SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


[X]  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE  ACT OF  1934

          For  the  quarterly  period  ended     JUNE 30, 2003
                                             --------------------

                                       OR

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

            For the transition period from __________ to __________

                        COMMISSION FILE NUMBER: 000-30511

                            CHEROKEE BANKING COMPANY
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)


          Georgia                        6711                    58-2432974
--------------------------   -----------------------------   ------------------
(State of Jurisdiction of    (Primary Standard Industrial    (I.R.S. Employer
   Incorporation or           Classification Code Number)    Identification No.)
     organization)


                 1275 RIVERSTONE PARKWAY, CANTON, GEORGIA 30114
            ---------------------------------------------------------
                    (Address of principal executive offices)

                                 (770) 479-3400
                          ---------------------------
                          (Issuer's telephone number)

                                      N/A
   ----------------------------------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)

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

State the number of shares outstanding of each of the issuer's classes of common
equity,  as  of  the  latest  practicable  date:
738,658  shares  of common stock, no par value per share, issued and outstanding
as  of  August  1,  2003.

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


<PAGE>
<TABLE>
<CAPTION>
                            CHEROKEE BANKING COMPANY



------------------------------------------------------------------------------------

                                      INDEX
                                      -----

                                                                            PAGE NO.
                                                                            --------
<S>                                                                        <C>

PART I.  FINANCIAL INFORMATION

     ITEM 1 - FINANCIAL STATEMENTS

              CONSOLIDATED BALANCE SHEET (UNAUDITED) AT JUNE 30, 2003. . . . .    3

              CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE
                 THREE MONTHS AND THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002.    4

              CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
                FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002 . . . . . . .     5

              CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE
                 SIX MONTHS ENDED JUNE 30, 2003 AND 2002 . . . . . . . . . . .    6

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) . . . . .    7

     ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
       FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . . .   10

     ITEM 3 - CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . .    17

PART II.     OTHER INFORMATION

     ITEM 1. - LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . . . . . . . .    18

     ITEM 2. - CHANGES IN SECURITIES. . . . . . . . . . . . . . . . . . . . .    18

     ITEM 3. - DEFAULTS UPON SENIOR SECURITIES. . . . . . . . . . . . . . . .    18

     ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. . . . . .    18

     ITEM 5. - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . .    18

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

     SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    19
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

                            CHEROKEE BANKING COMPANY
                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2003
                                  (UNAUDITED)

                                     ASSETS
                                     ------
<S>                                                               <C>
Cash and due from banks                                           $  2,924,474
Federal funds sold                                                  13,164,000
                                                                  ------------

          Cash and cash equivalents                                 16,088,474

Interest-bearing deposits                                              298,000
Investment securities available-for-sale                            47,367,576
Other investments                                                      675,350
Loans, net                                                          49,147,895
Premises and equipment, net                                          3,712,505
Other assets                                                         2,419,356
                                                                  ------------

                                                                  $119,709,156
                                                                  ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Deposits
    Demand                                                        $ 13,813,335
    Money Market and NOW accounts                                   60,114,205
    Savings                                                          2,193,611
    Time                                                            26,365,763
                                                                  ------------
          Total deposits                                           102,486,914

Advances from the Federal Home Loan Bank                             8,500,000
Other liabilities                                                      738,955
                                                                  ------------

          Total liabilities                                        111,725,869
                                                                  ------------

Commitments

Stockholders' equity
    Preferred stock, no par value; 2,000,000 shares authorized;
        no shares issued and outstanding                                     -
    Common stock, no par value; 10,000,000 shares authorized;
        738,658 shares issued and outstanding                        7,330,505
    Retained earnings                                                  293,212
    Accumulated other comprehensive income                             359,570
                                                                  ------------

          Total stockholders' equity                                 7,983,287
                                                                  ------------

                                                                  $119,709,156
                                                                  ============
</TABLE>

SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                            CHEROKEE BANKING COMPANY

                        CONSOLIDATED STATEMENTS OF INCOME
      FOR THE THREE MONTHS AND THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                   (UNAUDITED)

                                                         THREE MONTHS             SIX MONTHS
                                                         ENDED JUNE 30,          ENDED JUNE 30,
                                                    ----------------------  -----------------------
                                                       2003        2002        2003         2002
                                                    ----------  ----------  -----------  ----------
<S>                                                 <C>         <C>         <C>          <C>
INTEREST INCOME:
    Interest and fees on loans                      $  840,519  $  750,118  $  625,054   $1,435,360
    Interest on federal funds sold                      14,746      10,195      23,689       20,095
    Interest on investment securities                  375,145     391,887     738,171      804,504
    Interest on interest-bearing deposits                2,759       7,232       5,489       16,894
                                                    ----------  ----------  -----------  ----------
          TOTAL INTEREST INCOME                      1,233,169   1,159,432   1,392,403    2,276,853

INTEREST EXPENSE:
    Deposits                                           333,053     375,391     680,603      772,169
    Other borrowings                                    68,329      47,050     138,245       79,784
                                                    ----------  ----------  -----------  ----------
          TOTAL INTEREST EXPENSE                       401,382     422,441     818,848      851,953

          Net interest income                          831,787     736,991     573,555    1,424,900

