U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB


[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT  OF  1934

          For the quarterly period ended   JUNE 30, 2003
                                           -------------

[ ]  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: 333-84142

                          Generations Bancshares, Inc.
                          ----------------------------
        (Exact name of small business issuer as specified in its charter)

                  Georgia                               58-2633700
      --------------------------------              -------------------
      (State or other jurisdiction of                  (IRS Employer
       incorporation or organization)                Identification No.)


                  336 BLUE RIDGE STREET, BLAIRSVILLE, GA 30512
                  --------------------------------------------
                    (Address of principal executive offices)

                                 (706) 745-5588
                                 --------------
                          (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 14, 2003: 913,834, $1 par value.

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


<PAGE>
<TABLE>
<CAPTION>
                          GENERATIONS BANCSHARES, INC.
                                 AND SUBSIDIARY

                                      INDEX
                                      -----


                                                                      Page
                                                                      ----
<S>                                                                   <C>

Part I.  Financial Information
         ---------------------

Item 1.   Financial Statements (unaudited) . . . . . . . . . . . . .   3-7

Item 2.   Management's Discussion and Analysis or Plan of Operation.  8-13

Item 3.   Controls and Procedures. . . . . . . . . . . . . . . . . .    13


Part II.  Other Information
          -----------------

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . . . . .    14

Item 2.   Changes in Securities and Use of Proceeds. . . . . . . . .    14

Item 3.   Defaults Upon Senior Securities. . . . . . . . . . . . . .    14

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

Item 5.   Other Information. . . . . . . . . . . . . . . . . . . . .    14

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

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

</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                              PART I - FINANCIAL INFORMATION
ITEM I.                                FINANCIAL STATEMENTS

                               GENERATIONS BANCSHARES, INC.
                                      AND SUBSIDIARY

                               CONSOLIDATED BALANCE SHEETS
                           JUNE 30, 2003 AND DECEMBER 31, 2002
                                       (UNAUDITED)

                             ASSETS                                 2003         2002
                             ------                             ------------  -----------
<S>                                                             <C>           <C>
Cash and due from banks                                         $ 1,359,253   $      978
Restricted cash                                                           -    7,823,000
Federal funds sold                                                7,120,000            -
Securities available-for-sale, at fair value                      5,032,854            -

Loans                                                            10,726,240            -
Less allowance for loan losses                                      135,000            -
                                                                ------------  -----------
          Loans, net                                             10,591,240            -
                                                                ------------  -----------

Premises and equipment                                              475,547        6,992
Other assets                                                        133,290      167,066
                                                                ------------  -----------

          TOTAL ASSETS                                          $24,712,184   $7,998,036
                                                                ============  ===========


          LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
          ----------------------------------------------

DEPOSITS
    Noninterest-bearing                                         $   983,337   $        -
    Interest-bearing                                             15,903,064            -
                                                                ------------  -----------
          TOTAL DEPOSITS                                         16,886,401            -
Subscriber's deposits                                                     -    7,823,000
Other borrowings                                                          -      744,859
Other liabilities                                                    79,917       32,929
                                                                ------------  -----------
          TOTAL LIABILITIES                                      16,966,318    8,600,788
                                                                ------------  -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDER'S EQUITY (DEFICIT)
    Preferred stock, no par value; 2,000,000 shares
      authorized; no shares issued and outstanding                        -            -
    Common stock, $1 par value; 10,000,000 shares
      authorized; 913,834 and 1 shares issued and outstanding       913,834            1
    Capital surplus                                               8,053,558        4,012
    Accumulated deficit                                          (1,248,409)    (606,765)
    Accumulated other comprehensive income                           26,883            -
                                                                ------------  -----------
          TOTAL STOCKHOLDER'S EQUITY (DEFICIT)                    7,745,866     (602,752)
                                                                ------------  -----------

          TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)  $24,712,184   $7,998,036
                                                                ============  ===========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


