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     SEPTEMBER 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 or other jurisdiction of     (Primary Standard          (IRS Employer
 incorporation or organization)  Industrial Classification   Identification No.)
                                       Code Number)


                 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:
812,515  shares  of common stock, no par value per share, issued and outstanding
as  of  November  1,  2003.

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


<PAGE>
                            CHEROKEE BANKING COMPANY


================================================================================


                                      INDEX
                                      -----

                                                                        PAGE NO.
                                                                       ---------

PART I.     FINANCIAL INFORMATION

     ITEM 1 - FINANCIAL STATEMENTS

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

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

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

          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE
            NINE MONTHS ENDED SEPTEMBER 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


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

ITEM 1. FINANCIAL STATEMENTS

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


                             ASSETS
                             ------
<S>                                                              <C>
Cash and due from banks                                          $  4,623,836
Federal funds sold                                                  1,738,000
                                                                 -------------
          Cash and cash equivalents                                 6,361,836

Interest-bearing deposits                                             199,000
Investment securities available-for-sale                           50,793,282
Other investments                                                     675,350
Loans, net                                                         51,166,788
Premises and equipment, net                                         3,913,865
Other assets                                                        2,758,108
                                                                 -------------

                                                                 $115,868,229
                                                                 =============

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

Deposits
    Demand                                                       $ 13,559,131
    Money Market and NOW accounts                                  55,292,844
    Savings                                                         2,598,205
    Time                                                           26,953,963
                                                                 -------------
          Total deposits                                           98,404,143

Advances from the Federal Home Loan Bank                            8,500,000
Notes payable                                                       1,000,000
Other liabilities                                                     662,176
                                                                 -------------

          Total liabilities                                       108,566,319
                                                                 -------------

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;
        812,515 shares issued and outstanding                       7,749,680
    Retained earnings                                                       -
    Accumulated other comprehensive loss                             (447,770)
                                                                 -------------

          Total stockholders' equity                                7,301,910
                                                                 -------------

                                                                 $115,868,229
                                                                 =============
</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 NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                                (UNAUDITED)

                                                                   THREE MONTHS             NINE MONTHS
                                                                ENDED SEPTEMBER 30,      ENDED SEPTEMBER 30,
                                                               ---------------------  ------------------------
                                                                  2003       2002         2003       2002
                                                               ----------  ---------  -----------  -----------
<S>                                                            <C>         <C>        <C>          <C>
INTEREST INCOME:
    Interest and fees on loans                                 $ 816,264   $ 768,415  $ 2,441,318  $ 2,203,775
    Interest on federal funds sold                                 4,788      12,033       28,477       32,128
    Interest on investment securities                            435,626     398,803    1,173,797    1,203,307
    Interest on interest-bearing deposits                          2,389       4,977        7,878       21,871
                                                               ----------  ---------  -----------  -----------
          TOTAL INTEREST INCOME                                1,259,067   1,184,228    3,651,470    3,461,081
                                                               ----------  ---------  -----------  -----------

INTEREST EXPENSE:
    Deposits                                                     317,759     384,667      998,362    1,156,836
    Other borrowings                                              74,696      54,517      212,941      134,301
                                                               ----------  ---------  -----------  -----------
          TOTAL INTEREST EXPENSE                                 392,455     439,184    1,211,303    1,291,137
                                                               ----------  ---------  -----------  -----------

          Net interest income                                    866,612     745,044    2,440,167    2,169,944

PROVISION FOR LOAN LOSSES                                         34,459      20,060      128,947      135,632
                                                               ----------  ---------  -----------  -----------
          Net interest income after provision for loan losses    832,153     724,984    2,311,220    2,034,312
                                                               ----------  ---------  -----------  -----------

OTHER INCOME:
    Service charges on deposit accounts                          110,071      91,051      315,375      258,358
    Gain (loss) on sales of securities available-for-sale           (581)          -       34,616            -
    Other operating income                                        92,712      57,693      296,475      165,151
                                                               ----------  ---------  -----------  -----------
          TOTAL OTHER INCOME                                     202,202     148,744      646,466      423,509
                                                               ----------  ---------  -----------  -----------

