SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                    FORM 10-Q

(Mark  One)

 X     Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
---    of  1934

       For  the  quarterly  period  ended  June 30, 2002.
                                           -------------
                                      or

       Transition  Report  under Section 13 or 15(d) of the Securities Exchange
---    Act  of  1934

       For  the  transition  period  from  _______________  to  _______________.

                          Commission File No.  0-23980
                                               -------

                       Georgia Bank Financial Corporation
                       ----------------------------------
             (Exact name of registrant as specified in its charter)

              Georgia                               58-2005097
     --------------------------     ---------------------------------------
     (State  of  Incorporation)     (I.R.S.  Employer  Identification  No.)

                    3530 Wheeler Road, Augusta, Georgia 30909
                    -----------------------------------------
                    (Address of principal executive offices)

                                 (706) 738-6990
                                 --------------
                (Issuer's telephone number, including area code)

                                 Not Applicable
                                 --------------
    (Former name, former address and former fiscal year, if changed since last
                                     report)

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

                      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:

     2,385,280 shares of common stock, $3.00 par value per share, outstanding as
of  June  30,  2002.


<PAGE>
<TABLE>
<CAPTION>
                              GEORGIA BANK FINANCIAL CORPORATION
                                           FORM 10-Q
                                             INDEX


                                                                                          PAGE
<S>        <C>      <C>                                                                <C>
PART I              Financial Information
           Item 1.  Financial Statements (Unaudited)

                    Consolidated Balance Sheets as of June 30, 2002 and
                    December 31, 2001                                                        3

                    Consolidated Statements of Income for the three and six months
                    ended June 30, 2002 and June 30, 2001                                    4

                    Consolidated Statements of Cash Flows for the
                    six months ended June 30, 2002 and June 30, 2001                         6

                    Notes to Consolidated Financial Statements                               8

           Item 2.  Management's Discussion and Analysis of                                 10
                    Financial Condition and Results of  Operations

           Item 3.  Quantitative and Qualitative Disclosures about Market
                    Risk                                                                    20

PART II             Other Information

           Item 1.  Legal Proceedings                                                        *

           Item 2.  Changes in Securities                                                    *

           Item 3.  Defaults Upon Senior Securities                                          *

           Item 4.  Submission of Matters to a Vote of Security-Holders                     21

           Item 5.  Other Information                                                        *

           Item 6.  Exhibits and Reports on Form 8-K                                        22

SIGNATURE                                                                                   23
<FN>

*  No  information  submitted  under  this  caption
</TABLE>


                                        1
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION


                                        2
<PAGE>
<TABLE>
<CAPTION>
                          GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                                     Consolidated Balance Sheets
                                             (Unaudited)

                         ASSETS


                                                           June 30,      December 31,
                                                             2002           2001
                                                         -------------  --------------
<S>                                                      <C>            <C>
Cash and due from banks                                  $ 16,021,529   $  13,844,022
Federal funds sold                                         19,567,000       1,149,000
Interest bearing deposits in other banks                      517,049         516,878
                                                         -------------  --------------
    Cash and cash equivalents                              36,105,578      15,509,900

Investment Securities
   Available-for-sale                                     120,114,867     103,599,535
   Held-to-maturity, at cost (fair values of
       $6,814,555 and $7,569,719, respectively)             6,597,756       7,453,215

Loans held for sale                                         2,669,896       9,185,059
Loans                                                     351,136,460     330,484,798
   Less allowance for loan losses                          (5,590,184)     (5,109,447)
                                                         -------------  --------------
       Loans, net                                         348,216,172     334,560,410

Premises and equipment, net                                12,606,644      12,418,033
Accrued interest receivable                                 3,508,016       3,330,411
Intangible assets, net                                        193,260         246,635
Other assets                                                4,219,973       4,425,732
                                                         -------------  --------------

                                                         $531,562,266    $481,543,871
                                                         =============  ==============

            LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
     Noninterest bearing                                 $ 61,793,252   $  56,802,063
     Interest bearing
        NOW accounts                                       60,369,929      48,819,392
        Savings                                           140,508,568     127,052,190
        Money management accounts                          23,495,682      23,819,452
        Time deposits over $100,000                        72,218,845      61,635,262
        Other time deposits                                42,243,274      51,020,238
                                                         -------------  --------------
                                                          400,629,550     369,148,597
Federal funds purchased and securities sold
    under repurchase agreements                            48,079,709      32,456,383
Advances from Federal Home Loan Bank                       35,000,000      35,000,000
Other borrowed funds                                        1,000,000       1,000,000
Accrued interest and other liabilities                      3,794,055       3,940,297
                                                         -------------  --------------
          Total liabilities                               488,503,314     441,545,277
                                                         -------------  --------------

Stockholders' equity
  Common Stock, $3.00 par value; authorized 10,000,000
     shares; issued 2,404,051 in 2002 and 2001;
     outstanding 2,385,280 in 2002 and 2001                 7,212,153       7,212,153
  Additional paid-in capital                               30,586,925      30,586,925
  Retained earnings                                         4,179,357       1,461,309
  Accumulated  other comprehensive income                   1,587,877       1,245,567
  Treasury Stock, at cost, 18,771 shares                     (507,360)       (507,360)
                                                         -------------  --------------
          Total stockholders' equity                       43,058,952      39,998,594
                                                         -------------  --------------

                                                         $531,562,266   $ 481,543,871
                                                         =============  ==============
<FN>
See  accompany  notes  to  consolidated  financial  statements.
</TABLE>


                                        3
<PAGE>
<TABLE>
<CAPTION>
                          GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                                  Consolidated Statements of Income
                                             (Unaudited)

