UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20529

                                   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    June 30, 2000
                                            ------------------

[   ]   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: 000-30273
                           Chestatee Bancshares, Inc.
                    -----------------------------------------
        (Exact name of small business issuer as specified in its charter)

           Georgia                                             58-2535333
-------------------------------                       --------------------------
(State or other jurisdiction of                              (IRS Employer
incorporation or organization)                             Identification No.)

                6639 Highway 53 East, Dawsonville, Georgia 30534
                ------------------------------------------------
                    (Address of principal executive offices)

                                 (706) 216-2265
                                 --------------
                           (Issuer's telephone number)

                                       N/A
                ----------------------------------------------------

              (Former name, former address and former fiscal year,
                          if changed since last report)

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


State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 1, 2000: 950,000; no par value.

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

<PAGE>
                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY


--------------------------------------------------------------------------------

                                      INDEX
                                      -----
                                                                           Page

PART I.   FINANCIAL INFORMATION

          Item 1.  Financial Statements

             Consolidated Balance Sheet - June 30, 2000......................3

             Consolidated Statements of Income and Comprehensive Income -
              Three Months Ended June 30, 2000 and 1999 and Six Months
              Ended June 30, 2000 and 1999...................................4

             Consolidated Statements of Cash Flows -
              Six Months Ended June 30, 2000 and 1999 .......................5

             Notes to Consolidated Financial Statements......................6

          Item 2.  Management's Discussion and Analysis of
                        Financial Condition and Results of Operations........7


PART II.  OTHER INFORMATION

          Item 4 - Submission of Matters to a Vote of Security Holders......14

          Item 6 - Exhibits and Reports on Form 8-K.........................14

          Signatures........................................................15

                                      2
<PAGE>
                         PART I - FINANCIAL INFORMATION
                              FINANCIAL STATEMENTS

                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2000
                                   (Unaudited)

<S>                                                       <C>
                                     Assets
                                     ------
Cash and due from banks                                   $ 2,130,111
Interest-bearing deposits in banks                             10,729
Securities available-for-sale                               1,519,114
Securities held-to-maturity, fair value of $2,363,000       2,401,359
Federal funds sold                                          3,070,000

Loans                                                      53,750,607
Less allowance for loan losses                                538,282
                                                          -----------
          Loans, net                                       53,212,325
                                                          -----------

Premises and equipment                                      3,019,787
Other assets                                                  668,997
                                                          -----------

          Total assets                                    $66,032,422
                                                          ===========

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

Deposits
    Demand                                                $ 6,317,345
    Interest-bearing demand                                18,322,327
    Savings                                                   672,619
    Time                                                   31,107,531
                                                          -----------
          Total deposits                                   56,419,822
Other borrowings                                               50,000
Other liabilities                                             233,919
                                                          -----------
          Total liabilities                                56,703,741
                                                          -----------

Commitments and contingent liabilities

Stockholders' equity
    Common stock, no par value; 10,000,000 shares
      authorized; 950,000 shares issued and outstanding     9,482,364
    Accumulated deficit                                      -143,666
    Accumulated other comprehensive loss                      -10,017
                                                          -----------
          Total stockholders' equity                        9,328,681
                                                          -----------

          Total liabilities and stockholders' equity      $66,032,422
                                                          ===========
</TABLE>

See Notes to Consolidated Financial Statements.

                                       3
<PAGE>

                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>

           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                  THREE MONTHS ENDED JUNE 30, 2000 AND 1999 AND
                     SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)


                                                                     Three Months Ended        Six Months Ended
                                                                          June 30,                 June 30,
                                                                 ------------------------   -----------------------

