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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
   
                                   FORM 10-KSBA
    



(Mark One)
 x  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
--- of 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996]
For the fiscal year ended  December 31, 1996
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Commission File Number   0-28496
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 Community Financial Group, Inc.
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(Name of Small Business Issuer in its charter)

            Tennessee                                       62-1626938
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  (State or other jurisdiction                             (IRS Employer
of incorporation or organization)                       Identification No.)

 401 Church Street             Nashville, Tennessee          37219-2213
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(Address of principal executive offices)                     (Zip Code)

Registrant's telephone number, including area code  (615) 271-2000
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           Securities registered pursuant to Section 12(g) of the Act:

 Common Stock, par value $6 per share
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           (Title of Class)

 Warrants, exercise price $12.50 per share
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           (Title of Class)

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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
                                       ---      ---

Check if disclosure of delinquent filers in response to Item 405 of Regulation
S-B is not contained in this form, and no disclosure will be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. [ X ]

State issuer's revenues for its most recent fiscal year.  
$13,826,000.

The aggregate market value (price at which the stock sold) of Community
Financial Group, Inc., voting common stock held by non-affiliates as of February
28, 1997, was $20,353,461.
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         (2)      Exhibits

   
                  13.    1996 Annual Report to Shareholders.
    


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                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) 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.

THE BANK OF NASHVILLE

   
By: /s/ Joan Marshall                        Date: December 11, 1997
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Joan Marshall
Senior Vice President and
  Corporate Secretary

    




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