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    September 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
              ----------------------------------------------------
                    (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 November 10, 2000: 1,900,000; no par value.

Transitional Small Business Disclosure Format       Yes    No _X_

<PAGE>
                   CHESTATEE BANCSHARES, INC. AND SUBSIDIARY

--------------------------------------------------------------------------------
                                      INDEX


PART I.     FINANCIAL INFORMATION                                          Page
                                                                           ----

            Item 1.  Financial Statements

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

               Consolidated Statements of Income and Comprehensive Income -
                Three Months Ended September 30, 2000 and 1999 and
                 Nine Months Ended

                September 30, 2000 and 1999 ..................................4

               Consolidated Statements of Cash Flows -

                Nine Months Ended September 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 ......8


PART II.    OTHER INFORMATION

            Item 4 - Submission of Matters to a Vote of Security Holders ....15

            Item 6 - Exhibits and Reports on Form 8-K .......................15

            Signatures ......................................................16

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION
                              FINANCIAL STATEMENTS

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

                                     Assets
                                     ------

Cash and due from banks                                              $ 3,248,683
Interest-bearing deposits in banks                                        12,740
Securities available-for-sale                                          2,230,912
Securities held-to-maturity, fair value of $1,376,000                  1,399,236
Federal funds sold                                                     5,290,000

Loans                                                                 59,414,457
Less allowance for loan losses                                           588,217
                                                                     -----------
          Loans, net                                                  58,826,240
                                                                     -----------

Premises and equipment                                                 3,052,209
Other assets                                                             748,074
                                                                     -----------

          Total assets                                               $74,808,094
                                                                     ===========


                   Liabilities and Stockholders' Equity
                   ------------------------------------
<S>                                                                  <C>
Deposits
    Demand                                                           $ 6,637,996
    Interest-bearing demand                                           22,336,018
    Savings                                                              899,893
    Time                                                              35,024,385
                                                                     -----------
          Total deposits                                              64,898,292
Other borrowings                                                          50,000
Other liabilities                                                        331,023
                                                                     -----------
          Total liabilities                                           65,279,315
                                                                     -----------

Commitments and contingent liabilities

Stockholders' equity
    Common stock, no par value; 10,000,000 shares
      authorized; 1,900,000 shares issued and outstanding              9,482,364
    Retained earnings                                                     48,026
    Accumulated other comprehensive loss                                  -1,611
                                                                     -----------
          Total stockholders' equity                                   9,528,779
                                                                     -----------

          Total liabilities and stockholders' equity                 $74,808,094
</TABLE>
                                                                    ===========

See Notes to Consolidated Financial Statements.

                                       3
<PAGE>
                   CHESTATEE BANCSHARES, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
               THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 AND
                  NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                               Three Months                           Nine Months
                                                                  Ended                                  Ended
                                                               September 30,                         September 30,
                                                   ---------------     ---------------    ---------------    ---------------
                                                         2000                1999               2000               1999
                                                   ---------------    ----------------   ----------------    ---------------
<S>                                                <C>                 <C>                 <C>                <C>
Interest income
    Loans                                          $    1,542,224      $       823,626     $    3,993,171     $    2,036,406
    Taxable securities                                     64,667               64,225            161,617            190,630
    Federal funds sold                                     67,849               41,147            163,370            141,255
                                                   ---------------     ----------------    ---------------    ---------------
              Total interest income                     1,674,740              928,998          4,318,158          2,368,291
                                                   ---------------     ----------------    ---------------    ---------------

Interest expense
    Deposits                                              768,525              368,743          1,907,269            904,321
    Federal funds purchased and other borrowings            1,200                   32              1,200              4,942
                                                   ---------------     ----------------    ---------------    ---------------
              Total interest expense                      769,725              368,775          1,908,469            909,263
                                                   ---------------     ----------------    ---------------    ---------------

              Net interest income                         905,015              560,223          2,409,689          1,459,028
Provision for loan losses                                  57,500               45,433            198,519            214,987
                                                   ---------------     ----------------    ---------------    ---------------
              Net interest income after
                provision for loan losses                 847,515              514,790          2,211,170          1,244,041
                                                   ---------------     ----------------    ---------------    ---------------