PROVISION FOR LOAN LOSSES                               43,687      53,481      94,488      115,572
                                                    ----------  ----------  -----------  ----------
          Net interest income after provision          788,100     683,510     479,067    1,309,328
                                                    ----------  ----------  -----------  ----------
              for loan losses

OTHER INCOME
    Service charges on deposit accounts                105,745      84,154     205,304      167,307
    Gain on sales of securities available-for-sale           -           -      35,197            -
    Other operating income                             109,433      56,801     203,763      107,458
                                                    ----------  ----------  -----------  ----------
          TOTAL OTHER INCOME                           215,178     140,955     444,264      274,765
                                                    ----------  ----------  -----------  ----------

OTHER EXPENSES
    Salaries and other personnel expense               453,175     382,566     908,585      735,154
    Net occupancy and equipment expense                 85,496      65,162     169,589      126,791
    Other operating expense                            286,564     252,542     580,601      495,189
                                                    ----------  ----------  -----------  ----------
          TOTAL OTHER EXPENSE                          825,235     700,270   1,658,775    1,357,134
                                                    ----------  ----------  -----------  ----------

          INCOME BEFORE POVISION                       178,043     124,195    (735,444)     226,959
              FOR INCOME TAXES

INCOME TAX EXPENSE                                      59,590      47,574      90,951       86,624
                                                    ----------  ----------  -----------  ----------

          NET INCOME                                   118,453      76,621    (826,395)     140,335

BASIC EARNINGS PER SHARE                            $     0.16  $     0.10  $     0.24   $     0.19
                                                    ==========  ==========  ===========  ==========

DILUTED EARNINGS PER SHARE                          $     0.15  $     0.10  $     0.21   $     0.18
                                                    ==========  ==========  ===========  ==========
</TABLE>

SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                      CHEROKEE BANKING COMPANY

                           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                           FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                             (UNAUDITED)

                                                                         2003           2002
                                                                    ---------------  ----------
<S>                                                                 <C>              <C>

NET INCOME                                                          $      173,605   $ 140,335
                                                                    ---------------  ----------

OTHER COMPREHENSIVE INCOME:
    Unrealized holding gains on investment
        securities available-for-sale                                      315,660     392,211
    Less income tax expense related to investment
        securities available-for-sale                                     (119,951)   (149,040)
Reclassification adjustment for gains realized in net income, net
    of tax of $13,375                                                      (21,822)          -
                                                                    ---------------  ----------
       TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX                        173,887     243,171
                                                                    ---------------  ----------

       TOTAL COMPREHENSIVE INCOME                                   $      347,492   $ 383,506
                                                                    ===============  ==========
</TABLE>

SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                 CHEROKEE BANKING COMPANY

                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                       (UNAUDITED)

                                                                          2003           2002
                                                                      -------------  -------------
<S>                                                                   <C>            <C>
OPERATING ACTIVITIES
    Net income                                                        $    173,605   $    140,335
    Adjustments to reconcile net income to net
        cash provided by operating activities:
        Provision for loan losses                                           94,488        115,572
        Depreciation, amortization and accretion                           135,239         78,967
        Gain on sales of securities available-for-sale                     (35,197)             -
        Change in:
           Other assets                                                   (247,866)        13,473
           Other liabilities                                               199,603        (63,102)
                                                                      -------------  -------------

              Net cash provided by operating activities                    319,872        285,245
                                                                      -------------  -------------

INVESTING ACTIVITIES
    Proceeds from maturities and paydowns of
        of investment securities available-for-sale                      8,805,124      5,578,146
    Proceeds from sales of investment securities available-for-sale      3,485,066      1,984,786
    Purchases of investment securities available-for-sale              (24,502,511)    (8,131,391)
    Net change in interest-bearing deposits                                      -        599,000
    Purchases of other investments                                               -       (199,100)
    Proceeds from sale of other real estate                                 62,000              -
    Net change in loans                                                 (5,821,702)    (9,666,798)
    Purchase of premises and equipment                                     (73,095)      (675,469)
                                                                      -------------  -------------

          Net cash used in investing activities                        (18,045,118)   (10,510,826)
                                                                      -------------  -------------

FINANCING ACTIVITIES
    Net change in federal funds purchased                                        -       (222,000)
    Proceeds from FHLB borrowings                                                -      5,500,000
    Net change in deposits                                              22,230,079      9,670,512
                                                                      -------------  -------------

          Net cash provided by financing activities                     22,230,079     14,948,512
                                                                      -------------  -------------

Net change in cash and cash equivalents                                  4,504,833      4,722,931

Cash and cash equivalents at beginning of period                        11,583,641      1,611,623
                                                                      -------------  -------------

Cash and cash equivalents at end of period                            $ 16,088,474   $  6,334,554
                                                                      =============  =============
</TABLE>

SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        6
<PAGE>
                            CHEROKEE BANKING COMPANY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE  1.  BASIS  OF  PRESENTATION

          Cherokee  Banking  Company,  Inc.  (the  "Company"),  a  bank  holding
          company,  owns  100% of the outstanding common stock of Cherokee Bank,
          N.A.  (the  "Bank"),  which  operates in the Canton, Georgia area. The
          Bank  opened  for  business  on  July  26,  1999.

          The  consolidated  financial  statements  include  the accounts of the
          Company  and the Bank. All intercompany accounts and transactions have
          been  eliminated  in  consolidation.

