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U.S. 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
|---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------
|                                                                                  
|For the quarterly period ended March 31, 2003                                     
|                                                                                  
|o                                                                                  | TRANSITION REPORT PURSUANT TO 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934       
|                                                                                  
|For the transition period from ____________ to ____________                       
|                                                                                  
|Commission File Number: 000-25227                                                 
|                                                                                  
|CAPITOL CITY BANCSHARES, INC.                                                     
|                                                                                  
|(Exact name of small business issuer as specified in its charter)                 
|                                                                                  
|Georgia                                                                            |                                                                                         
|                                                                                   |                                                                                         
|(State or other jurisdiction of incorporation or organization)                     |                                                                                         
|                                                                                  
|562 Lee Street, S.W., Atlanta, Georgia  30311                                     
|                                                                                  
|(Address of principal executive office)                                           
|                                                                                  
|(404) 752-6067                                                                    
|                                                                                  
|(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 o
|----- | ----

State the number of shares outstanding of each
of the issuers classes of common stock, as of May 1, 2003:  532,088; $6 par value

Transitional Small Business Disclosure Format

|Yes o | No x
|----- | ----

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INDEX

|                              |                                                                                                | Page                                                                                                                   
|----------------------------- | ---------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|                              |                                                                                                |                                                                                                                        
|Part I.
Financial Information |                                                                                               
|                              |                                                                                               
|                              | Item 1. 
Financial Statements (unaudited)                                                      |                                                                                                                        
|                              |                                                                                                |                                                                                                                        
|                              |                                                                                                | Condensed Consolidated Balance Sheet as of March 31, 2003                                                              
|                              |                                                                                                |                                                                                                                        
|                              |                                                                                                | Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2003 and 2002
|                              |                                                                                                |                                                                                                                        
|                              |                                                                                                | Condensed Consolidated Statements of Cash Flows For The Three Months Ended March 31, 2003 and 2002                     
|                              |                                                                                                |                                                                                                                        
|                              |                                                                                                | Notes to Condensed Consolidated Financial Statements                                                                   
|                              |                                                                                                |                                                                                                                        
|                              | Item 2. 
Managements Discussion and Analysis of Financial Condition and Results of Operations | 8 - 13                                                                                                                 
|                              |                                                                                                |                                                                                                                        
|                              | Item 3. 
Controls and Procedures                                                               | 13                                                                                                                     
|                              |                                                                                                |                                                                                                                        
|Part II.
Other Information    |                                                                                               
|                              |                                                                                               
|                              | Item 6. 
Exhibits and Reports on Form 8-K                                                      | 14                                                                                                                     
|                              |                                                                                                |                                                                                                                        
|                              | Signatures                                                                                     | 15                                                                                                                     
|                              |                                                                                                |                                                                                                                        
|                              | Certifications                                                                                 | 16 - 21                                                                                                                
|                              |                                                                                                |                                                                                                                        

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##### Table of Contents

PART I - FINANCIAL INFORMATION

ITEM I.  FINANCIAL STATEMENTS

CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET March 31, 2003 (Unaudited)

|Assets                                                                                        |  |   |             | 
|--------------------------------------------------------------------------------------------- |  | - | ----------- | 
|Cash and due from banks                                                                       |  | $ | 6,232,893   | 
|Interest-bearing deposits in banks                                                            |  |   | 78,959      | 
|Federal funds sold                                                                            |  |   | 1,548,000   | 
|Securities available-for-sale, at fair value                                                  |  |   | 32,995,528  | 
|Restricted equity securities                                                                  |  |   | 117,800     | 
|Loans                                                                                         |  |   | 73,646,925  | 
|Less allowance for loan losses                                                                |  |   | 1,042,548   | 
|                                                                                              |  |   |             | 
|Loans, net                                                                                    |  |   | 72,604,377  | 
|                                                                                              |  |   |             | 
|Premises and equipment                                                                        |  |   | 4,846,346   | 
|Other assets                                                                                  |  |   | 1,176,329   | 
|                                                                                              |  |   |             | 
|Total assets                                                                                  |  | $ | 119,600,232 | 
|                                                                                              |  |   |             | 
|Liabilities and Stockholders Equity                                                          |  |   |             | 
|Deposits                                                                                      |  |   |             | 
|Noninterest-bearing                                                                           |  | $ | 25,154,356  | 
|Interest-bearing                                                                              |  |   | 76,971,867  | 
|                                                                                              |  |   |             | 
|Total deposits                                                                                |  |   | 102,126,223 | 
|Trust preferred securities                                                                    |  |   | 3,300,000   | 
|Securities sold under repurchase agreements                                                   |  |   | 2,778,000   | 
|Other liabilities                                                                             |  |   | 1,095,983   | 
|Note payable                                                                                  |  |   | 325,500     | 
|                                                                                              |  |   |             | 
|Total liabilities                                                                             |  |   | 109,625,706 | 
|                                                                                              |  |   |             | 
|Stockholders equity                                                                          |  |   |             | 
|Common stock, par value $6; 5,000,000 shares authorized;532,088 shares issued and outstanding |  |   | 3,192,528   | 
|Capital surplus                                                                               |  |   | 2,128,352   | 
|Retained earnings                                                                             |  |   | 4,008,697   | 
|Accumulated other comprehensive income                                                        |  |   | 644,949     | 
|                                                                                              |  |   |             | 
|Total stockholders equity                                                                    |  |   | 9,974,526   | 
|                                                                                              |  |   |             | 
|Total liabilities and stockholders equity                                                    |  | $ | 119,600,232 | 
|                                                                                              |  |   |             | 

