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 March 31, 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 May 9, 2003.

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


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

                                                   ASSETS

                                                                         March 31,     December 31,
                                                                           2003            2002
                                                                       -------------  --------------
<S>                                                                    <C>            <C>
                                                                        (Unaudited)      (Audited)
Cash and due from banks                                                $    610,785   $     891,528
Interest-bearing deposits in banks                                        2,285,785         627,912
Federal funds sold                                                        1,605,000       5,114,000
                                                                       -------------  --------------
     Cash and cash equivalents                                            4,501,570       6,633,440
Securities held-to-maturity, fair value $14,076,355 and $13,681,193      14,040,239      13,638,045
Other securities                                                            510,000         510,000
Mortgage loans held for sale                                                      -       7,820,139
Loans, net of allowance for loan losses of $871,360 and
   $963,301, respectively                                                75,688,035      69,561,583
Premises and equipment, net                                                 608,686         630,627
Accrued interest receivable and other assets                              1,926,481       2,623,476
                                                                       -------------  --------------
     Total assets                                                      $ 97,275,011   $ 101,417,310
                                                                       =============  ==============
                      LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
Deposits                                                               $ 80,762,343   $  84,578,187
Other borrowings                                                          9,250,000       9,280,053
Accrued interest payable and other liabilities                              418,497       1,028,850
                                                                       -------------  --------------
     Total liabilities                                                   90,430,840      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 $40,937 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                                                     (12,283,685)    (12,597,636)
Accumulated other comprehensive loss                                        (90,000)        (90,000)
                                                                       -------------  --------------
      Total shareholders' equity                                          6,844,171       6,530,220
                                                                       -------------  --------------

      Total liabilities and shareholders' equity                       $ 97,275,011   $ 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 OPERATIONS
                                         (UNAUDITED)


                                                                   For the three months ended
                                                                   --------------------------
                                                                             March 31,
                                                                             ---------
                                                                       2003           2002
                                                                  ---------------  -----------
<S>                                                               <C>              <C>
Interest income:
  Loans, including fees . . . . . . . . . . . . . . . . . . . .   $    1,298,683   $1,426,400
  Interest-bearing deposits . . . . . . . . . . . . . . . . . .            2,998          727
  Investment securities:
     U.S. Government agencies and
     corporations. . . . . . . . . . . . . . . . . . . . . . . .         210,359      197,745
  Other investments. . . . . . . . . . . . . . . . . . . . . . .           5,629        7,031
  Federal funds sold . . . . . . . . . . . . . . . . . . . . . .          20,382        6,713
                                                                  ---------------  -----------
         Total interest income . . . . . . . . . . . . . . . . .       1,538,051    1,638,616
                                                                  ---------------  -----------

Interest expense:
  Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . .         533,065      662,447
  Other borrowings . . . . . . . . . . . . . . . . . . . . . . .          84,520       88,287
                                                                  ---------------  -----------
         Total interest expense. . . . . . . . . . . . . . . . .         617,585      750,734
                                                                  ---------------  -----------

Net interest income  . . . . . . . . . . . . . . . . . . . . . .         920,466      887,882
Provision for loan losses  . . . . . . . . . . . . . . . . . . .         103,000      108,719
                                                                  ---------------  -----------
Interest income after provision
  for loan losses. . . . . . . . . . . . . . . . . . . . . . . .         817,466      779,163
                                                                  ---------------  -----------

Other income:
  Deposit fees . . . . . . . . . . . . . . . . . . . . . . . . .          23,369       27,981
  Gain on sale of loans held for sale (Maryland production). . .         753,813            -
  Gain on sale of loans held for sale (Georgia production) . . .           5,861            -
  Loss on sales of securities available-for-sale . . . . . . . .          (2,856)           -
  Miscellaneous fees . . . . . . . . . . . . . . . . . . . . . .           8,286          234
  Brokerage fee income from Peachtree Capital Corporation  . . .               -      198,499
                                                                  ---------------  -----------
         Total other income. . . . . . . . . . . . . . . . . . .         788,473      226,714
                                                                  ---------------  -----------