          The accompanying financial statements have been prepared in accordance
          with  the  requirements  for  interim  financial  statements  and,
          accordingly,  they  omit  disclosures,  which  would  substantially
          duplicate  those  contained  in  the  most  recent  annual  report  to
          shareholders  on  Form 10-KSB. The financial statements as of June 30,
          2003  and  for  the  interim  periods ended June 30, 2003 and 2002 are
          unaudited  and,  in the opinion of management, include all adjustments
          (consisting  of  normal recurring accruals) considered necessary for a
          fair  presentation.  For  further  information, refer to the financial
          statements and the notes included in the Company's Form 10-KSB for the
          period  ended  December  31,  2002,  as  filed with the Securities and
          Exchange  Commission.

NOTE  2.  CRITICAL  ACCOUNTING  POLICIES  AND  ESTIMATES

          The  Company has adopted various accounting policies, which govern the
          application  of accounting principles generally accepted in the United
          States  of America in the preparation of our financial statements. The
          Company's  significant  accounting  policies  are  described  in  the
          footnotes  to  the  consolidated  financial  statements at and for the
          period  ended  December  31, 2002 as filed with our most recent annual
          report  on  Form  10-KSB.

          Certain  accounting  policies  involve  significant  estimates  and
          assumptions  by  the  Company,  which  have  a  material impact on the
          carrying  value  of  certain  assets  and  liabilities.  The  Company
          considers  these  accounting  policies  to  be  critical  accounting
          policies.  The  estimates and assumptions used are based on historical
          experience  and  other  factors,  which  are believed to be reasonable
          under  the  circumstances.  Because of the nature of the estimates and
          assumptions made, actual results could differ from these estimates and
          assumptions  which  could have a material impact on carrying values of
          assets  and  liabilities  and  results  of  operations.

          The  Company believes that the allowance for loan losses is a critical
          accounting  policy  that  requires  the most significant judgments and
          estimates  used  in  preparation  of  its  consolidated  financial
          statements.  Management's  discussion  and  analysis  of  financial
          condition  and  results  of operations, as set forth in this report on
          From  10-QSB, provides further information regarding the allowance for
          loan  losses and includes a description of the Company's processes and
          methodology  for  determining  the  allowance  of  loan  losses.


                                        7
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE  3.  EARNINGS  PER  SHARE

          Basic  earnings  per share are based on the weighted average number of
          common  shares  outstanding  during  the  period  while the effects of
          potential shares outstanding during the period are included in diluted
          earnings  per  share.  The  reconciliation  of the amounts used in the
          computation  of  both "basic earnings per share" and "diluted earnings
          per share" for the quarter and six months ended June 30, 2003 and 2002
          presented  in  the  financial  statements  were calculated as follows:

<TABLE>
<CAPTION>
                                                                2003                              2002
                                                  ---------------------------------  --------------------------------
                                                    Net       Common     Per Share     Net       Common     Per Share
                                                  Earnings     Share       Amount    Earnings     Share      Amount
                                                  ---------  ----------  ----------  ---------  ----------  --------
<S>                                               <C>        <C>         <C>         <C>        <C>         <C>
For the quarter ended June 30, 2003 and 2002:

            Basic earnings per share              $ 118,453  $  738,658  $     .16   $  76,621  $  738,658  $   .10

            Effect of stock options                       -      75,689       (.01)          -      37,629        -
                                                  ---------  ----------  ----------  ---------  ----------  --------

            Diluted earnings per share            $ 118,453  $  814,347  $     .15   $  76,621  $  776,287  $   .10
                                                  =========  ==========  ==========  =========  ==========  ========


                                                                2003                              2002
                                                  ---------------------------------  --------------------------------
                                                    Net       Common     Per Share     Net       Common     Per Share
                                                  Earnings     Share       Amount    Earnings     Share      Amount
                                                  ---------  ----------  ----------  ---------  ----------  --------
For the six months ended June 30, 2003 and 2002:

            Basic earnings per share              $ 173,605  $  738,658  $     .24   $ 140,335  $  738,658  $   .19

            Effect of stock options                       -      71,535       (.03)          -      37,629     (.01)
                                                  ---------  ----------  ----------  ---------  ----------  --------

            Diluted earnings per share            $ 173,605  $  810,193  $    (.21)  $ 140,335  $  776,287  $   .18
                                                  =========  ==========  ==========  =========  ==========  ========
</TABLE>


NOTE  4.  STOCK-BASED  COMPENSATION

          The  Company  sponsors  stock-based  compensation  plans.  The Company
          accounts  for  these  plans  under  the  recognition  and  measurement
          principles  of  APB  Opinion  No.  25, "Accounting for Stock Issued to
          Employees",  and  related  interpretations.  No  stock-based  employee
          compensation  cost  is reflected in net income, as all options granted
          under  those  plans had an exercise price equal to the market value of
          the  underlying common stock on the date of grant. The following table
          illustrates  the  effect on net earnings and earnings per share if the
          Company had applied the fair value recognition provisions of Statement
          of  Financial  Accounting  Standards ("SFAS") No. 123, "Accounting for
          Stock-Based  Compensation",  to  stock-based employee compensation for
          the  six  months  ended  June  30,  2003  and  2002.