Other income
      Service charges and fees                             75,471               48,058            203,765            116,271
      Other operating income                               22,019               55,204             93,837            132,162
                                                   ---------------     ----------------    ---------------    ---------------
                                                           97,490              103,262            297,602            248,433
                                                   ---------------     ----------------    ---------------    ---------------

Other expenses
    Salaries and employee benefits                        330,075              223,406            895,684            652,806
    Occupancy and equipment expenses                       95,064               63,498            271,462            150,163
    Other operating expenses                              279,099              204,388            798,471            504,711
                                                   ---------------     ----------------    ---------------    ---------------
                                                          704,238              491,292          1,965,617          1,307,680
                                                   ---------------     ----------------    ---------------    ---------------

              Net income  before income taxes             240,767              126,760            543,155            184,794

Income tax expense                                         49,075                    0             49,076                  0
                                                   ---------------     ----------------    ---------------    ---------------

              Net income                                  191,692              126,760            494,079            184,794
                                                   ---------------     ----------------    ---------------    ---------------

Other comprehensive income ( loss):
     Unrealized gains (losses) on securities
         available-for-sale arising during period           8,406               -1,207              7,608             -8,891
                                                   ---------------     ----------------    ---------------    ---------------


Comprehensive income                               $      200,098      $       125,553     $      501,687     $      175,903
                                                   ===============     ================    ===============    ===============
Basic and diluted earnings
   per common share                                $         0.10      $          0.07     $         0.26     $         0.10
                                                   ===============     ================    ===============    ===============

Weighted average shares outstanding                     1,900,000            1,900,000          1,900,000          1,900,000
                                                   ===============     ================    ===============    ===============

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
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                       2000               1999
                                                                  --------------     --------------
<S>                                                               <C>                <C>
OPERATING ACTIVITIES
    Net income                                                    $     494,079      $      184,794
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                    118,229              60,176
        Provision for loan losses                                       198,519             214,987
        Loss on sale of other real estate owned                           4,538                 0
        Increase in interest receivable                                -321,653            -170,422
        Increase in interest payable                                    135,553             20,047
        Other operating activities                                       15,835             -45,608
                                                                  --------------     --------------

              Net cash provided by operating activities                 645,100             263,974
                                                                  --------------     --------------

INVESTING ACTIVITIES
    Net increase in interest-bearing deposits in banks                  -12,740             -11,273
    Net (increase) decrease in Federal funds sold                    -2,870,000           5,550,000
    Purchases of securities available-for-sale                       -2,828,205            -806,480
    Proceeds from maturities of securities available-for-sale         1,191,282                   0
    Purchases of securities held-to-maturity                                  0          -1,398,813
    Proceeds from maturities of securities held-to-maturity           1,506,683           1,971,225
    Net increase in loans                                           -19,825,944         -20,859,593
    Purchase of premises and equipment                                 -200,882            -233,767
    Proceeds from sale of other real estate                             246,788                   0
                                                                  --------------     --------------

              Net cash used in investing activities                 -22,793,018         -15,788,701
                                                                  --------------     --------------

FINANCING ACTIVITIES
    Net increase in deposits                                         23,082,313          16,175,577
    Proceeds from other borrowings                                       50,000                   0
                                                                  --------------     --------------

              Net cash provided by financing activities              23,132,313          16,175,577
                                                                  --------------     --------------

Net increase in cash and due from banks                                 984,395             650,850

Cash and due from banks, beginning of period                          2,264,288             903,205
                                                                  --------------     --------------

Cash and due from banks, end of period                            $   3,248,683      $    1,554,055
                                                                  ==============     ==============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

    Cash paid for:                                                $   1,772,916      $      889,216
          Interest

          Income taxes                                            $      40,554      $            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 periods.

               The results of  operations  for the three and nine month  periods
               ended  September  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>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 3.  COMMON STOCK SPLIT

               The  Company  declared a  two-for-one  split of its no-par  value
               common stock for  shareholders  of record as of October 31, 2000.
               Issued and  outstanding  shares on the September 30, 2000 balance
               sheet have been  restated  for the split.  Earnings per share and
               weighted  average share  information  on the statements of income
               have also been restated for all periods presented.