Other expense:
  Salaries and other compensation. . . . . . . . . . . . . . . .         887,978      543,362
  Employee benefits. . . . . . . . . . . . . . . . . . . . . . .          97,725       82,555
  Net occupancy and equipment expense. . . . . . . . . . . . . .         174,337      352,637
  Professional and other outside services. . . . . . . . . . . .          20,203       79,777
  Other expense. . . . . . . . . . . . . . . . . . . . . . . . .         111,745       95,726
                                                                  ---------------  -----------
        Total other expenses . . . . . . . . . . . . . . . . . .       1,291,988    1,154,057
                                                                  ---------------  -----------

        Net earnings (loss) . . . . . . . . . . . . . . . . . .   $      313,951   $ (148,180)
                                                                  ===============  ===========
Basic earnings (loss) per common share. . . . . . . . . . . . .   $          .11   $     (.17)
Diluted earnings (loss) per common share. . . . . . . . . . . .   $          .08   $     (.17)
</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
                                       --------------------------
                                                March 31,
                                                --------
                                            2003          2002
                                       --------------  -----------
<S>                                    <C>             <C>
Net earnings (loss)                    $      313,951  $ (148,180)
Other comprehensive loss:
    Unrealized loss on securities
    available for sale                              -           -
                                       --------------  -----------
Comprehensive income (loss)            $      313,951  $ (148,180)
                                       ==============  ===========
</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 three months ended
                                                                      ---------------------------
                                                                               March 31,
                                                                               ---------
                                                                           2003          2002
                                                                      --------------  -----------
<S>                                                                   <C>             <C>
Cash flows from operating activities:
    Net earnings (loss)                                               $     313,951   $ (148,180)
    Adjustments to reconcile net earnings (loss)
        to net cash provided (used) in operating activities:
        Net accretion of investment securities                               20,171          423
        Depreciation expense                                                 47,629      175,237
        Provision for loan losses                                           103,000      108,719
        Loss on sale of securities available-for-sale                         2,856            -
        Decrease in mortgage loans held for sale                          7,820,139            -
        Change in deferred loan fees and costs                             (230,274)      (1,674)
        Change  in other assets                                             199,710     (119,036)
        Change in accrued interest receivable                               (60,465)    (162,032)
        Change in accrued interest payable                                  (13,133)     (20,103)
        Change in other liabilities                                        (597,220)     (91,099)
                                                                      --------------  -----------
               Net cash provided (used) in operating activities           7,606,364     (257,745)
                                                                      --------------  -----------

Cash flows from investing activities:
    Purchase of securities held-to-maturity                              (8,030,270)           -
    Maturities of securities held-to-maturity                             7,607,905            -
    Purchase of securities available-for-sale                              (707,389)           -
    Proceeds from sale of securities available-for-sale                     704,533            -
    Loans (originated) repaid, net of principal repayments               (5,999,178)     535,105
    Proceeds from sale of Peachtree Capital Corporation                     578,000            -
    Purchases of premises and equipment                                     (25,688)           -
                                                                      --------------  -----------
               Net cash (used) provided by investing activities          (5,872,087)     535,105
                                                                      --------------  -----------

Cash flows from financing activities:
    Net decrease in deposits                                             (3,815,844)    (702,079)
    Repayments on other borrowings                                          (30,053)     (19,798)
    Cash dividend paid on preferred stock                                   (20,250)           -
    Net proceeds from the sale of preferred stock                                 -      100,000
                                                                      --------------  -----------
               Net cash used by financing activities                     (3,866,147)    (621,877)
                                                                      --------------  -----------

Net decrease in cash and cash equivalents                                (2,131,870)    (344,517)
Cash and cash equivalents:
    Beginning of period                                                   6,633,440    4,305,435
                                                                      --------------  -----------
    End of period                                                     $   4,501,570   $3,960,918
                                                                      ==============  ===========
</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  March  31, 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 March 31, 2003 and March 31, 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 three months ended
                                                                       March 31,
                                                             -----------------------------
                                                                   2003         2002
                                                             -------------  --------------
<S>                                         <C>              <C>             <C>
Net earnings (loss) attributable to common  As reported      $    195,102   $    (263,758)
stockholders                                Effect of stock
                                            options grants        (35,784)        (36,128)
                                                             -------------  --------------
                                            Pro forma        $    159,318   $    (299,886)
                                                             =============  ==============
Basic earnings (loss) per share             As reported      $        .11   $        (.17)
                                            Pro forma        $        .09   $        (.20)
Diluted earnings (loss) per share           As reported      $        .08   $        (.17)
                                            Pro forma        $        .07   $        (.20)
</TABLE>