                                                      Three Months  Ended       Six Months Ended
                                                            June  30,                June 30,
                                                     ----------------------  ------------------------
                                                        2002        2001        2002         2001
                                                     ----------  ----------  -----------  -----------
<S>                                                  <C>         <C>         <C>          <C>
Interest Income:
   Loans, including fees                             $5,950,058  $6,823,476  $11,822,596  $13,395,608
   Investment securities                              1,746,683   1,389,808    3,370,160    2,676,745
   Federal funds sold                                    30,822      81,505       66,140      245,176
   Interest bearing deposits in other banks               3,790       7,478        9,457       15,177
                                                     ----------  ----------  -----------  -----------
          Total interest income                       7,731,353   8,302,267   15,268,353   16,332,706
                                                     ----------  ----------  -----------  -----------

Interest Expense:
   Deposits                                           2,130,049   3,455,852    4,368,544    6,899,771
   Federal funds purchased and securities sold
       under repurchase agreements                      159,597     169,554      302,564      454,197
   Other borrowings                                     492,408     443,920      980,183      808,624
                                                     ----------  ----------  -----------  -----------
          Total interest expense                      2,782,054   4,069,326    5,651,291    8,162,592
                                                     ----------  ----------  -----------  -----------

Net Interest Income                                   4,949,299   4,232,941    9,617,062    8,170,114

Provision for loan losses                               414,828     405,000    1,084,818      795,000
                                                     ----------  ----------  -----------  -----------

Net interest income after provision for loan losses   4,534,471   3,827,941    8,532,244    7,375,114
                                                     ----------  ----------  -----------  -----------

Noninterest Income:
   Service charges and fees on deposits               1,125,479     677,406    2,155,654    1,335,479
   Gain on sale of loans                              1,239,165     902,487    2,374,884    1,459,400
   Investment securities gains, net                       2,827      10,265       52,866       14,984
   Retail investment income                              82,850      59,724      139,430      103,078
   Trust service fees                                    54,557      30,323       97,205       59,997
   Miscellaneous income                                  96,316     111,958      194,391      236,476
                                                     ----------  ----------  -----------  -----------
          Total noninterest income                    2,601,194   1,792,163    5,014,430    3,209,414
                                                     ----------  ----------  -----------  -----------

Noninterest Expense:
   Salaries                                           2,176,583   1,995,216    4,279,173    3,656,949
   Employee benefits                                    821,292     574,383    1,550,659    1,066,932
   Occupancy expenses                                   574,892     516,378    1,141,633      975,628
   Other operating expenses                           1,319,570     997,027    2,465,161    1,921,859
          Total noninterest expense                   4,892,337   4,083,004    9,436,626    7,621,368

          Income before income taxes                  2,243,328   1,537,100    4,110,048    2,963,160

Income tax expense                                      786,000     521,000    1,392,000      961,724
                                                     ----------  ----------  -----------  -----------

          Net Income                                 $1,457,328  $1,016,100  $ 2,718,048  $ 2,001,436
                                                     ==========  ==========  ===========  ===========
</TABLE>


                                        4
<PAGE>
<TABLE>
<CAPTION>
                        GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                               Consolidated Statements of Income
                                          (Unaudited)


                                                   Three Months Ended        Six Months Ended
                                                       June  30,                June  30,
                                                 ----------------------  ----------------------
                                                    2002        2001        2002        2001
                                                 ----------  ----------  ----------  ----------
<S>                                              <C>         <C>         <C>         <C>
Basic net income per share                       $     0.61  $     0.43  $     1.14  $     0.84
                                                 ==========  ==========  ==========  ==========

Diluted net income per share                     $     0.61  $     0.42  $     1.14  $     0.84
                                                 ==========  ==========  ==========  ==========

Weighted average common shares outstanding        2,385,280   2,385,280   2,385,280   2,385,280
                                                 ==========  ==========  ==========  ==========

Weighted average number of common and
common equivalent shares outstanding              2,395,710   2,392,159   2,394,201   2,391,089
                                                 ==========  ==========  ==========  ==========

<FN>
See  accompanying  notes  to  consolidated  financial  statements.
</TABLE>


                                        5
<PAGE>
<TABLE>
<CAPTION>
                        GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                              Consolidated Statements of Cash Flows
                                           (Unaudited)

                                                                       Six Months Ended June 30,
                                                                     ----------------------------
                                                                         2002           2001
                                                                     -------------  -------------
<S>                                                                  <C>            <C>
Cash flows from operating activities:
Net income                                                           $  2,718,048   $  2,001,436
 Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
  Depreciation and amortization                                           677,576        581,102
  Provision for loan losses                                             1,084,818        795,000
  Net investment securities gains                                         (52,866)       (14,984)
  Net amortization/(accretion) of premium/discount
    on investment securities                                              161,884        (24,584)
  Loss on disposal of premises and equipment                               23,319         47,569
  Gain on the sale of other real estate                                    (5,923)          (132)
  Gain on sale of loans                                                (2,374,884)    (1,459,400)
  Real estate loans originated for sale                               (99,597,175)   (80,571,524)
  Proceeds from sales of real estate loans                            108,487,222     77,191,585
  Net increase in accrued interest receivable                            (177,605)       (25,375)
  Net decrease (increase) in other assets                                   5,025       (808,564)
  Net (decrease) increase in accrued interest and other liabilities      (146,242)       508,107
                                                                     -------------  -------------
    Net cash provided by (used in) operating activities                10,803,197     (1,779,764)
                                                                     -------------  -------------

