SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

                For the Quarterly Period Ended March 31, 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)   (Zip Code)


                                  770-479-3400
                                  ------------
                               (Telephone Number)


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

Check whether the issurer: (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  May 8,  2003.

Transitional  Small  Business  Disclosure  Format  (check  one):  YES    NO  X
                                                                     ---    ---


<PAGE>
                            CHEROKEE BANKING COMPANY


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

                                      INDEX
                                      -----

                                                                        PAGE NO.
                                                                        --------

PART I.     FINANCIAL INFORMATION

     ITEM 1 - FINANCIAL STATEMENTS

          CONSOLIDATED BALANCE SHEET (UNAUDITED) AT MARCH 31, 2003. . . . . . 4

          CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE
             THREE MONTHS ENDED MARCH 31, 2003 AND 2002 . . . . . . . . . . . 5

          CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
             FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002 . . . . . . . 6

          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE
             THREE MONTHS ENDED MARCH 31, 2003 AND 2002 . . . . . . . . . . . 7

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED). . . . . . . 8

     ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . .11

     ITEM 3. - CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . 18


<PAGE>
                            CHEROKEE BANKING COMPANY


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

                                INDEX (CONTINUED)
                                ----------------

                                                                        PAGE NO.
                                                                        --------
PART II.     OTHER INFORMATION

     ITEM 1 - LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . . . . . . . 19

     ITEM 2 - CHANGES IN SECURITIES. . . . . . . . . . . . . . . . . . . . 19

     ITEM 3 - DEFAULTS UPON SENIOR SECURITIES. . . . . . . . . . . . . . . 19

     ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. . . . . 19

     ITEM 5 - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . 19

     ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . 20

     SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21


<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                            CHEROKEE BANKING COMPANY
                           CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2003
                                   (UNAUDITED)


                        ASSETS
                        ------
<S>                                                              <C>
Cash and due from banks                                          $ 4,301,832
Federal funds sold                                                 5,874,000
                                                                 -----------

          Cash and cash equivalents                               10,175,832

Interest-bearing deposits                                            298,000
Investment securities available-for-sale                          35,306,389
Other investments                                                    675,350
Loans, net                                                        46,539,595
Premises and equipment, net                                        3,716,703
Other assets                                                       2,330,057
                                                                 -----------
                                                                 $99,041,926
                                                                 ===========

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

Deposits
    Demand                                                       $ 9,931,001
    Money market and NOW accounts                                 43,986,895
    Savings                                                        2,148,863
    Time                                                          26,123,133
                                                                 -----------
          Total deposits                                          82,189,892

Advances from the Federal Home Loan Bank                           8,500,000
Other liabilities                                                    562,410
                                                                 -----------

          Total liabilities                                       91,252,302
                                                                 -----------
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                                                174,759
    Accumulated other comprehensive income                           284,360
                                                                 -----------

          Total stockholders' equity                               7,789,624
                                                                 -----------

                                                                 $99,041,926
                                                                 ===========
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        4
<PAGE>
<TABLE>
<CAPTION>

                                 CHEROKEE BANKING COMPANY

                             CONSOLIDATED STATEMENTS OF INCOME
                    FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                        (UNAUDITED)


                                                                     2003          2002
                                                               ----------------  ---------
<S>                                                            <C>               <C>
INTEREST INCOME:
    Interest and fees on loans                                 $        784,535    685,242
    Interest on federal funds sold                                        8,943      9,900
    Interest on investment securities                                   363,026    412,617
    Interest on interest-bearing deposits                                 2,730      9,662
                                                               ----------------  ---------
          TOTAL INTEREST INCOME                                       1,159,234  1,117,421
                                                               ----------------  ---------

INTEREST EXPENSE:
    Deposits                                                            347,550    396,778
    Other borrowings                                                     69,916     32,734
                                                               ----------------  ---------
          TOTAL INTEREST EXPENSE                                        417,466    429,512
                                                               ----------------  ---------

          Net interest income                                           741,768    687,909

PROVISION FOR LOAN LOSSES                                                50,801     62,091
                                                               ----------------  ---------
          Net interest income after provision for loan losses           690,967    625,818
                                                               ----------------  ---------

OTHER INCOME:
    Service charges on deposit accounts                                  99,559     83,153
    Gain on sale of securities available-for-sale                        35,197          -
    Other operating                                                      94,330     50,657
                                                               ----------------  ---------
          TOTAL OTHER INCOME                                            229,086    133,810
                                                               ----------------  ---------