                                        8
<PAGE>
<TABLE>
<CAPTION>
                              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                             (UNAUDITED)


NOTE  4.  STOCK-BASED  COMPENSATION  (CONTINUED)

                                                    Three Months Ended          Six Months Ended
                                                         June  30,                  June  30,
                                                 ------------------------  --------------------------
                                                     2003         2002         2003          2002
                                                 ------------  ----------  ------------  ------------
<S>                                              <C>           <C>         <C>           <C>
Net income as reported                           $    118,453  $   76,621  $    173,605  $    140,335
Deduct: Total stock-based employee compensation
  expense determined under fair-value based
  method for all awards, net of tax                     4,396      49,632         8,792        99,264
                                                 ------------  ----------  ------------  ------------

Pro forma net earnings                           $    114,057  $   26,989  $    164,813  $     41,071
                                                 ============  ==========  ============  ============

Basic earnings per share:
  As reported                                    $        .16  $      .10  $        .24  $        .19
                                                 ============  ==========  ============  ============
  Pro forma                                      $        .15  $      .04  $        .22  $        .06
                                                 ============  ==========  ============  ============

Diluted earnings per share:
  As reported                                    $        .15  $      .10  $        .21  $        .18
                                                 ============  ==========  ============  ============
  Pro forma                                      $        .14  $      .03  $        .20  $        .05
                                                 ============  ==========  ============  ============
</TABLE>


                                        9
<PAGE>

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

FORWARD  LOOKING  STATEMENTS

The  following  is  a  discussion of our financial condition as of June 30, 2003
compared  to  December  31, 2002 and our results of operations for the three and
six month periods ended June 30, 2003 and 2002. These comments should be read in
conjunction  with  our  consolidated  financial  statements  and  accompanying
footnotes  appearing  in  this  report.  This  report  contains "forward-looking
statements"  relating to, without limitation, future economic performance, plans
and  objectives  of management for future operations, and projections of revenue
and  other  financial  items that are based on the beliefs of our management, as
well  as  assumptions  made  by  and  information  currently  available  to  our
management. The words "expect", "estimate", "anticipate", and "believe", as well
as similar expressions, are intended to identify forward-looking statements. Our
actual  results  may  differ  materially  from  the  results  discussed  in  the
forward-looking  statements,  and  our  operating  performance  each  quarter is
subject  to  various  risks  and  uncertainties. Factors that could cause actual
results  to  differ  from  those  discussed  in  the  forward-looking statements
include,  but  are  not  limited  to:

1.   the  strength  of the U.S. economy in general and the strength of the local
     economies  in  which  operations  are  conducted;
2.   the effects of and changes in trade, monetary and fiscal policies and laws,
     including  interest  rate policies of the Board of Governors of the Federal
     Reserve  system;
3.   inflation,  interest  rate,  market  and  monetary  fluctuations;
4.   the  timely  development of and acceptance of new products and services and
     perceived  overall  value  of  these  products  and  services  by  users;
5.   changes  in  consumer  spending,  borrowing  and  saving  habits;
6.   technological  changes;
7.   acquisitions;
8.   the  ability  to  increase  market  share  and  control  expenses;
9.   the  effect  of  changes  in  laws  and  regulations  (including  laws  and
     regulations concerning taxes, banking, securities and insurance) with which
     the  Company  and  its  subsidiary  must  comply;
10.  the  effect  of  changes  in  accounting  policies and practices, as may be
     adopted  by  the  regulatory  agencies  as well as the Financial Accounting
     Standards  Board;
11.  changes  in  the  Company's  organization,  compensation and benefit plans;
12.  the costs and effects of litigation and of unexpected or adverse outcome in
     such  litigation;  and
13.  the  Company's  success  at  managing  the risks involved in the foregoing.

Forward-looking  statements speak only as of the date on which they are made. We
undertake  no  obligation  to  update  any  forward-looking statement to reflect
events or circumstances after the date on which the statement is made to reflect
the  occurrence  of  unanticipated  events.


                                       10
<PAGE>
RESULTS  OF  OPERATIONS

NET  INTEREST  INCOME

For  the  six months ended June 30, 2003, net interest income totaled $1,574,000
as  compared  to  $1,425,000  for  the same period in 2002. Interest income from
loans, including fees increased $190,000 or 13% to $1,625,000 for the six months
ended  June  30, 2003. The increase in net interest income is due to the overall
growth  in  the volume of interest earning assets, partially offset by continued
decreases  in  overall  weighted average interest rates. The net interest margin
realized  on  earning  assets and the interest rate spread were 3.58% and 3.35%,
respectively,  for  the  six  months  ended  June  30,  2003.

For  the  quarter  ended  June  30,  2003, interest income totaled $1,233,000 as
compared  to  $1,159,000 for the same period in 2002. Interest expense decreased
from  $422,000  for  the  quarter  ended  June 30, 2002 to $408,000 for the same
period in 2003. The increase in net interest income is due to the overall growth
in  interest  earning  assets.  For  the  quarter  ended  June 30, 2003, the net
interest  margin  was  3.54%  and  the  interest  rate  spread  was  3.19%.