Cash flows from investing activities:
  Proceeds from sales of available-for-sale securities                  9,428,761      5,288,420
  Proceeds from maturities of available-for-sale securities            17,525,829     18,680,555
  Proceeds from maturities of held-to-maturity securities                 850,000        540,808
  Purchase of available-for-sale securities                           (43,030,437)   (32,540,725)
  Purchase of FHLB stock                                                        -       (550,000)
  Net increase in loans                                               (21,321,722)   (26,633,453)
  Net purchase of premises and equipment                                 (866,646)    (2,341,267)
  Proceeds from the sale of other real estate                              71,902         96,390
  Proceeds from the sale of premises and equipment                         30,515         33,981
                                                                     -------------  -------------
    Net cash used in investing activities                             (37,311,798)   (37,425,291)
                                                                     -------------  -------------

Cash flows from financing activities:
  Net increase in deposits                                             31,480,953     46,451,278
  Net (decrease) increase in federal funds purchased and
    securities sold under repurchase agreements                        15,623,326     (7,713,850)
  Proceeds from notes and bonds payable                                         -         50,000
  Advances from Federal Home Loan Bank                                          -     11,000,000
                                                                     -------------  -------------
    Net cash provided by financing activities                          47,104,279     49,787,428
                                                                     -------------  -------------
</TABLE>


                                        6
<PAGE>
<TABLE>
<CAPTION>
                   GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                         Consolidated Statements of Cash Flows
                                      (Unaudited)

                                                              Six Months Ended June 30,
                                                              ------------------------
                                                                  2002         2001
                                                              -----------  -----------
<S>                                                           <C>          <C>

    Net increase in cash and cash equivalents                  20,595,678   10,582,373

Cash and cash equivalents at beginning of period               15,509,900   25,994,253

                                                              -----------  -----------
Cash and cash equivalents at end of period                    $36,105,578  $36,576,626
                                                              ===========  ===========
Supplemental disclosures of cash paid during the period for:
          Interest                                            $ 5,917,986  $ 7,524,221
                                                              ===========  ===========
          Income taxes                                        $ 1,980,000  $   997,000
                                                              ===========  ===========
Supplemental disclosures of noncash investing activities -
          Loan foreclosures transferred to other real estate  $    65,979  $   146,236
                                                              ===========  ===========
<FN>
See  accompanying  notes  to  consolidated  financial  statements.
</TABLE>


                                        7
<PAGE>
                GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY

                   Notes to Consolidated Financial Statements

                                  June 30, 2002

Note  1  -  Basis  of  Presentation

The  accompanying  consolidated  financial  statements  include  the accounts of
Georgia Bank Financial Corporation and its wholly-owned subsidiary, Georgia Bank
&  Trust  Company  (the  "Company"  or  the  "Bank").  Significant  intercompany
transactions  and  accounts  are  eliminated  in  the  consolidation.

The  financial  statements  for the three and six months ended June 30, 2002 and
2001  are unaudited and have been prepared pursuant to the rules and regulations
of  the  Securities  and  Exchange Commission.  Certain information and footnote
disclosures  normally  included  in  financial statements prepared in accordance
with  accounting  principles  generally accepted in the United States of America
have  been  condensed  or  omitted pursuant to such rules and regulations. These
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and footnotes included in the Company's annual
report  on  Form  10-K  for  the  year  ended  December  31,  2001.

In  the  opinion  of management, all adjustments necessary to present fairly the
financial  position and the results of operations and cash flows for the interim
periods  have  been made. All such adjustments are of a normal recurring nature.
The  results of operations for the three  and six months ended June 30, 2002 are
not  necessarily  indicative  of the results of operations which the Company may
achieve  for  the  entire  year.

Note  2  -  Recent  Accounting  Pronouncements

In  June  2001,  the  FASB  issued  SFAS No. 141, Business Combinations which is
effective  for all business combinations initiated after June 30, 2001. SFAS No.
141  requires  companies  to  account  for  all  business combinations using the
purchase  method  of accounting, recognize intangible assets if certain criteria
are  met,  as  well  as  provide  additional  disclosures  regarding  business
combinations  and  allocation  of  purchase  price.  Because  the  Bank  has not
initiated  any  business  combinations since the effective date of SFAS No. 141,
this  pronouncement  has  not  impacted  the  Bank's  consolidated  financial
statements.

In  June  2001,  the  FASB  issued  SFAS  No. 142, Goodwill and Other Intangible
Assets,  which  eliminates  amortization  of goodwill and intangible assets that
have  indefinite  useful lives and requires annual tests of impairments of those
assets.  SFAS No. 142 also provides specific guidance about how to determine and
measure  goodwill  and  intangible  asset  impairments,  and requires additional
disclosures  of  information  about  goodwill  and  other intangible assets. The
provisions of SFAS No. 142 are required to be applied starting with fiscal years
beginning  after  December  15,  2001  and  applied  to  all  goodwill and other


                                        8
<PAGE>
intangible  assets  recognized  in financial statements at the date of adoption.
Due  to the insignificance of the Bank's intangible assets at December 31, 2001,
the  adoption  of SFAS No. 142 by the Bank did not have a material effect on the
Bank's  consolidated  results  of operations, financial position, or cash flows.

In  August  2001, the FASB issued SFAS No. 144, Accounting for the Impairment or
Disposal  of  Long-Lived  Assets,  which  addresses  financial  accounting  and
reporting  for  the impairment of long-lived assets and for long-lived assets to
be  disposed  of.  The  provisions  of  SFAS No. 144 are effective for financial
statements  issued  for  fiscal  years  beginning  after  December 15, 2001. The
Company adopted the provisions of SFAS No. 144 on January 1, 2002.  The adoption
of  SFAS  No.  144  did not have a material impact on the Company's consolidated
financial  statements.