OTHER EXPENSE:
    Salaries and benefits                                               455,410    352,588
    Occupancy and equipment                                              84,093     61,629
    Other operating                                                     294,037    242,647
                                                               ----------------  ---------
          TOTAL OTHER EXPENSE                                           833,540    656,864
                                                               ----------------  ---------

          INCOME BEFORE PROVISION FOR INCOME TAXES                       86,513    102,764

INCOME TAX EXPENSE                                                       31,361     39,050
                                                               ----------------  ---------

          NET INCOME                                           $         55,152     63,714
                                                               ================  =========
BASIC EARNINGS PER SHARE                                       $           0.07       0.09
                                                               ================  =========
DILUTED EARNINGS PER SHARE                                     $           0.07       0.08
                                                               ================  =========
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        5
<PAGE>

                            CHEROKEE BANKING COMPANY
<TABLE>
<CAPTION>

                       CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                         FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                            (UNAUDITED)


                                                                              2003          2002
                                                                        ----------------  ---------
<S>                                                                     <C>               <C>
NET INCOME                                                              $        55,152     63,714
                                                                        ----------------  ---------

OTHER COMPREHENSIVE INCOME (LOSS)
    Unrealized holding gains (losses) on investment
        securities available-for-sale                                           180,979   (235,047)
    Less income tax (expense) benefit related to investment
        securities available-for-sale                                           (60,480)    89,318
    Reclassification adjustment for gains realized in net income, net
        of tax of $13,375                                                       (21,822)         -
                                                                        ----------------  ---------
          TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX                    98,677   (145,729)
                                                                        ----------------  ---------

          TOTAL COMPREHENSIVE INCOME (LOSS)                             $       153,829    (82,015)
                                                                        ================  =========
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        6
<PAGE>
<TABLE>
<CAPTION>
                                    CHEROKEE BANKING COMPANY

                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                       FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                          (UNAUDITED)


                                                                         2003          2002
                                                                     ------------  ------------
<S>                                                                  <C>           <C>
OPERATING ACTIVITIES
    Net income                                                       $    55,152   $    63,714
    Adjustments to reconcile net income to net
        cash provided by (used in) operating activities:
        Provision for loan losses                                         50,801        62,091
        Depreciation, amortization and accretion                          51,343        23,769
        Gain on sales of securities available-for-sale                   (35,197)            -
        Change in:
           Other assets                                                  (51,989)     (102,103)
           Other liabilities                                              24,578      (137,284)
                                                                     ------------  ------------

          Net cash provided by (used in) operating activities             94,688       (89,813)
                                                                     ------------  ------------

INVESTING ACTIVITIES
    Proceeds from sales, maturities and paydowns of
        of investment securities available-for-sale                    3,402,835     3,887,010
    Proceeds from sales of investment securities available-for-sale    3,485,066             -
    Purchases of investment securities available-for-sale             (7,126,719)   (4,061,619)
    Net change in interest-bearing deposits                                    -       300,000
    Purchases of other investments                                             -      (199,100)
    Net change in loans                                               (3,169,716)   (5,780,806)
    Purchase of premises and equipment                                   (27,020)      (88,918)
                                                                     ------------  ------------
          Net cash used in investing activities                       (3,435,554)   (5,943,433)
                                                                     ------------  ------------

FINANCING ACTIVITIES
    Net change in federal funds purchased                                      -      (222,000)
    Proceeds from FHLB borrowings                                              -     5,500,000
    Net change in deposits                                             1,933,057     4,382,484
                                                                     ------------  ------------
          Net cash provided by financing activities                    1,933,057     9,660,484
                                                                     ------------  ------------
Net change in cash and cash equivalents                               (1,407,809)    3,627,238
                                                                     ------------  ------------
Cash and cash equivalents at beginning of period                      11,583,641     1,611,623
                                                                     ------------  ------------
Cash and cash equivalents at end of period                           $10,175,832   $ 5,238,861
                                                                     ============  ============
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.


                                        7
<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 March 31,
          2003  and  for  the  interim periods ended March 31, 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
          Form  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  for  loan  losses.