                                                                     2000         1999         2000         1999
                                                                 -----------   ----------   ----------   ----------
<S>                                                               <C>          <C>          <C>          <C>
Interest income
    Loans                                                         $1,339,018   $  683,947   $2,450,947   $1,212,780
    Taxable securities                                                50,468       59,118       96,950      126,405
    Federal funds sold                                                50,326       37,185       94,511      100,108
    Interest-bearing deposits in banks                                   197            0        1,010            0
                                                                  ----------   ----------   ----------   ----------
              Total interest income                                1,440,009      780,250    2,643,418    1,439,293
                                                                  ----------   ----------   ----------   ----------
Interest expense
    Deposits                                                         633,790      291,673    1,138,744      535,578
    Federal funds purchased                                                0        1,658            0        4,910
                                                                  ----------   ----------   ----------   ----------
              Total interest expense                                 633,790      293,331    1,138,744      540,488
                                                                  ----------   ----------   ----------   ----------
              Net interest income                                    806,219      486,919    1,504,674      898,805
Provision for loan losses                                             76,944       96,451      141,019      169,554
                                                                  ----------   ----------   ----------   ----------
              Net interest income after
                 provision for loan losses                           729,275      390,468    1,363,655      729,251
                                                                  ----------   ----------   ----------   ----------
Other income
      Service charges and fees                                        74,052       36,252      128,294       68,213
      Other operating income                                          35,448       31,389       71,818       76,958
                                                                  ----------   ----------   ----------   ----------
                                                                     109,500       67,641      200,112      145,171
                                                                  ----------   ----------   ----------   ----------
Other expenses
    Salaries and employee benefits                                   302,202      225,712      565,609      429,400
    Occupancy and equipment expenses                                 101,371       59,903      176,398       86,665
    Other operating expenses                                         264,460      148,064      519,373      300,323
                                                                  ----------   ----------   ----------   ----------
                                                                     668,033      433,679    1,261,380      816,388
                                                                  ----------   ----------   ----------   ----------
              Net income before income taxes                         170,742       24,430      302,387       58,034

Income tax expense                                                         0            0            0            0
                                                                  ----------   ----------   ----------   ----------
              Net income                                             170,742       24,430      302,387       58,034
                                                                  ----------   ----------   ----------   ----------
Other comprehensive income (loss):
     Unrealized gains (losses) on securities available-for-sale
         arising during period                                           334       -4,091         -798       -7,684
                                                                  ----------   ----------   ----------   ----------

Comprehensive income                                                 171,076       20,339      301,589       50,350
                                                                  ==========   ==========   ==========   ==========
Earnings  per common share                                        $     0.18   $     0.03   $     0.32   $     0.06
                                                                  ==========   ==========   ==========   ==========
Weighted average shares outstanding                               $  950,000   $  950,000   $  950,000   $  950,000
                                                                  ==========   ==========   ==========   ==========
Cash dividends per share of common stock                          $        0   $        0   $        0   $        0
                                                                  ==========   ==========   ==========   ==========
</TABLE>

See Notes to Consolidated Financial Statements.

                                       4
<PAGE>
                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)

                                                                    2000          1999
                                                                -----------   ------------
<S>                                                             <C>           <C>
OPERATING ACTIVITIES
    Net income                                                  $   302,387   $    58,034
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                 75,938        28,545
        Provision for loan losses                                   141,019       169,554
        Loss on sale of other real estate owned                       4,538             0
        Increase in interest receivable                            -205,260      -150,964
        Increase in interest payable                                 65,210         3,925
        Other operating activities                                  -48,242        -6,088
                                                                -----------   -----------
              Net cash provided by operating activities             335,590       103,006
                                                                -----------   -----------
INVESTING ACTIVITIES
    Net increase in interest-bearing deposits in banks              -10,729        -7,388
    Net (increase) decrease in Federal funds sold                  -650,000     5,590,000
    Purchase of securities available-for-sale                    -1,196,617      -554,428
    Proceeds from maturities of securities available-for-sale       263,086             0
    Proceeds from maturities of securities held-to-maturity         504,560       582,871
    Net increase in loans                                       -14,154,529   -16,416,280
    Purchase of premises and equipment                             -126,169      -212,947
    Proceeds from sale of other real estate                         246,788             0
                                                                -----------   -----------
              Net cash used in investing activities             -15,123,610   -11,018,172
                                                                -----------   -----------
FINANCING ACTIVITIES
    Net increase in deposits                                     14,603,843    11,824,470
    Proceeds from other borrowings                                   50,000             0
                                                                -----------   -----------
              Net cash provided by financing activities          14,653,843    11,824,470
                                                                -----------   -----------
Net increase (decrease) in cash and due from banks                 -134,177       909,304

Cash and due from banks, beginning of period                      2,264,288       903,205
                                                                -----------   -----------
Cash and due from banks, end of period                          $ 2,130,111   $ 1,812,509
                                                                ===========   ===========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
    Cash paid for:
         Interest                                               $ 1,073,534   $   536,563
         Income taxes                                           $    26,454   $         0
</TABLE>

See Notes to Consolidated Financial Statements.