Note  3  -  Comprehensive  Income

Other  comprehensive income for the Company consists of net unrealized gains and
losses on investment securities. Total comprehensive income for the three months
ended  June  30, 2002 was $2,372,607 compared to $1,164,735 for the three months
ended  June  30, 2001.  Total comprehensive income for the six months ended June
30, 2002 was $3,060,358 compared to $2,738,070 for the six months ended June 30,
2001.


                                        9
<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
          RESULTS  OF  OPERATIONS

Forward-Looking  Statements
---------------------------

Georgia  Bank Financial Corporation (the "Company") may, from time-to-time, make
written  or  oral  forward-looking statements, including statements contained in
the  Company's  filings  with  the  Securities  and  Exchange  Commission  (the
"Commission")  and  its  reports  to  shareholders.  Statements  made  in  such
documents,  other  than  those  concerning  historical  information,  should  be
considered forward-looking and subject to various risks and uncertainties.  Such
forward-looking  statements  are  made based upon management's belief as well as
assumptions made by, and information currently available to, management pursuant
to  "safe  harbor" provisions of the Private Securities Litigation Reform Act of
1995.  The  Company's  actual  results  may  differ  materially from the results
anticipated in forward-looking statements due to a variety of factors, including
governmental  monetary  and  fiscal  policies, deposit levels, loan demand, loan
collateral  values,  securities  portfolio  values,  and  interest  rate  risk
management;  the  effects  of  competition  in  the  banking business from other
commercial  banks,  savings  and  loan  associations,  mortgage  banking  firms,
consumer finance companies, credit unions, securities brokerage firms, insurance
companies,  money market mutual funds and other financial institutions operating
in  the  Company's  market  area and elsewhere, including institutions operating
through the Internet; changes in governmental regulation relating to the banking
industry,  including regulations relating to branching and acquisitions; failure
of  assumptions  underlying  the  establishment  of  reserves  for  loan losses,
including  the  value  of  collateral  underlying  delinquent  loans,  and other
factors.  The Company cautions that such factors are not exclusive.  The Company
does not undertake to update any forward-looking statement that may be made from
time  to  time  by,  or  on  behalf  of,  the  Company.

Critical  Accounting  Policies
------------------------------

In  reviewing  and  understanding financial information provided by the Company,
you  are  encouraged  to read and understand the significant accounting policies
which  are  used  in  preparing  the  consolidated  financial  statements of the
Company.  These  policies  are described in Note 1 to the consolidated financial
statements which are presented in the Company's 2001 annual report on Form 10-K.
Of these policies, management believes that the accounting for the allowance for
loan  losses  is  among  the  most  critical.

The  allowance  for  loan  losses  is  based on a loan classification system and
consists  of  three  components:  the  general  reserve, specific reserve and an
unallocated  reserve.  The  general  reserve is calculated based on estimates of
inherent  losses  which  probably  exist  as  of  the evaluation date.  The loss
percentages  used  for  this  portion  of  the  portfolio,  which  has  not been
identified  as problem loans, are generally based on historical factors adjusted
when  necessary  for  qualitative  factors.  The  general  reserve for losses on
problem  loans  is  based on a review and evaluation of these loans, taking into
consideration  financial  condition  and  strengths  of  the  borrower,  related
collateral,  cash  flows  available  for  debt repayment, and known and expected
trends  and  conditions.  General  loss  percentages  for  problem  loans  are
determined  based  upon  historical loss experience and regulatory requirements.
For  loans considered impaired, specific reserves are provided in the event that


                                       10
<PAGE>
the  individual  collateral  analysis  on each problem loan indicates that there
would  be  loss  upon  liquidation  of collateral based on the fair value of the
collateral  if  the  loan  is  collateral  dependent  or if the present value of
expected  future cash flows is less than the loan balance.  In addition to these
allocated  reserves,  the  Company  has  established  an  unallocated reserve of
$1,077,000  at  June  30, 2002.  The basis for the unallocated reserve is due to
loan  concentrations,  the  general  economic  environment including anticipated
layoffs  and  closings  in the area, increases in bankruptcies and new community
bank  competition.  Additions  to  the  allowance  for  loan  losses  are  made
periodically  to  maintain  the  allowance  at  an  appropriate level based upon
management's  analysis  of  potential  risk  in  the  loan  portfolio.

Losses  on  loans  result  from  a broad range of causes, from borrower-specific
problems  to  industry  issues  to  the impact of the economic environment.  The
identification  of  the  factors that lead to default or non-performance under a
loan  agreement  and  the  estimation  of  loss  in  these  situations  is  very
subjective.  In addition, a dramatic change in the performance of one or a small
number of borrowers can have a significant impact in the estimate of losses.  As
described  further  below,  management  has  implemented a process that has been
applied  consistently  to systematically consider the many variables that impact
the  estimation  of  the  allowance  for  loan  losses.


                                       11
<PAGE>
Performance  Overview  -  Net  Income
-------------------------------------

The  Company's  net  income for the second quarter of 2002 was $1,457,000, which
was an increase of $441,000 (43.4%) compared to net income of $1,016,000 for the
second  quarter  of  2001.  Basic  net income per share was $0.61 for the second
quarter  of  2002  compared to $0.43 for the second quarter of 2001.  Net income
for the first six months of 2002 was $2,718,000, an increase of $717,000 (35.8%)
compared  with  net  income of $2,001,000 for the first six months of 2001.  The
increase in net income for both the three and six months ended June 30, 2002 was
primarily  a  result  of  an increase in gain on sales of loans in the secondary
market  due to increased home purchases and refinancing activity, an increase in
income  from  the  Bounce  overdraft protection program, a product introduced in
late  2001,  and  an increase in net interest income.  Due to the lower interest
rates,  the  Bank  experienced  decreases  in  both interest income and interest
expense for the three and six months ended June 30, 2002.  However, the decrease
in  interest  expense  on  deposits  and  other  borrowings was greater than the
decrease in interest income. The income growth discussed above for the three and
six  months  ended  June 30, 2002, was partially offset by increases in salaries
and  employee  benefits  expenses  due  to  higher  commissions  related  to the
secondary  mortgage  market  volume,  increased  personnel  to  support  growth,
increased  incentive  compensation, and increased deferred compensation expense.
For  the  six months ended June 30, 2002, there was in increase in the provision
for  loan  losses due to the Company's increased loan volume.  Increase in other
operating  expenses is due to increases in various areas due to growth, with the
largest increases noted in processing, marketing, business development, and loan
costs.