                                       7
<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.

                                       8
<PAGE>
               Liquidity and Capital Resources

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

               At September 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:
<TABLE>
<CAPTION>
                                                         Actual
                                              --------------------------------
                                                  Chestatee      Chestatee         Regulatory
                                                 Bancshares,       State            Minimum
                                                    Inc.           Bank           Requirement
                                              --------------   --------------    -------------

               <S>                                 <C>             <C>               <C>
               Leverage capital ratios             13.41 %         13.48 %           4.00 %
               Risk-based capital ratios:
                  Core capital                     15.43           15.51             4.00
                  Total capital                    16.38           16.46             8.00
</TABLE>

               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.

                                       9
<PAGE>

Financial Condition

Following  is a  summary  of  the  Company's  balance  sheets  for  the  periods
indicated:

<TABLE>
<CAPTION>
                                           September  December
                                              30,       30,
                                             2000      1999     Increase (Decrease)
                                           --------   -------   ------------------
                                         (Dollars in Thousands)  Amount    Percent
                                           ------------------   -------    -------

<S>                                         <C>       <C>       <C>         <C>
Cash and due from banks                     $ 3,249   $ 2,264   $   985     43.51 %
Interest-bearing deposits in banks               13      --          13        --
Federal funds sold                            5,290     2,420     2,870    118.60
Securities                                    3,630     3,492       138      3.95
Loans, net                                   58,826    39,245    19,581     49.89
Premises and equipment                        3,052     2,970        82      2.76
Other assets                                    748       640       108     16.88
                                            -------   -------   ------
                                            $74,808   $51,031   $23,777     46.59
                                            =======   =======   =======

Deposits                                    $64,898   $41,816   $23,082     55.20 %
Other borrowings                                 50      --          50       --
Other liabilities                               331       188       143     76.06
Stockholders' equity                          9,529     9,027       502      5.56
                                            -------   -------   -------
                                            $74,808   $51,031   $23,777     46.59
                                            =======   =======   =======
</TABLE>


As indicated in the above table,  the  Company's  total assets grew at a rate of
46.59%. This high rate of growth is not uncommon for a de novo bank. Significant
deposit growth of $23,082,000 was primarily  invested in loans and Federal funds
sold. The Company's loan to deposit ratio has decreased  slightly from 94.80% at
December 31, 1999 to 91.55% at September 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 $502,000 due to net
income of $494,000 and decreases in accumulated  other  comprehensive  losses of
8,000.

                                       10
<PAGE>
Results of Operations For The Three and Nine Months Ended September 30, 2000 and
1999

Following is a summary of the Company's operations for the periods indicated.
<TABLE>
<CAPTION>
                                  Three Months Ended
                                    September 30,         Increase (Decrease)
                                ---------------------   -----------------------
                                   2000        1999       Amount       Percent
                                ----------   --------   ---------     ---------
                                     (Dollars in Thousands)
                                ----------   --------   ---------
<S>                             <C>          <C>        <C>             <C>
Interest income                 $   1,675    $   929    $     746       80.27 %
Interest expense                      770        369          401      108.72
                                ----------   --------   ----------
Net interest income                   905        560          345       61.55
Provision for loan losses              57         45           12       26.56
Other income                           97        103          (6)      (5.59)
Other expense                         704        491          213       43.34
                                ----------   --------   ----------
Pretax income                         241        127          114       89.94
Income tax expense                     49          -           49           -
                                ----------   --------   ----------
Net income                      $     192    $   127    $      65       51.22 %
                                ==========   ========   ==========


                                  Three Months Ended
                                    September 30,          Increase (Decrease)
                                ---------------------     ---------------------
                                   2000        1999        Amount      Percent
                                ----------   --------     ----------  ---------
                                     (Dollars in Thousands)
                                ----------   ----------   ----------
Interest income                 $   4,318    $   2,368    $   1,950     82.33 %
Interest expense                    1,908          909          999     109.89
                                ----------   ----------   ----------
Net interest income                 2,410        1,459          951      65.16
Provision for loan losses             199          215         (16)     (7.66)
Other income                          298          249           49      19.79
Other expense                       1,966        1,308          658      50.31
                                ----------   ----------   ----------
Pretax income                         543          185          358     193.92
Income tax expense                     49            -           49          -
                                ----------   ----------   ----------
Net income                      $     494    $     185    $     309     167.37 %
                                ==========   ==========   ==========
</TABLE>

