UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC  20549

                                   FORM 10-QSB

(Mark One)

 X     QUARTERLY  REPORT  UNDER  SECTION  13 or 15(d) OF THE
---
       SECURITIES  EXCHANGE  ACT  OF  1934
       For  the  quarterly  period  ended  June 30, 2003
                                           -------------

       TRANSITION  REPORT  UNDER  SECTION  13  or  15(d)  OF  THE
---
       SECURITIES  EXCHANGE  ACT  OF  1934
       For the transition period  from  _______________  to  ________________

                          Commission File No. 000-24043


                         ebank Financial Services, Inc.
--------------------------------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)


            Georgia                                  58-2349097
            -------                                  ----------
   (State of Incorporation)              (I.R.S. Employer Identification No.)


            2410 Paces Ferry Road, Suite 190, Atlanta, Georgia 30339
            ---------------------------------------------------------
                    (Address of Principal Executive Offices)

                                 (770) 863-9225
                                ---------------
                (Issuer's Telephone Number, Including Area Code)

                                 Not Applicable
                                ---------------
   (Former Name, Former Address and Former Fiscal Year, if Changed Since Last
                                    Report)


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

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable  date:

     2,060,639 shares of common stock, par value $.01 per share, were issued and
outstanding  as  of  August  6,  2003.

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


<PAGE>
<TABLE>
<CAPTION>
                                   EBANK FINANCIAL SERVICES, INC.
                               CONDENSED CONSOLIDATED BALANCE SHEETS

                                               ASSETS
                                                                         June 30,      December 31,
                                                                           2003           2002
                                                                       -------------  -------------
                                                                        (Unaudited)     (Audited)
<S>                                                                    <C>            <C>
Cash and due from banks                                                $  1,487,520   $    891,528
Interest-bearing deposits in banks                                        1,169,169        627,912
Federal funds sold                                                        9,425,000      5,114,000
                                                                       -------------  -------------
      Cash and cash equivalents                                          12,081,689      6,633,440
Securities available for sale                                            11,636,644              -
Securities held-to-maturity, fair value $13,681,193                               -     13,638,045
Other securities                                                            600,000        510,000
Mortgage loans held for sale                                                      -      7,820,139
Loans, net of allowance for loan losses of $1,458,188 and
    $963,301, respectively                                               81,635,305     69,561,583
Premises and equipment, net                                                 563,526        630,627
Accrued interest receivable and other assets                              1,839,969      2,623,476
                                                                       -------------  -------------
      Total assets                                                     $108,357,133   $101,417,310
                                                                       =============  =============

                               LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits                                                               $ 92,196,609   $ 84,578,187
Other borrowings                                                          9,250,000      9,280,053
Accrued interest payable and other liabilities                              281,649      1,028,850
                                                                       -------------  -------------
      Total liabilities                                                 101,728,258     94,887,090
                                                                       -------------  -------------

Shareholders' Equity:
Series A preferred stock, $.01 par value, 8% cumulative, convertible
    into one share of common stock; 10,000,000 shares authorized;
    2,410,000 issued and outstanding; accumulated undeclared
    dividends of $161,107 and $404,088   (liquidation preference of
    $6,025,000)                                                              24,100         24,100
Common stock, $.01 par value, 10,000,000 shares authorized,
    2,060,639 and 1,728,223 shares issued and outstanding                    20,607         17,282
Capital surplus                                                          19,173,149     19,176,474
Accumulated deficit                                                     (12,640,314)   (12,597,636)
Accumulated other comprehensive gain (loss)                                  51,333        (90,000)
                                                                       -------------  -------------
      Total shareholders' equity                                          6,628,875      6,530,220
                                                                       -------------  -------------

      Total liabilities and shareholders' equity                       $108,357,133   $101,417,310
                                                                       =============  =============
</TABLE>

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


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                       EBANK FINANCIAL SERVICES, INC.
                                 CONDENSED CONSOLIDATED STATEMENTS OF LOSS
                                                (UNAUDITED)

                                                For the three months ended      For the six months ended
                                                ---------------------------  ------------------------------
                                                          June 30,                      June 30,
                                                ---------------------------  ------------------------------
Interest income:                                     2003          2002           2003            2002
                                                --------------  -----------  ---------------  -------------
<S>                                             <C>             <C>          <C>              <C>
      Loans, including fees. . . . . . . . . .  $   1,337,379   $1,373,412   $    2,636,063   $  2,799,812
      Interest-bearing deposits. . . . . . . .          1,898        1,435            4,896          2,272
      Investment securities. . . . . . . . . .        225,820      202,189          436,178        399,934
      Other investments. . . . . . . . . . . .          4,203        5,321            9,831         12,352
      Federal funds sold . . . . . . . . . . .          3,101        7,445           23,483         14,048
                                                --------------  -----------  ---------------  -------------
          Total interest income. . . . . . . .      1,572,401    1,589,802        3,110,451      3,228,418
                                                --------------  -----------  ---------------  -------------
Interest expense:
      Deposits . . . . . . . . . . . . . . . .        506,787      570,006        1,039,851      1,232,453
      Other borrowings . . . . . . . . . . . .        101,104       87,900          185,625        176,187
                                                --------------  -----------  ---------------  -------------
          Total interest expense . . . . . . .        607,891      657,906        1,225,476      1,408,640
                                                --------------  -----------  ---------------  -------------
Net interest income. . . . . . . . . . . . . .        964,510      931,896        1,884,975      1,819,778

Provision for loan losses. . . . . . . . . . .        586,000            0          689,000        108,719
                                                --------------  -----------  ---------------  -------------
Net interest income after provision
      for loan losses. . . . . . . . . . . . .        378,510      931,896        1,195,975      1,711,059
                                                --------------  -----------  ---------------  -------------
Other income:
      Gain on sale of loans held for sale (MD)              -            -          752,715              -
      Gain on sale of loans held for sale (GA)          2,691            -            8,551              -
      Gain on sale of investments. . . . . . .        244,874            -          244,874              -
      Deposit fees . . . . . . . . . . . . . .         22,711       16,364           46,081         44,346
      Brokerage fee income (Peachtree Capital)              -      257,589                -        456,087
      Miscellaneous fees . . . . . . . . . . .          5,595           34           14,979            268
                                                --------------  -----------  ---------------  -------------
          Total other income . . . . . . . . .        275,871      273,987        1,067,200        500,701
                                                --------------  -----------  ---------------  -------------
Other expense:
      Salaries and other compensation. . . . .        455,737      567,708        1,343,715      1,111,070
      Employee benefits. . . . . . . . . . . .         81,667       76,660          180,407        159,215
      Net occupancy and equipment expense. . .        183,433      351,882          357,770        704,519
      Professional and other outside services.        160,350      170,032          241,850        249,809
      Other expense. . . . . . . . . . . . . .        129,823      168,074          182,111        263,800
                                                --------------  -----------  ---------------  -------------
      Total other expenses . . . . . . . . . .      1,011,010    1,334,356        2,305,853      2,488,413
                                                --------------  -----------  ---------------  -------------
      Net loss . . . . . . . . . . . . . . . .  $    (356,629)  $ (128,473)  $      (42,678)  $   (276,653)
                                                ==============  ===========  ===============  =============
Basic loss per common share. . . . . . . . . .  $        (.23)  $     (.18)  $         (.15)  $       (.36)
                                                ==============  ===========  ===============  =============
Diluted loss per common share. . . . . . . . .  $        (.23)  $     (.18)  $         (.15)  $       (.36)
                                                ==============  ===========  ===============  =============
</TABLE>