The accompanying notes are an integral part of these condensed consolidated financial
statements.

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CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2003 AND 2002 (Unaudited)

|                                                                                     |  | Three Months Ended March 31, |          
|------------------------------------------------------------------------------------ |  | ---------------------------- | ---------
|                                                                                     |  |                              |          
|                                                                                     |  | 2003                         |          
|                                                                                     |  |                              |          
|Interest income                                                                      |  |                              |          
|Loans, including fees                                                                |  | $                            | 1,428,687
|Taxable securities                                                                   |  |                              | 190,827  
|Nontaxable securities                                                                |  |                              | 133,981  
|Federal funds sold                                                                   |  |                              | 8,684    
|                                                                                     |  |                              |          
|Total interest income                                                                |  |                              | 1,762,179
|                                                                                     |  |                              |          
|Interest expense                                                                     |  |                              |          
|Deposits                                                                             |  |                              | 561,216  
|Other borrowings                                                                     |  |                              | 5,676    
|                                                                                     |  |                              |          
|Total interest expense                                                               |  |                              | 566,892  
|                                                                                     |  |                              |          
|Net interest income                                                                  |  |                              | 1,195,287
|Provision for loan losses                                                            |  |                              | 155,000  
|                                                                                     |  |                              |          
|Net interest income after provision for loan losses                                  |  |                              | 1,040,287
|                                                                                     |  |                              |          
|Other income                                                                         |  |                              |          
|Service charges on deposit accounts                                                  |  |                              | 470,345  
|Other fees and commissions                                                           |  |                              | 11,075   
|Other operating income                                                               |  |                              | 62,404   
|                                                                                     |  |                              |          
|Total other income                                                                   |  |                              | 543,824  
|                                                                                     |  |                              |          
|Other expenses                                                                       |  |                              |          
|Salaries and other employee benefits                                                 |  |                              | 590,232  
|Occupancy and equipment expenses                                                     |  |                              | 173,980  
|Other operating expenses                                                             |  |                              | 480,111  
|                                                                                     |  |                              |          
|Total other expenses                                                                 |  |                              | 1,244,323
|                                                                                     |  |                              |          
|Net income before income taxes                                                       |  |                              | 339,788  
|Income tax expense                                                                   |  |                              | 109,180  
|                                                                                     |  |                              |          
|Net income                                                                           |  |                              | 230,608  
|                                                                                     |  |                              |          
|Other comprehensive loss                                                             |  |                              |          
|Unrealized losses on securities available-for-sale arising during period, net of tax |  |                              | (26,996  
|                                                                                     |  |                              |          
|Comprehensive income                                                                 |  | $                            | 203,612  
|                                                                                     |  |                              |          
|Basic earnings per common share                                                      |  | $                            | 0.43     
|                                                                                     |  |                              |          
|Diluted earnings per common share                                                    |  |                              | 0.41     
|                                                                                     |  |                              |          
|Cash dividends declared per share of common stock                                    |  | $                            | 0.15     
|                                                                                     |  |                              |          

The accompanying notes are an integral part of these condensed consolidated financial
statements.