OTHER EXPENSE:
    Salaries and other personnel expense                         456,374     401,610    1,364,959    1,136,764
    Net occupancy and equipment expense                           84,781      83,958      254,370      210,749
    Other operating expense                                      329,956     285,723      910,557      780,912
                                                               ----------  ---------  -----------  -----------
          TOTAL OTHER EXPENSE                                    871,111     771,291    2,529,886    2,128,425
                                                               ----------  ---------  -----------  -----------

          INCOME BEFORE POVISION FOR INCOME TAXES                163,244     102,437      427,800      329,396

INCOME TAX EXPENSE                                                37,281      41,228      128,232      127,852
                                                               ----------  ---------  -----------  -----------

          NET INCOME                                           $ 125,963      61,209      299,568      201,544
                                                               ==========  =========  ===========  ===========

BASIC EARNINGS PER SHARE                                       $    0.16   $    0.08  $      0.37  $      0.25
                                                               ==========  =========  ===========  ===========

DILUTED EARNINGS PER SHARE                                     $    0.14   $    0.07  $      0.34  $      0.23
                                                               ==========  =========  ===========  ===========
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


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

                           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                                (UNAUDITED)


                                                                         2003           2002
                                                                    --------------  -------------
<S>                                                                 <C>             <C>
NET INCOME                                                          $     299,568         201,544
                                                                    --------------  -------------

OTHER COMPREHENSIVE INCOME (LOSS):
    Unrealized holding gains (losses) on investment
        securities available-for-sale                                    (987,083)       692,229
    Income tax (expense) benefit related to investment
        securities available-for-sale                                     375,092       (262,774)
Reclassification adjustment for gains realized in net income, net
  of tax of $13,154                                                       (21,462)             -
                                                                    --------------  -------------
          TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX            (633,453)       429,455
                                                                    --------------  -------------

          TOTAL COMPREHENSIVE INCOME (LOSS)                         $    (333,885)  $    630,999
                                                                    ==============  =============
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


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

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


                                                                         2003           2002
                                                                     -------------  -------------
<S>                                                                  <C>            <C>
OPERATING ACTIVITIES
    Net income                                                       $    299,568   $    201,544
    Adjustments to reconcile net income to net
        cash provided by operating activities:
        Provision for loan losses                                         128,947        135,632
        Depreciation, amortization and accretion                          208,083        129,960
        Gain on sales of securities available-for-sale                    (34,616)             -
        Change in:
           Other assets                                                   (91,797)       (14,008)
           Other liabilities                                              122,824          6,824
                                                                     -------------  -------------

              Net cash provided by operating activities                   633,009        459,952
                                                                     -------------  -------------

INVESTING ACTIVITIES
    Proceeds from maturities and paydowns of
        of investment securities available-for-sale                    15,431,688      8,931,073
    Proceeds from sales of investment securities available-for-sale     4,124,494      1,984,786
    Purchases of investment securities available-for-sale             (36,516,588)   (18,676,657)
    Net change in interest-bearing deposits                                99,000        599,000
    Purchases of other investments                                              -       (349,100)
    Proceeds from sale of other real estate                                62,000              -
    Net change in loans                                                (7,875,054)   (12,199,978)
    Purchase of bank owned life insurance                                       -       (785,842)
    Purchase of premises and equipment                                   (327,663)      (878,998)
                                                                     -------------  -------------

              Net cash used in investing activities                   (25,002,123)   (21,375,716)
                                                                     -------------  -------------

FINANCING ACTIVITIES
    Net change in federal funds purchased                                       -       (222,000)
    Proceeds from FHLB borrowings                                               -      8,500,000
    Proceeds from notes payable                                         1,000,000              -
    Net change in deposits                                             18,147,309     13,998,023
                                                                     -------------  -------------

              Net cash provided by financing activities                19,147,309     22,276,023
                                                                     -------------  -------------

Net change in cash and cash equivalents                                (5,221,805)     1,360,259

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

Cash and cash equivalents at end of period                           $  6,361,836   $  2,971,882
                                                                     =============  =============
</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 September
          30, 2003 and for the interim periods ended September 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 as of 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

          On  October  21, 2003, the Company awarded a 10% stock dividend to its
          shareholders  of  record  as  of  October  7, 2003. 73,857 shares were
          issued in connection with this stock dividend. All share and per share
          amounts have been restated to reflect this stock dividend as if it had
          occurred  at  the  beginning  of  the  earliest  period  presented.