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


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                   EBANK FINANCIAL SERVICES, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                             (UNAUDITED)

                                      For the three months ended        For the six months ended
                                     -----------------------------  -----------------------------
                                                 June 30,                      June 30,
                                     -----------------------------  -----------------------------
                                          2003            2002           2003            2002
                                     --------------  -------------  -------------  --------------
<S>                                  <C>                <C>            <C>            <C>
Net loss                             $    (356,629)  $   (128,473)  $    (42,678)  $    (276,653)
Other comprehensive loss:
    Unrealized gain on securities
    available for sale, net of tax
      effect of $31,409                     51,333              -         51,333               -
                                     --------------  -------------  -------------  --------------
Comprehensive income (loss)          $    (305,296)  $   (128,473)  $      8,655   $    (276,653)
                                     ==============  =============  =============  ==============
</TABLE>

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


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                    EBANK FINANCIAL SERVICES, INC.
                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                              (UNAUDITED)

                                                                           For the six months ended
                                                                        ------------------------------
                                                                                   June 30,
                                                                        ------------------------------
                                                                             2003            2002
                                                                        ---------------  -------------
<S>                                                                     <C>              <C>
Cash flows from operating activities:
    Net earnings (loss)                                                 $      (42,678)  $   (276,653)
    Adjustments to reconcile net earnings (loss)
        to net cash provided (used) in operating activities:
        Net amortization of investment securities                               15,914            846
        Depreciation expense                                                    96,035        351,493
        Provision for loan losses                                              689,000        108,719
        Gain on sale of investments                                           (244,874)             -
        Decrease in mortgage loans held for sale                             7,820,139              -
        Change in deferred loan fees and costs                                (230,274)       (14,028)
        Change in other assets                                                 279,128        (96,902)
        Change in accrued interest receivable                                  (53,371)        29,907
        Change in accrued interest payable                                     (21,421)       (51,759)
        Change in other liabilities                                           (757,189)       (36,816)
                                                                        ---------------  -------------
            Net cash provided (used) in operating activities                 7,550,409        (14,807)
                                                                        ---------------  -------------

Cash flows from investing activities:
    Purchase of securities held-to-maturity                                (14,720,038)             -
    Proceeds from calls and maturities of securities held-to-maturity       13,626,320              -
    Proceeds from sale of securities held-to-maturity                        3,950,329              -
    Purchase of securities available-for-sale                               (1,563,852)             -
    Proceeds from sale of securities available-for-sale                      1,020,344              -
    Loans (originated) repaid, net of principal repayments                 (12,532,448)     2,276,509
    Proceeds from sale of Peachtree Capital Corporation                        578,000              -
    Purchases of premises and equipment                                        (28,934)        (8,990)
                                                                        ---------------  -------------
            Net cash (used) provided by investing activities                (9,670,279)     2,267,519
                                                                        ---------------  -------------

Cash flows from financing activities:
    Net increase (decrease) in deposits                                      7,618,422     (4,178,972)
    Repayments on other borrowings                                             (30,053)       (40,045)
    Cash dividend paid on preferred stock                                      (20,250)             -
    Net proceeds from the sale of preferred stock                                    -        100,000
                                                                        ---------------  -------------
            Net cash provided (used) by financing activities                 7,568,119     (4,119,017)
                                                                        ---------------  -------------

Net increase (decrease) in cash and cash equivalents                         5,448,249     (1,836,691)
Cash and cash equivalents:
    Beginning of period                                                      6,633,440      4,305,435
                                                                        ---------------  -------------
    End of period                                                       $   12,081,689   $  2,468,744
                                                                        ===============  =============
</TABLE>

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


                                        5
<PAGE>
                         EBANK FINANCIAL SERVICES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE  1  -  BASIS  OF  PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the instructions to Form 10-QSB and Item 310(b)
of  Regulation  S-B.  Accordingly,  they  do not include all the information and
footnotes  required  by  generally  accepted  accounting principles for complete
annual  financial  statements.  In  the  opinion  of management, all adjustments
(consisting  of  normal  recurring  adjustments) considered necessary for a fair
presentation  have  been included.  Operating results for the three-month period
ended  June  30,  2003 are not necessarily indicative of the results that may be
expected  for the year ending December 31, 2003.  For further information, refer
to  our  consolidated  financial statements and footnotes included in our annual
report  on  Form  10-KSB.

     ebank  Financial  Services,  Inc.  (the "Company") provides a full range of
banking  and bank-related services to individual and corporate customers through
its  wholly  owned  bank  subsidiary,  ebank, located in north Atlanta, Georgia.
ebank  Financial  Services,  Inc.  and  its  subsidiary  are  subject to intense
competition  for  all  banking  services, including Internet banking, from other
financial  institutions  and  nonbank  financial  service  companies.

     ebank Financial Services, Inc. was incorporated under the laws of the State
of  Georgia  on  August  22, 1997 to operate as a unitary thrift holding company
under  the  supervision  of  the Office of Thrift Supervision.  ebank began as a
general banking business on August 17, 1998, as a wholly owned subsidiary of the
Company.  The  consolidated  financial  statements  include  the accounts of the
Company  and  ebank. All significant intercompany accounts and transactions have
been  eliminated  in  consolidation.

                         SIGNIFICANT ACCOUNTING POLICIES

     The  Company's  accounting  policies  are  fundamental  to  understanding
management's  discussion  and  analysis  of  results of operations and financial
condition.  Many  of  the  Company's  accounting  policies  require  significant
judgment  regarding  valuation  of  assets  and  liabilities  and/or significant
interpretation  of  the  specific  accounting  guidance.  A  description  of the
Company's significant accounting policies can be found in Note 1 of the Notes to
Consolidated  Financial  Statements  in  the  Company's  2002  annual  report to
shareholders.  The  following  is  a  summary of the more judgmental and complex
accounting  policies  of  the  Company.

     Many  of  the  Company's  assets and liabilities are recorded using various
valuation  techniques  that  require  significant judgment as to recoverability.
The  collectability  of loans is reflected through the Company's estimate of the
allowance  for  loan  losses.  The  Company  performs  periodic  and  systematic
detailed  reviews of its lending portfolio to assess overall collectability.  In
addition,  certain  assets and liabilities are reflected at their estimated fair
value  in  the  consolidated  financial  statements.  Such  amounts are based on
either quoted market prices or estimated values derived by the Company utilizing
dealer  quotes  or  market  comparisons.

                                USE OF ESTIMATES

     Management  of  the  Company has made a number of estimates and assumptions
relating to reporting of assets and liabilities and the disclosure of contingent
assets  and  liabilities  to  prepare these consolidated financial statements in
conformity  with generally accepted accounting principles.  Actual results could
differ  from  these  estimates.