                                        7
<PAGE>
NOTE 2 - EARNINGS (LOSS) PER COMMON SHARE

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


<TABLE>
<CAPTION>
                                                               For the three months ended
                                                                      March 31,
                                                              ---------------------------
                                                                 2003           2002
                                                              -----------  --------------
<S>                                                           <C>          <C>
Basic Earnings (Loss) Per Common Share:
    Weighted average common shares outstanding                 1,754,078       1,523,210
                                                              ===========  ==============
    Net earnings (loss)                                       $  313,951   $    (148,180)
    Preferred stock dividend                                    (118,849)       (115,578)
                                                              -----------  --------------
    Net earnings (loss) attributable to common stockholders   $  195,102   $    (263,758)
                                                              ===========  ==============

    Basic earnings (loss) per common share                    $      .11   $        (.17)
                                                              ===========  ==============

Diluted Earnings (Loss) Per Common Share:
    Weighted average common shares outstanding                 1,754,078       1,523,210
    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                  2,410,000               -
                                                              -----------  --------------
    Total weighted average common shares and
        common stock equivalents outstanding                   4,164,078       1,523,210

Net earnings (loss) attributable to common stockholders       $  195,102   $    (263,758)
Adjustment assuming all preferred stock converted to
    common stock at beginning of period                          118,849              N/A
                                                              -----------  --------------
Adjusted earnings (loss) attributable to common
    stockholders                                              $  313,951   $    (263,758)
                                                              ===========  ==============
Diluted earnings (loss) per common share                      $      .08   $        (.17)
                                                              ===========  ==============
</TABLE>


NOTE 3 - 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.


                                        8
<PAGE>
NOTE 4 - SUBSEQUENT EVENTS

     The  Company  entered  into a stock purchase agreement dated as of February
26,  2003 (the "Stock Purchase Agreement") pursuant to which the Company agreed,
subject  to  the  fulfillment  of  certain  conditions  described below, to sell
1,200,000  shares  of  the  Company's 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").  Pursuant  to  the Stock Purchase Agreement, the Company also
agreed  (subject  to  completion  of  the underlying stock purchase) to grant an
option  to  New Investor that would permit New Investor to maintain ownership of
up  to  20%  of  the  Company's issued and outstanding common stock, which right
expires  July  1,  2006,  subject to potential extension in conjunction with the
term  of  any new options, warrants or rights to purchase common stock issued by
the Company prior to July 1, 2006. The exercise price per share will be equal to
the  lesser  of:  (i) the book value per share as reported in the Company's most
recently filed Form 10-KSB prior to the date of exercise adjusted to reflect the
results  of  the  transactions  contemplated  by  the  Stock Purchase Agreement;
provided,  however,  the  exercise  price  per share calculated pursuant to this
--------   -------
clause (i) will never be less than 85% of the average daily closing price of the
Company's  common stock for the 20 trading days immediately prior to the date of
any  exercise of the option; or (ii) the most recent per share price of any sale
by  the  Company  of  the  Company's capital stock that occurs subsequent to the
closing  of  the Stock Purchase Agreement (other than sales of stock pursuant to
(A)  the  exercise  of  any  warrants  outstanding on February 26, 2003, (B) the
exercise  of  any repriced warrants issued to holders of warrants issued as part
of  the  units  consisting  of  warrants  and  shares  of 8% Series A cumulative
convertible  preferred  stock  which  the  Company  sold  in connection with the
private  offerings of such units,  (C) the exercise of any repriced warrants the
Company issued to the placement agent and certain of its employees in connection
with  such  private  offerings as partial consideration for serving as placement
agent,  or  (D)  the  Company's  1998  Stock Incentive Plan, as such plan may be
amended  from  time  to  time).  The  exercise price for the option will also be
adjusted  in  the  event  of any recapitalization such as a stock split or stock
dividend.

