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, 2002

                                       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         (Primary  Standard            (I.R.S. Employer
of Incorporation               Industrial Classification     Identification No.)
or organization)               Code  Number)


1275  Riverstone  Parkway
Canton,  Georgia                                                  30114
----------------------------------                       -----------------------
(Address  of  principal  executive                             (Zip  Code)
 offices)

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


                                 Not Applicable
                                 --------------
                          (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   XX   NO
                                      ----     ----

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     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,  2002.

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


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

                                              INDEX

                                                                                   Page No.
                                                                                   --------
<S>       <C>                                                                         <C>

PART I    FINANCIAL INFORMATION

Item 1.   Financial Statements                                                        3

          Consolidated Balance Sheet (unaudited) at March 31, 2002                    3

          Consolidated Statements of Earnings (unaudited) for the Three
            Months Ended March 31, 2002 and 2001                                      4

          Consolidated Statements of Comprehensive Income (unaudited) for the Three
            Months Ended March 31, 2002 and 2001                                      5

          Consolidated Statements of Cash Flows (unaudited) for the Three
            Months Ended March 31, 2002 and 2001                                      6

          Notes to Consolidated Financial Statements (unaudited)                      7

Item 2.   Management's Discussion and Analysis of Financial Condition and
            Results of Operations                                                     8

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                                           9

Item 2.   Changes in Securities                                                       9

Item 3.   Defaults Upon Senior Securities                                             9

Item 4.   Submission of Matters to a Vote of Security Holders                         9

Item 5.   Other Information                                                           9

Item 6.   Exhibits and Reports on Form 8-K                                            9

</TABLE>



This  Report  contains  statements  which  constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the  Securities Exchange Act of 1934. These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current  expectations of the Company, its directors or its officers with respect
to,  among other things: (1) the Company's financing plans; (2) trends affecting
the  Company's  financial  condition or results of operations; (3) the Company's
growth  strategy  and operating strategy; and (4) the declaration and payment of
dividends.  Investors are cautioned that any such forward-looking statements are
not  guarantees  of  future performance and involve risks and uncertainties, and
that  actual  results  may  differ  materially  from  those  projected  in  the
forward-looking  statements  as a result of various factors discussed herein and
those  factors  discussed in detail in the Company's filings with the Securities
and  Exchange  Commission.


                                      -2-
<PAGE>
                          PART I. FINANCIAL INFORMATION

Item  1.  Financial  Statements

<TABLE>
<CAPTION>

                            CHEROKEE BANKING COMPANY

                           CONSOLIDATED BALANCE SHEET

                                 MARCH 31, 2002
                                  (UNAUDITED)

                           Assets
                           ------
<S>                                                            <C>
Cash and due from banks                                        $ 2,870,861
Federal funds sold                                               2,368,000
                                                               ------------

    Cash and cash equivalents                                    5,238,861

Interest-bearing deposits                                          697,000
Investment securities available-for-sale                        28,707,528
Other investments                                                  504,350
Loans, net                                                      36,317,530
Premises and equipment, net                                      3,042,050
Accrued interest receivable and other assets                     1,294,294
                                                               ------------

                                                               $75,801,613
                                                               ============

              Liabilities and Stockholders' Equity
              ------------------------------------

Liabilities:
  Deposits:
    Non-interest bearing                                       $ 8,719,389
    Interest bearing                                            54,425,841
                                                               ------------

    Total deposits                                              63,145,230

  Advances from the Federal Home Loan Bank                       5,500,000
  Accrued interest payable and other liabilities                   326,522
                                                               ------------

    Total liabilities                                           68,971,752
                                                               ------------

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
  Accumulated deficit                                             (247,100)
  Accumulated other comprehensive income (loss)                   (253,544)
                                                               ------------

    Total stockholders' equity                                   6,829,861
                                                               ------------

                                                               $75,801,613
                                                               ============
</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.


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

                      CONSOLIDATED STATEMENTS OF EARNINGS

               FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                                  (UNAUDITED)

                                                            2002      2001
                                                         ----------  -------
<S>                                                      <C>         <C>
Interest income:
    Interest and fees on loans                           $  685,242  537,406
    Interest on federal funds sold                            9,900   70,167
    Interest on investment securities                       412,617  265,287
    Interest on interest-bearing deposits                     9,662   32,145
                                                         ----------  -------

      Total interest income                               1,117,421  905,005
                                                         ----------  -------

Interest expense:
    Interest expense on deposits                            396,778  421,542
    Other interest expense                                   32,734        -
                                                         ----------  -------

      Total interest expense                                429,512  429,512
                                                         ----------  -------

      Net interest income                                   687,909  483,463

Provision for loan losses                                    62,091   63,391
                                                         ----------  -------

      Net interest income after provision for loan losses   625,818  420,072
                                                         ----------  -------

Other income:
    Service charges on deposit accounts                      83,153   60,591
    Other operating income                                   50,657   35,143
                                                         ----------  -------

      Total other income                                    133,810   95,734
                                                         ----------  -------

Other expense:
    Salaries and other personnel expense                    352,588  257,918
    Net occupancy and equipment expense                      61,629   61,714
    Other operating expense                                 242,647  166,590
                                                         ----------  -------

      Total other expense                                   656,864  486,222
                                                         ----------  -------

      Income before provision for income taxes              102,764   29,584
Provision for income taxes                                   39,050        -
                                                         ----------  -------

      Net earnings (loss)                                $   63,714   29,584
                                                         ==========  =======


Basic earnings per share                                 $      .09      .04
                                                         ==========  =======

Diluted earnings per share                               $      .08      .04
                                                         ==========  =======

</TABLE>

See  accompanying  notes  to  consolidated  financial  statements.