                                        3
<PAGE>
<TABLE>
<CAPTION>

                                               GENERATIONS BANCSHARES, INC.
                                                      AND SUBSIDIARY

                               CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                         THREE MONTHS ENDED JUNE 30, 2003 AND 2002
                                        AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                                        (UNAUDITED)


                                                      THREE MONTHS      THREE MONTHS       SIX MONTHS        SIX MONTHS
                                                     ENDED JUNE 30,    ENDED JUNE 30,    ENDED JUNE 30,    ENDED JUNE 30,
                                                          2003              2002              2003              2002
                                                    ----------------  ----------------  ----------------  ----------------
<S>                                                 <C>               <C>               <C>               <C>
INTEREST INCOME
    Loans                                           $       163,257   $             -   $       197,595   $             -
    Taxable securities                                       17,026                 -            17,509                 -
    Federal funds sold                                       29,395                 -            73,353                 -
                                                    ----------------  ----------------  ----------------  ----------------
              TOTAL INTEREST INCOME                         209,678                 -           288,457                 -
                                                    ----------------  ----------------  ----------------  ----------------

INTEREST EXPENSE
    Deposits                                                100,967                 -           136,447                 -
    Other borrowings                                              -             3,482               421             6,162
                                                    ----------------  ----------------  ----------------  ----------------
              TOTAL INTEREST EXPENSE                        100,967             3,482           136,868             6,162
                                                    ----------------  ----------------  ----------------  ----------------

              NET INTEREST INCOME (EXPENSE)                 108,711            (3,482)          151,589            (6,162)
PROVISION FOR LOAN LOSSES                                    91,000                 -           135,000                 -
                                                    ----------------  ----------------  ----------------  ----------------
              NET INTEREST INCOME (EXPENSE)
                 AFTER PROVISION FOR LOAN LOSSES             17,711            (3,482)           16,589            (6,162)
                                                    ----------------  ----------------  ----------------  ----------------

OTHER INCOME
    Service charges on deposit accounts                       3,956                 -             5,536                 -
    Other operating income                                    2,556                 -             2,991                 -
                                                    ----------------  ----------------  ----------------  ----------------
              TOTAL OTHER INCOME                              6,512                 -             8,527                 -
                                                    ----------------  ----------------  ----------------  ----------------

OTHER EXPENSES
    Salaries and other employee benefits                    175,550            38,754           317,032            85,579
    Occupancy and equipment expenses                         35,203            30,484            73,466            44,202
    Professional fees                                        31,746             9,690            43,603            11,585
    Other operating expenses                                 92,168             4,325           232,659            10,941
                                                    ----------------  ----------------  ----------------  ----------------
              TOTAL OTHER EXPENSES                          334,667            83,253           666,760           152,307
                                                    ----------------  ----------------  ----------------  ----------------

              LOSS  BEFORE INCOME TAXES                    (310,444)          (86,735)         (641,644)         (158,469)

INCOME TAX EXPENSE                                                -                 -                 -                 -
                                                    ----------------  ----------------  ----------------  ----------------

              NET LOSS                                     (310,444)          (86,735)         (641,644)         (158,469)
                                                    ----------------  ----------------  ----------------  ----------------

OTHER COMPREHENSIVE INCOME
    Unrealized gains on securities available-for-
      sale arising during period                             26,755                 -            26,883                 -
                                                    ----------------  ----------------  ----------------  ----------------

              COMPREHENSIVE LOSS                    $      (283,689)  $       (86,735)  $      (614,761)  $      (158,469)
                                                    ================  ================  ================  ================

BASIC AND DILUTED LOSSES PER  SHARE                 $         (0.34)  $         (0.10)  $         (0.70)  $         (0.17)
                                                    ================  ================  ================  ================

CASH DIVIDENDS PER SHARE                            $             -   $             -   $             -   $             -
                                                    ================  ================  ================  ================
</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                           GENERATIONS BANCSHARES, INC.
                                  AND SUBSIDIARY

                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                      SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                    (UNAUDITED)