As indicated in the above table, the Company's net interest income has increased
by $345,000 and $951,000  during the third quarter and first nine months of 2000
as compared to the same  periods in 1999.  The  Company's  net  interest  margin
increased  to 5.55%  during the first nine  months of 2000 as  compared to 5.53%
during the first nine months of 1999 and 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 relatively small increase in net interest margin
is due to an increase in the yields  earned on loans being offset by an increase
in the rate paid on  deposits.  The average  rate paid on deposits was 5.37% for
the first nine months of 2000 as compared to 4.58%  during the first nine months
of 1999 and 4.08% for the entire year of 1999.

                                       11
<PAGE>
The provision for loan losses was $57,000 and $199,000  during the third quarter
and first nine months of 2000,  as compared to $45,000 and $215,000 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 .99% at September 30, 2000 as compared
to 1.00% at 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>
                                                                                  September 30,
                                                                              ---------------------
                                                                                  2000       1999
                                                                              ---------------------
                                                                             (Dollars in Thousands)
                                                                              ---------------------

<S>                                                                             <C>         <C>
Nonaccrual loans                                                                $   -       $  208
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                                         2           -
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                                      -           4
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.

                                       12
<PAGE>
Information  regarding  certain  loans  and  allowance  for loan loss data is as
follows:
<TABLE>
<CAPTION>
                                                                              Nine Months Ended
                                                                                September 30,
                                                                      ----------------------------------
                                                                           2000                1999
                                                                      ---------------   ----------------
                                                                           (Dollars in Thousands)
                                                                      ----------------------------------

<S>                                                                   <C>               <C>
Average amount of loans outstanding                                   $       50,687    $        26,830
                                                                      ===============   ================

Balance of allowance for loan losses at beginning of period           $          397    $           152
                                                                      ---------------   ----------------
Loans charged off
   Commercial and financial                                           $            -    $             -
   Real estate mortgage                                                            8                  -
   Instalment                                                                      -                  -
                                                                      ---------------   ----------------
                                                                                   8                  -
                                                                      ---------------   ----------------

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

Net charge-offs                                                                    8                  -
                                                                      ---------------   ----------------

Additions to allowance charged to operating expense during period                199                215
                                                                      ---------------   ----------------

Balance of allowance for loan losses at end of period                 $          588    $           367
                                                                      ===============   ================

Ratio of net loans charged off during the period to
   average loans outstanding                                                    .02%                 -%
                                                                      ===============   ================
</TABLE>

Other  income has  decreased  by $6,000 and  increased  by $49,000 for the third
quarter and first nine  months of 2000 as compared to the same  periods in 1999.
Increased  service  charges on deposit  accounts  have been offset by  decreased
mortgage origination fees.

Other expenses have increased by $213,000 and $658,000 for the third quarter and
first nine  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 33 at
September 30, 2000 from 26 at September 30, 1999 and to normal salary increases.
Overall  deposit and asset growth have caused the  increases in other  operating
expenses.

The Company  recorded its initial  income tax  provision  of $49,000  during the
third  quarter  of  2000  due  to the  utilization  of its  net  operating  loss
carryover.

Overall net income  increased by $65,000 and $309,000  during the third  quarter
and  first  nine  months of 2000 as  compared  to the same  periods  in 1999 due
primarily to  increased  net  interest  income of $345,000  and  $951,000  being
substantially offset by increased operating costs of $213,000 and $658,000.

                                       13
<PAGE>
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.

                                       14
<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.

                                       15
<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:  November 14, 2000

BY:  /s/ J. Philip Hester, Sr.
     -------------------------
     J. Philip Hester, Sr., President and C.E.O.
     (Principal Executive Officer)


DATE:  November 14, 2000
       -----------------

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

                                       16
<PAGE>
                                                                     Exhibit 21
                                                                     ----------

Subsidiary of the Company.                State of Incorporation
------------------------------------------------------------------

Chestatee State Bank                        Georgia



                                       17