INTEREST RATE SENSITIVITY AND ASSET LIABILITY MANAGEMENT

Interest  rate sensitivity measures the timing and magnitude of the repricing of
assets  compared  with  the repricing of liabilities and is an important part of
asset/liability management of a financial institution. The objective of interest
rate sensitivity management is to generate stable growth in net interest income,
and  to  control  the  risks associated with interest rate movements. Management
constantly  reviews  interest  rate risk exposure and the expected interest rate
environment so that adjustments in interest rate sensitivity can be made timely.
Since  the  assets  and  liabilities  of a bank are primarily monetary in nature
(payable  in fixed, determinable amounts), the performance of a bank is affected
more  by  changes  in interest rates than by inflation. Interest rates generally
increase  as the rate of inflation increases, but the magnitude of the change in
rates  may  not  be  proportional.

Net  interest  income  is  the  primary  component  of  net income for financial
institutions.  Net  interest  income  is affected by the timing and magnitude of
repricing of assets and liabilities as well as the mix of interest sensitive and
noninterest  sensitive  assets and liabilities. "Gap" is a static measurement of
the difference between the contractual maturities or repricing dates of interest
sensitive  assets and interest sensitive liabilities within the following twelve
months.  Gap  is  an  attempt to predict the behavior of the Bank's net interest
income  in  general  terms  during  periods  of  movement  in interest rates. In
general,  if  the Bank is asset sensitive, more of its interest sensitive assets
are  expected  to  reprice  within  twelve  months  than  its interest sensitive
liabilities  over the same period. In a rising interest rate environment, assets
repricing  more  quickly  is  expected  to  enhance  net  interest  income.
Alternatively,  decreasing interest rates would be expected to have the opposite
effect  on  net interest income since assets would theoretically be repricing at
lower  interest rates more quickly than interest sensitive liabilities. Although
it  can  be  used as a general predictor, Gap as a predictor of movements in net
interest  income  has limitations due to the static nature of its definition and
due  to  its  inherent  assumption  that all assets will reprice immediately and
fully  at  the  contractually  designated  time.  At June 30, 2003, the Bank, as
measured  by  Gap,  is  in  an  asset  sensitive  position.


                                       11
<PAGE>
The  Bank  also measures the actual effects that repricing opportunities have on
earnings  through  simulation  modeling,  referred  to  as earnings at risk. For
short-term  interest rate risk, the Bank's model simulates the impact of balance
sheet  strategies  on  net  interest income, pre-tax income, and net income. The
model  includes  interest  rate  ramps  to test the impact of rising and falling
interest  rates  on  projected earnings. Rates are ramped over a one-year period
and  include  a level rate scenario as the benchmark with rising and falling 200
basis  point  scenarios for comparison. The Bank determines the assumptions that
are  used  in  the  model.

In  addition to measuring the effect changes in rates will have on earnings, the
Bank  also measures the effect of interest rate changes on the economic value of
the  Bank. Economic Value of Equity is measured by calculating the present value
of  future  cash flows for financial instruments on the balance sheet. The model
utilizes  rate  shocks of rising and falling 200 basis points to compare against
the  level  benchmark  for  best and worst case scenarios. All rates are shocked
instantaneously  for  the  200  basis  point  movements.  The  purpose  of  this
measurement  is  to determine the long-term effect interest rate changes have on
the  economic  value  of  the  balance  sheet.

For  more  information  on  asset-liability  management,  see the Company's most
recent  annual  report on Form 10-KSB, as filed with the Securities and Exchange
Commission.

PROVISION AND ALLOWANCE FOR LOAN LOSSES

The provision for loan losses is a critical accounting policy that is subject to
the  judgments  and  estimates  of  the  Bank.  The  provision  for  loan losses
represents  the  charge  to  operating  earnings  that  management  believes  is
necessary  to  maintain  the  allowance  for possible loan losses at an adequate
level.  The  provision  charged  to expense was $94,000 for the six months ended
June  30,  2003  as compared to $116,000 for the six months ended June 30, 2002.
The provision charged to expense was $44,000 for the quarter ended June 30, 2003
as compared to $53,000 for the same period in 2002. The loan portfolio increased
by  approximately  $5,735,000  during  the  six  months  ended  June 30, 2003 as
compared  to $9,633,000 during the six months ended June 30, 2002. The allowance
for  loan  losses was 1.42% of gross loans at June 30, 2003. We believe that the
allowance  for  loan  losses is adequate. 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. We anticipate maintaining an allowance for loan losses based
on,  among  other  things,  historical  experience,  an  evaluation  of economic
conditions, and regular reviews of delinquencies and loan portfolio quality. Our
judgment  about  the  adequacy  of  the  allowance  is  based  upon  a number of
assumptions  about  future  events, which we believe to be reasonable, but which
may  not  prove to be accurate. Thus, there is a risk that charge-offs in future
periods  could  exceed  the  allowance  for  loan  losses  or  that  substantial
additional  increases  in  the  allowance  for  loan  losses  could be required.
Additions to the allowance for loan losses would result in a decrease of our net
income  and,  possibly,  our  capital.

OTHER  INCOME

Other income for the six months ended June 30, 2003 totaled $444,000 as compared
to $275,000 for the six months ended June 30, 2002. The increase in other income
was  primarily  due to increases in mortgage origination income, service charges
on  deposit  accounts,  and investment security gains during 2003 as compared to
the  same  period  in 2002. Mortgage origination income increased by $56,000 for
the  six  months  ended  June  30,  2003 as compared to the same period in 2002.