                                        6
<PAGE>
                            STOCK COMPENSATION PLANS

Statement  of  Financial  Accounting  Standards ("SFAS") No. 123, Accounting for
Stock-Based  Compensation,  encourages  all entities to adopt a fair value based
method of accounting for employee stock compensation plans, whereby compensation
cost  is  measured  at  the  grant  date  based on the value of the award and is
recognized  over  the  service  period,  which  is  usually  the vesting period.
However,  it  also allows an entity to continue to measure compensation cost for
those  plans  using the intrinsic value based method of accounting prescribed by
Accounting  Principles  Board  Opinion  No.  25,  Accounting for Stock Issued to
Employees, whereby compensation cost is the excess, if any, of the quoted market
price of the stock at the grant date (or other measurement date) over the amount
an  employee  must  pay  to  acquire  the  stock.  Accordingly,  the Company has
recorded  no  expense  in  the  quarters  ended  June 30, 2003 and June 30, 2002
related  to  its  stock  options.  The  Company has elected to continue with the
accounting  methodology  in  Opinion  No.  25 and, as a result, has provided the
following  pro  forma disclosures of net earnings and loss and basic and diluted
earnings  and  loss  per  common  share.

<TABLE>
<CAPTION>
                                                                  For the six months ended June 30,
                                                               ---------------------------------------
                                                                      2003                2002
                                                               ------------------  -------------------
<S>                                           <C>              <C>                 <C>
Net loss attributable to common stockholders                   $        (281,697)  $         (575,437)
                                              Effect of stock
                                              options grants             (71,567)             (72,256)
                                                               ------------------  -------------------
                                              Pro forma        $        (353,264)  $         (647,693)
                                                               ==================  ===================
Basic earnings (loss) per share               As reported      $            (.15)  $             (.36)
                                              Pro forma        $            (.19)  $             (.40)
Diluted earnings (loss) per share             As reported      $            (.15)  $             (.36)
                                              Pro forma        $            (.19)  $             (.40)
</TABLE>

NOTE  2  -  INVESTMENT  SECURITIES

     In  June  2003,  management of the Company made the decision that it was in
the  Company's  best interest to sell certain securities in the held to maturity
portfolio.  The  Company  sold  held to maturity securities with a book value of
$3,719,394  and  realized  a  gain totaling $230,935 on the sale.  This decision
resulted  in  large  part  from the unique interest rate environment that exists
currently and from management's expectation of the interest rate environment for
the next few years.  For the same reasons, management decided to re-classify the
entire portfolio of held to maturity securities to available for sale as of June
30,  2003.  Securities  with  a  book  value  of $11,553,902 were transferred to
available  for  sale  and  a  gross  unrealized  gain  of  $82,742 was recorded.


                                        7
<PAGE>

NOTE  3  -LOSS  PER  COMMON  SHARE

     Presented  below is a summary of the components used to calculate basic and
diluted  earnings  (loss)  per  common share for the three months ended June 30,
2003  and  2002.

<TABLE>
<CAPTION>
                                                              For the three months ended
                                                          ----------------------------------
                                                                        June 30
                                                          ----------------------------------
                                                                2003              2002
                                                          ----------------  ----------------
<S>                                                       <C>               <C>
Basic Loss Per Common Share:
  Weighted average common shares outstanding                    2,060,639         1,707,916
                                                          ================  ================
  Net loss                                                $      (356,629)  $      (128,473)
  Preferred stock dividend accumulated during the period         (120,170)         (173,525)
                                                          ----------------  ----------------
  Net loss attributable to common stockholders            $      (476,799)  $      (301,998)
                                                          ================  ================

  Basic loss per common share                             $          (.23)  $          (.18)
                                                          ================  ================

Diluted Loss Per Common Share:
  Weighted average common shares outstanding                    2,060,639         1,707,916
  Net effect of the assumed exercise of stock
    options and warrants based on the treasury stock
    method using average market prices for the year                     -                 -
  Net effect of convertible preferred stock                             -                 -
                                                          ----------------  ----------------
  Total weighted average common shares and
    common stock equivalents outstanding                        2,060,639         1,707,916
                                                          ================  ================

Net loss attributable to common
  stockholders                                            $      (476,799)  $      (301,998)
                                                          ================  ================

Diluted loss per common share                             $          (.23)  $          (.18)
                                                          ================  ================
</TABLE>


                                        8
<PAGE>
     Presented  below is a summary of the components used to calculate basic and
diluted  earnings (loss) per common share for the six months ended June 30, 2003
and  2002.

<TABLE>
<CAPTION>
                                                           For the six months ended
                                                        -----------------------------
                                                                  June 30
                                                        -----------------------------
                                                            2003            2002
                                                        -------------  --------------
<S>                                                     <C>            <C>
Basic Loss Per Common Share:
    Weighted average common shares outstanding             1,908,205       1,616,073
                                                        =============  ==============

    Net loss                                            $    (42,678)  $    (276,653)
    Preferred stock dividend                                (239,019)       (299,284)
                                                        -------------  --------------
    Net loss attributable to common stockholders        $   (281,697)  $    (575,937)
                                                        =============  ==============

    Basic loss per common share                         $       (.15)  $        (.36)
                                                        =============  ==============

Diluted Loss Per Common Share:
    Weighted average common shares outstanding             1,908,205       1,616,073
    Net effect of the assumed exercise of stock
      options and warrants based on the treasury stock
      method using average market prices for the year              -               -
    Net effect of convertible preferred stock                      -               -
                                                        -------------  --------------
    Total weighted average common shares and
      common stock equivalents outstanding                 1,908,205       1,616,073
                                                        =============  ==============

Net loss attributable to common
    stockholders                                        $   (281,697)  $    (575,937)
                                                        =============  ==============

Diluted loss per common share                           $       (.15)  $        (.36)
                                                        =============  ==============
</TABLE>

NOTE  4  -  ISSUANCE  OF  COMMON  STOCK

     The Company is obligated to pay cumulative dividends at a rate of 8% on the
outstanding  shares  of  Series  A  cumulative convertible preferred stock.  The
dividends  on  each  share  accrue  from  the  date  of purchase, whether or not
declared.  At  the Company's option, the Company may pay these dividends in cash
or  in  additional  shares of its common stock.  The Company anticipates that it
will  pay  these dividends in additional shares of common stock. On February 24,
2003, the Company's board of directors declared a dividend accrued on its Series
A preferred stock through February 28, 2003.  The common stock dividend was paid
on March 25, 2003 to Series A preferred stock shareholders of record on February
28,  2003.  The  dividend, which was based on the closing price of the Company's
common  stock  on the record date, resulted in the issuance of 332,416 shares of
common  stock.


                                        9
<PAGE>
NOTE  5  -  OTHER  EVENTS

     As previously reported, we entered into a stock purchase agreement dated as
of  February  26,  2003  (the  "Stock  Purchase Agreement") pursuant to which we
agreed,  subject  to  the  fulfillment  of certain conditions, to sell 1,200,000
shares of our common stock in a private placement for an aggregate consideration
of  $1,080,000  to  Marshall Investments, L.P., a Georgia limited partnership in
which  Michael  P. Marshall, Sr. is the general partner ("New Investor"), and to
grant  an  option  in connection therewith which (subject to certain conditions)
essentially would have permitted New Investor to maintain ownership of up to 20%
of  our  issued  and  outstanding  common  stock  through  July  1,  2006.