Total  assets  increased  $50.0 million (10.4%) from December 31, 2001 and $72.7
million (15.9%) from June 30, 2001.  For the six months ended June 30, 2002, the
$50.0  million  of  growth was attributable to growth in loans of $14.1 million,
investments of $15.7 million, and federal funds sold of $18.4 million.  Deposits
increased  $31.5  million  and  securities  sold  under  repurchase  agreements
increased  $15.6  million  during  the  six months ended June 30, 2002.  For the
twelve months ended June 30, 2002, loans increased $39.3 million and investments
increased  $34.7  million.  During  the  past  twelve months, deposits increased
$43.2  million,  and securities sold under repurchase agreements increased $23.7
million.

The  return on average assets for the Company was 1.09% for the six months ended
June  30,  2002,  compared to .95% for the same period last year.  The return on
average  stockholders' equity was 13.34% for the six months ended June 30, 2002,
versus  11.27%  for  the  comparable  period  in  2001.

Net  Interest  Income
---------------------

Net  interest  income increased $716,000 (16.9%) over the second quarter of 2001
and  $1,447,000  (17.7%) during the first six months of 2002 over the comparable
period  in  2001.  Despite  increases  in  loan volume, interest income on loans
decreased  due  to  lower interest rates in 2002.  Interest income on investment
securities  increased  due  to  increased  volume.  Federal  funds  sold  income
decreased  primarily  due  to  the  lower  federal  funds  interest  rate.
Interest-earning  assets  were  $500.6  million at June 30, 2002, an increase of
$73.3  million  over  June  30,  2001  and $48.2 million over December 31, 2001.


                                       12
<PAGE>
Despite  increases  in  deposit  volumes, interest expense on deposits decreased
$1.3  million  (31.6%) for the second quarter of 2002 over the second quarter of
2001  and  $2.5  million (36.7%) for the six months ended June 30, 2002 over the
comparable  six-month  period  ended  June 30, 2001, due to lower interest rates
during  2002.  Increases  in  other  borrowings  interest  expense  in  both the
three-month  and  six-month  periods  ended  June  30, 2002 compared to the same
periods  in  2001  are due to additional advances obtained from the Federal Home
Loan  Bank  in  May 2001.  Interest expense for securities sold under repurchase
agreements  decreased  in  both the three-month and six-month periods ended June
20,  2002  compared  to  the  same  periods in 2001 due to lower interest rates,
despite  the  higher  volumes.

The Company's net interest margin for the three months and six months ended June
30,  2002 was 4.05% and 4.06%, respectively, compared to 4.27% and 4.14% for the
three  and  six  months  ended  June  30,  2001,  respectively.

Noninterest  Income
-------------------

Noninterest  income  increased  $809,000  (45.1%)  during the three-month period
ended  June  30, 2002 compared to the three-month period ended June 30, 2001 and
$1.8 million (56.2%) during the six-month period ended June 30, 2002 compared to
the  six-month  period ended June 30, 2001.  Fee income from the origination and
sale  of mortgages in the secondary market increased $337,000 (37.3%) during the
three-month  period  June 30, 2002 compared to the three-month period ended June
30,  2001  and  $915,000 (62.7%) during the six-month period ended June 30, 2002
compared  to  the  six-month period ended June 30, 2001. These increases are the
result  of higher volumes influenced by the low interest rate environment during
2002.  Service  charges  and  fees  on  deposits  increased $448,000 (66.1%) and
$820,000  (61.40%)  during  the  three  and  six  months  ended  June  30, 2002,
respectively,  compared  to  the  three  and six months ended June 30, 2001, due
primarily  to  the  Bounce  overdraft  protection program, introduced in October
2001,  as  well  as  increases  in  deposit  account  balances.

Noninterest  Expense
--------------------

Noninterest  expense  totaled  $4.9  million  for the second quarter of 2002, an
increase  of  $809,000  (19.8%) over the second quarter of 2001 and totaled $9.4
million  for  the  six  months  ended  June 30, 2002 an increase of $1.8 million
(23.8%),  over the comparable period in 2001. Salary expense of $2.2 million and
$4.3  million  for  the  three and six months ended June 30, 2002, respectively,
increased  $181,000  (9.1%) over the second quarter of 2001 and $622,000 (17.0%)
over  the  six  months  ended  June  30, 2001. Increases in mortgage commissions
directly  related  to  the secondary mortgage market volume, and overall company
growth  accounted  for  these  increases.  Employee  benefits increased $247,000
(43.0%)  for  the  three months ended June 30, 2002 compared to the three months
ended June 30, 2001, and $484,000 (45.3%) for the six months ended June 30, 2002
as  compared  to the six months ended June 30, 2001.  These increases are due to
increases  in  incentive compensation, deferred compensation expense and overall
Company  growth.  Occupancy  expense  increased $59,000 (11.3%) during the three
months  ended  June  30,  2002  when  compared to the second quarter of 2001 and
$166,000  (17.0%) during the six months ended June 30, 2002 when compared to the