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CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2003 AND 2002 (Unaudited)

|                                                                                  |  | 2003 |            | 2002 |  
|--------------------------------------------------------------------------------- |  | ---- | ---------- | ---- | -
|                                                                                  |  |      |            |      |  
|OPERATING ACTIVITIES                                                              |  |      |            |      |  
|Net income                                                                        |  | $    | 230,608    |      | $
|Adjustments to reconcile net income to net cash provided by operating activities: |  |      |            |      |  
|Depreciation                                                                      |  |      | 81,587     |      |  
|Provision for loan losses                                                         |  |      | 155,000    |      |  
|Net other operating activities                                                    |  |      | 2,117      |      |  
|                                                                                  |  |      |            |      |  
|Net cash provided by operating activities                                         |  |      | 469,312    |      |  
|                                                                                  |  |      |            |      |  
|INVESTING ACTIVITIES                                                              |  |      |            |      |  
|Purchases of securities available-for-sale                                        |  |      | (2,532,201 | )    |  
|Proceeds from maturities of securities available-for-sale                         |  |      | 3,891,973  |      |  
|Purchase of restricted equity securities                                          |  |      | (300       | )    |  
|Net (increase) decrease in interest-bearing deposits                              |  |      | 121        |      |  
|Net decrease in federal funds sold                                                |  |      | 284,000    |      |  
|Net increase in loans                                                             |  |      | (7,489,975 | )    |  
|Purchase of premises and equipment                                                |  |      | (652,954   | )    |  
|                                                                                  |  |      |            |      |  
|Net cash used in investing activities                                             |  |      | (6,499,336 | )    |  
|                                                                                  |  |      |            |      |  
|FINANCING ACTIVITIES                                                              |  |      |            |      |  
|Net increase in deposits                                                          |  |      | 4,494,493  |      |  
|Net increase in securities sold under repurchase agreements                       |  |      | 1,278,000  |      |  
|Proceeds from issuance of trust preferred securites                               |  |      | 3,300,000  |      |  
|Proceeds from note payable                                                        |  |      | 75,000     |      |  
|Payment of dividends                                                              |  |      | (79,813    | )    |  
|                                                                                  |  |      |            |      |  
|Net cash provided by financing activities                                         |  |      | 9,067,680  |      |  
|                                                                                  |  |      |            |      |  
|Net increase (decrease) in cash and due from banks                                |  |      | 3,037,656  |      |  
|Cash and due from banks, beginning of period                                      |  |      | 3,195,237  |      |  
|                                                                                  |  |      |            |      |  
|Cash and due from banks, end of period                                            |  | $    | 6,232,893  |      | $
|                                                                                  |  |      |            |      |  

The accompanying notes are an integral part of these condensed consolidated financial
statements.

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CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

|NOTE 1. | BASIS OF PRESENTATION                                                                                                                                                                                                                                                                                                                                                                                                                         
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | The consolidated financial information included for Capitol City Bancshares, Inc. (the Company), Capitol City Bank & Trust Company (the Bank) and
Capitol City Home Loans (the Mortgage Company) 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 periods.
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | The results of operations for the three month period ended March 31, 2003 are not necessarily indicative of the results to be expected for the full year.                                                                                                                                                                                                                                                                                     
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|NOTE 2. | EARNINGS PER COMMON SHARE                                                                                                                                                                                                                                                                                                                                                                                                                     
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | Presented below is a summary of the components used to calculate basic and diluted earnings per common share for the periods ended March 31, 2003 and 2002.                                                                                                                                                                                                                                                                                   

|                                                                                                                                 |  | Periods Ended March 31, |        
|-------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | -------
|                                                                                                                                 |  |                         |        
|                                                                                                                                 |  | 2003                    |        
|                                                                                                                                 |  |                         |        
|Net income                                                                                                                       |  | $                       | 230,608
|                                                                                                                                 |  |                         |        
|Weighted average common shares outstanding                                                                                       |  |                         | 532,088
|Net effect of the assumed exercise of stock options based on the treasury stock method using average market price for the
period |  |                         | 32,052 
|                                                                                                                                 |  |                         |        
|Total weighted average common shares and common stock equivalents outstanding                                                    |  |                         | 564,140
|                                                                                                                                 |  |                         |        
|Diluted earnings per common share                                                                                                |  | $                       | 0.41   
|                                                                                                                                 |  |                         |        

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

|NOTE 3. | STOCK COMPENSATION PLAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | At March 31, 2003, the Company has a stock-based compensation plan.  The Company accounts for this plan under the recognition and measurement principles of APB Opinion No.
25, Accounting for Stock Issued to Employees, and related Interpretations.  No stock-based compensation cost is reflected in net income, as all options granted under this plan 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.