                                        5
<PAGE>
                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



NOTE 1.  NATURE OF BUSINESS AND BASIS OF PRESENTATION

          Chestatee  Bancshares,  Inc. (the "Company") is a bank holding company
          which was formed for the purpose of acquiring the  outstanding  common
          stock of Chestatee  State Bank (the "Bank").  The  acquisition  of the
          Bank was  consummated on March 31, 2000. The Bank is a commercial bank
          located in Dawsonville, Georgia.

          The consolidated  financial  information included herein is unaudited;
          however, such information reflects all adjustments  (consisting solely
          of  normal  recurring  adjustments)  which  are,  in  the  opinion  of
          management,  necessary for a fair statement of results for the interim
          period.

          The results of  operations  for the three and six month  periods ended
          June 30,  2000 is not  necessarily  indicative  of the  results  to be
          expected for the full year.


NOTE 2.  CURRENT ACCOUNTING DEVELOPMENTS

          In June 1998, the Financial Accounting Standards Board issued SFAS No.
          133,  "Accounting for Derivative  Instruments and Hedging Activities".
          The effective date of this statement has been deferred by SFAS No. 137
          until  fiscal  years  beginning  after  June 15,  2000.  However,  the
          statement  permits  early  adoption as of the  beginning of any fiscal
          quarter  after  its  issuance.  The  Company  expects  to  adopt  this
          statement effective January 1, 2001. SFAS No. 133 requires the Company
          to recognize all  derivatives  as either assets or  liabilities in the
          balance sheet at fair value.  For derivatives  that are not designated
          as hedges,  the gain or loss must be  recognized  in  earnings  in the
          period of  change.  For  derivatives  that are  designated  as hedges,
          changes in the fair value of the hedged assets,  liabilities,  or firm
          commitments  must be  recognized  in earnings or  recognized  in other
          comprehensive  income until the hedged item is recognized in earnings,
          depending  on the nature of the hedge.  The  ineffective  portion of a
          derivative's  change in fair  value  must be  recognized  in  earnings
          immediately.  Management  has  not  yet  determined  what  effect  the
          adoption  of SFAS  No.  133 will  have on the  Company's  earnings  or
          financial position.

          There are no other recent accounting  pronouncements that have had, or
          are expected to have,  a material  effect on the  Company's  financial
          statements.

                                        6
<PAGE>
                    CHESTATEE BANCSHARES, INC. AND SUBSIDIARY


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

          The  following  is  management's  discussion  and  analysis of certain
          significant  factors which have  affected the  financial  position and
          operating  results of the Company and its bank  subsidiary  during the
          period included in the accompanying consolidated financial statements.

          FORWARD LOOKING STATEMENTS

          Certain of the statements made herein under the caption  "Management's
          Discussion  and  Analysis  of  Financial   Condition  and  Results  of
          Operations"  ("MD&A") are  forward-looking  statements for purposes of
          the Securities Act of 1933, as amended (the "Securities  Act") and the
          Securities  Exchange Act of 1934, as amended (the "Exchange Act"), and
          as such may involve known and unknown risks,  uncertainties  and other
          factors   which  may  cause  the  actual   results,   performance   or
          achievements  of the  Bank  to be  materially  different  from  future
          results,  performance  or  achievements  expressed  or implied by such
          forward-looking  statements.  Such forward looking  statements include
          statements  using  the  words  such as  "may,"  "will,"  "anticipate,"
          "should," "would,"  "believe,"  "contemplate,"  "expect,"  "estimate,"
          "continue," "may," "intend," or other similar words and expressions of
          the  future.  Our actual  results  may differ  significantly  from the
          results we discuss in these forward-looking statements.