                                       13
<PAGE>
six-month  period  in 2001.  These increases are due primarily from increases in
depreciation  expense  due to the new computer system and branch, with a smaller
impact  from  increases  for  maintenance agreements on the new computer system,
rent  expense  due  to the addition of the Nashville, Tennessee mortgage office,
property  taxes  on  the computer system and new branch, and decreases in rental
income  due  to  utilization  of  Company  property  previously  rented.  Other
operating  expenses  increased  $322,000 (32.4%) over the second quarter of 2001
and  $543,000  (28.3%)  during  the first six months of 2002 over the comparable
period  in  2001.  The  increase  is  primarily  attributable  to  increases  in
processing expense due to the Bounce overdraft protection program, marketing and
business  development  due  to  increased mortgage production, loan costs due to
increased  mortgage  origination  volume  and foreclosure expense, insurance and
taxes  due  to additional business license expense, and staff development due to
additional  staff  training.

Income  Taxes
-------------

Income  tax expense for the second quarter of 2002 totaled $786,000, an increase
of  $265,000  from  the  second quarter of 2001.  Income tax expense for the six
months  ended  June  30,  2002  totaled  $1,392,000 for an effective tax rate of
33.87%  compared to 32.46% for the six months ended June 30, 2001.  The increase
in  the  effective  tax  rate for the six months ended June 30, 2002 is due to a
decrease in tax-exempt income.  Income taxes are estimated on a quarterly basis.

Asset  Quality
--------------

Table  1  which  follows  shows  the  current  and  prior  period  amounts  of
non-performing  assets.  Non-performing  assets  were  $1.5  million at June 30,
2002, compared to $2.0 million at December 31, 2001 and $1.6 million at June 30,
2001.  The  ratio  of non-performing assets to total loans and other real estate
was  0.43% at June 30, 2002, compared to 0.58% at December 31, 2001 and 0.50% at
June 30, 2001.  The control and monitoring of non-performing assets continues to
be  management's  priority.

Loans  past  due  90  days  or  more and still accruing were $0 at June 30, 2002
compared  to  $0  at  December  31,  2001  and  $182,000  at  June  30,  2001.

Allowance  for  Loan  Losses
----------------------------

The  allowance  for loan losses represents a reserve for probable loan losses in
the  loan portfolio.  The adequacy of the allowance for loan losses is evaluated
periodically  based  on  a  review  of  all  significant  loans, with particular
emphasis  on  impaired,  non-accruing, past due, and other loans that management
believes require special attention.  The determination of the allowance for loan
losses  is  considered  a  critical  accounting  policy  of  the Company.  For a
discussion  of  our  methodology  in  determining  the  allowance, see "Critical
Accounting  Policies"  above.

When  reviewing  the allowance for loan losses, it is important to understand to
whom  the  Company  lends.  At June 30, 2002, the loan portfolio is comprised of
72.1% real estate loans, of which 21.5% constitutes construction and acquisition
and  development  loans.  Commercial,  financial and agricultural loans comprise
14.5%,  and consumer loans comprise 13.3% of the portfolio.   Loan concentration


                                       14
<PAGE>
in  the construction and acquisition and development portfolio are inherently an
above  average  lending  risk.  Additionally,  the  large  increase in local and
national  rates  for  personal  and  business  bankruptcies  in  2001  and  the
probability that they will continue to increase in 2002 due to the lag time of a
recession's  impact  on community banks, coupled with the higher unemployment in
the  Augusta-Aiken  MSA  compared  to  others in the state has been evaluated in
determining  the  Company's  economic  and  market  risk  factor  reserves.

A  provision for losses in the amount of $415,000 was charged to expense for the
quarter  ended June 30, 2002 compared to $405,000 for the quarter ended June 30,
2001. The Bounce overdraft protection provision was $47,000 for the three months
ended  June  30,  2002  compared to $0 for the three months ended June 30, 2001.

At June 30, 2002 the ratio of allowance for loan losses to total loans was 1.58%
compared  to  1.50%  at December 31, 2001 and 1.44% at June 30, 2001. Management
considers  the  current  allowance  for  loan  losses appropriate based upon its
analysis  of  the  potential  risk  in  the  portfolio, although there can be no
assurance  that  the  assumptions  underlying  such analysis will continue to be
correct.

Liquidity  and  Capital  Resources
----------------------------------

The  Company's  liquidity  remains  adequate  to meet operating and loan funding
requirements.  The  loan to deposit ratio at June 30, 2002 was 88.3% compared to
92.0%  at  December  31, 2001 and 88.0% at June 30, 2001.  Loans increased $39.3
million from June 30, 2001 and $14.1 million during the first six months of 2002
while  deposits  increased  $43.2 million from June 30, 2001 and increased $31.5
million  during  the  first  six months of 2002.   The Company also uses Federal
Home  Loan  Bank  borrowings  and securities sold under repurchase agreements to
fund  loan growth.  The Company maintains a line of credit with the Federal Home
Loan  Bank approximating 10% of the Bank's total assets.  Federal Home Loan Bank
advances  are  collateralized  by  eligible  first  mortgage loans, and specific
commercial  loans.  The Company has a federal funds purchased accommodation with
The  Bankers  Bank,  Atlanta,  Georgia,  for  advances  up  to  $12,800,000.
Additionally,  liquidity  needs  can  be  satisfied  by  the  structuring of the
maturities  of investment securities and the pricing and maturities on loans and
deposits offered to customers.   There were no increases in FHLB borrowings from
June  30,  2001  and  from  December 31, 2001.  Securities sold under repurchase
agreements  increased  $23.7  million  from  June  30,  2001 and increased $15.6
million  from  December  31,  2001.