          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 nine months ended September 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 quarters ended September 30, 2003
and 2002:

          Basic earnings per share            $ 125,963     812,515  $      .16   $  61,209     812,515  $      .08

          Effect of stock options                     -      85,347        (.02)          -      46,507        (.01)
                                              ---------  ----------  -----------  ---------  ----------  -----------

          Diluted earnings per share          $ 125,963     897,862  $      .14   $  61,209     859,022  $      .07
                                              =========  ==========  ===========  =========  ==========  ===========


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

          Basic earnings per share            $ 299,568     812,515  $      .37   $ 201,544     812,515  $      .25

          Effect of stock options                     -      71,495        (.03)          -      46,507        (.02)
                                              ---------  ----------  -----------  ---------  ----------  -----------

          Diluted earnings per share          $ 299,568     884,010  $      .34   $ 201,544     859,022  $      .23
                                              =========  ==========  ===========  =========  ==========  ===========
</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  nine  months  ended  September  30,  2003  and  2002.


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


NOTE 4.   STOCK-BASED COMPENSATION (CONTINUED)


                                       Three Months Ended     Nine Months Ended
                                          September 30,         September 30,
                                      --------------------  ---------------------
                                        2003       2002       2003        2002
                                      ---------  ---------  ---------  ----------
<S>                                   <C>        <C>        <C>        <C>

Net income as reported                $125,963   $ 61,209   $299,568   $ 201,544
Deduct:  Total stock-based employee
   compensation expense determined
   under fair-value based method for
   all awards, net of tax               (7,111)   (49,632)   (15,904)   (148,896)
                                      ---------  ---------  ---------  ----------

Pro forma net earnings                $118,852   $ 11,577   $283,664   $  52,648
                                      =========  =========  =========  ==========

Basic earnings per share:

   As reported                        $   0.16   $   0.08   $   0.37   $    0.25
                                      =========  =========  =========  ==========

   Pro forma                          $   0.15   $   0.01   $   0.35   $    0.06
                                      =========  =========  =========  ==========

Diluted earnings per share:

   As reported                        $   0.14   $   0.07   $   0.34   $    0.23
                                      =========  =========  =========  ==========

   Pro forma                          $   0.13   $   0.01   $   0.32   $    0.06
                                      =========  =========  =========  ==========
</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 September 30,
2003  compared  to  December  31,  2002 and of our results of operations for the
three  and nine months ended September 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  nine  months  ended  September  30,  2003, net interest income totaled
$2,440,000  as  compared  to  $2,170,000  for the same period in 2002.  Interest
income  from  loans,  including fees increased $238,000 or 11% to $2,441,000 for
the  nine  months ended September 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
3.50%  and  3.28%,  respectively,  for the nine months ended September 30, 2003.
The  net interest margin realized on earning assets and the interest rate spread
were  4.08%  and  3.96%,  respectively,  for the nine months ended September 30,
2002.

For  the quarter ended September 30, 2003, interest income totaled $1,259,000 as
compared  to $1,184,000 for the same period in 2002.  Interest expense decreased
from  $439,000 for the quarter ended September 30, 2002 to $392,000 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 September 30, 2003,
the  net  interest margin was 3.29% and the interest rate spread was 3.04%.  For
the  quarter ended September 30, 2002, the net interest margin was 3.97% and the
interest  rate  spread  was  3.85%.

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 September 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  $34,000 for the quarter ended
September  30,  2003  as compared to $20,000 for the quarter ended September 30,
2002.  The  provision  charged to expense was $129,000 for the nine months ended
September  30,  2003 as compared to $136,000 for the nine months ended September
30,  2002.  The  loan portfolio increased by approximately $7,684,000 during the
nine  months ended September 30, 2003 as compared to $12,064,000 during the nine
months  ended  September  30,  2002.  The allowance for loan losses was 1.41% of
gross  loans  at  September  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 nine months ended September 30, 2003 totaled $646,000 as
compared to $424,000 for the nine months ended September 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  $72,000 for the nine months ended September 30, 2003 as compared to the same
period  in  2002.


                                       12
<PAGE>
Other  income  for  the  quarter  ended  September  30, 2003 totaled $202,000 as
compared  to $149,000 for the quarter ended September 30, 2002.  The increase in
other  income  was primarily due to increases in mortgage origination income and
service  charges  on  deposit  accounts.