          These  forward-looking  statements involve risks and uncertainties and
          may not be realized  due to a variety of factors,  including,  without
          limitation:  the effects of future economic  conditions;  governmental
          monetary and fiscal  policies,  as well as legislative  and regulatory
          changes;  the  risks of  changes  in  interest  rates on the level and
          composition  of  deposits,   loan  demand,  and  the  values  of  loan
          collateral,   securities,  and  other  interest-sensitive  assets  and
          liabilities;  interest  rate risks;  the effects of  competition  from
          other commercial  banks,  thrifts,  mortgage  banking firms,  consumer
          finance  companies,   credit  unions,   securities   brokerage  firms,
          insurance  companies,  money  market and other  mutual funds and other
          financial  institutions  operating  in the  Company's  market area and
          elsewhere,  including institutions  operating regionally,  nationally,
          and  internationally,  together with such competitors offering banking
          products and services by mail, telephone, computer, and the Internet.

                                        7
<PAGE>
Liquidity and Capital Resources

As of June 30,  2000,  the  liquidity  ratio of the Bank,  as  determined  under
guidelines established by regulatory authorities, was satisfactory.

At June 30, 2000,  the capital  ratios of the Company and the Bank were adequate
based  on  regulatory   minimum  capital   requirements.   The  minimum  capital
requirements  and the actual  capital ratios for the Company and the Bank are as
follows:

                                               Actual
                                   ------------------------------
                                     Chestatee        Chestatee      Regulatory
                                    Bancshares,         State          Minimum
                                       Inc.             Bank         Requirement
                                   --------------  --------------   ------------

    Leverage capital ratios             14.61 %         14.68 %         4.00 %
    Risk-based capital ratios:
       Core capital                     23.20           23.31           4.00
       Total capital                    24.53           24.65           8.00

As the Company and the Bank continue to grow, the capital ratios will decrease
to levels closer to, but still in excess of regulatory minimum requirements.

                                       8
<PAGE>
Financial Condition

Following is  a  summary  of  the  Company's  balance  sheets  for  the  periods
indicated:
<TABLE>
<CAPTION>
                                         June 30,  December 31,
                                           2000       1999           Increase (Decrease)
                                         --------  ------------    ------------------------
                                        (Dollars in Thousands)      Amount       Percent
                                         ----------------------    --------    ------------

<S>                                      <C>        <C>            <C>            <C>
Cash and due from banks                  $  2,130   $  2,264       $   (134)      (5.92) %
Interest-bearing deposits in banks             11         --             11          --
Federal funds sold                          3,070      2,420            650       26.86
Securities                                  3,920      3,492            428       12.26
Loans, net                                 53,212     39,245         13,967       35.59
Premises and equipment                      3,020      2,970             50        1.68
Other assets                                  669        640             29        4.53
                                         --------   --------       --------
                                         $ 66,032   $ 51,031       $ 15,001       29.40
                                         ========   ========       ========

Deposits                                 $ 56,420   $ 41,816       $ 14,604       34.92 %
Other borrowings                               50         --             50          --
Other liabilities                             234        188             46       24.47
Stockholders' equity                        9,328      9,027            301        3.33
                                         --------   --------       --------
                                         $ 66,032   $ 51,031       $ 15,001       29.40
                                         ========   ========       ========
</TABLE>

As indicated in the above table,  the  Company's  total assets grew at a rate of
29.40%. This high rate of growth is not uncommon for a de novo bank. Significant
deposit growth of $14,604,000 was primarily  invested in loans and Federal funds
sold. The Company's loan to deposit ratio has increased  slightly from 94.80% at
December 31, 1999 to 95.27% at June 30, 2000,  indicating  continued strong loan
demand in the Company's  primary  market area of Dawson  County and  surrounding
counties.  Stockholders'  equity has  increased by $301,000 due to net income of
$302,000 and decreases in accumulated other comprehensive losses of $1,000.

