                  |   |                                
|Cash flows from investing activities:                                             |   |                                
|Proceeds from maturities and paydowns of investment securities held to maturity   |   | -                              
|Proceeds from maturities and paydowns of investment securities available for sale |   | 2,014,048                      
|Purchases of investment securities available for sale                             |   | (7,818,507)                    
|Purchases of other investments                                                    |   | (126,600)                      
|Proceeds from sales of other investments                                          |   | -                              
|Change in loans                                                                   |   | (10,195,302)                   
|Purchases of premises and equipment                                               |   | (279,049)                      
|Proceeds from sale of premises and equipment                                      |   | -                              
|Proceeds from sales of repossessed collateral                                     |   | -                              
|                                                                                  |   |                                
|Net cash used by investing activities                                             |   | (16,405,410)                   
|                                                                                  |   |                                
|Cash flows from financing activities:                                             |   |                                
|Net change in securities sold under repurchase agreements                         |   | 2,525,567                      
|Net change in deposits                                                            |   | 4,734,810                      
|Repayments of long-term debt                                                      |   | (125,000)                      
|FHLB advances                                                                     |   | 14,625,000                     
|Repayments of FHLB advances                                                       |   | (22,218,750)                   
|Purchase and retirement of common stock                                           |   | (160,481)                      
|Dividends paid                                                                    |   | (1,023,966)                    
|                                                                                  |   |                                
|Net cash provided (used) by financing activities                                  |   | (1,642,820)                    
|                                                                                  |   |                                
|Net increase (decrease) in cash and cash equivalents                              |   | (13,768,566)                   
|                                                                                  |   |                                
|Cash and cash equivalents at beginning of the period                              |   | 23,325,087                     
|                                                                                  |   |                                
|Cash and cash equivalents at end of period                                        | $ | 9,556,521                      
|                                                                                  |   | ========                       
|                                                                                  |   |                                
|Supplemental cash flow information:                                               |   |                                
|Cash paid for income taxes                                                        | $ | 932,000                        
|Cash paid for interest                                                            | $ | 5,312,258                      



See accompanying notes to consolidated financial statements.



---



FNB BANKING COMPANY AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Unaudited)



|(1) | Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | The consolidated financial statements include the accounts of FNB Banking Company (the "Company") and its wholly owned subsidiary, the First National Bank of Griffin ("Griffin"). All significant intercompany accounts and
transactions have been eliminated in consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The unaudited financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented
not misleading. These financial statements and the notes hereto should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. In the opinion of
the Company, all adjustments, including normal recurring adjustments necessary to present fairly the financial position of FNB Banking Company and subsidiary as of September 30, 2000, and the results of their operations and cash flows for the quarter and
the nine months then ended, have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(2) | Stock Repurchase and Retirement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | In April 2000, the Company redeemed and retired 2,516 shares of its $1 par value common stock for a total purchase price of $100,640. Additionally, in July 2000, 1,496 more shares were redeemed and retired for $59,841.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           







---



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

For the Nine Month Period Ended
September 30, 2000 and 1999

Forward-Looking Statements

This discussion contains forward-looking statements under the private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Although the Company believes that the
assumptions underlying the forward-looking statements contained in the discussion are reasonable, any of the assumptions could be inaccurate, and therefore, no assurance can be made that any of the forward-looking statements included in this discussion
will be accurate. Factors that could cause actual results to differ from results discussed in forward-looking statements include, but are not limited to: economic conditions (both generally and in the markets where the Company operates); competition from
other providers of financial services offered by the Company; government regulation and legislation; changes in interest rates and material unforeseen changes in the financial stability and liquidity of the Company's credit customers. The Company
undertakes no obligation to revise forward-looking statements to reflect events or changes after the date of this discussion or to reflect the occurrence of unanticipated events.

Financial Condition

Total assets at September 30, 2000, were $221,167,000 representing a $1,456,000 (.66%) increase from December 31, 1999. Deposits increased $4,735,000 (2.67%) from December 31, 1999. Loans
increased $9,656,000 (6.19%). The allowance for loan losses at September 30, 2000, totaled $2,514,000, representing 1.52% of total loans, compared to an allowance for loan losses at December 31, 1999 of $2,589,000, representing 1.66% of total loans. Cash
and cash equivalents decreased $13,769,000 from December 31, 1999.

The total of nonperforming assets which includes nonaccruing loans, repossessed collateral and loans for which payments are more than 90 days past due increased 4% or $65,000 from $1,623,000 at
December 31, 1999, to $1,688,000 at September 30, 2000. There were no related party loans considered nonperforming at September 30, 2000.