     The obligation of New Investor to complete the purchase of shares under the
Stock  Purchase  Agreement  was conditioned upon, among other things, all of the
outstanding  shares  of  the  8% Series A cumulative convertible preferred stock
being retired and cancelled by the required closing date.  We were not obligated
to  close  the  transaction contemplated by the Stock Purchase Agreement if less
than  80%  of  the  outstanding shares of the 8% Series A cumulative convertible
preferred  stock  was  retired  and cancelled by the required closing date.  The
Stock  Purchase Agreement was subject to termination by either party if, through
no fault of the terminating party, the closing of such transaction did not occur
on  or  before  June  26,  2003.

     Effective  May  15,  2003,  we commenced an exchange offer in the form of a
private  placement  to  the  holders  of  all  outstanding shares of 8% Series A
cumulative  convertible  preferred  stock,  pursuant  to which we offered (A) to
exchange  all  of such shares for shares of common stock (on a one share for one
share  basis,  as  per  the  existing  conversion feature) and (B) in connection
therewith,  to  exchange  all of such holders' warrants to purchase common stock
issued  with  the  8%  Series  A  cumulative  convertible  preferred  stock (the
"Original  Warrants")  for  new  warrants  to purchase common stock with a lower
exercise  price  of  $1.75  per  share  and  a  new term of three years from the
effective date of the exchange.  We also offered to pay (in shares of our common
stock)  the  dividend  accrued through May 31, 2003 on all shares of 8% Series A
cumulative  convertible  preferred  stock  tendered  in  the exchange offer.  We
subsequently  extended the closing of the exchange offer from 5:00 p.m. Atlanta,
Georgia  time  on  June  13, 2003 to 5:00 p.m. Atlanta, Georgia time on June 26,
2003.

     Upon  expiration  of  the  exchange  offer, only 370,000 shares of Series A
preferred,  or  15% of such shares issued and outstanding, and Original Warrants
exercisable  for  185,000  underlying  shares  of  Common  Stock,  or 15% of the
outstanding  Original  Warrants,  had been validly tendered for exchange and not
withdrawn.  In  light  of the very low percentage tendered, with the result that
our acceptance of such tenders could not be expected to significantly reduce the
preferred dividend burden on the Company or increase the liquidity of trading in
our  common  stock,  our  Board  of  Directors  concluded  that there was a high
probability  that  the  ability  of  both the Company and the tendering security
holders  to  realize  the  benefits  the  Board  had expected as a result of the
Exchange Offer would be substantially impaired.  Accordingly, in reliance on one
of  the  terms  of  the  exchange  offer  which  gave us the right to reject all
tendered  Series  A  preferred  shares  and Original Warrants if certain changes
occurred  which,  in  our  reasonable  judgement,  might  materially  impair the
benefits  expected  from the Exchange Offer, we elected not to accept any of the
shares  of  Series  A  Preferred  and Original Warrants tendered in the Exchange
Offer.

     Following the failure to occur of the condition that all of the outstanding
shares  of the 8% Series A cumulative convertible preferred stock be retired and
cancelled  by  June 26, 2003, the New Investor advised us of its election not to
close  the  transactions  contemplated  by  the  Stock  Purchase  Agreement.


                                       10
<PAGE>
NOTE  6  -  CONTINGENCY

     In  May  2003,  Thacker  &  Loucks,  Inc., d/b/a Thacker & Loucks Financial
Services, a Georgia corporation ("Thacker"), filed an action against the holding
company in the State Court of Fulton County alleging a breach of contract by the
holding  company.  The  breach  of  contract  alleged  by  Thacker  relates to a
Servicing  Representative Agreement dated as of August 3, 2001 (the "Agreement")
by  and between ebank, the holding company's subsidiary, and Thacker.  Under the
Agreement, ebank agreed to discount from time to time an indeterminate number of
certain types of contracts which met ebank's underwriting criteria.  Pursuant to
the  terms  of  the  Agreement,  in February ebank provided Thacker with written
notice of ebank's intention to terminate the Agreement after the expiration of a
180-  day  notice  period.

     The  complaint  filed by Thacker alleges that the holding company failed to
approve  loans  which  met  or  exceeded the underwriting criteria and failed to
communicate  with  Thacker.  The  complaint  filed  by Thacker seeks contractual
damages  in  the  amount  of  Three  Million Five Hundred Thousand Dollars, plus
reasonable  attorney's  fees  and  costs  of  the  litigation.

     We  believe that ebank has abided by all applicable terms of the Agreement,
including those terms related to continuing performance during the notice period
prior  to  termination, and that the claim asserted by Thacker is without merit.
Moreover,  Thacker filed its lawsuit against the holding company, which is not a
party  to  the Agreement and is therefore the wrong entity.  The holding company
filed  its Answer in June 2003, denying all claims and informing Thacker that it
had  sued  the wrong entity.  Discovery is ongoing and no motions are pending in
this  action.  Discovery  is  scheduled  to  close  on  December  2,  2003.


                                       11
<PAGE>
PART  I  -  FINANCIAL  INFORMATION

ITEM  2.    MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION.

This  Report  contains  statements  which  constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
the  Securities  Exchange  Act  of  1934.  These statements may relate to, among
others,  our  future  financial  position,  business  prospects  and  strategy,
projected  costs  and  plans  and  objectives  for future operations, growth and
liquidity.  Forward-looking statements generally can be identified by the use of
words  such  as  "may,"  "would,"  "could,"  "will,"  "expect,"  "anticipate,"
"believe,"  "intend,"  "plan,"  "estimate," "project," or "continue" or words of
similar  meaning.  These  statements  are  subject  to  a  number  of  risks and
uncertainties  that could cause our actual results to differ materially from our
historical  results  or from those anticipated or implied as of the date of this
Report.  Some  of  the  factors  that  could  cause  such  a  variance  are:

          -    significant  increases in competitive pressure in the banking and
               financial  services  industries;

          -    changes  in  the  interest  rate  environment  which could reduce
               anticipated  or  actual  margins;

          -    changes  in political conditions or the legislative or regulatory
               environment;

          -    general  economic conditions, either nationally or regionally and
               especially  in  our primary service area, becoming less favorable
               than  expected  resulting in, among other things, a deterioration
               in  credit  quality;

          -    changes  occurring  in  business  conditions  and  inflation;

          -    changes  in  technology;

          -    changes  in  monetary  and  tax  policies;

          -    changes  in  the  securities  markets;  and

          -    other  risks  and uncertainties detailed from time to time in our
               filings  with  the  Securities  and  Exchange  Commission.

General
-------

     ebank  Financial  Services,  Inc.,  formerly  known  as  ebank.com, Inc., a
Georgia  corporation,  is the holding company for ebank, a federal savings bank.

     Effective  January  2,  2002,  we acquired all of the outstanding shares of
Peachtree  Capital  Corporation,  a  Georgia  corporation based in Atlanta which
provides  financial  planning  and  securities  brokerage services. Accordingly,
Peachtree  Capital  Corporation was operated as a wholly owned subsidiary of the
company  during most of the six month period ended June 30, 2003 and its results
are  included  in  our  reported  results  of  operations  for  such  period.
Subsequently,  we  entered into a definitive agreement, effective as of December
31,  2002,  for  the  sale  of all of the outstanding capital stock of Peachtree
Capital Corporation to Caroline O. and Steven Harless in exchange for (1) 76,792
previously issued shares of our Series B-1 convertible preferred stock valued at
$225,000;  (2)  76,792  previously  issued  shares of our Series B-2 convertible
preferred  stock  valued  at  $225,000;  and  (3)  a  cash  payment of $578,000.
Therefore,  our  results  of operations for the quarter and the six months ended
June  30,  2003  do not include the operations of Peachtree Capital Corporation.

