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

                                   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, 2002
                                          -------------

[ ]   TRANSITION  REPORT  PURSUANT  TO  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.)


                  199-D HIGHWAY 515, BLAIRSVILLE, GEORGIA 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  the  latest  practicable  date:

     1 share of common stock, par value $1 per share, was issued and outstanding
     as  of  August  9,  2002.

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


                                        1
<PAGE>
                          GENERATIONS BANCSHARES, INC.

                                      INDEX
                                      -----


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

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

Item 2.  Management's Discussion and Analysis or Plan of Operation. . . .   8-9


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


Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . .    10

Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11


                                        2
<PAGE>
<TABLE>
<CAPTION>
                          PART I - FINANCIAL INFORMATION
                          ITEM 1 - FINANCIAL STATEMENTS

                           GENERATIONS BANCSHARES, INC
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                  JUNE 30, 2002
                                   (UNAUDITED)
---------------------------------------------------------------------------------

ASSETS
<S>                                                                    <C>
   Cash                                                                $   2,646
   Premises and equipment (net of accumulated depreciation of $1,172)      7,036
   Deferred stock offering costs                                          12,291
   Other assets                                                              115
                                                                       ----------
      TOTAL ASSETS                                                     $  22,088
                                                                       ==========
      LIABILITIES AND STOCKHOLDER'S DEFICIT

LIABILITIES
   Line of credit                                                      $ 332,500
   Due to organizers                                                      55,000
   Other liabilities                                                       5,900
                                                                       ----------
      TOTAL LIABILITIES                                                  393,400

STOCKHOLDER'S 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; 1 share issued and outstanding                               1
   Capital surplus                                                         2,972
   Deficit accumulated during the development stage                     (374,285)
                                                                       ----------
      TOTAL STOCKHOLDER'S DEFICIT                                       (371,312)
                                                                       ----------
      TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT                      $  22,088
                                                                       ==========
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                             GENERATIONS BANCSHARES, INC.
                                             (A DEVELOPMENT STAGE COMPANY)

                                               STATEMENTS OF OPERATIONS

                                 THREE AND SIX MONTHS ENDED JUNE 30, 2002 AND 2001 AND

                            PERIOD FROM APRIL 16, 2001, DATE OF INCEPTION, TO JUNE 30, 2002

                                                      (UNAUDITED)



                                                                                                      PERIOD FROM
                                                       THREE MONTHS ENDED     SIX MONTHS ENDED      APRIL 16, 2001,
                                                            JUNE 30,               JUNE 30,        DATE OF INCEPTION,
                                                       2002         2001       2002       2001      TO JUNE 30, 2002
                                                   ------------  ----------  --------  ----------  -------------------
<S>                                                <C>           <C>         <C>       <C>         <C>
EXPENSES
    Salaries and employee benefits                 $     38,754  $   34,247  $ 85,579  $   34,247  $           174,579
    Interest expense                                      3,482         294     6,162         294               10,112
    Occupancy and equipment expenses                     30,484       2,664    44,202       2,664               61,871
    Filing and application fees                              66           -     2,116           -               14,186
    Professional fees                                     9,690           -    11,585           -               84,743
    Other expenses                                        4,259       1,633     8,825       1,633               28,794
                                                   ------------  ----------  --------  ----------  -------------------
        NET LOSS                                   $     86,735  $   38,838  $158,469  $   38,838  $           374,285
                                                   ============  ==========  ========  ==========  ===================

CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK  $          -  $        -  $      -  $        -  $                 -
                                                   ============  ==========  ========  ==========  ===================
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                          GENERATIONS BANCSHARES, INC.
                                         (A DEVELOPMENT STAGE COMPANY)

                                            STATEMENTS OF CASH FLOWS
                                  SIX MONTHS ENDED JUNE 30, 2002 AND 2001, AND
                        PERIOD FROM APRIL 16, 2001, DATE OF INCEPTION, TO JUNE 30, 2002
                                                  (UNAUDITED)


                                                                                               PERIOD FROM
                                                           SIX MONTHS       SIX MONTHS       APRIL 16, 2001,
                                                              ENDED            ENDED        DATE OF INCEPTION,
                                                          JUNE 30, 2002    JUNE 30, 2001     TO JUNE 30, 2002
                                                         ---------------  ---------------  --------------------
<S>                                                      <C>              <C>              <C>
OPERATING ACTIVITIES
    Net loss                                             $     (158,469)  $      (38,838)  $          (374,285)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
        Depreciation                                                586               64                 1,172
        Increase in imputed interest costs                        1,158              294                 2,963
        (Increase) decrease in other assets                          10             (115)                 (115)
        Increase in other liabilities                             5,900                -                 5,900
                                                         ---------------  ---------------  --------------------
              Net cash used in operating activities            (150,815)         (38,595)             (364,365)
                                                         ---------------  ---------------  --------------------
INVESTING ACTIVITIES
    Purchase of premises and equipment                                -           (2,155)               (8,208)
                                                         ---------------  ---------------  --------------------
              Net cash used in investing activities                   -           (2,155)               (8,208)
                                                         ---------------  ---------------  --------------------
FINANCING ACTIVITIES
    Proceeds from issuance of common stock                            -                -                    10
    Proceeds from line of credit                                163,500                -               332,500
    Advances from organizers                                          -           55,000                55,000
    Increase in deferred stock offering costs                   (12,291)               -               (12,291)
                                                         ---------------  ---------------  --------------------
              Net cash provided by financing activities         151,209           55,000               375,219
                                                         ---------------  ---------------  --------------------
Net increase in cash                                                394           14,250                 2,646