Shareholders'  equity to total assets was 8.1% at June 30, 2002 compared to 8.1%
at June 30, 2001 and 8.3% at December 31, 2001.  This decrease in the ratio from
December  31,  2001 is reflective of the growth experienced by the Company.  The
capital  of the Company and the Bank exceeded all required regulatory guidelines
at  June  30,  2002.  The  Company's  Tier  1  risk-based,  total risk-based and
leverage capital ratios were 9.78%, 11.45%, and 7.73%, respectively, at June 30,
2002.  Table  2  which follows reflects the current regulatory capital levels in
more  detail,  including  comparisons  to  the  regulatory  minimums.


                                       15
<PAGE>
Management  is  not  aware  of  any  events or uncertainties that are reasonably
likely  to  have a material effect on the Company's liquidity, capital resources
or  operations.

COMMITMENTS  AND  CONTRACTUAL  OBLIGATIONS
------------------------------------------

The Bank is a party to lines of credit with off-balance sheet risk in the normal
course  of  business  to  meet  the  financing needs of its customers.  Lines of
credit are unfunded commitments to extend credit.  These instruments involve, in
varying  degrees,  exposure  to  credit  and interest rate risk in excess of the
amounts  recognized  in the financial statements.  The Bank's exposure to credit
loss  in  the  event  of  nonperformance  by  the  other  party to the financial
instrument  for  unfunded  commitments to extend credit and letters of credit is
represented  by the contractual amount of those instruments.  The Bank evaluates
construction  and acquisition and development loans for the percentage completed
before  extending  additional credit.  The Bank follows the same credit policies
in  making  commitments  and  conditional  obligations as it does for on-balance
sheet  instruments.

Unfunded commitments to extend credit where contract amounts represent potential
credit  risk  totaled  $73,090,000  at  June  30,  2002.  These  commitments are
primarily  at  variable  interest  rates.

The  Company's  commitments  are  funded  through  internal  funding  sources of
scheduled  repayments of loans and sales and maturities of investment securities
available  for  sale  or external funding sources through acceptance of deposits
from  customers  or  borrowings  from  other  financial  institutions.

The  following table is a summary of the Company's commitments to extend credit,
commitments  under  contractual  leases  as  well  as  the  Company' contractual
obligations,  consisting  of deposits, FHLB advances, which are subject to early
termination  options,  and  borrowed  funds by contractual maturity date for the
next  five  years.

<TABLE>
<CAPTION>
    COMMITMENTS AND               DUE IN       DUE IN       DUE IN       DUE IN       DUE IN
CONTRACTUAL OBLIGATIONS           1 YEAR       2 YEARS      3 YEARS      4 YEARS      5 YEARS
-----------------------------  ------------  -----------  -----------  -----------  -----------
<S>                            <C>           <C>          <C>          <C>          <C>
Lines of credit                $ 73,090,000            -            -            -            -
Lease agreements                    121,015      112,885       42,840       11,759            -
Deposits                        189,989,104   75,077,837   54,254,337   23,352,279   24,414,166
Securities sold under
   repurchase agreements         48,079,709            -            -            -            -
FHLB advances                     5,000,000            -            -            -            -
Other borrowings                  1,000,000            -            -            -            -
                               ------------  -----------  -----------  -----------  -----------
   Total commitments and
      contractual obligations  $317,279,828  $75,190,722  $54,297,177  $23,364,038  $24,414,166
                               ============  ===========  ===========  ===========  ===========
</TABLE>


                                       16
<PAGE>
Although management regularly monitors the balance of outstanding commitments to
fund  loans  to  ensure  funding  availability should the need arise, management
believes  that  the  risk  of  all customers fully drawing on all these lines of
credit  at  the  same  time  is  remote.

Effects  of  Inflation  and  Changing  Prices
---------------------------------------------

Inflation  generally  increases  the cost of funds and operating overhead and to
the  extent  loans  and  other  assets  bear  variable rates, the yields on such
assets.  Unlike  most  industrial  companies,  virtually  all  of the assets and
liabilities  of  a  financial  institution  are monetary in nature. As a result,
interest  rates generally have a more significant impact on the performance of a
financial  institution than the effects of general levels of inflation. Although
interest  rates  do  not  necessarily move in the same direction and to the same
extent  as  the  prices  of goods and services, increases in inflation generally
have resulted in increased interest rates. In addition, inflation can increase a
financial  institution's  cost  of  goods  and  services  purchased, the cost of
salaries  and  benefits,  occupancy  expense  and  similar  items. Inflation and
related  increases  in  interest  rates  generally  decrease the market value of
investments  and  loans  held  and may adversely affect liquidity, earnings, and
stockholders'  equity.  Mortgage  originations  and refinancings tend to slow as
interest  rates  increase,  and  can  reduce  the  Company's  earnings from such
activities  and  the  income  from the sale of residential mortgage loans in the
secondary  market.