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 first nine
months  of  2003  compared  to  the first nine months of 2002 and is expected to
better  serve  the  Company's  existing  customers and to attract new customers.

Total  other expense for the nine months ended September 30, 2003 was $2,530,000
as  compared  to $2,128,000 for the same period in 2002 and was $871,000 for the
quarter  ended  September  30,  2003  compared to $771,000 for the quarter ended
September  30  2002.  Salaries  and  benefits,  the  largest  component of other
expense,  totaled  $1,365,000  for  the  nine  months  ended September 30, 2003,
compared  to  $1,137,000  for the same period a year ago.  Salaries and benefits
totaled  $456,000  for the quarter ended September 30, 2003 compared to $402,000
for  the  quarter  ended  September  30,  2002.  Other  operating  expenses were
$911,000  for  the  nine months ended September 30, 2003 as compared to $781,000
for  the  nine months ended September 30, 2002.  Other operating expense totaled
$330,000  for  the quarter ended September 30, 2003 compared to $286,000 for the
quarter  ended  September  30,  2002.  These increases in other expenses for the
three  and  nine month periods ended September 30, 2003 are due to the continued
growth  of  the  Bank.

INCOME  TAXES

The income tax expense for the nine months ended September 30, 2003 and 2002 was
$128,000  and  was $37,000 and $41,000 for the quarters ended September 30, 2003
and  2002,  respectively.  The  effective  tax rate was 30% and 39% for the nine
months  ended September 30, 2003 and 2002, respectively, and 23% and 40% for the
quarters  ended  September  30,  2003  and  2002,  respectively.

NET  INCOME

The  combination of the above factors resulted in net income of $300,000 for the
nine  months  ended  September 30, 2003 compared to $202,000 for the nine months
ended September 30, 2002.  Basic earnings per share was $.37 for the nine months
ended  September  30,  2003  compared  to $.25 for the same period in 2002.  Net
income was $126,000 for the quarter ended September 30, 2003 compared to $61,000
for  the  same  period  in  2002.

Diluted  earnings  per  share  were $.34 for the nine months ended September 30,
2003  compared to diluted earnings per share of $.23 in the same period in 2002.
The  dilutive  effect of the Company's outstanding options and warrants was $.03
and  $.02  per  share  during the nine months ended September 30, 2003 and 2002,
respectively.

ASSETS  AND  LIABILITIES

During the first nine months of 2003, total assets increased $18,936,000 or 20%,
when  compared to December 31, 2002.  The primary source of growth in assets was
investment  securities  available-for-sale,  which  increased $15,920,000 or 46%
during  the  first nine months of 2003.  Federal funds sold decreased $5,676,000
from December 31, 2002 to $1,738,000 at September 30, 2003.  Net loans increased
$7,684,000  from  December 31, 2002 to $51,167,000 at September 30, 2003.  Total
deposits  increased  $18,147,000  or  23%  from  the December 31, 2002 amount of
$80,257,000  and  provided  the  majority  of  the  growth  in  total  assets.


                                       13
<PAGE>
INVESTMENT  SECURITIES

Investment  securities available-for-sale increased $15,920,000 from $34,873,000
at  December  31,  2002 to $50,793,000 at September 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
September  30,  2003.

PREMISES  AND  EQUIPMENT

Premises and equipment, net of depreciation, totaled $3,914,000 at September 30,
2003.  The  increase of $173,000 from the December 31, 2002 amount of $3,741,000
was  due  to  purchases  of  $328,000  and  depreciation  expense  of  $155,000.

LOANS

Gross loans totaled $51,898,000 at September 30, 2003, an increase of $7,775,000
or 18% since December 31, 2002.  The largest increase in loans was in commercial
and  industrial  loans,  which  increased  $3,544,000  or  15% to $27,407,000 at
September 30, 2003.  Balances within the major loans receivable categories as of
September  30,  2003  and  December  31,  2002  are  as  follows:

<TABLE>
<CAPTION>
                                 SEPTEMBER 30,   December 31,
                                      2003           2002
                                 --------------  -------------
<S>                              <C>             <C>