|                                                                                                                                             |  | Three Months Ended March 31, |        
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | -------
|                                                                                                                                             |  |                              |        
|                                                                                                                                             |  | 2003                         |        
|                                                                                                                                             |  |                              |        
|Net income, as reported                                                                                                                      |  | $                            | 230,608
|Deduct:  Total stock-based employee compensation expense determined under fair value based method for all awards, net of
related tax effects |  |                              |       
|                                                                                                                                             |  |                              |        
|Pro forma net income                                                                                                                         |  | $                            | 230,608
|Earnings per share:                                                                                                                          |  |                              |        
|Basic - as reported                                                                                                                          |  | $                            | .43    
|                                                                                                                                             |  |                              |        
|Basic - pro forma                                                                                                                            |  | $                            | .43    
|                                                                                                                                             |  |                              |        
|Diluted - as reported                                                                                                                        |  | $                            | .41    
|                                                                                                                                             |  |                              |        
|Diluted - pro forma                                                                                                                          |  | $                            | .41    
|                                                                                                                                             |  |                              |        

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CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARIES

|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 our financial position and operating results during the periods included in the accompanying condensed consolidated financial
statements.

FORWARD-LOOKING STATEMENTS

This quarterly report contains certain forward-looking statements which are based on certain
assumptions and describe future plans, strategies, and our expectations.  These forward-looking statements are generally identified by use of the words believe, expect, intend, anticipate,
estimate, project, or similar expressions.  Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse effect on our
operations include, but are not limited to, changes in interest rates, general economic conditions, legislation and regulation, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of our loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in our market area, and accounting principles and guidelines.  You should consider these
risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements.  We will not publicly release the result of any revisions which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

FINANCIAL CONDITION

Total assets increased during the first quarter of 2003 from $110.1 million to $119.6 million, or 8.62% for the quarter.  The increase in total assets in 2003 is more than the 3.89% growth for the same period in
2002.  The growth was funded by increases in total deposits, which increased by $4.5 million, or 4.60%, proceeds from a Trust Preferred Securities offering of $3.3 million, and an increase of $1.3 million in securities sold under repurchase
agreements.  The increase in total assets for the quarter ended March 31, 2003 consisted primarily of an increase of $7.3 million in loans and an increase in cash and due from banks of $3.0 million.  These increases in assets were offset
by decreases in Federal funds sold and securities of $284,000 and $1.4 million, respectively.  The loan to deposit ratio at March 31, 2003 was 72% compared to 68% at December 31, 2002.  Total loans have increased by $21.1 million since
March 31, 2002 which for the same period, total deposits have increased by $23.0 million.  Noninterest-bearing deposits represent 25% of total deposits at March 31, 2003, which is down slightly from 28% at March 31, 2002. 
Noninterest-bearing deposits significantly affect the net interest margin.  Our percentage of noninterest-bearing deposits continues to be significantly higher than our peer group, which has a positive effect on net income.

Stockholders equity increased by $124,000 for the quarter ended March 31, 2003.  This net increase consisted of net income of $231,000 less dividends declared of $80,000 and net decrease of unrealized gains
on securities available-for-sale of $27,000.

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LIQUIDITY

Liquidity management involves the matching of the cash flow requirements of customer withdrawals of funds
and the funding of loan originations, and the ability of our subsidiary bank to meet those requirements.  Management monitors and maintains appropriate levels of liquidity so that maturities of assets and deposit growth are such that adequate
funds are provided to meet estimated customer withdrawals and loan requests.

At March 31, 2003, the Banks liquidity ratio of 28.53% was considered satisfactory in relation to regulatory
guidelines and internal target ratios.

REGULATORY CAPITAL REQUIREMENTS

Banking regulations require us to maintain minimum capital levels
in relation to assets.  At March 31, 2003, the Banks capital ratios were considered adequately capitalized based on regulatory minimum capital requirements.  The minimum capital requirements and the actual capital ratios for the Bank
at March 31, 2003 are as follows:

|                          |  | Bank |      | Regulatory Minimum Requirement | 
|------------------------- |  | ---- | ---- | ------------------------------ | 
|                          |  |      |      |                                | 
|Leverage Capital Ratio    |  |      | 7.97 | %                              | 
|Risk-Based Capital Ratios |  |      |      |                                | 
|Core Capital              |  |      | 8.93 | %                              | 
|Total Capital             |  |      | 9.90 | %                              | 

We anticipate, during the second quarter of 2003, injecting additional capital into the Bank from
the proceeds of the Trust Preferred Securities offering which will return our capital ratios to well-capitalized.