     On  September  27,  2002,  we  announced  that our subsidiary, ebank, would
establish a loan production office in Columbia, Maryland on October 1, 2002. The
function  of the loan production office was to originate home mortgages and home
equity  loans  and  sell  them  in  the  secondary  market.  Although


                                       12
<PAGE>
the Columbia office was established on October 1, 2002 as planned, we decided to
discontinue operations on November 30, 2002, after consultations with the Office
of  Thrift  Supervision, the bank's primary regulator. Our results for the first
quarter of fiscal 2003 include the proceeds from the sale of all loans generated
by  the  Maryland  operation, and we will not realize any additional income from
this  operation  in  future  periods.

     Effective  January 1, 2003, the holding company's name was changed to ebank
Financial  Services,  Inc.  We  provide  banking and other financial services to
small  business and retail customers through our offices in Atlanta, Georgia and
via  the  Internet.  We  have  revised  our  business  strategy to emphasize our
traditional  banking business and to develop cost-effective strategies utilizing
the  Internet  as  one  of  our  delivery  channels. We provide a broad array of
financial  products  and  services  to  our small business and retail customers,
including  checking  accounts, money markets, CDs, ATM cards, home equity loans,
mortgage  loans,  commercial  loans,  credit  cards,  and bill payment services.

Financial  Condition
--------------------

     Total  consolidated assets increased by $6.9 million to $108,357,133 during
the  six-month  period ended June 30, 2003.  The increase in assets is primarily
related  to  increases in mortgage loans of $10.9 million, Federal funds sold of
$4.3  million,  and  commercial  loans  of  $1.3  million partially off-set by a
decrease  in  mortgage  loans  held-for-sale  of  $7.8  million  and investments
held-to-maturity  of  $2.1  million.  The addition of the individual real estate
mortgage  loans  during  the  period  reflects management's continued efforts to
diversify  the  loan  portfolio  by  decreasing  its  reliance on commercial and
commercial  real  estate  loans.

     Total  consolidated  liabilities  increased by $6.8 million to $101,728,258
during  the six-month period ended June 30, 2003. The increase in liabilities is
primarily related to a $9.8 million increase in certificate of deposits, off-set
by  decreases in money market deposits and other liabilities of $2.3 million and
$0.7  million,  respectively,  during  the six-month period ended June 30, 2003.

Results of Operations- Six months ended June 30, 2003 compared to the six months
---------------------
ended  June  30,  2002:

     Net  loss  for  the  six  months  ended  June  30,  2003  was ($42,678), or
($281,697)  after  taking into account $239,019 in dividends on preferred stock,
compared  with a net loss of ($276,653), or ($575,937) after taking into account
$299,284  in  dividends  on  preferred  stock, for the six months ended June 30,
2002.  Net  interest income, before provision for loan losses, for the six-month
period ending June 30, 2003 totaled $1,884,975, compared to net interest income,
before  provision for loan losses, of $1,819,778 for the six-month period ending
June  30,  2002.  During  the period ended June 30, 2003, net interest income of
$51,452  was  generated  from  loans  held  for sale by our former Maryland loan
production  office.

     Other  income  earned  for  the six months ended June 30, 2003 and 2002 was
$1,067,200  and  $500,701,  respectively.  Included  in other income for the six
months  ended  June  30,  2003  was  $752,715  generated  by  the  Maryland loan
production office. The income from the Maryland loan production office consisted
of gains on loans sold to investors in the secondary market. We will not realize
any  additional income from the Maryland operation. Included in other income for
the  six  months ended June 30, 2002 was $456,087 generated by Peachtree Capital
Corporation.

     Operating  expenses for the six-month periods ending June 30, 2003 and 2002
totaled  $2,305,853  and  $2,488,413,  respectively.  Operating expenses for the
current  year  include  expenses  associated  with  the Maryland loan production
office  and  operating  expenses  for the prior year include expenses associated
with  Peachtree  Capital  Corporation.  Operating  expenses  associated with the
Maryland  loan  production  office for the six-month period ending June 30, 2003
totaled  $360,543,  consisting  primarily  of  incentive  compensation and other
benefits.  Operating  expenses associated with Peachtree Capital Corporation for
the  six-month period ending June 30, 2002 totaled $344,548. After adjusting for
operating  expenses  incurred  in  connection  with the Maryland loan production
office  in  2003  and  operating  expenses  for


                                       13
<PAGE>
Peachtree  Capital  Corporation in 2002, total operating expenses for continuing
operations declined by $198,555 for the six-month period ending June 30, 2003 as
compared  to  the  prior  year  period.

Results  of  Operations - Three months ended June 30, 2003 compared to the three
-----------------------
months ended June 30, 2002:

     Net  loss  for  the  three  months  ended  June 30, 2003 was ($356,629), or
($476,799)  after  taking into account $120,170 in dividends on preferred stock,
compared  with a net loss of ($128,473), or ($301,998) after taking into account
$173,525  in  dividends  on preferred stock, for the three months ended June 30,
2002. Net interest income, before provision for loan losses, for the three-month
period  ending  June 30, 2003 totaled $964,510, compared to net interest income,
before  provision for loan losses, of $931,896 for the three-month period ending
June  30,  2002.

     Other  income  earned for the three months ended June 30, 2003 and 2002 was
$275,871  and  $273,987,  respectively.  Included  in other income for the three
months  ended  June 30, 2003 is a gain on sale of investments totaling $244,874.
We  incurred  an  income  reduction  of $1,099 associated with the Maryland loan
production  office  during  the  current  period.  Income from the Maryland loan
production office consisted of gains on loans sold to investors in the secondary
market.  We  will not realize any additional income from the Maryland operation.
Included  in  other income for the three months ended June 30, 2002 was $257,589
generated  by  Peachtree  Capital  Corporation.

     Operating  expenses  for  the  three-month periods ending June 30, 2003 and
2002  totaled  $1,011,010  and $1,334,356, respectively.  Operating expenses for
the  current  year include expenses associated with the Maryland loan production
office  and  operating  expenses  for the prior year include expenses associated
with  Peachtree  Capital  Corporation.  Operating  expenses  associated with the
Maryland  loan production office for the three-month period ending June 30, 2003
totaled  $1,250.  Operating  expenses  associated  with  Peachtree  Capital
Corporation  for  the  three-month period ending June 30, 2002 totaled $200,278.
After  adjusting for operating expenses incurred in connection with the Maryland
loan  production  office  in  2003  and operating expenses for Peachtree Capital
Corporation in 2002, total operating expenses for continuing operations declined
$124,318  for  the  three-month  period  ending June 30, 2003 as compared to the
prior  year  period.

Allowance  for  Loan  Losses
----------------------------

     There  are risks inherent in making all loans, including risks with respect
to  the  period  of  time  over  which loans may be repaid, risks resulting from
changes  in  economic  and  industry  conditions, risks inherent in dealing with
individual borrowers, and, in the case of a collateralized loan, risks resulting
from  uncertainties  about the future value of the collateral.  To address these
risks, we have developed policies and procedures to evaluate the overall quality
of  our  credit  portfolio  and  the  timely identification of potential problem
loans.  We  maintain  an  allowance  for loan losses, which we establish through
charges  in  the form of a provision for loan losses.  We charge loan losses and
credit  recoveries  directly  to  this  allowance.