                                        8
<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 quarters ended March 31, 2003 and 2002 presented in
          the  financial  statements  were  calculated  as  follows:

<TABLE>
<CAPTION>
                                         NET     COMMON    PER SHARE
FOR THE QUARTER ENDED MARCH 31, 2003:  INCOME    SHARES     AMOUNT
                                       -------  --------  -----------
<S>                                    <C>      <C>       <C>
Basic earnings per share               $55,152  $738,658  $      .07
Effect of stock options                      -    41,231           -
                                       -------  --------  -----------
Diluted earnings per share             $55,152  $779,889  $      .07
                                       =======  ========  ===========

                                        NET     COMMON     PER SHARE
FOR THE QUARTER ENDED MARCH 31, 2002:  INCOME   SHARES      AMOUNT
                                       -------  --------  -----------
Basic earnings per share               $63,714  $738,658  $      .09
Effect of stock options                      -    37,629        (.01)
                                       -------  --------  -----------
Diluted earnings per share             $63,714  $776,287  $      .08
                                       =======  ========  ===========
</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  periods  ended  March  31,  2003  and  2002.

                                        9
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 4.  STOCK-BASED  COMPENSATION  (CONTINUED)


<TABLE>
<CAPTION>
                                                 Three Months Ended
                                                     March 31,
                                                   2003     2002
                                                  -------  -------
<S>                                               <C>      <C>
Net earnings as reported                          $55,152  $63,714
Deduct:  Total stock-based employee compensation
   expense determined under fair-value based
   method for all awards, net of tax                4,396   49,632
                                                  -------  -------
Pro forma net earnings                            $50,756  $14,082
                                                  =======  =======
Basic earnings per share:

   As reported                                    $   .07  $   .09
                                                  =======  =======
   Pro forma                                      $   .07  $   .02
                                                  =======  =======
Diluted earnings per share:

   As reported                                    $   .07  $   .08
                                                  =======  =======
   Pro forma                                      $   .07  $   .02
                                                  =======  =======
</TABLE>


                                       10
<PAGE>
                            CHEROKEE BANKING COMPANY


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 March
          31,  2003  compared to December 31, 2002 and our results of operations
          for  the  periods ended March 31, 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.


                                       11
<PAGE>
RESULTS  OF  OPERATIONS

NET  INTEREST  INCOME

For  the three months ended March 31, 2003, net interest income totaled $742,000
as  compared  to  $688,000  for  the  same period in 2002.  Interest income from
loans,  including fees increased $99,000 or 14% to $785,000 for the three months
ended  March  31,  2003.  The  increase  in  net  interest  income is due to the
continued  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
3.57%  and  3.32%, respectively, for the three months ended March 31, 2003.  The
net  interest  margin  and  interest spread for the three months ended March 31,
2002  was  4.27%  and  4.22%,  respectively.

For  the  quarter  ended  March  31, 2003, interest income totaled $1,159,000 as
compared  to $1,117,000 for the same period in 2002.  Interest expense decreased
from  $430,000  for  the  quarter  ended March 31, 2002 to $417,000 for the same
period  in  2003.

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 March 31, 2003, the Bank, as
measured  by  Gap,  is  in  an  asset  sensitive  position.

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.


                                       12
<PAGE>
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  management.  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 $51,000 for the three months ended
March 31, 2003 as compared to $62,000 for the three months ended March 31, 2002.
The  total loan portfolio increased by approximately $3,088,000 during the three
months  ended  March  31, 2003 as compared to $5,815,000 during the three months
ended March 31, 2002.  The allowance for loan losses was 1.42% of gross loans at
March  31,  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  three  months  ended March 31, 2003 totaled $229,000 as
compared to $134,000 for the three months ended March 31, 2002.  The increase in
other income was primarily due to an increase in mortgage origination income and
investment  security  gains  during 2003 as compared to the same period in 2002.

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


                                       13
<PAGE>
Total  other  expense  for the three months ended March 31, 2003 was $834,000 as
compared  to  $657,000  for  the same period in 2002. Salaries and benefits, the
largest  component of other expense, totaled $455,000 for the three months ended
March  31, 2003, compared to $353,000 for the same period a year ago. Salary and
employee  benefits  expense increased due to the hiring of additional employees.
Other operating expenses were $294,000 for the three months ended March 31, 2003
as  compared to $243,000 for the three months ended March 31, 2002. The increase
in other operating expenses is due to the continued growth of the Bank.