                                                             2003          2002
                                                         -------------  ----------
<S>                                                      <C>            <C>
OPERATING ACTIVITIES
    Net loss                                             $   (641,644)  $(158,469)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
        Depreciation                                            4,446         586
        Provision for loan losses                             135,000           -
        Increase in interest receivable                       (73,270)          -
        Increase in interest payable                           50,559           -
                                                         -------------  ----------
        Net other operating activities                        (52,670)      7,068
                                                         -------------  ----------

              Net cash used in operating activities          (577,579)   (150,815)

INVESTING ACTIVITIES
    Purchases of securities available-for-sale             (5,005,971)          -
    Net increase in federal funds sold                     (7,120,000)          -
    Net increase in loans                                 (10,726,240)          -
    Purchase of premises and equipment                       (473,001)          -
                                                         -------------  ----------

              Net cash used in investing activities       (23,325,212)          -
                                                         -------------  ----------

FINANCING ACTIVITIES
    Net increase in deposits                               16,886,401           -
    Proceeds from sale of common stock                      9,138,330           -
    Proceeds from line of credit                                4,500     163,500
    Repayment of lines of credit                             (699,359)          -
    Repayment of organizer advances                           (50,000)          -
    Stock issue costs                                         (18,806)    (12,291)
                                                         -------------  ----------

              Net cash provided by financing activities    25,261,066     151,209
                                                         -------------  ----------

Net increase in cash and due from banks                     1,358,275         394

Cash and due from banks at beginning of period                    978       2,252
                                                         -------------  ----------

Cash and due from banks at end of period                 $  1,359,253   $   2,646
                                                         =============  ==========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
    Cash paid for:
          Interest                                       $     86,309   $   5,004
</TABLE>

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


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

NOTE  1.  NATURE  OF  BUSINESS  AND  BASIS  OF  PRESENTATION

          Generations Bancshares, Inc. (the "Company") was incorporated on
          October 1, 2001, to operate as a bank holding company. The Company
          owns 100% of the issued and outstanding capital stock of Generations
          Bank (the "Bank"), a bank organized under the laws of the State of
          Georgia to conduct a general banking business in Blairsville, Georgia.
          The Bank commenced operations on January 27, 2003.

          The 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 six month periods ended
          June 30, 2003, are not necessarily indicative of the results to be
          expected for the full year.

NOTE  2.  CURRENT  ACCOUNTING  DEVELOPMENTS

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

NOTE  3.  STOCK  COMPENSATION  PLANS

          At June 30, 2003, the Company has two stock-based compensation plans.
          The Company accounts for those plans under the recognition and
          measurement principles of APB Opinion No. 25, Accounting for Stock
          Issued to Employees, and related Interpretations. No stock-based
          compensation cost is reflected in net loss, as all stock warrants and
          stock options granted under those plans had an exercise price equal to
          the market value of the underlying stock on the date of grant. No
          stock warrants or stock options had vested as of June 30, 2003,
          therefore, the effect on net loss and losses per share if the Company
          had applied the fair value recognition provisions of SFAS Statement
          No. 123, Accounting for Stock-Based Compensation, to stock-based
          compensation is not presented.

NOTE  4.  LOSSES  PER  SHARE

          Basic losses per share are computed by dividing net loss by the
          weighted average number of shares of common stock outstanding. Diluted
          losses per share are computed by dividing net loss by the sum of the
          weighted average number of shares of common stock outstanding and
          potential common shares. Potential common shares consist of stock
          options and stock warrants. The effect of potential common shares does
          not have a dilutive effect on losses per share. Weighted average
          shares outstanding for the three and six months ended June 30, 2003
          was 913,834, or the number of shares issued in the Company's initial
          public stock offering. For comparability, the number of shares issued
          in the Company's initial public offering was also used to compute
          losses per share for the three and six months ended June 30, 2002.


