<PAGE>

               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

                 For the quarterly period ended March 31, 2000
                                                --------------

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

           For the transition period from ____________ to __________

                       Commission File Number: 000-25227
                                               ---------

                         CAPITOL CITY BANCSHARES, INC.
                   ------------------------------------------
        (Exact name of small business issuer as specified in its charter)

          Georgia                                         58 - 1994305
-------------------------------                           -------------
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                            Identification Number)

                  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
                                                              -----    -----

State the number of shares outstanding of each of the issuer's classes of common
stock, as of May 1, 2000: 532,088; $6 par value

Transitional Small Business Disclosure Format Yes       No   X
                                                  -----    -----
<PAGE>

                 CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                     <C>
Part I.  Financial Information

              Item 1.  Financial Statements

                  Condensed Consolidated Balance Sheet
                   as of March 31, 2000..................................................................... 3

                  Condensed Consolidated Statements of Income and
                      Comprehensive Income for the Three Months Ended
                      March 31, 2000 and 1999............................................................... 4

                  Condensed Consolidated Statements of Cash Flows
                    For The Three Months Ended March 31, 2000 and 1999...................................... 5

                  Notes to Condensed Consolidated Financial Statements.................................. 6 - 7

              Item 2.  Management's Discussion and Analysis of
                            Financial Condition and Results of Operations.............................. 8 - 12


Part II.  Other Information

              Item 6.  Exhibits and Reports on Form 8-K.................................................... 13

              Signatures................................................................................... 14
</TABLE>
<PAGE>

                         PART I - FINANCIAL INFORMATION
ITEM I.  FINANCIAL STATEMENTS

                  CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2000
                                   (Unaudited)

                    Assets
                    ------

Cash and due from banks                                      $      5,733,776
Securities available-for-sale, at fair value                       16,892,144

Loans                                                              38,302,709
Less allowance for loan losses                                        574,541
                                                             ----------------
          Loans, net                                               37,728,168
                                                             ----------------

Premises and equipment                                              2,446,624
Other assets                                                          895,907
                                                             ----------------

          Total assets                                       $     63,696,619
                                                             ================


             Liabilities and Stockholders' Equity
             ------------------------------------

Deposits
    Demand                                                   $     19,153,476
    Interest-bearing demand                                         7,155,289
    Savings                                                         3,660,255
    Time                                                           27,188,402
                                                             ----------------
          Total deposits                                           57,157,422
Other liabilities                                                     299,241
Note payable                                                          173,684
                                                             ----------------
          Total liabilities                                        57,630,347
                                                             ----------------

Commitments and contingent liabilities

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                                               1,239,915
    Accumulated other comprehensive loss                             (494,523)
                                                             ----------------
          Total stockholders' equity                                6,066,272
                                                             ----------------

          Total liabilities and stockholders' equity         $     63,696,619
                                                             ================

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

                                       3
<PAGE>

                  CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

      CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                   THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                           Three Months Ended March 31,
                                                                                ---------------------------------------------------
                                                                                         2000                        1999
                                                                                -----------------------     -----------------------
<S>                                                                             <C>                          <C>
Interest income
    Loans                                                                       $              959,817             $       593,786
    Taxable securities                                                                         115,664                     149,425
    Nontaxable securities                                                                      103,073                     111,265
    Federal funds sold                                                                           3,027                      41,014
                                                                                ----------------------      ----------------------
              Total interest income                                                          1,181,581                     895,490
                                                                                ----------------------      ----------------------

Interest expense
    Deposits                                                                                   404,379                     350,210
    Other borrowings                                                                             2,474                           -
                                                                                ----------------------      ----------------------
                                                                                               406,853                     350,210
                                                                                ----------------------      ----------------------

              Net interest income                                                              774,728                     545,280
Provision for loan losses                                                                      126,742                      15,000
                                                                                ----------------------      ----------------------
              Net interest income after provision for loan losses                              647,986                     530,280
                                                                                ----------------------      ----------------------

Other income
    Service charges on deposit accounts                                                        301,462                     259,216
    Net realized losses on sale of securities                                                   (1,353)                          -
    Other operating income                                                                      15,911                      32,989
                                                                                ----------------------      ----------------------
              Total other income                                                               316,020                     292,205
                                                                                ----------------------      ----------------------