     We  attempt  to  maintain the allowance at a level that will be adequate to
provide for probable losses in our loan portfolio.  To maintain the allowance at
an  adequate  level, we periodically make additions to the allowance by charging
an  expense to the provision for loan losses on our statement of operations.  We
evaluate the allowance for loan losses on an overall portfolio basis, as well as
allocating the allowance to loan categories.  We consider a number of factors in
determining  the  level  of  this  allowance,  including  our  total  amount  of
outstanding  loans,  our  amount  of  past  due  loans,  our  historic loan loss
experience, general economic conditions, and our assessment of potential losses.
Our  evaluation  is  inherently  subjective  as  it  requires estimates that are
susceptible  to  significant  change.  Our losses will undoubtedly vary from our
estimates,  and  there  is a possibility that charge-offs in future periods will
exceed  the  allowance  for  loan  losses  as  estimated  at  any point in time.

     As of June 30, 2003 and December 31, 2002, the allowance was $1,458,188 and
$963,301, respectively. We strengthened our provision for loan losses during the
six-month  period  ended  June  30,


                                       14
<PAGE>
2003  by $689,000 as compared to an increase in provision of $108,719 during the
same  period  in  2002. During the second quarter, we increased our provision by
$586,000  primarily  as a result of a significant increase in our non-performing
loans  during  the period. At December 31, 2002, we had ten non-performing loans
totaling  $234,976.  Non-performing loans declined slightly in the first quarter
of  2003  to  nine loans totaling $215,187. At the end of the second quarter, we
had  sixteen  non-performing loans totaling $1,311,012. Subsequent to the end of
the  second  quarter,  we foreclosed and sold the collateral associated with one
non-performing  loan  totaling  $221,009  representing  the amount of the unpaid
loan.

     At  December 31, 2002, there were twenty-two loans past due greater than 30
days  totaling approximately $2,811,000. Loan delinquencies increased during the
first  quarter  and at March 31, 2003, we had thirty-nine loans past due greater
than  30  days  totaling  $5,429,000.  Loan delinquencies declined in the second
quarter and as of June 30, 2003, we had twenty-seven loans past due greater than
30  days  totaling approximately $4,511,000. The allowance for loan losses, as a
percentage  of  total  gross  loans,  was 1.75% as of June 30, 2003, compared to
1.37%  as  of  December  31,  2002.  There  were three loans charged-off for the
six-month  period  ended  June  30,  2003  totaling  $194,941.

Average  Balances,  Income  and  Expense,  and  Rates
-----------------------------------------------------

     Net  interest income represents the difference between interest received on
interest-earning  assets and interest paid on interest-bearing liabilities.  The
following represents, in a tabular form, the main components of interest-earning
assets  and interest-bearing liabilities for the six months ended June 30, 2003:

<TABLE>
<CAPTION>

         Interest-                        Interest
      Earning Assets/         Average     Income/     Yield/
   Bearing Liabilities        Balance      Cost        Cost
--------------------------  -----------  ----------  ---------
<S>                         <C>          <C>         <C>

Federal funds sold          $ 4,126,756  $   23,483      1.15%
Interest-bearing deposits       627,107       4,896      1.57%
Investment securities        15,367,750     446,009      5.85%
Loans                        77,918,657   2,636,063      6.82%
                            -----------  ----------  ---------
      Total                 $98,040,270  $3,110,451      6.40%
                            ===========  ==========  =========

Deposits                     78,167,117   1,039,851      2.68%
Other borrowings             10,298,948     185,625      3.63%
                            -----------  ----------  ---------
      Total                 $88,466,065  $1,225,476      2.79%
                            ===========  ==========  =========

Net interest income/spread               $1,884,975      3.61%
                                         ==========  =========

Net interest margin                                      3.88%
                                                     =========
</TABLE>

     The net interest margin for the first six months of 2003 decreased to 3.88%
as  compared  to  3.99%  for the first six months of 2002 and 4.30% for the full
year  in  2002.

Liquidity  and  Sources  of  Capital
------------------------------------

     Liquidity is our ability to meet all deposit withdrawals immediately, while
also  providing  for the credit needs of customers. Our primary sources of funds
are  principal  and  interest  payments  on  loans  receivable,  cash flows from
operations,  increases  in deposits and advances from the Federal Home Loan Bank
of  Atlanta.  The  June  30,  2003  financial statements evidence a satisfactory
liquidity  position  as  total  cash,  cash  equivalents, and federal funds sold
amounted to approximately $12.1 million, or 11.2% of total assets. Additionally,
our  ability  to maintain and expand our deposit base and borrowing capabilities
are  a  source of liquidity. For the six-month period ended June 30, 2003, total
deposits increased from $84.6 million to $92.2 million, representing an increase
of  9.01%.  We  will  increase  deposits  as  required to fund loan growth, loan
purchases  in the secondary markets and for purchases of investments. We closely


                                       15
<PAGE>
monitor  and  attempt  to maintain appropriate levels of interest-earning assets
and  interest-bearing  liabilities  so  that  maturities of assets are such that
adequate  funds  are available to meet our customer withdrawals and loan demand.
We  believe  that our existing funding sources are adequate to ensure sufficient
cash  flow  to  meet  our  current  and  future  obligations.

     The  bank  maintains  adequate  levels of capitalization as measured by the
following  capital ratios and the respective minimum capital requirements by the
Office  of  Thrift  Supervision,  the  bank's  primary  regulator.

<TABLE>
<CAPTION>
                                      Bank      Minimum
                                    Capital    Regulatory
                                     Ratio    Requirement
                                    --------  ------------
<S>                                 <C>       <C>
Capital ratios at June 30, 2003
  Tier 1 capital                       8.30%      4.0%
  Tier 2 capital                       1.25%
                                    ---------
    Total risk-based capital ratio     9.55%      8.0%
                                    =========

  Leverage ratio                       5.97%      4.0%
</TABLE>

     The  Office  of  Thrift Supervision has established a 3.0% minimum leverage
ratio  requirement.  The  leverage  ratio is computed by dividing Tier 1 capital
into  average  assets.  For  all  except  the  highest  rated banks, the minimum
leverage  ratio  should  be  3.0%  plus an additional cushion of at least 1 to 2
percent,  depending  upon  risk  profiles  and  other  factors.

     We  believe  that, as of June 30, 2003, we meet all capital requirements to
which  we  are  subject.

Liquidity  And  Rate  Sensitivity
---------------------------------

     Asset/liability  management  is the process by which we monitor and control
the  mix and maturities of our assets and liabilities. The essential purposes of
asset/liability  management  are to ensure adequate liquidity and to maintain an
appropriate  balance  between  interest  sensitive  assets  and  liabilities  to
minimize potentially adverse impacts on earnings from changes in market interest
rates.