                                        6
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE  5.  COMMON  STOCK  OFFERING

          The Company offered a minimum of 770,000 and a maximum of 1,000,000
          shares in its initial offering of common stock at an offering price of
          $10 per share. The offering closed on June 30, 2003. The Company sold
          913,834 shares of common stock at $10 per share. Expenses of the stock
          offering totaled $174,951 and have been charged to capital surplus in
          the accompanying consolidated balance sheets.

          As of December 31, 2002, restricted cash and subscribers' deposits in
          the accompanying consolidated balance sheets consisted of proceeds
          from the Company's stock offering. The funds were held in escrow until
          the minimum amount of capital had been raised to receive regulatory
          approval of the Bank's charter. As of December 31, 2002, proceeds from
          the sale of 782,300 shares of common stock had been deposited with the
          escrow agent. The stock subscription funds were released to the
          Company by the escrow agent on January 6, 2003.


                                        7
<PAGE>
                   GENERATIONS BANCSHARES, INC. AND SUBSIDIARY

PART  I.   FINANCIAL  INFORMATION
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

The following is our discussion and analysis of certain significant factors that
have affected our financial position and operating results and those of our
subsidiary, Generations Bank, during the periods included in the accompanying
financial statements. This commentary should be read in conjunction with the
financial statements and the related notes and the other statistical information
included in this report.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS

This Report contains statements which constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and the
Securities Exchange Act of 1934. These statements are based on many assumptions
and estimates and are not guarantees of future performance. Our actual results
may differ materially from those projected in any forward-looking statements, as
they will depend on many factors about which we are unsure, including many
factors which are beyond our control. The words "may," "would," "could," "will,"
"expect," "anticipate," "believe," "intend," "plan," and "estimate," as well as
similar expressions, are meant to identify such forward-looking statements.
Potential risks and uncertainties include, but are not limited to:

     -    significant increases in competitive pressure in the banking and
          financial services industries;

     -    changes in the interest rate environment which could reduce
          anticipated or actual margins;

     -    changes in political conditions or the legislative or regulatory
          environment;

     -    general economic conditions, either nationally or regionally and
          especially in primary service area, becoming less favorable than
          expected resulting in, among other things, a deterioration in credit
          quality;

     -    changes occurring in business conditions and inflation;

     -    changes in technology;

     -    changes in monetary and tax policies;

     -    the level of allowance for loan loss;

     -    the rate of delinquencies and amounts of charge-offs;

     -    the rates of loan growth;

     -    adverse changes in asset quality and resulting credit risk-related
          losses and expenses;

     -    changes in the securities markets; and

     -    other risks and uncertainties detailed from time to time in our
          filings with the Securities and Exchange Commission.

CRITICAL ACCOUNTING POLICIES

We have adopted various accounting policies which govern the application of
accounting principles generally accepted in the United States in the preparation
of our financial statements. Certain accounting policies involve significant
judgments and assumptions by us which have a material impact on the carrying
value of certain assets and liabilities. We consider these accounting policies
to be critical accounting policies. The judgments and assumptions we use are
based on historical experience and other factors, which we believe to be
reasonable under the circumstances. Because of the nature of the judgments and
assumptions we make, actual results could differ from these judgments and
estimates which could have a material impact on our carrying values of assets
and liabilities and our results of operations.


                                        8
<PAGE>
We believe the allowance for loan losses is a critical accounting policy that
requires the most significant judgments and estimates used in preparation of our
consolidated financial statements. Refer to the portion of this discussion that
addresses our allowance for loan losses for a description of our processes and
methodology for determining our allowance for loan losses.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity management involves the ability to match the cash flow requirements of
our customers. This matching is accomplished by monitoring and managing the
balances and maturities of our loans and deposits so that our cash in vault,
cash held in correspondent bank accounts, and federal funds sold are sufficient
to meet anticipated demand for immediate funds.

Both we and the regulatory authorities monitor the liquidity of our subsidiary
bank on a periodic basis. We have limited historical data for seasonal or other
related demands on our liquidity due to our commencing operations on January 27,
2003. However, we believe the liquidity of our bank as of June 30, 2003 is
adequate to support the cash flow requirements of its customers.