Other expenses
    Salaries and other employee benefits                                                       378,361                     319,126
    Occupancy and equipment expenses                                                           147,925                     113,060
    Other operating expenses                                                                   250,538                     262,569
                                                                                ----------------------      ----------------------
              Total other expenses                                                             776,824                     694,755
                                                                                ----------------------      ----------------------

              Net income before income taxes                                                   187,182                     127,730

Income tax expense                                                                              31,396                      23,863
                                                                                ----------------------      ----------------------

              Net income                                                                       155,786                     103,867
                                                                                ----------------------      ----------------------

Other comprehensive loss
    Unrealized losses on securities available-for-sale
       arising during period, net of tax                                                       (65,200)                    (99,311)
    Reclassification adjustment for losses realized
       in net income, net of tax                                                                 1,123                           0
                                                                                ----------------------      ----------------------
    Other comprehensive loss                                                                   (64,077)                    (99,311)
                                                                                ----------------------      ----------------------

    Comprehensive income                                                        $               91,709      $                4,556
                                                                                ======================      ======================

Basic earnings per common share                                                 $                 0.29      $                 0.20
                                                                                ======================      ======================

Diluted earnings per common share                                                                 0.26                        0.20
                                                                                ======================      ======================

Cash dividends per share of common stock                                        $                 0.10      $                    0
                                                                                ======================      ======================
</TABLE>

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

                                       4
<PAGE>

                  CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                          2000                          1999
                                                                                -----------------------    -------------------------
<S>                                                                             <C>                        <C>
OPERATING ACTIVITIES
    Net income                                                                  $              155,786     $                103,867
    Adjustments to reconcile net income to net cash
        provided by (used in) operating activities:
        Depreciation and amortization                                                           53,209                       45,799
        Provision for loan losses                                                              126,742                       15,000
        Realized loss on securities                                                              1,353                            -
        Other operating activities                                                            (110,643)                    (204,550)
                                                                                ----------------------     ------------------------

              Net cash provided by (used in) operating activities                              226,447                      (39,884)
                                                                                ----------------------     ------------------------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                                                       -                   (4,499,082)

    Proceeds from maturities of securities available-for-sale                                  748,840                    1,703,117
    Proceeds from sale of securities available-for-sale                                        223,621                            -
    Net decrease in Federal funds sold                                                         540,000                      105,000
    Net increase in loans                                                                   (4,505,641)                  (2,071,398)
    Purchase of premises and equipment                                                         (23,307)                     (97,449)
                                                                                ----------------------     ------------------------

              Net cash used in investing activities                                         (3,016,487)                  (4,859,812)
                                                                                ----------------------     ------------------------

FINANCING ACTIVITIES
    Net increase in deposits                                                                 6,086,897                    5,175,375
    Proceeds from note payable                                                                  58,209                            -
                                                                                ----------------------     ------------------------

              Net cash provided by financing activities                                      6,145,106                    5,175,375
                                                                                ----------------------     ------------------------

Net increase in cash and due from banks                                                      3,355,066                      275,679

Cash and due from banks, beginning of period                                                 2,378,710                    2,136,219
                                                                                ----------------------     ------------------------

Cash and due from banks, end of period                                          $            5,733,776     $              2,411,898
                                                                                ======================     ========================

</TABLE>

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

                                       5
<PAGE>

                 CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE 1. BASIS OF PRESENTATION

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

        The results of operations for the three month period ended March 31,
        2000 are not necessarily indicative of the results to be expected for
        the full year.

NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS

        In June 1998, the Financial Accounting Standards Board issued SFAS No.
        133, "Accounting for Derivative Instruments and Hedging Activities". The
        effective date of this statement has been deferred by SFAS No. 137 until
        fiscal years beginning after June 15, 2000. However, the statement
        permits early adoption as of the beginning of any fiscal quarter after
        its issuance. The Company expects to adopt this statement effective
        January 1, 2001. SFAS No. 133 requires the Company to recognize all
        derivatives as either assets or liabilities in the balance sheet at fair
        value. For derivatives that are not designated as hedges, the gain or
        loss must be recognized in earnings in the period of change. For
        derivatives that are designated as hedges, changes in the fair value of
        the hedged assets, liabilities, or firm commitments must be recognized
        in earnings or recognized in other comprehensive income until the hedged
        item is recognized in earnings, depending on the nature of the hedge.
        The ineffective portion of a derivative's change in fair value must be
        recognized in earnings immediately. Management has not yet determined
        what effect the adoption of SFAS No. 133 will have on the Company's
        earnings or financial position.