We are in the process of opening our Savannah, Georgia branch.  The estimated
costs to complete the branch is approximately $500,000.

We are not aware of any other recommendations by the regulatory authorities, events or trends, which, if they were to be implemented, would
have a material effect on our liquidity, capital resources, or operations.

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RESULTS OF OPERATIONS

Three Months Ended March 31, 2003 and 2002

Net Interest Income.  Net interest income increased by $176,000, or by 17.25% for the quarter ended March 31, 2003 compared to the same period in 2002.  The increase in net interest income in 2002 was
$77,000, or 8.19%.  The increase in net interest income for the quarter ended March 31, 2003 is primarily attributable to increases in earning assets of $25.3 million as compared to March 31, 2002.  As noted above, loans increased during
this period by $21.1 million, which generally provide greater yields.  Total loans increased for the same period in 2002 by only $5.7 million.  During this same period, total deposits increased by $23.0 million, of which $20.2 million were
interest-bearing deposits.  The overall net increase in net interest income is based on the spread between rates earned on interest earning assets and rates paid on interest bearing liabilities.

The net interest margin decreased to 4.63% at March 31, 2003 from 5.12% for the three months ended March 31, 2002.  The yield on interest-earning assets decreased to 6.82%, or 78 basis points, from March 31, 2002 to March
31, 2003.  The rate paid on interest-bearing liabilities decreased to 2.89%, or 71 basis points for the same period.  These decreases reflect the continued adjustment in rates as the prime rate declined over the past two years.

Provision for Loan Losses.  The provision for loan losses is based on managements evaluation of the economic environment, the history of charged off loans and recoveries, size and
composition of the loan portfolio, nonperforming and past due loans, and other aspects of the loan portfolio.  We review the allowance for loan loss on a quarterly basis and make provisions as necessary.  A provision of $155,000 was made
during the three month period ending March 31, 2003.  No provision was made during the three month period ending March 31, 2002.  The allowance for loan loss as a percentage of total loans was 1.42% and 1.46% at March 31, 2003
and 2002, respectively.  The total of nonperforming loans as of March 31, 2003 decreased by $108,000; however, net charge-offs increased by $165,000 and loans past due ninety days or more and still accruing increased by $493,000 as compared to
the same period in 2002.  Management believes the allowance for loan loss at March 31, 2003 is adequate to meet any future losses in the loan portfolio.  The increase in the provision in 2003 as compared to 2002 reflects the increase in
net charge-offs, increase in problem loans, and the overall increase in the loan portfolio since March 31, 2002.

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At March 31, 2003 and 2002, nonaccrual, past due, and restructured loans were as follows:

|                                                                                                         |  | March 31, 2003         |     | March 31, 2002 |  
|-------------------------------------------------------------------------------------------------------- |  | ---------------------- | --- | -------------- | -
|                                                                                                         |  |                        |     |                |  
|                                                                                                         |  | (Dollars in thousands) |    
|Total nonaccruing loans                                                                                  |  | $                      | 668 |                | $
|Loans contractually past due ninety days or more as to interest or principal payments and still accruing |  |                        | 525 |                |  
|Restructured loans                                                                                       |  |                        |    |                |  

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

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.

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Information regarding certain loans and allowance for loan loss data for the three months ended March 31, 2003 and 2002 is as follows:

|                                                                              |  | Three Months Ended March 31, |       
|----------------------------------------------------------------------------- |  | ---------------------------- | ------
|                                                                              |  |                              |       
|                                                                              |  | 2003                         |       
|                                                                              |  |                              |       
|                                                                              |  | (Dollars in thousands)       |       
|Average amount of loans outstanding                                           |  | $                            | 67,090
|                                                                              |  |                              |       
|Balance of allowance for loan losses at beginning of period                   |  | $                            | 1,059 
|                                                                              |  |                              |       
|Loans charged off                                                             |  |                              |       
|Commercial and financial                                                      |  |                              | (130  
|Real estate                                                                   |  |                              | (6    
|Installment                                                                   |  |                              | (69   
|                                                                              |  |                              |       
|                                                                              |  |                              | (205  
|                                                                              |  |                              |       
|Loans recovered                                                               |  |                              |       
|Commercial and financial                                                      |  |                              | 2     
|Real estate                                                                   |  |                              | 10    
|Installment                                                                   |  |                              | 22    
|                                                                              |  |                              |       
|                                                                              |  |                              | 34    
|                                                                              |  |                              |       
|Net charge-offs                                                               |  |                              | (171  
|                                                                              |  |                              |       
|Additions to allowance charged to operating expense during period             |  |                              | 155   
|                                                                              |  |                              |       
|Balance of allowance for loan losses at end of period                         |  |                              | 1,043 
|                                                                              |  |                              |       
|Ratio of net loans charged-off during the period to average loans outstanding |  |                              | .25   
|                                                                              |  |                              |       