                                       9
<PAGE>
Results of Operations For The Three and Six Months Ended June 30, 2000 and 1999

Following is a summary of the Company's operations for the periods indicated.
<TABLE>
<CAPTION>

                                  Three Months Ended
                                       June 30,
                            -------------------------------
                                  2000             1999              Increase (Decrease)
                            ---------------   -------------   --------------------------------
                                (Dollars in Thousands)            Amount          Percent
                            -------------------------------   ---------------   --------------
<S>                            <C>             <C>             <C>                 <C>
Interest income                $ 1,440         $   780         $   660             84.56 %
Interest expense                   634             293             341            116.07
                               -------         -------          ------
Net interest income                806             487             319             65.58
Provision for loan losses           77              97             (20)           (20.22)
Other income                       110              68              42             61.88
Other expense                      668             434             234             54.04
                                -------        -------          ------
Net income                     $   171         $    24         $   147            598.90
                                =======        =======          ======

                                  Six Months Ended
                                      June 30,
                           -------------------------------
                                  2000             1999              Increase (Decrease)
                            ---------------   -------------   --------------------------------
                                (Dollars in Thousands)            Amount          Percent
                            -------------------------------   ---------------   --------------
Interest income                $ 2,643         $ 1,439         $ 1,204             83.66 %
Interest expense                 1,139             540             599            110.69
                               -------         -------         -------
Net interest income              1,504             899             605             67.41
Provision for loan losses          141             170             (29)           (16.83)
Other income                       200             145              55             37.85
Other expense                    1,261             816             445             54.51
                               -------         -------         -------
Net income                     $   302         $    58         $   244            421.05
                               =======         =======         =======
</TABLE>

As indicated in the above table, the Company's net interest income has increased
by $319,000 and $605,000  during the second quarter and first six months of 2000
as compared to the same  periods in 1999.  The  Company's  net  interest  margin
decreased  to 5.58%  during  the first six months of 2000 as  compared  to 5.67%
during the first six months of 1999 and  increased  as compared to 5.43% for the
entire year of 1999. The increase in net interest income is due primarily to the
increased volume of average loans outstanding.  The fluctuations in net interest
margin are due to increases and decreases of the average  balances of securities
and Federal funds sold as components  of total average  interest-earning  assets
which  typically  have yields lower than loans coupled with an increase in rates
paid on deposits.  The average rate paid on deposits was 5.19% for the first six
months of 2000 as compared to 4.08% for the entire year of 1999.

                                       10
<PAGE>
The provision for loan losses was $77,000 and $141,000 during the second quarter
and first six months of 2000,  as compared to $97,000 and  $170,000 for the same
periods in 1999.  The  amounts  provided  are due  primarily  to loan growth and
inherent risk in the loan portfolio.  The Company's allowance for loan losses as
a percentage of total loans  amounted to 1.00% at June 30, 2000 and December 31,
1999.  The  allowance  for loan losses is  maintained  at a level that is deemed
appropriate  by management to adequately  cover all known and inherent  risks in
the loan  portfolio.  Management's  evaluation of the loan portfolio  includes a
continuing review of loan loss experience, current economic conditions which may
affect the borrower's ability to repay and the underlying collateral value.

Information with respect to nonaccrual,  past due and  restructured  loans is as
follows:

<TABLE>
<CAPTION>
                                                                              June 30,
                                                                  --------------------------------
                                                                        2000            1999
                                                                  --------------------------------
                                                                       (Dollars in Thousands)
                                                                  --------------------------------

<S>                                                                     <C>            <C>
Nonaccrual loans                                                        $ --           $ --
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                               3              --
Restructured loans                                                        -              --
Loans, now current about which there are serious doubts as to the
   ability of the borrower to comply with loan repayment terms            -              --
Interest income that would have been recorded on nonaccrual
   and restructured loans under original terms                            -              --
Interest income that was recorded on nonaccrual and restructured loans    -              --
</TABLE>


It is the policy of the Company to  discontinue  the accrual of interest  income
when,  in the  opinion  of  management,  collection  of  such  interest  becomes
doubtful.  This status is accorded such interest when (1) there is a significant
deterioration  in the financial  condition of the borrower and full repayment of
principal and interest is not expected and (2) the principal or interest is more
than  ninety  days past due,  unless  the loan is both  well-secured  and in the
process of collection.

Loans  classified for regulatory  purposes as loss,  doubtful,  substandard,  or
special  mention that have not been included in the table above do not represent
or result from trends or uncertainties which management  reasonably expects will
materially  impact future  operating  results,  liquidity or capital  resources.
These classified loans do not represent  material credits about which management
is aware of any information which causes management to have serious doubts as to
the ability of such borrowers to comply with the loan repayment terms.