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

                                       6
<PAGE>

NOTE 3. EARNINGS PER COMMON SHARE

        Presented below is a summary of the components used to calculate basic
        and diluted earnings per share for the periods ended March 31, 2000 and
        1999.

<TABLE>
<CAPTION>
                                                                                        Periods Ended March 31,
                                                                                   -----------------------------------
                                                                                        2000                1999
                                                                                   ---------------    ----------------
                      <S>                                                          <C>                <C>
                      Net income                                                   $      155,786     $       103,867
                                                                                   ===============    ================

                      Weighted average common shares outstanding                          532,088             532,088
                      Net effect of the assumed exercise of stock
                         options based on the treasury stock method
                         using average market price for the period                 $       60,280     $             -
                                                                                   ---------------    ----------------

                      Total weighted average common shares and
                         common stock equivalents outstanding                             592,638             532,088
                                                                                   ===============    ================

                      Diluted earnings per share                                   $         0.26     $          0.20
                                                                                   ===============    ================
</TABLE>

                                       7
<PAGE>

                 CAPITOL CITY BANCSHARES, INC. AND SUBSIDIARY

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

The following is management's discussion and analysis of certain significant
factors which have affected the Company's 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 2000 from $57.6 million to
$63.7 million, or 10.6% for the quarter. The increase in total assets in 2000 is
consistent with the 10.5% growth for the same period in 1999. The growth in both
years continues to be funded by increases in total deposits, which increased by
$6.1 million and $5.2 million, respectively. The increase in total assets for
the quarter ended March 31, 2000 consisted primarily of an increase of $4.4
million in loans and an increase of $3.3 million in cash and due from banks.
These increases in assets were offset by decreases in Federal funds sold and
securities of $540,000 and $1,071,000, respectively. The loan to deposit ratio
at March 31, 2000 was 67% compared to 51% at March 31, 1999. Total loans have
increased by $14.4 million since March 31, 1999 which for the same period, total
deposits have increased by $10.6 million.

Stockholders' equity increased by $38,500 for the quarter ended March 31, 2000.
This net increase consisted of net income of $156,000 less dividends of $53,000
and unrealized losses on securities of $64,000.

                                       8
<PAGE>

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 the Company's 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, 2000, the Bank's liquidity was considered satisfactory in relation
to regulatory guidelines and internal target ratios. The liquidity ratio was
24.14% at March 31, 2000.

REGULATORY CAPITAL REQUIREMENTS

Banking regulations require the Company and Bank to maintain minimum capital
levels in relation to assets. At March 31, 2000, the Company's and Bank's
capital ratios were considered adequate based on regulatory minimum capital
requirements. The minimum capital requirements and the actual capital ratios for
the Company and Bank at March 31, 2000 are as follows:

<TABLE>
<CAPTION>
                                                                                                         Regulatory
                                                           Company                 Bank                 Requirement
         <S>                                               <C>                    <C>                   <C>
         Leverage Capital Ratio                             11.14%                11.28%                   4.00%
         Risk-Based Capital Ratios
                 Core Capital                               14.26%                14.44%                   4.00%
                 Total Capital                              15.51%                15.69%                   8.00%
</TABLE>

Management is not aware of any other current recommendations by the regulatory
authorities, events or trends, which, if they were to be implemented, would have
a material effect on the Company's liquidity, capital resources, or operations.

RESULTS OF OPERATIONS

Three Months Ended March 31, 2000 and 1999

Net Interest Income. Net interest income increased by $229,000 for the quarter
ended March 31, 2000 compared to the same period in 1999, or by 42.08%. The
comparable increase in 1999 was $102,000, or 23.01%. The increase in net
interest income for the quarter ended March 31, 2000 is attributable to an
increase in earning assets of $7.6 million as compared to March 31, 1999. As
noted above, loans increased during this period by $14.4 million, which
generally provide greater yields to the Company. During this same period, total
deposits increased by $10.6 million, of which $9.7 million was interest-bearing
deposits. The overall result of an 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 was 5.75% and 4.74% at March 31, 2000 and 1999,
respectively.

                                       9
<PAGE>

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. Management reviews
the allowance for loan loss on a quarterly basis and makes provisions as
necessary. A provision of $127,000 was made during the three month period ending
March 31, 2000 based upon this evaluation process as compared to $15,000 for the
same period in 1999. The allowance for loan loss as a percentage of total loans
was 1.50% at March 31, 2000 compared to 1.03% at March 31, 1999. There were no
nonperforming loans as of March 31, 2000. Management believes the allowance for
loan loss at March 31, 2000 is adequate to meet any future losses in the loan
portfolio. The increase in the provision in 2000 as compared to 1999 reflects
the overall increase in loans, the increase in past due loans over 90 days, and
the volume of charge-offs.