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

                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

               FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                                  (UNAUDITED)

                                                                 2002       2001
                                                              ----------  --------
<S>                                                           <C>         <C>
Net earnings                                                  $  63,714    29,584
                                                              ----------  --------

Other comprehensive income:
    Unrealized holding gains (losses) on investment
      securities available-for-sale                            (235,047)   37,323
    Less income tax benefit (expense) related to investment
      securities available-for-sale                              89,318   (14,183)
                                                              ----------  --------

    Total other comprehensive income (loss), net of tax        (145,729)   23,140
                                                              ----------  --------


    Total comprehensive income (loss)                         $ (82,015)   52,724
                                                              ==========  ========
</TABLE>

See accompanying notes to consolidated financial statements.


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

                                  CONSOLIDATED STATEMENTS OF CASH FLOWS

                           FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                                               (UNAUDITED)

                                                                                   2002         2001
                                                                               ------------  -----------
<S>                                                                            <C>           <C>
Cash flows from operating activities:
  Net earnings                                                                 $    63,714       29,584
  Adjustments to reconcile net earnings to net
    cash provided (used) by operating activities:
      Provision for loan losses                                                     62,091       63,391
      Depreciation, amortization and accretion                                      23,769       (9,170)
      Change in:
        Accrued interest receivable and other assets                              (102,103)      (1,425)
        Accrued interest payable and other liabilities                            (137,284)      16,018
                                                                               ------------  -----------

          Net cash provided (used) by operating activities                         (89,813)      98,398
                                                                               ------------  -----------

Cash flows from investing activities:
  Proceeds from sales, maturities and paydowns
    of investment securities available-for-sale                                  3,887,010    6,310,131
  Purchases of investment securities available-for-sale                         (4,061,619)  (5,063,526)
  Net change in interest-bearing deposits                                          300,000      100,000
  Purchases of other investments                                                  (199,100)     (19,870)
  Net change in loans                                                           (5,780,806)  (4,578,685)
  Purchase of premises and equipment                                               (88,918)     (15,801)
                                                                               ------------  -----------

          Net cash used by investing activities                                 (5,943,433)  (3,267,751)
                                                                               ------------  -----------

Cash flows from financing activities:
  Net change federal funds purchased                                              (222,000)           -
  Proceeds from FHLB borrowings                                                  5,500,000            -
  Net change in deposits                                                         4,382,484    7,789,559
                                                                               ------------  -----------

          Net cash provided by financing activities                              9,660,484    7,789,559
                                                                               ------------  -----------

Net change in cash and cash equivalents                                          3,627,238    4,620,206

Cash and cash equivalents at beginning of the period                             1,611,623    3,278,636
                                                                               ------------  -----------

Cash and cash equivalents at end of the period                                 $ 5,238,861    7,898,842
                                                                               ============  ===========

Noncash investing activities:
  Change in unrealized gain/loss on securities available-for-sale, net of tax  $  (145,729)      23,140
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -6-
<PAGE>
                            CHEROKEE BANKING COMPANY

                          NOTES TO FINANCIAL STATEMENTS

(1)  ORGANIZATION
     ------------
     Cherokee  Banking  Company (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  interim financial statements included herein are unaudited but reflect
     all  adjustments  which,  in the opinion of management, are necessary for a
     fair  presentation  of the financial position and results of operations for
     the  interim  periods  presented.  All  such  adjustments  are  of a normal
     recurring nature. The results of operations for the periods ended March 31,
     2002  and  2001  are  not  necessarily  indicative of the results of a full
     year's  operations.

     The  accounting  principles  followed  by  the  Company  and the methods of
     applying  these  principles  conform  with  accounting principles generally
     accepted  in the United States of America (GAAP) and with general practices
     within  the  banking  industry.  In  preparing  financial  statements  in
     conformity  with  GAAP,  management  is  required  to  make  estimates  and
     assumptions  that  affect the reported amounts in the financial statements.
     Actual  results  could  differ significantly from those estimates. Material
     estimates  common to the banking industry that are particularly susceptible
     to significant change in the near term include, but are not limited to, the
     determinations  of  the  allowance  for  loan losses, the valuation of real
     estate  acquired in connection with or in lieu of foreclosure on loans, and
     valuation  allowances  associated with deferred tax assets, the recognition
     of  which  are  based  on  future  taxable  income.