Requirements by banking regulators include the monitoring of risk-based capital
guidelines for banks that are designed to make capital requirements more
sensitive to differences in risk profiles and account for off balance sheet
items. We substantially exceeded the regulatory minimums on capital requirements
and ratios as of June 30, 2003. However, as we continue to grow and the loan
portfolio increases, these ratios have and will continue to adjust downward. We
monitor these amounts and ratios on a frequent basis. The minimum capital
requirements and the actual capital ratios for the Company and the Bank as of
June 30, 2003 are as follows:

<TABLE>
<CAPTION>
                                                    Actual
                                                    ------

                                 Generations     Generations    Regulatory
                              Bancshares, Inc.       Bank      Requirements
                              -----------------  ------------  -------------
<S>                           <C>                <C>           <C>

  Leverage capital ratio                 33.84%        30.66%          4.00%
  Risk-based capital ratios:
  Core capital                           52.39%        47.46%          4.00%
  Total capital                          53.30%        48.37%          8.00%
</TABLE>

OFF-BALANCE SHEET RISK

Through the operations of our bank, we have made contractual commitments to
extend credit in the ordinary course of our business activities. These
commitments are legally binding agreements to lend money to our customers at
predetermined interest rates for a specified period of time. At June 30, 2003,
we had issued commitments to extend credit of $2,123,000 through various types
of lending arrangements. We evaluate each customer's credit worthiness on a
case-by-case basis. The amount of collateral obtained, if deemed necessary by us
upon extension of credit, is based on our credit evaluation of the borrower.
Collateral varies but may include accounts receivable, inventory, property,
plant and equipment, commercial and residential real estate.

As of June 30, 2003, we were in process of construction of our new main office
banking facility. Total costs incurred through June 30, 2003 were $336,000 and
estimated costs to complete the new facility are approximately $2,011,000. As of
June 30, 2003, we have invested $476,000, net of depreciation, in the fixed
assets of the Company.

FINANCIAL CONDITION

We commenced our banking operations on January 27, 2003. Total assets at June
30, 2003 were approximately $24,712,000. Deposit growth during the six months
ended June 30, 2003 of $16,886,000 and proceeds from the sale of our initial
public stock offering of $8,963,000, net of offering expenses, was invested
primarily in loans, securities and overnight federal funds sold. During the six
months ended June 30, 2003, our loans grew to $10,726,000, securities to
$5,033,000 and federal funds sold to $7,120,000.


                                        9
<PAGE>
We expect to continue to hold funds in federal funds sold and to purchase
investment securities as loan growth stabilizes and we identify opportunities
appropriate to our overall asset and liability strategies and goals. We expect
continued growth in assets and liabilities during the remainder of 2003. We will
monitor growth and seek to maintain a proper mix of types, maturities, and
interest rates. We believe that our current capital and liquidity levels are
adequate to support the current growth of the bank.

Our total equity increased by $8,348,000 during the six months ended June 30,
2003, due primarily to the completion of our initial public stock offering.
Proceeds from the sale were $9,138,000 which was offset by offering expenses of
$175,000, and net loss for the six months ended June 30, 2003 of $642,000. Total
equity was also increased by unrealized gains on securities available for sale
of $27,000 during the six month period ended June 30, 2003.

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002

The results of operations are determined by our ability to effectively manage
net interest income, control non-interest expenses, generate non-interest income
and minimize loan losses. In order for us to become profitable, we must increase
the amount of earning assets so that net interest income along with non-interest
income will be sufficient to cover normal operating expenses incurred in a
banking operation and the bank's provision for loan losses.

We commenced banking operations on January 27, 2003. From April 16, 2001 to
January 26, 2003, we were in the organizational stage. During the organizational
stage, we focused on preparing the Bank to commence operations, hiring qualified
personnel, preparing our business plan, obtaining necessary regulatory
approvals, preparing our banking facilities, and raising our equity capital
through an initial public offering.