At March 31, 2000 and 1999, nonaccrual, past due, and restructured loans were as
follows:

<TABLE>
<CAPTION>
                                                                       March 31,             March 31,
                                                                         2000                  1999
                                                                       ---------             ---------
                                                                             (Dollars in thousands)
         <S>                                                           <C>                   <C>
         Total nonaccruing loans                                       $         -           $         7
         Loans contractually past due ninety days
           or more as to interest or principal
           payments and still accruing                                         274                     -
         Restructured loans                                                      -                     -
</TABLE>

It is the policy of the Company 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.

                                       10
<PAGE>

Information regarding certain loans and allowance for loan loss data through
March 31, 2000 and 1999 is as follows:

<TABLE>
<CAPTION>
                                                                                    Three Months Ended
                                                                                         March 31,
                                                                          ----------------------------------------
                                                                                   2000                 1999
                                                                          --------------------  ------------------
                                                                                  (Dollars in thousands)
<S>                                                                       <C>                   <C>
Average amount of loans outstanding                                       $            35,678    $         22,668
                                                                          ====================  ==================

Balance of allowance for loan losses at beginning of period               $               508    $            299
Loans charged off
   Commercial and financial                                                                (7)                 (9)
   Real estate                                                                            (34)                  -
   Installment                                                                            (43)                (88)
                                                                          --------------------  ------------------
                                                                                          (84)                (97)
                                                                          --------------------  ------------------
Loans recovered
   Commercial and financial                                                                 3                   3
   Real estate                                                                              1                   -
   Installment                                                                             19                  25
                                                                          --------------------  ------------------
                                                                                           23                  28
                                                                          --------------------  ------------------

Net charge-offs                                                                           (61)                (69)
                                                                          --------------------  ------------------

Additions to allowance charged to operating expense during period                         127                  15
                                                                          --------------------  ------------------

Balance of allowance for loan losses at end of period                                     574                 245
                                                                          ====================  ==================

Ratio of net loans charged-off during the
   period to average loans outstanding                                                   .17%                .30%
                                                                          ====================  ==================
</TABLE>

Other Income. Other income increased by $24,000 for the quarter ended March 31,
2000 compared to an increase of $28,000 for the same period in 1999. The single
most significant difference which affected both periods was increases of $42,000
and $50,000 in service charges on deposit accounts for 2000 and 1999,
respectively.

Other Expenses. Other expenses increased by $82,000, or 11.81% for the three
months ended March 31, 2000 as compared to the same period in 1999. The increase
in 1999 as compared to the same period in 1998 was $201,000. The most
significant increases in 2000 are increases of $59,000 in salaries and employee
benefits and an increase of $35,000 in equipment and occupancy expenses. During
the same period, other operating expenses decreased by $12,000. The increase in
salaries and employee benefits represents normal increases in salaries and an
increase in employees. At March 31, 2000, the number of full-time equivalent
employees was 41 compared to 35 at March 31, 1999. The increase in equipment and
occupancy expenses included increased depreciation, property taxes, and
utilities related to the new branch opened in December 1998.

                                       11
<PAGE>

Income Taxes. Income tax expense increased by $8,000 for the three months ended
March 31, 2000 as compared to 1999. The effective tax rate for 2000 and 1999 was
17% and 19%, respectively.

Net Income. Net income increased by $52,000 for the three months ended March 31,
2000 as compared to the same period in 1999. The primary reason for the increase
is the increase in net interest income combined with moderate increases in other
expenses.

                                       12
<PAGE>

                          PART II - Other Information

Item 6. Exhibits and Reports on Form 8-K.

        (a)  Exhibits.

             27.  Financial Data Schedule.

        (b)  Reports on Form 8-K.

             None.

                                       13
<PAGE>

                                  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 15, 2000                                /s/ George G. Andrews
       ------------                                -----------------------------
                                                   George G. Andrews
                                                   President and Director




Date:  May 15, 2000                                /s/ Kevin M. Sharpe
       ------------                                -----------------------------
                                                   Kevin M. Sharpe
                                                   Vice President and
                                                   Chief Financial Officer

                                       14