     We  measure  interest rate sensitivity as the difference between amounts of
interest-earning  assets  and interest-bearing liabilities, which either reprice
or  mature  within a given period of time.  The difference, or the interest rate
repricing  "gap," provides an indication of the extent to which an institution's
interest  rate  spread  will be affected by changes in interest rates.  A gap is
considered  positive  when  the amount of interest-rate sensitive assets exceeds
the  amount  of  interest-sensitive liabilities, and is considered negative when
the  amount  of  interest-rate  sensitive  liabilities  exceeds  the  amount  of
interest-sensitive assets.  Generally, during a period of rising interest rates,
a  negative  gap  within  shorter maturities would adversely affect net interest
income,  while  a  positive  gap  within  shorter  maturities would result in an
increase  in net interest income, and during a period of falling interest rates,
a  negative  gap  within  shorter  maturities would result in an increase in net
interest  income  while  a positive gap within shorter maturities would have the
opposite  effect.


                                       16
<PAGE>
<TABLE>
<CAPTION>
     The  table below shows the interest rate sensitivity of our assets and liabilities
as of June 30, 2003:

                                               After three
                                        Within  but within   After one     After
                                        three     twelve     but within    five
                                        months    months     five years    years      Total
                                       --------  ---------  ------------  --------  ---------
                                                       (Dollars in Thousands)
<S>                                    <C>       <C>        <C>           <C>       <C>
Interest-earning assets:
    Interest-earning deposits          $ 1,169   $      -   $         -   $     -   $  1,169
    Loans                               36,960      6,230        11,711    28,292     83,193
    Investment securities                  450          -             -    11,554     12,004
    Federal funds sold                   9,425          -             -         -      9,425
                                       --------  ---------  ------------  --------  ---------
Total earning assets                    48,004      6,230        11,711    39,846    105,791
                                       --------  ---------  ------------  --------  ---------

Interest-bearing liabilities:
    Money market and NOW                22,457          -             -         -     22,457
    Savings deposits                       331          -             -         -        331
    Time deposits                       11,106     22,274        30,587        99     64,066
    Other liabilities                        -      5,250             -     4,000      9,250
                                       --------  ---------  ------------  --------  ---------
Total interest-bearing liabilities      33,894     27,524        30,587     4,099     96,104
                                       --------  ---------  ------------  --------  ---------

Interest-sensitivity gap               $14,110   $(21,294)  $   (18,876)  $35,747   $  9,687
                                       ========  =========  ============  ========  =========

Cumulative interest-sensitivity gap    $14,110   $ (7,184)  $   (26,060)  $ 9,687   $  9,687
                                       ========  =========  ============  ========  =========

Ratio of interest-sensitivity gap to
    total earning assets                 13.34%    -20.13%       -17.84%    33.79%      9.16%

Ratio of cumulative interest-
    sensitivity gap to total earning
    assets                               13.34%     -6.79%       -24.63%     9.16%
</TABLE>

     As evidenced by the table above, we are cumulatively liability-sensitive at
one  year.  However, our gap analysis is not a precise indicator of its interest
sensitivity position.  The analysis presents only a static view of the timing of
maturities  and  repricing opportunities, without taking into consideration that
changes in interest rates do not affect all assets and liabilities equally.  Net
interest income may be impacted by other significant factors in a given interest
rate  environment, including changes in the volume and mix of earning assets and
interest-bearing  liabilities.


                                       17
<PAGE>
Loan  Portfolio
---------------

     Because  loans typically provide higher interest yields than do other types
of  earning  assets,  our  intent  is to channel a substantial percentage of our
earning  assets  into  the loans category.  Average gross loans were $77,918,657
for  the six-month period ended June 30, 2003.  Total gross loans outstanding at
June  30,  2003  were  $83,193,202.

     The  following  table  summarizes  the composition of the loan portfolio at
June  30,  2003:

<TABLE>
<CAPTION>
                                                  Percent
                                      Amount     of total
                                   ------------  ---------
<S>                                <C>           <C>
Commercial                         $14,096,016      16.94%
Real estate - individual            42,883,264      51.55%
Real estate - commercial            20,092,951      24.15%
Installment loans to individuals     6,120,971       7.36%
                                   ------------  ---------
Gross loans                         83,193,202     100.00%
                                                 =========

Less:  Net deferred loan fees          (99,709)
       Allowance for loan loss      (1,458,188)
                                   ------------
Total net loans                    $81,635,305
                                   ============
</TABLE>

     The  principal  components  of  our  loan  portfolio  at June 30, 2003 were
mortgage  loans and commercial loans, which represented approximately 93% of the
portfolio.  We  will attempt to maintain a relatively diversified loan portfolio
to  help  reduce  the  risk  inherent  in  concentration  of  collateral.

Regulatory  Matters
-------------------

     From  time  to  time,  various  bills  are  introduced in the United States
Congress  with  respect to the regulation of financial institutions.  Certain of
these  proposals, if adopted, could significantly change the regulation of banks
and  the  financial  services  industry.  We cannot predict whether any of these
proposals  will  be adopted or, if adopted, how these proposals would affect us.

ITEM 3.  CONTROLS  AND  PROCEDURES.

     As  of  the  end  of  the  period  covered by this quarterly report on Form
10-QSB, an evaluation was performed under Rule 13a-15 of the Securities Exchange
Act  of 1934 under the supervision and with the participation of our management,
including  the  Chief  Executive  Officer  and  Chief  Financial Officer, of the
effectiveness  of  the  design  and  operation  of  our  disclosure controls and
procedures.  Based  on  that  evaluation,  the Chief Executive Officer and Chief
Financial  Officer  concluded  that  our disclosure controls and procedures were
effective.  No  change in our internal control over financial reporting occurred
during  the period covered by this quarterly report that materially affected, or
is  reasonably  likely to materially affect, our internal control over financial
reporting.


                                       18
<PAGE>
                                     PART II
                                OTHER INFORMATION

ITEM 1.  LEGAL  PROCEEDINGS.

     In  May  2003,  Thacker  &  Loucks,  Inc., d/b/a Thacker & Loucks Financial
Services, a Georgia corporation ("Thacker"), filed an action against the holding
company in the State Court of Fulton County alleging a breach of contract by the
holding  company.  The  breach  of  contract  alleged  by  Thacker  relates to a
Servicing  Representative Agreement dated as of August 3, 2001 (the "Agreement")
by  and between ebank, the holding company's subsidiary, and Thacker.  Under the
Agreement, ebank agreed to discount from time to time an indeterminate number of
certain types of contracts which met ebank's underwriting criteria.  Pursuant to
the  terms  of  the  Agreement,  in February ebank provided Thacker with written
notice of ebank's intention to terminate the Agreement after the expiration of a
180-  day  notice  period.

     The  complaint  filed by Thacker alleges that the holding company failed to
approve  loans  which  met  or  exceeded the underwriting criteria and failed to
communicate  with  Thacker.  The  complaint  filed  by Thacker seeks contractual
damages  in  the  amount  of  Three  Million Five Hundred Thousand Dollars, plus
reasonable  attorney's  fees  and  costs  of  the  litigation.

     We  believe that ebank has abided by all applicable terms of the Agreement,
including those terms related to continuing performance during the notice period
prior  to  termination, and that the claim asserted by Thacker is without merit.
Moreover,  Thacker filed its lawsuit against the holding company, which is not a
party  to  the Agreement and is therefore the wrong entity.  The holding company
filed  its Answer in June 2003, denying all claims and informing Thacker that it
had  sued  the wrong entity.  Discovery is ongoing and no motions are pending in
this action.  Discovery is scheduled to close on December 2, 2003.  We intend to
vigorously  defend  this  lawsuit.