     The obligation of New Investor to complete the purchase of shares under the
Stock  Purchase  Agreement  is  conditioned upon, among other things, all of the
outstanding  shares  of  the  8% Series A cumulative convertible preferred stock
being retired and cancelled, unless that condition is waived by New Investor. In
addition,  New  Investor  will  be  required to make a filing with the Office of
Thrift  Supervision,  the  Company's  subsidiary  bank's  primary regulator. The
Company  is  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  are  retired and cancelled. The Stock
Purchase Agreement may be terminated by either party if, through no fault of the
terminating party, the closing of such transaction has not occurred on or before
June  26,  2003.  We  agreed  to  pay  Attkisson, Carter & Company, a registered
broker-dealer,  a  fee  equal to 2.5% of the total dollar amount invested by New
Investor,  e.g.,  $27,000, if the transaction contemplated by the Stock Purchase
Agreement  closes.

     Simultaneously  with  the  filing  of  this  Form  10-QSB,  the  Company is
commencing  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 the Company is offering (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  as  part of their original investment
"capital units," 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.  The  Company also intends to pay (in shares of the Company's
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.
The  Company  intends to accept all shares of 8% Series A cumulative convertible
preferred  stock  tendered for exchange/conversion pursuant to the terms of this
offer,  and  the Company intends to close the exchange offer with respect to all
of  such  shares  regardless  of  the  number  of  shares  actually tendered and
regardless  of  whether or not the Company consummates the transaction described
above  with  the  New  Investor.


                                        9
<PAGE>
NOTE  5  -  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,  Thacker  agreed  to  contact and solicit certain dealers desiring to
discount  conditional sales contracts, retail installment sales contracts, deeds
of  trust,  mortgages,  security  agreements,  notes and other choses in action.
Under the Agreement, ebank agreed to discount from time to time an indeterminate
number  of  such contracts which met certain 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 we 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  $3,500,000,  plus  reasonable  attorney's  fees and costs of the litigation.

     We  believe  that  we have 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.
We  intend  to  vigorously  defend  this  lawsuit.


                                       10
<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  first quarter of fiscal 2002 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 ended March 31, 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


                                       11
<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 decreased by $4,142,299 to $97,275,011 during the
three-month  period  ended March 31, 2003.  The decrease in assets was primarily
related  to  decreases in mortgage loans held-for-sale and Federal funds sold of
approximately  $7.8  million and $3.5 million, respectively, offset by increases
in  net  loans  and  interest-bearing  deposits  in  banks of approximately $6.1
million and $1.7 million, respectively.  The increase in net loans was primarily
attributable  to  an  increase  of approximately $6.9 million in individual real
estate  loans  offset by a reduction of approximately $1.1 million in commercial
mortgage  loans.   This  change  in  loan  portfolio  mix  reflects management's
continued  efforts to diversify the loan portfolio by decreasing its reliance on
commercial  and  commercial  real  estate  loans.

     Total  consolidated  liabilities  decreased  by  $4,456,250  to $90,430,840
during the three-month period ended March 31, 2003.  The decrease in liabilities
is  primarily related to a $3.8 million decrease in deposits, including declines
in  money  market  (including  NOW accounts) and certificate of deposits of $3.1
million  and  $0.7  million,  respectively,  during the three-month period ended
March  31,  2003.

Results  of Operations - Three months ended March 31, 2003 compared to the three
----------------------
months  ended  March  31,  2002:

     Net  earnings  for  the  three months ended March 31, 2003 was $313,951, or
$195,102  after  taking  into  account $118,849 in dividends on preferred stock,
compared  with  a  net  loss  of $148,180, or $263,758 after taking into account
$115,578  in  dividends on preferred stock, for the three months ended March 31,
2002. Net interest income, before provision for loan losses, for the three-month
period  ending March 31, 2003 totaled $920,466, compared to net interest income,
before  provision for loan losses, of $887,882 for the three-month period ending
March  31,  2002. During the period ended March 31, 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 three months ended March 31, 2003 and 2002 was
$791,329  and  $226,714,  respectively.  Included  in other income for the three
months  ended  March  31,  2003  was  $753,813  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  three  months  ended  March  31,  2002  was $198,499 generated by Peachtree
Capital  Corporation.