INCOME TAXES

Income  tax  expense  for  the  three  months  ended March 31, 2003 and 2002 was
$31,000  and  $39,000,  respectively.  The  primary  difference  resulting  in a
decrease  in  income  tax  expense during the first quarter of 2003 was due to a
decrease  in  the  effective  tax  rate.

NET INCOME

The  combination  of the above factors resulted in net income of $55,000 for the
three months ended March 31, 2003 compared to $64,000 for the three months ended
March  31,  2002.  Basic  earnings per share was $.07 for the three months ended
March  31,  2003  compared  to  $.09  for  the  same  period  in  2002.

Diluted  earnings  per share were $.07 for the three months ended March 31, 2003
compared to diluted earnings per share of $.08 for the same period in 2002.  The
dilutive  effect  of the Company's outstanding options and warrants was $.01 per
share  during  the three months ended March 31, 2002.  The Company's options and
warrants  had  no  dilutive  effect  in  the  quarter  ended  March  31,  2003.

ASSETS AND LIABILITIES

During  the first three months of 2003, total assets increased $2,110,000 or 2%,
when  compared  to December 31, 2002.  The most significant growth in assets was
total  loans,  which increased $3,088,000 or 7% during the first three months of
2003.  Total  deposits  increased  $1,933,000  or 2%, from the December 31, 2002
amount  of  $80,257,000,  and  funded  the  majority  of  the  growth  in  total
liabilities.

INVESTMENT SECURITIES

Investment  securities available-for-sale increased $433,000 from $34,873,000 at
December  31,  2002  to  $35,306,000  at  March 31, 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 March
31,  2003.


                                       14
<PAGE>
PREMISES AND EQUIPMENT

Premises  and  equipment,  net  of depreciation, totaled $3,717,000 at March 31,
2003.  The  decrease  of $24,000 from the December 31, 2002 amount of $3,741,000
was  primarily  due to additions of $27,000 and depreciation expense of $51,000.

LOANS

Loans  totaled  $47,211,000  at  March 31, 2003, an increase of $3,088,000 or 7%
since  December  31,  2002.  The  largest  increase  in  loans  was  in  real
estate-construction  loans,  which increased $3,189,000 or 34% to $12,461,000 at
March  31,  2003.  Balances  within  the major loans receivable categories as of
March  31,  2003  and  December  31,  2002  are  as  follows:


                                           MARCH 31,   DECEMBER 31,
                                             2003          2002
                                          -----------  -------------
Real estate - construction                $12,460,848  $   9,272,306
Real estate - mortgage                      7,377,129      7,453,721
Commercial and industrial                  24,253,130     23,862,595
Consumer and other                          3,119,970      3,534,217
                                          -----------  -------------
                                          $47,211,077  $  44,122,839
                                          ===========  =============

RISK  ELEMENTS  IN  THE  LOAN  PORTFOLIO

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


                                           MARCH 31,   DECEMBER 31,
                                              2003         2002
                                           ----------  -------------
Loans:  Nonaccrual loans                   $   76,000  $     108,000
Accruing loans more than 90 days past due  $        -  $       1,000



Activity in the allowance for loan losses for the period from January 1, 2003 to
March  31,  2003  is  as  follows:


Balance, January 1,                                       $   640,158
Provision for loan losses for the period                       50,801
Net loans (charged off) recovered for the period              (19,477)
                                                          ------------
Balance, end of period                                    $   671,482
                                                          ============
Gross loans outstanding, end of period                    $47,211,077
                                                          ============
Allowance for loan losses to gross loans outstanding             1.42%
                                                          ============


                                       15
<PAGE>
DEPOSITS

At  March  31,  2003 total deposits increased by $1,933,000, or 2% from December
31,  2002.  Noninterest-bearing demand deposits decreased $10,024,000 or 50% and
interest-bearing  deposits  increased  $11,957,000  or  20%.

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

                                            MARCH 31,   DECEMBER 31,
                                              2003          2002
                                           -----------  -------------
Noninterest-bearing demand deposits        $ 9,931,001  $  19,954,811
Interest-bearing demand deposits            43,986,895     32,028,352
Savings deposits                             2,148,863      2,144,761
Certificates of deposit $100,000 and over    5,819,014      6,029,055
Other time deposits                         20,304,119     20,099,856
                                           -----------  -------------
                                           $82,189,892  $  80,256,856
                                           ===========  =============

LIQUIDITY

The  Company's  liquidity  needs  include  the  funding  of  loans, purchases of
operating  assets,  etc.  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
59%  at  March  31,  2003  and  63%  at  December  31,  2002.