ITEM 2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS.

         None.

ITEM 3.  DEFAULTS  UPON  SENIOR  SECURITIES.

         None.

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

     Our  annual  meeting  of the shareholders was held on May 19, 2003, for the
following  purposes:

          1.   to elect three Class II directors to serve for three-year terms;
               and

          2.   to approve an amendment  to  the  1998  Stock  Incentive  Plan.

     Only  shareholders  of  record  at the close of business on April 11, 2003,
were  entitled  to  vote  at  the  Annual Meeting.  Proxies for the meeting were
solicited  pursuant  to  the Georgia Business Corporation Code, and there was no
solicitation  in  opposition to management's solicitations.  Proxies and ballots
were  received  from  the  holders  of  1,560,656  shares  of  our common stock,
representing 75.73% of the outstanding shares of common stock.  The results were
as  follows:


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<PAGE>
     The three individuals nominated to serve as Class II directors were elected
with  the  number  of  votes  for,  against,  and  withheld  as indicated below:


     CLASS  II                 FOR                AGAINST           WITHHELD
     ---------                 ---                -------           --------

     Gary  M.  Bremer          1,384,941          -0-               175,715
     Don  B.  Stout            1,384,941          -0-               175,715
     Gregory  J.  Corona       1,363,534          -0-               197,122

In  addition, the terms of the following directors continued after that meeting:
James  L.  Box, Walter Drakeford, Terry L. Ferrero, Stephen R. Gross and Richard
D.  Jackson.

     The  amendment  to the 1998 Stock Option Plan was not approved as indicated
by  the  number  of  votes  for,  against,  and  abstain  as  indicated  below:

                                                                  BROKER
     STOCK  OPTION  PLAN     FOR          AGAINST     ABSTAIN     NON-VOTES
     -------------------     ---          -------     -------     ---------

     Amendment               307,718      249,220     17,567       988,786


ITEM 5.  OTHER  INFORMATION.

     As previously reported, we entered into a stock purchase agreement dated as
of  February  26,  2003  (the  "Stock  Purchase Agreement") pursuant to which we
agreed,  subject  to  the  fulfillment  of certain conditions, to sell 1,200,000
shares of our common stock in a private placement for an aggregate consideration
of  $1,080,000  to  Marshall Investments, L.P., a Georgia limited partnership in
which  Michael  P. Marshall, Sr. is the general partner ("New Investor"), and to
grant  an  option  in connection therewith which (subject to certain conditions)
essentially would have permitted New Investor to maintain ownership of up to 20%
of  our  issued  and  outstanding  common  stock  through  July  1,  2006.

     The obligation of New Investor to complete the purchase of shares under the
Stock  Purchase  Agreement  was conditioned upon, among other things, all of the
outstanding  shares  of  the  8% Series A cumulative convertible preferred stock
being retired and cancelled by the required closing date.  We were not obligated
to  close  the  transaction contemplated by the Stock Purchase Agreement if less
than  80%  of  the  outstanding shares of the 8% Series A cumulative convertible
preferred  stock  was  retired  and cancelled by the required closing date.  The
Stock  Purchase Agreement was subject to termination by either party if, through
no fault of the terminating party, the closing of such transaction did not occur
on  or  before  June  26,  2003.

     Effective  May  15,  2003,  we commenced an exchange offer in the form of a
private  placement  to  the  holders  of  all  outstanding shares of 8% Series A
cumulative  convertible  preferred  stock,  pursuant  to which we offered (A) to
exchange  all  of such shares for shares of common stock (on a one share for one
share  basis,  as  per  the  existing  conversion feature) and (B) in connection
therewith,  to  exchange  all of such holders' warrants to purchase common stock
issued  with  the  8%  Series  A  cumulative  convertible  preferred  stock (the
"Original  Warrants")  for  new  warrants  to purchase common stock with a lower
exercise  price  of  $1.75  per  share  and  a  new term of three years from the
effective date of the exchange.  We also offered to pay (in shares of our common
stock)  the  dividend  accrued through May 31, 2003 on all shares of 8% Series A
cumulative  convertible  preferred  stock  tendered  in  the exchange offer.  We
subsequently  extended the closing of the exchange offer from 5:00 p.m. Atlanta,
Georgia  time  on  June  13, 2003 to 5:00 p.m. Atlanta, Georgia time on June 26,
2003.

     Upon  expiration  of  the  exchange  offer, only 370,000 shares of Series A
preferred,  or  15% of such shares issued and outstanding, and Original Warrants
exercisable  for  185,000  underlying  shares  of  Common  Stock,  or 15% of the
outstanding  Original  Warrants,  had  been  validly  tendered  for  exchange


                                       20
<PAGE>
and not withdrawn. In light of the very low percentage tendered, with the result
that  our  acceptance  of  such  tenders  could not be expected to significantly
reduce the preferred dividend burden on the Company or increase the liquidity of
trading  in  our common stock, our Board of Directors concluded that there was a
high probability that the ability of both the Company and the tendering security
holders  to  realize  the  benefits  the  Board  had expected as a result of the
Exchange  Offer would be substantially impaired. Accordingly, in reliance on one
of  the  terms  of  the  exchange  offer  which  gave us the right to reject all
tendered  Series  A  preferred  shares  and Original Warrants if certain changes
occurred  which,  in  our  reasonable  judgement,  might  materially  impair the
benefits  expected  from the Exchange Offer, we elected not to accept any of the
shares  of  Series  A  Preferred  and Original Warrants tendered in the Exchange
Offer.

     Following the failure to occur of the condition that all of the outstanding
shares  of the 8% Series A cumulative convertible preferred stock be retired and
cancelled  by  June 26, 2003, the New Investor advised us of its election not to
close  the  transactions  contemplated  by  the  Stock  Purchase  Agreement.


                                       21
<PAGE>
ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

(a)  Exhibits.

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

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

     32.1 Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to  Section  906  of  the  Sarbanes-Oxley  Act  of  2002.

     32.2 Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to  Section  906  of  the  Sarbanes-Oxley  Act  of  2002.

(b)  Reports on Form 8-K -- The following reports were filed on Form 8-K for the
     period  ended  June  30,  2003:

     1.   Form  8-K  filed with the SEC on April 23, 2003, that included a press
          release  announcing  the Company's results for the first quarter ended
          March  31,  2003.

     2.   Form  8-K  filed  with  the SEC on May 15, 2003, that included a press
          release  announcing  the  commencement  of  a  private  exchange offer
          directed exclusively to existing holders of shares of the Company's 8%
          Series  A  Convertible  Preferred  stock.


                                       22
<PAGE>
                                   SIGNATURES

     In  accordance  with  Section 13 or 15(d) of the Securities Exchange Act of
1934,  the  registrant  caused  this  report  to  be signed on its behalf by the
undersigned,  thereunto  duly  authorized.


                                    ebank Financial Services, Inc.



Date:  August  14,  2003            By:  /s/  James  L.  Box
     --------------------------        -----------------------------------------
                                         James  L.  Box
                                         President and Chief Executive Officer

                                    By:  /s/  Wayne  W.  Byers
                                       -----------------------------------------
                                         Wayne  W.  Byers
                                         Chief  Financial  Officer


                                       23
<PAGE>