Other income for the quarter ended June 30, 2003 totaled $215,000 as compared to
$141,000  for  the  quarter  ended  June  30,  2002. This increase was due to an
increase in mortgage origination income and service charges on deposit accounts.


                                       12
<PAGE>
OTHER  EXPENSE

On July 1, 2002, the Bank opened its second branch location. The opening of this
branch  contributed  to the increase in other expenses during the six months and
quarter  ended  June 30, 2003 compared to the six months ended June 30, 2002 and
is  expected to better serve the Company's existing customers and to attract new
customers.

Total  other  expense  for  the six months ended June 30, 2003 was $1,659,000 as
compared  to  $1,357,000  for  the  same period in 2002 and was $825,000 for the
quarter  ended June 30, 2003 compared to $700,000 for the quarter ended June 30,
2002.  Salaries  and  benefits,  the largest component of other expense, totaled
$909,000  for  the  six months ended June 30, 2003, compared to $735,000 for the
same  period  a year ago. Salaries and benefits totaled $453,000 for the quarter
ended  June  30,  2003 compared to $383,000 for the quarter ended June 30, 2002.
Other operating expenses were $581,000 for the six months ended June 30, 2003 as
compared  to  $495,000  for  the six months ended June 30, 2002. Other operating
expense totaled $287,000 for the quarter ended June 30, 2003 compared to $253,00
for  the  quarter ended June 30, 2002. These increases in other expenses for the
three  and six month periods ended June 30, 2003 are due to the continued growth
of  the  Bank.

INCOME  TAXES

The  income  tax  expense  for  the  six months ended June 30, 2003 and 2002 was
$91,000  and $87,000 and was $60,000 and $48,000 for the quarters ended June 30,
2003  and 2002, respectively. The effective tax rate was 34% and 38% for the six
months  ended  June  30,  2003  and  2002,  respectively and 33% and 38% for the
quarters  ended  June  30,  2003  and  2002,  respectively.

NET  INCOME

The  combination of the above factors resulted in net income of $174,000 for the
six  months  ended  June  30, 2003 compared to $140,000 for the six months ended
June  30, 2002. Basic earnings per share were $.24 for the six months ended June
30,  2003  compared to $.19 for the same period in 2002. Net income was $118,000
for  the  quarter ended June 30, 2003 compared to $77,000 for the same period in
2002.

Diluted  earnings  per  share  were  $.21 for the six months ended June 30, 2003
compared  to  diluted  earnings  per  share  of $.18 in the same period in 2002.
Diluted  earnings  per  share  were  $.15  for  the  quarter ended June 30, 2003
compared  to  $.10  for  the  quarter  ended  June  30  2002.

ASSETS  AND  LIABILITIES

During  the first six months of 2003, total assets increased $22,777,000 or 24%,
when  compared  to December 31, 2002. The primary source of growth in assets was
investment  securities  available-for-sale,  which  increased $12,494,000 or 36%
during  the  first  six  months of 2003. Federal funds sold increased $5,750,000
from  December  31,  2002  to  $13,164,000 at June 30, 2003. Net loans increased
$5,665,000  from  $43,483,000  at  December  31, 2002 to $49,148,000 at June 30,
2003.  Total  deposits  increased  $22,230,000 or 28% from the December 31, 2002
amount  of  $80,257,000  and  funded the majority of the growth in total assets.

INVESTMENT  SECURITIES

Investment  securities available-for-sale increased $12,494,000 from $34,873,000
at  December  31,  2002  to  $47,368,000 at June 30, 2003. This increase was the
result  of  excess  deposits  being  invested  in  securities. All of the Bank's
marketable  investment  securities were designated as available-for-sale at June
30,  2003.


                                       13
<PAGE>
PREMISES  AND  EQUIPMENT

Premises  and  equipment,  net  of  depreciation, totaled $3,713,000 at June 30,
2003.  The  decrease  of $29,000 from the December 31, 2002 amount of $3,741,000
was due to depreciation expense of $102,000 and purchases of $73,000.

LOANS

Gross  loans  totaled $49,858,000 at June 30, 2003, an increase of $5,735,000 or
13% since December 31, 2002. The largest increase in loans was in commercial and
industrial  loans,  which increased $7,158,000 or 30% to $31,021,000 at June 30,
2003.  Balances within the major loans receivable categories as of June 30, 2003
and  December  31,  2002  are  as  follows:

<TABLE>
<CAPTION>
                                       JUNE 30,    DECEMBER 31,
                                         2003          2002
                                      -----------  -------------
<S>                                   <C>          <C>

     Real estate - construction       $10,523,786  $   9,272,306
     Real estate - mortgage             5,383,397      7,453,721
     Commercial and industrial         31,020,915     23,862,595
     Consumer and other                 2,929,467      3,534,217
                                      -----------  -------------
                                      $49,857,565  $  44,122,839
                                      ===========  =============
</TABLE>

RISK ELEMENTS IN THE LOAN PORTFOLIO

The following is a summary of risk elements in the loan portfolio:

<TABLE>
<CAPTION>
                                                JUNE 30,   DECEMBER 31,
                                                  2003         2002
                                                ---------  -------------
<S>                                             <C>        <C>

     Loans:  Nonaccrual loans                   $  38,000  $     108,000
     Accruing loans more than 90 days past due  $   5,000  $       1,000
</TABLE>