The Company's subsidiary bank was most recently examined by its primary regulatory authority in July 1999. There were no recommendations by the regulatory authority that in management's opinion
will have material effects on the Company's liquidity, capital resources or operations.

Results of Operations

For the nine months ended September 30, 2000, the Company reported net earnings of $2,518,000, or $3.20 per share, compared to $1,449,000, or $1.82 per share for the same period in 1999.
Net earnings for the three-month period ended September 30, 2000, increased $313,000 or 52%, compared to the same period in 1999. The increase was the result of both increased net interest income due to increases in volume and decreases in the provision
for loan losses.

Net interest income increased $875,000 (10.35%) in the first nine months of 2000 compared to the same period for 1999. Interest income for the first nine months of 2000 was $14,780,000,
representing an increase of $1,495,000 (11.25%) over the same period in 1999. Interest expense for the first nine months of 2000 increased $620,000 (12.83%) compared to the same period in 1999. The increase in interest income and interest expense during
the first nine months of 2000 compared to the same period in 1999 is primarily attributable to the increase in the average volume of both loans and deposits.

The provision for loan losses for the first nine months of 2000 decreased $880,000 compared to the same period for 1999. The decrease is primarily attributable to a large provision in 1999 with
respect to a commercial loan relationship which was resolved in late 1999. In addition, the finance company (a wholly owned subsidiary of the Bank) increased its provision for loan losses by $200,000 during 1999 due to significant losses realized in its
portfolio. Net loan charge-offs for the nine months ended September 30, 2000, were $539,000, compared to $364,000, for the same period in 1999, as certain amounts provided for in 1999 were charged off during 2000. It is management's belief that the
allowance for loan losses is adequate to absorb probable losses in the portfolio.

Other operating income increased for the nine months ended September 30, 2000, by $219,000 or 12.79%, compared to the same period in 1999, primarily due to a $237,000 increase in service
charges on deposit accounts due to an increase in the number of corporate deposit accounts that were subject to analysis charges and to an increase in both the volume and the price of insufficient funds and overdraft charges. Additionally, trust service
fees increased $60,000 due to the settlement of one large estate. In 1999, other operating income included a $88,000 gain on the sale of foreclosed property.

Other noninterest expenses for the nine months of 2000 increased $270,000 (4.01%) compared to the first nine months in 1999. The net increase is primarily attributable to an increase in
employee costs of approximately $95,000 due to salary increases of the existing workforce, a $31,000 increase in building maintenance, a $36,000 increase in utilities expense and increases of general media advertising of $25,000 and bank customer club
expense increases of $50,000.

Income taxes expressed as a percentage of pretax earnings were 33% in 2000 versus 30% in 1999 due to the decrease of tax exempt bond and loan interest income in 2000 relative to total pretax
earnings.



Capital

The following tables present FNB Banking Company's regulatory capital position at September 30, 2000:

| | Risk-Based Capital Ratios                        |           
| | ------------------------------------------------ | ----------
| |                                                  |           
| | Tier 1 Tangible Capital, Actual                  | 14.83%    
| | Tier 1 Tangible Capital minimum requirement      | 4.00%     
| |                                                  |           
| | Excess                                           | 10.83%    
| |                                                  |           
| | Total Capital, Actual                            | 16.08%    
| | Total Capital minimum requirement                | 8.00%     
| |                                                  |           
| | Excess                                           | 8.08%
====
| |                                                  |           
| | Leverage Ratio                                   |           
| |                                                  |           
| | Tier 1 Tangible Capital to adjusted total assets |           
| | ("Leverage Ratio")                               | 11.23%    
| | Minimum leverage requirement                     | 3.00%     
| |                                                  |           
| | Excess                                           | 8.23%
====





---



FNB BANKING COMPANY AND SUBSIDIARY

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

| | FNB BANKING COMPANY                                          
| | -------------------------------------------------------------
| |                                                              
| |                                                              
| |                                                              
| | By:C.A. Knowles                                              
| | C.A. Knowles, President and Treasurer                        
| | (Principal Executive Officer)                                
| |                                                              
| |                                                              
| | Date: November 13, 2000                                      
| |                                                              
| |                                                              
| |                                                              
| | By:/s/ William K. Holmes                               
;
| | William K. Holmes                                            
| | Assistant Treasurer                                          
| | (Principal Accounting Officer)                               
| |                                                              
| |                                                              
| | Date:November 13, 2000