Net loss for the three and six month periods ended June 30, 2003 was $310,000
and $642,000, respectively, compared to a net loss of $87,000 and $158,000,
respectively, for the three and six month periods ended June 30, 2002. The
increase in net losses is primarily due to the costs of commencing operations
during the first quarter of 2003. We were still in the organizational stage
during the first six months of 2002.

Our net interest margin was 2.57% for the six months ended June 30, 2003. Our
yield on total earning assets was 3.62% and our cost of funds was 2.91% for the
six months ended June 30, 2003. We expect our net interest margin to increase as
we reinvest our lower yielding funds currently invested in federal funds sold
into higher yielding loans and investments.

The provision for loan losses was $91,000 and $135,000, respectively, for the
three and six months ended June 30, 2003. The amounts provided are due to loan
growth and to our assessment of the inherent risk in the portfolio. Management
believes that the $135,000 in the allowance for loan losses at June 30, 2003, or
approximately 1.26% of total net outstanding loans, is adequate to absorb known
risks in the portfolio. No assurance can be given, however, that increased loan
volume, and adverse economic conditions or other circumstances will not result
in increased losses in our loan portfolio.


                                       10
<PAGE>
<TABLE>
<CAPTION>

Information with respect to non-accrual, past due and restructured loans at June
30,  2003  is  as  follows:

<S>                                                                      <C>
Non-accrual loans                                                        $  0
Loans contractually past due ninety days or more as to interest
   or principal payments and still accruing                                 0
Restructured loans                                                          0
Loans, now current about which there are serious doubts as to the
   ability of the borrower to comply with loan repayment terms              0
Interest income that would have been recorded on non-accrual
   and restructured loans under original terms                              0
Interest income that was recorded on non-accrual and restructured loans     0
</TABLE>

Potential problem loans are defined as loans about which we have serious doubts
as to the ability of the borrower to comply with the present loan repayment
terms and which may cause the loan to be placed on nonaccrual status, to become
past due more than ninety days, or to be restructured.

It is our policy to discontinue the accrual of interest income when, in our
opinion, collection of interest becomes doubtful. We will generally discontinue
the accrual of interest income 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 we reasonably expect will
materially impact future operating results, liquidity or capital resources. We
believe that these borrowers will comply with their loan repayment terms.


                                       11
<PAGE>
<TABLE>
<CAPTION>

Information regarding certain loans and allowance for loan loss data for the six
months  ended  June  30,  2003  is  as  follows:

<S>                                                                <C>

Average amount of loans outstanding                                $7,757,000
                                                                   ===========

Balance of allowance for loan losses at beginning of period        $        0

Loans charged off
   Commercial and financial                                                 0
   Real estate mortgage                                                     0
   Installment                                                              0
                                                                   -----------
                                                                            0
                                                                   -----------

Loans recovered
   Commercial and financial                                                 0
   Real estate mortgage                                                     0
   Installment                                                              0
                                                                   -----------
                                                                            0
                                                                   -----------

Net charge-offs                                                             0
                                                                   -----------

Additions to allowance charged to operating expense during period     135,000
                                                                   -----------

                                                                   -----------
Balance of allowance for loan losses at end of period              $  135,000
                                                                   ===========

Ratio of net loans charged off during the period to
   average loans outstanding                                                0%
                                                                   ===========
</TABLE>

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
loan classification program. Under the program, as each loan is made, we assign
a loan grade. Each loan grade is assigned an allowance percentage determined
based on our experience specifically and the historical experience of the
banking industry generally. Loan classifications are then subject to periodic
review by the responsible lending officers and by senior management based upon
their judgment, current economic conditions that may affect the borrower's
ability to repay, lender requirements, the underlying collateral value of the
loans and other appropriate information. Management relies predominantly on this
ongoing review of the loan portfolio to assess the risk characteristics of the
portfolio in the aggregate and to determine adjustments, if any, to our
allowance for loan losses. Based upon this ongoing review, we may identify loans
that could be impaired. A loan is considered impaired when it is probable that
we will be unable to collect all principal and interest due in accordance with
the contractual terms of the loan agreement. When we identify a loan as
impaired, the allowance for loan losses is increased if we determine that the
amount of impairment is in excess of the allowance determined under our loan
classification program.