     Operating  expenses  for  the  three-month period ending March 31, 2003 and
2002  totaled  $1,294,844  and $1,154,057, 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 March 31, 2003
totaled  $359,293,  consisting  primarily  of  incentive  compensation and other
benefits.  Operating  expenses associated with Peachtree Capital Corporation for
the  three-month  period ending March 31, 2002 totaled $144,270. After adjusting
for  operating expenses incurred in connection with the Maryland loan production
office in 2003


                                       12
<PAGE>
and  operating  expenses  for  Peachtree  Capital  Corporation  in  2002,  total
operating  expenses for continuing operations declined approximately $74,000 for
the  three-month  period  ending  March  31,  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 March 31, 2003 and December 31, 2002, the allowance was $871,360 and
$963,301, respectively.  The allowance for loan losses, as a percentage of total
gross  loans,  was  1.14% as of March 31, 2003, compared to 1.37% as of December
31,  2002.  As of March 31, 2003, we had ten loans past due greater than 60 days
totaling  $1,825,000.  There  were  three  loans charged-off for the three-month
period  ended  March  31,  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 three months ended March 31,
2003:


                                       13
<PAGE>
<TABLE>
<CAPTION>
      Interest-                           Interest
  Earning Assets/             Average      Income/    Yield/
Bearing Liabilities           Balance       Cost      Cost
--------------------------  -----------  ----------  -------
<S>                         <C>          <C>         <C>
Federal funds sold          $ 7,034,384  $   20,382    1.18%
Interest-bearing deposits       813,549       2,998    1.49%
Investment securities        14,960,126     215,988    5.86%
Loans                        74,382,028   1,298,683    7.08%
                            -----------  ----------  -------
      Total                 $97,190,086  $1,538,051    6.42%
                            ===========  ==========  =======

Deposits                     78,163,909     533,065    2.77%
Other borrowings              9,255,202      84,520    3.70%
                            -----------  ----------  -------
      Total                 $87,419,111  $  617,585    2.87%
                            ===========  ==========  =======

Net interest income/spread               $  920,466    3.55%
                                         ==========  =======
Net interest margin                                    3.84%
                                                     =======
</TABLE>

     The net interest margin for the first quarter of 2003 decreased to 3.84% as
compared  to 3.90% for the first quarter of 2002.  Net interest margin decreased
to  3.84%  during  the  first quarter of 2003 from 4.30% for the full 2002 year.

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  March  31,  2003 financial statements evidence a satisfactory
liquidity  position  as  total  cash,  cash  equivalents, and federal funds sold
amounted to approximately $4.5 million, or 4.63% of total assets.  Additionally,
our  ability  to maintain and expand our deposit base and borrowing capabilities
are  a  source  of  liquidity.  For the three-month period ended March 31, 2003,
total  deposits  decreased  from  $84.6 million to $80.8 million, representing a
decrease  of  4.51%.  We  will  increase  deposits  as required to fund new loan
growth.   We  closely  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.

                                        Bank       Minimum
                                       Capital    Regulatory
                                        Ratio    Requirement
                                       -------  ------------
Capital ratios at March 31, 2003
    Tier 1 capital                      9.09%          4.0%
    Tier 2 capital                      1.09%
                                       -------
      Total risk-based capital ratio   10.18%          8.0%
                                       =======
    Leverage ratio                      6.93%          4.0%


     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.


                                       14
<PAGE>
     We  believe that, as of March 31, 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.