                                       11
<PAGE>
Information regarding certain loans and allowance for loan loss data is as
follows:
<TABLE>
<CAPTION>
                                                                           Six Months Ended
                                                                               June 30,
                                                                    ------------------------------
                                                                         2000             1999
                                                                    ---------------   ------------
                                                                         (Dollars in Thousands)
                                                                    ------------------------------

<S>                                                                    <C>              <C>
Average amount of loans outstanding                                    $47,387          $27,300
                                                                       =======          =======

Balance of allowance for loan losses at beginning of period            $   397          $   152
                                                                       -------          -------

Loans charged off
   Commercial and financial                                            $  --            $  --
   Real estate mortgage                                                   --               --
   Instalment                                                             --               --
                                                                       -------          -------
                                                                          --               --
                                                                       -------          -------

Loans recovered
   Commercial and financial                                               --               --
   Real estate mortgage                                                   --               --
   Installment                                                            --               --
                                                                       -------          -------
                                                                          --               --
                                                                       -------          -------

Net charge-offs                                                           --               --
                                                                       -------          -------

Additions to allowance charged to operating expense during period          141              171
                                                                       -------          -------

Balance of allowance for loan losses at end of period                  $   538          $   323
                                                                       =======          =======

Ratio of net loans charged off during the period to
   average loans outstanding                                                -%               -%
                                                                       =======          =======
</TABLE>
Other  income has  increased  by $42,000 and $55,000 for the second  quarter and
first six months of 2000 as compared to the same  periods in 1999 due  primarily
to increases in service charges on deposit accounts.

Other  expenses have  increased by $234,000 and $445,000 for the second  quarter
and first six months of 2000 as compared to the same periods in 1999.  Increased
salaries and employee benefits and increased other operating  expenses accounted
for the majority of the increases. Salaries and employee benefits have increased
due to an increase in the number of full time equivalent employees to 29 at June
30,  2000  from 24 at June 30,  1999 and to  normal  salary  increases.  Overall
deposit and asset growth have caused the increases in other operating expenses.

The  Company has  recorded  no  provision  for income  taxes due to  accumulated
deficits incurred through June 30, 2000.

                                       12
<PAGE>
Overall net income  increased by $147,000 and $244,000 during the second quarter
and  first  six  months  of 2000 as  compared  to the same  periods  in 1999 due
primarily to  increased  net  interest  income of $319,000  and  $605,000  being
substantially offset by increased operating costs of $234,000 and $445,000.

The Company is not aware of any known  trends,  events or  uncertainties,  other
than the effect of events as described  above,  that will have or are reasonably
likely  to  have a  material  effect  on its  liquidity,  capital  resources  or
operations.  The Company is also not aware of any current recommendations by the
regulatory  authorities  which,  if they were  implemented,  would  have such an
effect.

                                       13
<PAGE>
                           PART II - OTHER INFORMATION





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

                  None.





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

                  (a)     Exhibits.

                          21.  Subsidiaries of the Company.

                          27.  Financial Data Schedule (for SEC use only).

                  (b)     Reports on Form 8-K.

                          None.


                                       14
<PAGE>


                                   SIGNATURES




                  In accordance with  the requirements  of the Exchange Act, the
registrant caused  this report to  be signed on its  behalf by  the undersigned,
thereunto duly authorized.


                                            CHESTATEE BANCSHARES, INC.
                                  (Registrant)



DATE:  August 14, 2000             BY: /s/ J. Philip Hester, Sr.
       ---------------             -----------------------------


                                   J. Philip Hester, Sr., President and C.E.O.
                                   (Principal Executive Officer)


DATE:  August 14, 2000             BY: /s/ Robert W. Coile
       ----------------            -----------------------
                                   Robert W. Coile, C.F.O. and Treasurer
                                  (Principal Financial and Accounting Officer)

                                       15
<PAGE>


                                                                      Exhibit 21





Subsidiaries of the Company.                              State of Incorporation
----------------------------                              ----------------------

Chestatee State Bank                                      Georgia