                                      -7-
<PAGE>
Item 2.
                            CHEROKEE BANKING COMPANY

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

               For the Three Months Ended March 31, 2002 and 2001

FINANCIAL  CONDITION

     Total  assets  at March 31, 2002 were $75,801,613 representing a $9,441,185
(14%)  increase from December 31, 2001. Deposits increased $4,382,484  (7%) from
December  31,  2001.  Loans  increased $5,718,715 (19%).  The allowance for loan
losses  at  March  31,  2002 totaled $524,632, representing 1.42% of total loans
compared  to  December  31,  2001 totals of $428,173, which represented 1.38% of
total  loans.  Cash  and cash equivalents increased $3,627,238 from December 31,
2001.

RESULTS  OF  OPERATIONS

     Net  income for the three months ended March 31, 2002 was $63,714, compared
to  $29,584  for  the  same  period  for  2001.  The  increase in net income was
primarily  associated with an increase in net interest income ($204,446) as well
as an increase in non-interest income ($38,076).  These increases were offset by
$170,642  in  additional  other  expenses.

     For  the  three  months  ended  March 31, 2002, the Bank's yield on earning
assets  was  6.93%  while  the  cost  of  funding  sources was 2.71%.  While net
interest  spread  was  4.22%, net interest margin, which considers the effect of
non-interest  bearing  deposits,  was  4.27%,  a  decrease of 15 basis points as
compared  to  the  same  period  in  the prior year.  Net interest income in the
aggregate  increased  for  the  three months ended March 31, 2002, over the same
period  for  2001  primarily  due  to the volume of interest-earnings assets and
interest-bearing  liabilities.  Management  monitors  the  rate  sensitivity  of
interest-earnings  assets  and interest-bearing liabilities over the entire life
of  these  instruments,  but  places  particular  emphasis  on  the  first year.

     Other  income  increased  approximately  $38,076 for the three months ended
March  31,  2002,  compared  to  the  same  period  for 2001.  This increase was
primarily  associated with an increase in service charges on deposit accounts of
approximately  $22,562  related  to  an  increase  in  the  number  of accounts.

     Other  expense  increased approximately $170,642 for the three months ended
March  31,  2002,  compared  to  the  same  period for 2001, primarily due to an
increase in the volume of business, which led to additional expense necessary to
service new business.  Salaries and other personnel expense increased $94,670 or
37%  due  to  an increase in staff necessary to service the increase in customer
accounts.

     The  Company  recognized  income  tax  expense  of $39,050 during the three
months  ended  March  31,  2002, representing an effective tax rate of 38%.  The
Company  did  not  recognize income tax expense in 2001 due to its net operating
loss  carryforward.


                                      -8-
<PAGE>
CAPITAL

     The following tables present Cherokee Bank's regulatory capital position at
March  31,  2002:


Risk-Based Capital Ratios
-------------------------
Tier 1 Tangible Capital, Actual                                    12.15%
Tier 1 Tangible Capital minimum requirement                         4.00%
                                                                   ------

Excess                                                              8.15%
                                                                   ======

Total Capital, Actual                                              13.25%
Total Capital minimum requirement                                   8.00%
                                                                   ------

Excess                                                              5.25%
                                                                   ======

Leverage Ratio
--------------

Tier 1 Tangible Capital to adjusted total assets
   ("Leverage Ratio")                                               8.04%
Minimum leverage requirement                                        4.00%
                                                                   ------

Excess                                                              4.04%
                                                                   ======


                                      -9-
<PAGE>
                           PART II. OTHER INFORMATION


Item  1.  Legal  Proceedings
          ------------------
          None

Item  2.  Changes  in  Securities
          -----------------------
          None

Item  3.  Defaults  Upon  Senior  Securities
          ----------------------------------
          None

Item  4.  Submission  of  Matters  to  a  Vote  of  Security  Holders
          -----------------------------------------------------------
          (a)  The  2002  Annual  Meeting  of Shareholders was held on April 29,
               2002.

          (b)  Election  of  Directors

               The  following directors will serve until the 2003 Annual Meeting
               of  Shareholders: Dennis W. Burnette, William L. Early and Albert
               L.  Evans.  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  are the results of the votes cast by shareholders
               present  at  the 2002 Annual Meeting of Shareholders, by proxy or
               in  person,  for the proposal to elect the following directors to
               serve  until  the  2005  Annual  Meeting  of  Shareholders:

                                                   For     Withhold
                                                   ---     --------

               Wanda  P.  Roach                 508,468       -
               A.R.  (Rick)  Roberts,  III      508,468       -
               Donald  F.  Stevens              508,468       -
               Edwin  I.  Swords,  III          508,468       -

Item  5.  Other  Information
          ------------------
          None

Item  6.  Exhibits  and  Reports  on  Form  8-K
          -------------------------------------
          None


                                      -10-
<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




     Date:  May 14, 2002    By: /s/  Dennis  W.  Burnette
           --------------        -----------------------------------------------
                                Dennis  W.  Burnette
                                President, Chief Executive Officer and Director




     Date:  May 14, 2002    By: /s/  A.R.  Roberts,  III
           --------------       -----------------------------------------------
                                A.R.  Roberts,  III
                                Secretary, Chief Financial Officer, and Director


                                      -11-
<PAGE>