Other income was approximately $6,000 and $8,000 for the three and six months
ended June 30, 2003 due to service charge income on deposit accounts, and other
miscellaneous income. There was no other income for the three and six months
ended June 30, 2002.


                                       12
<PAGE>
Other expenses increased by $251,000 and $515,000, respectively, during the
three and six months ended June 30, 2003 compared to the same periods in 2002,
due primarily to salaries, increased expenses associated with commencing
operations of the Bank and other items related to our growth. As discussed
above, we were still in the organizational stage as of June 30, 2002, and our
expenses were limited to the salaries of the organizing officers and direct
expenses of organizing the Bank.

Salaries and employee benefits increased $231,000 for the six month period ended
June 30, 2003 compared to the same period in 2002, due to staffing requirements
needed to manage the Bank's growth since commencing operations. The number of
full time equivalent employees was 13 at June 30, 2003. Occupancy and equipment
expenses increased $29,000 during the six months ended June 30, 2003 compared to
the same period during 2002 due primarily to additional lease expense. Our
subsidiary bank leases substantially all of its operating equipment in addition
to the land where its new main office will be located. The Bank is accounting
for these leases as operating leases. Other operating expenses increased
$255,000 during the six months ended June 30, 2003 as compared to the same
period during 2002 as a result of additional operating costs incurred after we
commenced operations on January 27, 2003. Included in this increase is $32,000
for professional and legal expenses, $35,000 for data processing expenses,
67,000 for marketing related expenses and $68,000 for banking supplies.

Increases in other expenses for the three months ended June 30, 2003 as compared
to the same period in 2002 are due primarily to the same reasons described above
for the six months ended June 30, 2003 and 2002.

We will be subject to federal and state income taxes when taxable income is
generated. No income taxes have been accrued for the three and six months ended
June 30, 2003 and 2002 because of operating losses incurred to date.

We know of no trends, demands, commitments, events or uncertainties that should
result in, or are reasonably likely to result in, our liquidity or capital
resources increasing or decreasing in any material way in the foreseeable
future, other than as a result of our normal operations. We also are not aware
of any current recommendations by the regulatory authorities, which, if
implemented, would have such an effect.

ITEM 3. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we carried out an
evaluation, under the supervision and with the participation of our principal
executive officer and principal financial officer, of the effectiveness of the
design and operation of our disclosure controls and procedures. Based on this
evaluation, our principal executive officer and principal financial officer
concluded that our disclosure controls and procedures are effective in timely
alerting them to material information required to be included in our periodic
SEC reports. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions, regardless of how remote.

In addition, we reviewed our internal controls, and there have been no
significant changes in our internal controls or in other factors that could
significantly affect those controls subsequent to the date of their last
evaluation.


                                       13
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                   GENERATIONS BANCSHARES, INC. AND SUBSIDIARY

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

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

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits

           31.1     Rule 15d - 14(a) Certification

           31.2     Rule 15d - 14(a) Certification

           32.1     Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

           32.2     Certification pursuant to 18 U.S.C. Section 1350, as Adopted
                    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(b)     Reports  on  Form  8-K  -  None.


                                       14
<PAGE>
                   GENERATIONS BANCSHARES, INC. AND SUBSIDIARY

                                    SIGNATURE

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


                                           GENERATIONS  BANCSHARES,  INC.
                                           (Registrant)
                                           ------------



Date:        August  14,  2003                /s/  David  K.  George
       --------------------------          -------------------------------------
                                           David  K.  George
                                           President and Chief Executive Officer
                                           (Principal  Executive  Officer)


Date:       August  14,  2003                 /s/  Nita  Elliott
       -------------------------           -------------------------------------
                                           Nita  Elliott
                                           Chief Financial Officer
                                           (Principal Accounting Officer)


                                       15
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