Activity in the allowance for loan losses for the period from January 1, 2003 to
June  30,  2003  is  as  follows:

<TABLE>
<CAPTION>
<S>                                                        <C>
     Balance, January 1,                                   $   640,158
     Provision for loan losses for the period                   94,488
     Net loans (charged off) recovered for the period          (24,976)
                                                           ------------
     Balance, end of period                                $   709,670
                                                           ============
     Gross loans outstanding, end of period                $49,857,565
                                                           ============
     Allowance for loan losses to gross loans outstanding         1.42%
                                                           ============
</TABLE>

The  Bank  grants loans and extensions of credit to individuals and a variety of
businesses  and  corporations  located  in  its  general  trade area of Cherokee
County,  Georgia  and  adjoining  counties.  Although the Bank has a diversified
loan portfolio, a substantial portion of the loan portfolio is collateralized by
improved  and  unimproved  real  estate  and  is  dependent upon the real estate
market.


                                       14
<PAGE>
DEPOSITS

At  June  30, 2003 total deposits increased by $22,230,000, or 28% from December
31,  2002.  Noninterest-bearing  demand deposits decreased $6,141,000 or 31% and
interest-bearing  deposits  increased  $28,371,000  or  47%.

Balances  within  the  major deposit categories as of June 30, 2003 and December
31,  2002  are  as  follows:

<TABLE>
<CAPTION>
                                                  JUNE 30,    DECEMBER 31,
                                                    2003          2002
                                                ------------  -------------
<S>                                             <C>           <C>

     Noninterest-bearing demand deposits        $ 13,813,335  $  19,954,811
     Interest-bearing demand deposits             60,114,205     32,028,352
     Savings deposits                              2,193,611      2,144,761
     Certificates of deposit $100,000 and over     5,825,184      6,029,055
     Other time deposits                          20,540,579     20,099,856
                                                ------------  -------------
                                                $102,486,914  $  80,256,835
                                                ============  =============
</TABLE>

LIQUIDITY

The  Company's liquidity needs include the funding of loans and the purchases of
operating  assets. Liquidity needs are met by us through scheduled maturities of
loans  and  investments  on  the  asset side and through pricing policies on the
liability  side for interest-bearing deposit accounts. The level of liquidity is
measured by the loan-to-total borrowed funds ratio, which was at 66% at June 30,
2003  and  63%  at  December  31,  2002.

We  have  also  obtained  lines  of credit available with correspondent banks to
purchase  federal  funds.  At  June  30,  2003,  unused  lines of credit totaled
$6,000,000.

OFF-BALANCE  SHEET  RISK

The  Company  is a party to financial instruments with off-balance-sheet risk in
the  normal  course  of  business  to meet the financing needs of its customers.
These  financial  instruments  consist of commitments to extend credit and loans
sold  with limited recourse. Commitments to extend credit are agreements to lend
to  a  customer as long as there is no violation of any condition established in
the  contract.  Commitments  generally  have  fixed  expiration  dates  or other
termination  clauses and may require payment of a fee. A commitment involves, to
varying  degrees,  elements  of  credit  and interest rate risk in excess of the
amount  recognized  in the balance sheets. The Company's exposure to credit loss
in  the  event  of  non-performance  by  the  other  party  to the instrument is
represented  by  the  contractual  notional  amount  of  the  instrument.

Since  certain  commitments are expected to expire without being drawn upon, the
total  commitment amounts do not necessarily represent future cash requirements.
The Company uses the same credit policies in making commitments to extend credit
as  it  does  for  on-balance-sheet  instruments.

Collateral held for commitments to extend credit varies but may include accounts
receivable,  inventory,  property,  plant,  equipment,  and  income-producing
commercial  properties.


                                       15
<PAGE>
The  following  table  summarizes  the  Company's  off-balance-sheet  financial
instruments whose contract amounts represent credit risk as of June 30, 2003:

<TABLE>
<CAPTION>
<S>                                                              <C>
     Commitments to extend credit                                $11,881,000
     Standby letters of credit                                   $   227,000
</TABLE>

Commitments  to extend credit include short-term construction loans, home equity
loans,  and  commercial  and  other real estate loans. The Company uses the same
credit  policies in making commitments as it does for other loans. Since many of
the  commitments  are  expected  to  expire  without being drawn upon, the total
commitment amounts do not necessarily represent future cash requirements.

CAPITAL  RESOURCES

Total  shareholders'  equity  increased  from $7,636,000 at December 31, 2002 to
$7,983,000  at  June  30, 2003. This increase was attributable to net income for
the  period  and  an  increase  of  $174,000  in  the  fair  value of securities
available-for-sale,  net  of  tax.

Bank  holding companies, such as us, and their banking subsidiaries are required
by  banking regulators to meet certain minimum levels of capital adequacy, which
are  expressed  in  the form of certain ratios. Capital is separated into Tier 1
capital  (essentially  common  shareholders'  equity less intangible assets) and
Tier  2  capital  (essentially the allowance for loan losses limited to 1.25% of
risk-weighted  assets).  The  first two ratios, which are based on the degree of
credit  risk  in  our  assets, provide the weighting of assets based on assigned
risk  factors  and  include off-balance sheet items such as loan commitments and
stand-by  letters of credit. The ratio of Tier 1 capital to risk-weighted assets
must be at least 4.0% and the ratio of total capital (Tier 1 capital plus Tier 2
capital)  to  risk-weighted  assets  must be at least 8.0%. The capital leverage
ratio  supplements  the  risk-based  capital  guidelines.