                                       17
<PAGE>

TABLE  1
--------

                GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
                           CONSOLIDATED FINANCIAL DATA
                             (Dollars in Thousands)
                                   (Unaudited)

                               Six Months Ended June 30,
                               -------------------------
PROFITABILITY                      2002         2001
-------------                  -----------  ------------

Return on average assets *           1.09%          .95%

Return on average equity *          13.34%        11.27%

ALLOWANCE FOR LOAN LOSSES
-------------------------

Beginning balance, January 1,  $    5,109   $     4,143
Provision charged to expense        1,085           795
Recoveries                            254            72
Loans charged off                     858           471
                               -----------  ------------
Ending balance, June 30,       $    5,590   $     4,539
                               -----------  ------------

NON-PERFORMING ASSETS        June 30, 2002   December 31, 2001  June 30, 2001
---------------------

Non-accrual loans            $        1,526  $           1,955  $       1,429
Other real estate owned                   0                  0            131
                             --------------  -----------------  -------------

Total non-performing assets  $        1,526  $           1,955  $       1,560
                             ==============  =================  =============


LOANS PAST DUE 90 DAYS OR
MORE AND STILL ACCRUING      $            0  $               0  $         182
                             ==============  =================  =============

*  Annualized


                                       18
<PAGE>
<TABLE>
<CAPTION>

TABLE 2
-------
                                         GEORGIA BANK FINANCIAL CORPORATION
                                                         AND
                                             GEORGIA BANK & TRUST COMPANY
                                           REGULATORY CAPITAL REQUIREMENTS
                                                    JUNE 30, 2002
                                               (Dollars in Thousands)


                                                  Actual            Required             Excess
                                             Amount   Percent    Amount   Percent    Amount   Percent
                                            ------------------  ------------------  ------------------
GEORGIA BANK FINANCIAL CORPORATION
<S>                                         <C>       <C>       <C>      <C>        <C>       <C>
Risk-based capital:
   Tier 1 capital                           $39,564      9.78%   16,188      4.00%    23,376     5.78%
   Total capital                             46,343     11.45%   32,375      8.00%    13,968     3.45%
Tier 1 leverage ratio                        39,564      7.73%   20,481      4.00%    19,083     3.73%


GEORGIA BANK & TRUST COMPANY

Risk-based capital:
   Tier 1 capital                           $41,278     10.24%   16,121      4.00%    25,157     6.24%
   Total capital                             44,609     11.07%   32,242      8.00%    12,367     3.07%
Tier 1 leverage ratio                        41,278      8.09%   20,416      4.00%    20,862     4.09%
</TABLE>


                                       19
<PAGE>
ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

As  of  June  30,  2002,  there were no substantial changes in the interest rate
sensitivity  analysis or the sensitivity of market value of portfolio equity for
various  changes  in  interest  rates  calculated  as of December 31, 2001.  The
foregoing  disclosures  related to the market risk of the Company should be read
in  conjunction  with  the  Company's audited consolidated financial statements,
related  notes  and  management's discussion and analysis of financial condition
and  results  of operations for the year ended December 31, 2001 included in the
Company's  2001  Annual  Report  on  Form  10-K.


                                       20
<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  subject.

ITEM  2.  CHANGES  IN  SECURITIES

          Not  applicable

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

          Not  applicable

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

     (a)  The  Annual  Meeting of Shareholders was held on April 24, 2002 at the
          Company's  office  located  at  3530  Wheeler  Road, Augusta, Georgia.

     (b)  The  following directors were elected for a term of one year and until
          a  successor  is  duly  qualified  and  elected:

               William  J.  Badger
               R.  Daniel  Blanton
               Warren  Daniel
               Edward  G.  Meybohm
               Travers  W.  Paine  III
               Robert  W.  Pollard,  Jr.
               Randolph  R.  Smith
               Ronald  L.  Thigpen
               John  W.  Trulock,  Jr.


                                       21
<PAGE>
     (c)  The  following  matters were voted on at the meeting as was previously
          identified  in  the  Proxy  materials  forwarded  to each shareholder:

          1.   Proposal to elect the nine individuals nominated by management as
               Directors.

               Votes  were  cast  as  follows:

          Director                     For         Withhold          Abstain
          --------                     ---         --------          -------

          William  J.  Badger          1,966,911          0               59
          R.  Daniel  Blanton          1,964,928      1,983               59
          Warren  Daniel               1,966,911          0               59
          Edward  G.  Meybohm          1,966,911          0               59
          Travers  W.  Paine, III      1,966,911          0               59
          Robert  W. Pollard, Jr.      1,966,911          0               59
          Randolph  R.  Smith,  M.D.   1,966,911          0               59
          Ronald  L.  Thigpen          1,964,928      1,983               59
          John  W.  Trulock,  Jr.      1,966,911          0               59

ITEM  5.  OTHER  INFORMATION

          None

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

     (a)  Exhibits

          3.1  Articles  of  Incorporation  of  the  Company  (Incorporated  by
          reference from the Company's registration statement on Form SB-2 filed
          August  20,  1997  (Registration  No.  333-34037)).

          3.2  Bylaws of the Company (Incorporated by reference to the Company's
          Form  10-KSB,  dated  April  29,  1994).

     (b)  Reports  on  Form  8-K

          None


                                       22
<PAGE>
                       GEORGIA BANK FINANCIAL CORPORATION
                              Form 10-Q Signatures


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

                                GEORGIA  BANK  FINANCIAL  CORPORATION



Date:  August 6, 2002              By:   /s/  Ronald  L. Thigpen
       -------------                  ------------------------------------
..
                                   Ronald  L.  Thigpen
                                   Executive Vice President, Chief Operating
                                   Officer (Duly Authorized Officer of
                                   Registrant and Principal Financial Officer)


Each of the undersigned hereby certifies that this Quarterly Report on Form 10-Q
complies  with  the  requirements  of  Section  13(a) or 15(d) of the Securities
Exchange  Act  of 1934, as amended, and the information contained in such report
fairly represents, in all material respects, the financial condition and results
of  operations  of  the  Company.

This  6th  day  of  August,  2002.

/s/  R.  Daniel  Blanton
------------------------
R.  Daniel  Blanton
President  &
Chief  Executive  Officer
(Principal  executive  officer)


/s/  Ronald  L.  Thigpen
-------------------------
Ronald  L.  Thigpen
Executive  Vice  President  &
Chief  Operating  Officer
(Principal  financial  officer)



                                       23
<PAGE>