     The  table  below  shows  the  interest  rate sensitivity of our assets and
liabilities  as  of  March  31,  2003:


<TABLE>
<CAPTION>
                                               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         $ 2,286   $      -   $         -   $     -   $ 2,286
    Loans                              35,006      4,267        12,973    24,414    76,659
    Investment securities                 450          -             -    14,040    14,490
    Federal funds sold                  1,605          -             -         -     1,605
                                      --------  ---------  ------------  --------  --------
Total earning assets                   39,347      4,267        12,973    38,454    95,040
                                      --------  ---------  ------------  --------  --------

Interest-bearing liabilities:
    Money market and NOW               21,803          -             -         -    21,803
    Savings deposits                      502          -             -         -       502
    Time deposits                       8,347     24,797        20,465         -    53,609
    Other liabilities                       -      5,250             -     4,000     9,250
                                      --------  ---------  ------------  --------  --------
Total interest-bearing liabilities     30,652     30,047        20,465     4,000    85,165
                                      --------  ---------  ------------  --------  --------

Interest-sensitivity gap              $ 8,694   $(25,780)  $    (7,492)  $34,454   $ 9,876
                                      ========  =========  ============  ========  ========
Cumulative interest-sensitivity gap   $ 8,694   $(17,086)  $   (24,578)  $ 9,876   $ 9,876
                                      ========  =========  ============  ========  ========

Ratio of interest-sensitivity gap to
    total earning assets                 9.15%    -27.13%        -7.88%    36.25%    10.39%


Ratio of cumulative interest-
    sensitivity gap to total earning
    assets                               9.15%    -17.98%       -25.86%    10.39%
</TABLE>


                                       15
<PAGE>
     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.

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 $74,382,028
for  the three-month period ended March 31, 2003.  Total gross loans outstanding
at  March  31,  2003  were  $76,659,104.

     The  following  table  summarizes  the composition of the loan portfolio at
March  31,  2003:

                                                              Percent
                                           Amount            of total
                                        ------------        ---------
Commercial                              $13,386,063            17.46%
Real estate - individual                 37,420,985            48.82%
Real estate - commercial                 19,609,054            25.58%
Installment loans to individuals          6,243,002             8.14%
                                        ------------        ---------
Gross loans                              76,659,104           100.00%
                                                            =========
Less:  Net deferred loan fees               (99,709)
       Allowance for loan loss             (871,360)
                                        ------------
Total net loans                         $75,688,035
                                        ============

     The  principal  components  of  our  loan  portfolio at March 31, 2003 were
mortgage  loans and commercial loans, which represented approximately 92% 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.

     Within the 90 days prior to the date of this Form 10-QSB, an evaluation was
performed  under  Rule  13a-14  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. There have been no
significant  changes in our internal controls and procedures or in other factors
that  could significantly affect internal controls subsequent to the date of our
evaluation.


                                       16
<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,  Thacker  agreed  to  contact and solicit certain dealers desiring to
discount  conditional sales contracts, retail installment sales contracts, deeds
of  trust,  mortgages,  security  agreements,  notes and other choses in action.
Under the Agreement, ebank agreed to discount from time to time an indeterminate
number  of  such contracts which met certain 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 we 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  we have 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.
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.

     None.

ITEM 5. OTHER INFORMATION.

     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 described below, 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").  Pursuant to
the  Stock  Purchase  Agreement,  we  also  agreed (subject to completion of the
underlying  stock purchase) to grant an option to New Investor that would permit
New  Investor  to  maintain ownership of up to 20% of our issued and outstanding
common  stock,  which right expires July 1, 2006, subject to potential extension
in  conjunction with the term of any new options, warrants or rights to purchase
common  stock  issued  by us prior to July 1, 2006. The exercise price per share
will  be equal to the lesser of: (i) the book value per share as reported in our
most  recently  filed  Form  10-KSB  prior  to  the date of exercise adjusted to
reflect  the  results  of  the  transactions  contemplated by the Stock Purchase
Agreement;  provided,  however, the exercise price per share calculated pursuant
            --------   -------
to  this  clause  (i)  will  never be less than 85% of the average daily closing
price  of our common stock for the 20 trading days immediately prior to the date
of  any  exercise  of the option; or (ii) the most recent per share price of any
sale  by  the company of our capital stock that occurs


                                       17
<PAGE>
subsequent  to  the closing of the Stock Purchase Agreement (other than sales of
stock  pursuant  to (A) the exercise of any warrants outstanding on February 26,
2003,  (B)  the  exercise of any repriced warrants issued to holders of warrants
issued  as  part  of  the units consisting of warrants and shares of 8% Series A
cumulative  convertible  preferred  stock  which  we sold in connection with the
private  offerings  of  such units, (C) the exercise of any repriced warrants we
issued  to  the  placement agent and certain of its employees in connection with
such  private offerings as partial consideration for serving as placement agent,
or  (D)  our 1998 Stock Incentive Plan, as such plan may be amended from time to
time).  The  exercise price for the option will also be adjusted in the event of
any  recapitalization  such  as  a  stock  split  or  stock  dividend.