     Real estate - construction  $   14,132,353  $   9,272,306
     Real estate - mortgage           7,326,647      7,453,721
     Commercial and industrial       27,406,694     23,862,595
     Consumer and other               3,031,970      3,534,217
                                 --------------  -------------
                                 $   51,897,664  $  44,122,839
                                 ==============  =============
</TABLE>

RISK  ELEMENTS  IN  THE  LOAN  PORTFOLIO

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

<TABLE>
<CAPTION>
                                                SEPTEMBER 30,   December 31,
                                                     2003           2002
                                                --------------  -------------
<S>                                             <C>             <C>

     Loans:  Nonaccrual loans                   $       24,000  $     108,000
     Accruing loans more than 90 days past due  $            0  $       1,000
</TABLE>


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

<TABLE>
<CAPTION>
<S>                                                        <C>
     Balance, January 1,                                   $   640,158
     Provision for loan losses for the period                  128,947
     Net loans (charged off) recovered for the period          (38,229)
                                                           ------------
     Balance, end of period                                $   730,876
                                                           ============
     Gross loans outstanding, end of period                $51,898,000
                                                           ============
     Allowance for loan losses to gross loans outstanding         1.41%
                                                           ============
</TABLE>


                                       14
<PAGE>
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.

DEPOSITS

At  September  30,  2003  total  deposits  increased by $18,147,000, or 23% from
December  31, 2002.  Noninterest-bearing demand deposits decreased $6,396,000 or
32%  and  interest-bearing  deposits  increased  $24,543,000  or  41%.

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

<TABLE>
<CAPTION>
                                                SEPTEMBER 30,   December 31,
                                                     2003           2002
                                                --------------  -------------
<S>                                             <C>             <C>

     Noninterest-bearing demand deposits        $   13,559,131  $  19,954,811
     Interest-bearing demand deposits               55,292,844     32,028,352
     Savings deposits                                2,598,205      2,144,761
     Certificates of deposit $100,000 and over       6,342,184      6,029,055
     Other time deposits                            20,611,779     20,099,856
                                                --------------  -------------
                                                $   98,404,143  $  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 48% at
September  30,  2003  and  50%  at  December  31,  2002.

We  have  also  obtained  lines  of credit available with correspondent banks to
purchase  federal  funds.  At September 30, 2003, unused lines of credit totaled
$8,400,000.

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 standby
letters  of  credit.  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 September 30,
2003:

     Commitments to extend credit                              $    13,876,000
     Standby letters of credit                                 $       227,000

CAPITAL  RESOURCES

Total  shareholders'  equity  decreased  from $7,636,000 at December 31, 2002 to
$7,302,000  at September 30, 2003.  This decrease was attributable to a decrease
of  $633,000  in  the  fair  value  of securities available-for-sale, net of tax
partially  offset  by  net  income  for  the  period.

On  October  21,  2003,  the  Company  awarded  a  10%  stock  dividend  to  its
shareholders  of  record  as  of  October 7, 2003.  73,857 shares were issued in
connection  with this stock dividend.  All share and per share amounts have been
restated  to  reflect this stock dividend as if it had occurred at the beginning
of  the  earliest  period  presented.

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 September
30,  2003:

     Tier 1 capital (to risk-weighted assets)                      11.48%
     Total capital (to risk-weighted assets)                       12.51%
     Tier 1 capital (to total average assets)                       7.25%

As of September 30, 2003, the Company had approximately $603,000 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 September 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-15.  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)  On October 21, 2003, the Company issued 73,857 shares to existing
               shareholders  in connection with its declared 10% stock dividend.
               The  issuance  of common stock was exempt from registration under
               the  Securities  Act  of  1933.
          (d)  Not  applicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          Not  applicable.

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

          None.

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 Rule 13a-15 of the Securities Exchange
                    Act  of  1934,  as  amended.

               32   Certification of Chief Executive Officer and Chief Financial
                    Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
                    2002.

          (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: November 12, 2003      BY: /S/DENNIS W. BURNETTE
     -------------------         ---------------------
                                 Dennis W. Burnette
                                 President, Chief Executive Officer and Director


DATE: November 12, 2003      BY: /S/A.R. ROBERTS, III
     -------------------         --------------------
                                 A.R. Roberts, III
                                 Chief Financial Officer, Chief Operations
                                 Officer and Director


                                       19
<PAGE>