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.

We  have  also  obtained  lines  of credit available with correspondent banks to
purchase  federal  funds.  At  March  31,  2003,  unused lines of credit totaled
$5,000,000.

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 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 sheet.  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.


                                       16
<PAGE>
Collateral held for commitments to extend credit varies but may include accounts
receivable,  inventory,  property,  plant,  equipment,  and  income-producing
commercial  properties.

The  following  table  summarizes  the  Company's  off-balance  sheet  financial
instruments  whose  contract amounts represent credit risk as of March 31, 2003:

     Commitments  to  extend  credit     $     12,129,000
     Standby  letters  of  credit        $        224,000

Commitments  to extend credit include short-term construction loans, home equity
loans,  and commercial and other real estate loans of $7 million, $2 million and
$3  million,  respectively.  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
$7,790,000  at  March  31, 2003.  This increase was attributable to net earnings
for  the  period  and  an  increase  of  $99,000 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 March 31,
2003:

     Tier  1  capital  (to  risk-weighted  assets)                 11.24%
     Total  capital  (to  risk-weighted  assets)                   12.33%
     Tier  1  capital  (to  total  average  assets)                 7.56%

As  of  March  31,  2003, the Company had approximately $572,000 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.  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.


                                       17
<PAGE>
RECENT ACCOUNTING PRONOUNCEMENTS

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

Within  90  days  prior  to  the date of 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 subsidiary) 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.


                                       18
<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

          (a)  The  2003  Annual  Meeting  of Shareholders was held on April 28,
          2003.

          (b)  Election  of  Directors

          The  following  directors  will serve until the 2004 Annual Meeting of
          Shareholders:  J.  Calvin  Hill,  Jr.,  Roger  M. Johnson and J. David
          Keller.  The  following  directors  will  serve  until the 2005 Annual
          Meeting  of  Shareholders:  Wanda P. Roach, A. R. (Rick) Roberts, III,
          and  Donald  F.  Stevens.

          The  following  are  the  results  of  the  votes cast by shareholders
          present  at  the  2003  Annual Meeting of Shareholders, by proxy or in
          person,  for  the  proposal  to elect the following directors to serve
          until  the  2006  Annual  Meeting  of  Shareholders:

                                          For     Withhold
                                          ---     --------
               Dennis  W.  Burnette     523,178      -
               William  L.  Early       523,178      -
               Albert  L.  Evans        523,078     100


ITEM 5.   OTHER INFORMATION

          None.

                                       19
<PAGE>
ITEM 6.   EXHIBITS  AND  REPORTS  ON  FORM  8-K

          (a)  Exhibits:
               99.1  - CEO and CFO certifications pursuant to Section 906 of the
               Sarbanes-Oxley  Act  of  2002.

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


                                       20
<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:  May 12, 2003               BY:  /s/ Dennis W. Burnette
       ------------                  -------------------------------------
                                     Dennis W. Burnette
                                     President and Chief Executive Officer


DATE:  May 12, 2003               BY:  /s/ A.R. Roberts, III
       ------------                  -------------------------------------
                                     A.R. Roberts, III
                                     Chief Financial Officer and Chief
                                     Operations Officer


                                       21
<PAGE>
Certification pursuant to Rule 13a-14 under the Securities Exchange Act of 1934,
                                   as amended.

                                  CERTIFICATION

I, Dennis W. Burnette certify that:

1.   I  have  reviewed  this  quarterly  report on Form 10-Q of Cherokee Banking
     Company;

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

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

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

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

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

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

5.   The  registrant's  other  certifying officer and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of  directors:

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

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


                                       22
<PAGE>

6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.




Date:  May  12,  2003
       --------------


                                   /s/ Dennis W. Burnette
                                   ----------------------
                                   President and Chief Executive Officer


                                       23
<PAGE>
                                  CERTIFICATION


I, A.R. Roberts, III, certify that:

1.   I  have  reviewed  this  quarterly  report on Form 10-Q of Cherokee Banking
     Company;

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

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

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

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

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

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

5.   The  registrant's  other  certifying officer and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of  directors:

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

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

                                       24
<PAGE>

6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.




Date:  May  12,  2003
       --------------


                                   /s/ A.R. Roberts, III
                                   ---------------------
                                   Chief Financial Officer
                                   and Chief Operations Officer


                                       25
<PAGE>