     The obligation of New Investor to complete the purchase of shares under the
Stock  Purchase  Agreement  is  conditioned upon, among other things, all of the
outstanding  shares  of  the  8% Series A cumulative convertible preferred stock
being retired and cancelled, unless that condition is waived by New Investor. In
addition,  New  Investor  will  be  required to make a filing with the Office of
Thrift  Supervision,  our  subsidiary  bank's  primary  regulator.  We  are  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  are  retired  and  cancelled.  The Stock Purchase
Agreement  may  be  terminated  by  either  party  if,  through  no fault of the
terminating party, the closing of such transaction has not occurred on or before
June  26,  2003.  We  agreed  to  pay  Attkisson, Carter & Company, a registered
broker-dealer,  a  fee  equal to 2.5% of the total dollar amount invested by New
Investor,  e.g.,  $27,000, if the transaction contemplated by the Stock Purchase
Agreement  closes.

     Simultaneously  with  the  filing of this Form 10-QSB, we are commencing 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 are offering (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  as  part of their original investment
"capital units," 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  intend  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 intend to accept
all  shares  of  8% Series A cumulative convertible preferred stock tendered for
exchange/conversion  pursuant to the terms of this offer, and we intend to close
the  exchange  offer with respect to all of such shares regardless of the number
of  shares  actually tendered and regardless of whether or not we consummate the
transaction  described  above  with  the  New  Investor.


                                       18
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a)  Exhibits.

     10.1     Stock  Purchase Agreement by and between ebank Financial Services,
     Inc.  and  Marshall  Investments,  L.P.,  dated  February  26,  2003.

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

     99.2     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  March  31,  2003:

     1.   Form  8-K  filed with the SEC on January 9, 2003, reporting the change
          in the Company's name and the dismissal of certain litigation in which
          the  Company  was  involved.

     2.   Form 8-K filed with the SEC on January 10, 2003, reporting the sale of
          the  Company's wholly owned subsidiary, Peachtree Capital Corporation.

     3.   Form  8-K  filed  with  the  SEC  on  March  7,  2003,  reporting  the
          declaration  of  a  dividend  on  the Company's 8% Series A cumulative
          convertible  preferred  stock.


                                       19
<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: May 15, 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


                                       20
<PAGE>
                                 CERTIFICATIONS

     I, James L. Box, certify that:

     1.  I have reviewed this quarterly report on Form 10-QSB of ebank Financial
Services,  Inc.;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

     3.  Based  on  my  knowledge, the financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

     4.  The  registrant's  other  certifying officers and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

     a) Designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

     b)  Evaluated the effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

     c)  Presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

     5.  The  registrant's other certifying officers and I have disclosed, based
on  our  most  recent  evaluation,  to  the  registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent  function):

     a)  All  significant  deficiencies  in  the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

     b)  Any  fraud,  whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

     6.  The registrant's other certifying officers and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

Date: May 15, 2003
      ------------

                         By: /s/ James L. Box
                             ---------------------------------------------------
                             James L. Box, President and Chief Executive Officer


                                       21
<PAGE>
I, Wayne W. Byers, certify that:

     1.  I have reviewed this quarterly report on Form 10-QSB of ebank Financial
Services,  Inc.;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

     3.  Based  on  my  knowledge, the financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

     4.  The  registrant's  other  certifying officers and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:

     a) Designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

     b)  Evaluated the effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

     c)  Presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

     5.  The  registrant's other certifying officers and I have disclosed, based
on  our  most  recent  evaluation,  to  the  registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent  function):

     a)  All  significant  deficiencies  in  the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

     b)  Any  fraud,  whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

     6.  The registrant's other certifying officers and I have indicated in this
quarterly  report  whether  or  not  there  were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

Date: May 15, 2003
      ------------

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


                                       22
<PAGE>