Banks  and  bank  holding  companies are required to maintain a minimum ratio of
Tier 1 capital to adjusted quarterly average total assets of 3.0%.

The  following table summarizes the Bank's risk-based capital ratios at June 30,
2003:

<TABLE>
<CAPTION>
<S>                                                   <C>
       Tier 1 capital (to risk-weighted assets)       10.46%
       Total capital (to risk-weighted assets)        11.51%
       Tier 1 capital (to total average assets)        6.87%
</TABLE>

As of June 30, 2003, the Company had approximately $583,000 in unencumbered cash
that  could  be  contributed to the Bank if necessary. The Bank's capital ratios
listed  above  would  improve  if  these  funds  were  injected.

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.


                                       16
<PAGE>
RECENT  ACCOUNTING  PRONOUNCEMENTS

In  November 2002, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation  NO.  45, "Guarantor's Accounting and Disclosure Requirements for
Guarantees,  Including  Indirect  Guarantees  of  Indebtedness  of Others."  The
interpretation  addresses  the  disclosures  to  be  made  by a guarantor in its
interim  and annual financial statements about its obligations under guarantees.
The interpretation also clarifies the requirements related to the recognition of
a  liability  by a guarantor at the inception of a guarantee, for the fair value
of  the obligation undertaken in issuing the guarantee.  The initial recognition
and  initial  measurement  provisions of the interpretation are to be applied to
guarantees issued or modified after December 31, 2002.  As of June 30, 2003, the
interpretation  has  not  had  a  material  effect on the financial condition or
results  of  operations,  and  there are no guarantees required to be disclosed.

Other  accounting  standards  that have been issued or proposed by the Financial
Accounting  Standards Board that do not require adoption until a future date are
not  expected to have a material impact on the consolidated financial statements
upon  adoption.

ITEM  3.  CONTROLS  AND  PROCEDURES

As  of  the end of the period covered by this report, the Company carried out an
evaluation,  under  the  supervision and with the participation of the Company's
management,  including the Company's Chief Executive Officer and Chief Financial
Officer,  of  the  effectiveness  of  the  design and operation of the Company's
disclosure  controls and procedures pursuant to Exchange Act Rule 13a-14.  Based
upon  that evaluation, the Company's Chief Executive Officer and Chief Financial
Officer  concluded  that  the  Company's  disclosure controls and procedures are
effective  in  timely  alerting  them  to  material  information relating to the
Company  (including  its  consolidated  subsidiaries)  that  is  required  to be
included  in  the  Company's  periodic  filings with the Securities and Exchange
Commission.  There  have  been  no significant changes in the Company's internal
controls  or,  to  the  Company's  knowledge,  in  other  factors  that  could
significantly  affect those internal controls subsequent to the date the Company
carried  out  its  evaluation,  and  there  have been no corrective actions with
respect  to  significant  deficiencies  or  material  weaknesses.


                                       17
<PAGE>
                           PART II - OTHER INFORMATION


ITEM  1.  LEGAL  PROCEEDINGS

          There  are no material, pending legal proceedings to which the Company
          or  any  of  its  subsidiaries  is  a  party  or of which any of their
          property  is  the  subject.

ITEM  2.  CHANGES  IN  SECURITIES

          (a)  Not applicable.
          (b)  Not applicable.
          (c)  Not applicable.
          (d)  Not applicable.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

          Not applicable.

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

          The  Company's  2003  Annual Meeting of Shareholders was held on April
          28,  2003.  The  matters  voted upon and the voting results as to such
          matters  were previously disclosed in the Company's form 10QSB for the
          period  ended  March  31,  2003.

ITEM  5.  OTHER  INFORMATION

          None.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

          (a)  Exhibits:

     31   Certification  of  Chief Executive Officer and Chief Financial Officer
          pursuant  to  Section  302  of  the  Sarbanes-Oxley  Act  of  2002.

     32   Certification  of  Chief Executive Officer and Chief Financial Officer
          pursuant  to  Section  906  of  the  Sarbanes-Oxley  Act of 2002. This
          exhibit  is  not  "filed" for purposes of Section 18 of the Securities
          Exchange  Act  of  1934  but  is  instead  furnished  as  provided  by
          applicable  rules  of  the  Securities  and  Exchange  Commission

          (b)  Reports  on  Form  8-K:
               None.


                                       18
<PAGE>
                                   SIGNATURES


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


                              CHEROKEE  BANKING  COMPANY
                                      (Registrant)



DATE:  August 13, 2003                      BY:  /s/  DENNIS  W.  BURNETTE
       ---------------                           ------------------------------
                                                 Dennis  W.  Burnette
                                                 President, Chief Executive
                                                 Officer and Director


DATE:  August 13, 2003                      BY:  /s/  A.R.  ROBERTS,  III
       ---------------                           ------------------------------
                                                 A.R.  Roberts,  III
                                                 Chief  Financial  Officer,
                                                 Chief Operations Officer
                                                 and Director


                                       19
<PAGE>