Other Income.  Other income increased by $87,000 for the quarter ended March 31,
2003 compared to an increase of $41,000 for the same period in 2002.  The single most significant difference which affected both periods was increases of $72,000 and $28,000 in service charges on deposit accounts for 2003 and 2002,
respectively.

Other Expenses.  Other expenses increased by $263,000, or 26.85% for the three months ended March 31, 2003 as compared to the same period in 2002.  The increase in
2002 as compared to the same period in 2001 was $124,000.  The increases in 2003 consist of increases of $139,000 in salaries and employee benefits, $22,000 in occupancy and equipment expenses, and $102,000 in other operating expenses. 
The increase in salaries and employee benefits represents normal increases in salaries, benefits, and an increase in employees.  At March 31, 2003, the number of full-time equivalent employees was 57 compared to 53 at March 31, 2002. 
The increase in other operating expenses is not directly attributable to any one item, but represents increases in general expenses related to the continued growth of the Bank.

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The mortgage company was formed in 2002 and currently originates loans which are table funded through independent investors.  The net loss for the three months ended
March 31, 2003 was $15,000.

Income Taxes.  Income tax expense decreased by $26,000 for the three months ended March 31, 2003 as compared to 2002.  The effective tax rate for
2003 and 2002 was 32% and 27%, respectively.

Net Income.  Net income decreased by $129,000 for the three months ended March 31, 2003 as compared to the same period in 2002.  The
primary reason for the decrease in net income for the three months ended March 31, 2003 as compared to the same period in 2002 is the increase in the loan loss provision.

|ITEM 3. | CONTROLS AND PROCEDURES
|------- | -----------------------

Within ninety days prior to the date of filing of this report, we
carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and the Chief Financial Officer, of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our
Chief Executive Officer and the 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 the 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.

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PART II - Other Information

|Item 6. | Exhibits and Reports on Form 8-K.
|------- | ---------------------------------
|        |                                  
|        | (a)                              
|        |                                  
|        |                                  
|        |                                  
|        |                                  
|        | (b)                              
|        |                                  
|        |                                  

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SIGNATURES

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

|                    | CAPITOL CITY BANCSHARES, INC.                                                 
|------------------- | ------------------------------------------------------------------------------
|                    |                                                                               
|                    |                                                                               
|Date:  May 14, 2003 | /s/ GEORGE G. ANDREWS                                                         
|                    |                                                                               
|                    | George G. Andrews President and Director                                      
|                    |                                                                               
|                    |                                                                               
|Date:  May 14, 2003 | /s/ KEVIN M. SHARPE                                                           
|                    |                                                                               
|                    | Kevin M. Sharpe Vice President and  Principal Financial and Accounting Officer

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Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

|I, George G. Andrews, President and C.E.O., certify that:
|---------------------------------------------------------
|                                                         
|1.                                                       
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|2.                                                       
|                                                         
|3.                                                       
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|4.                                                       
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|5.                                                       
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|6. | The registrants other certifying officer and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:  May 14, 2003

| | /s/ GEORGE G. ANDREWS                                                
| | ---------------------------------------------------------------------
| |                                                                      
| | George G. Andrews, President and C.E.O. (Principal Executive Officer)

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Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

|I, Kevin M. Sharpe, C.F.O., certify that:
|-----------------------------------------
|                                         
|1.                                       
|                                         
|2.                                       
|                                         
|3.                                       
|                                         
|4.                                       
|                                         
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|5.                                       
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|6. | The registrants other certifying officer and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:  May 14, 2003

| | /s/ KEVIN M. SHARPE                                                 
| | --------------------------------------------------------------------
| |                                                                     
| | Kevin M. Sharpe, C.F.O. (Principal Financial and Accounting Officer)

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