Cash at beginning of period                                       2,252                -                     -
                                                         ---------------  ---------------  --------------------
Cash at end of period                                    $        2,646   $       14,250   $             2,646
                                                         ===============  ===============  ====================
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                        5
<PAGE>
                          GENERATIONS BANCSHARES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1.   NATURE  OF  BUSINESS  AND  BASIS  OF  PRESENTATION

          Generations  Bancshares,  Inc.  ("the  Company") was incorporated as a
          Georgia  corporation  on  October  1,  2001 to serve as a bank holding
          company  for  Generations  Bank  (In  Organization)  (the "Bank"). The
          Company  filed  a  Registration  Statement  with  the  Securities  and
          Exchange Commission to register for sale of a minimum of 770,000 and a
          maximum  of  1,000,000  shares of the Company's $1 par value per share
          common  stock  at  $10.00 per share. The registration statement became
          effective  on  June  27,  2002.

          Since  inception,  the  Company  has  engaged  in  organizational  and
          preopening  activities necessary to obtain regulatory approvals and to
          prepare  to  commence  business  as  a  financial  institution.

          The  Company is a development stage company as defined by Statement of
          Financial  Accounting  Standards  No.  7,  Accounting and Reporting by
          Development  Stage  Enterprises,  as  it devotes substantially all its
          efforts  to  establishing  a  new  business.  The  Company's  planned
          principal  operations  have  not  commenced  and  revenue has not been
          recognized  from  the  planned  principal  operations.

          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,  2002  are  not  necessarily indicative of the results to be
          expected  for  the  full  year.

NOTE 2.   COMMITMENTS

          The  Company  has  entered  into  employment agreements with its chief
          executive  officer and president for initial terms of three years. The
          agreements  provide for a base salary, an incentive bonus based on the
          Company's  performance,  stock  options,  and  other  perquisites
          commensurate  with  their  employment.

          The  organizers  have entered into an option to lease the land for the
          proposed  site  of  the  Bank.  On  June 3, 2002, the lease option was
          extended  through  November  30, 2002 for a fee of $20,000 plus $3,500
          per  month  beginning  on  May  30,  2002. All option fees and monthly
          rentals  have  been  expensed  in  the  accompanying  statement  of
          operations.  For  the six months ended June 30, 2002, $33,000 has been
          expensed  in  the  accompanying  statements  of  operations related to
          leases.

          As of June 30, 2002, the terms of the ground lease described above had
          been  negotiated. The terms will be for 30 years at an initial monthly
          rental  of  $3,500 that will increase annually with the Consumer Price
          Index.  The  Company  expects to account for the lease as an operating
          lease.


                                        6
<PAGE>
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 3.   LOSSES  PER  SHARE

          Due  to  only  one  organizational  share of stock outstanding for the
          three  and  six month periods ended June 30, 2002, losses per share is
          equal  to  the  net  loss  reported  in  the accompanying statement of
          operations.  There  were  no  shares outstanding for the three and six
          month  periods  ended  June  30,  2001.



                                        7
<PAGE>
                          GENERATIONS BANCSHARES, INC.

ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

FORWARD-LOOKING  STATEMENTS

          Some  of  the  statements  in  this  report  are  "forward-looking
statements."  Forward-looking  statements  include  statements  about  the
competitiveness  of  the  banking  industry,  potential  regulatory obligations,
potential  economic growth in our primary service area, our strategies and other
statements  that are not historical facts. When we use in this report words like
"anticipate,"  "believe,"  "expect,"  "estimate,"  and  similar expressions, you
should  consider  them  as  identifying  forward-looking  statements. Our actual
results  may differ materially from the results discussed in the forward-looking
statements,  and  our  operating  performance each quarter is subject to various
risks  and  uncertainties  that  are discussed in detail in our filings with the
Securities  and Exchange Commission, including the "Risk Factors" section in our
Registration  Statement  on  Form  SB-2 (Registration Number 333-84142) as filed
with  and  declared  effective  by  the  Securities  and  Exchange  Commission.

LIQUIDITY

     Liquidity  represents  the  ability  to provide steady sources of funds for
loan  commitments  and  investment activities, as well as to maintain sufficient
funds  to  cover  deposit  withdrawals  and  payment  of  debt  and  operating
obligations.  As  a state-chartered bank, our proposed subsidiary is expected to
be  able to obtain these funds by converting assets to cash or by attracting new
deposits.  The  Bank's  ability  to maintain and increase deposits will serve as
its  primary  source  of  liquidity.

     We  know  of  no trends, demands, commitments, events or uncertainties that
should  result  in,  or  are reasonably likely to result in our, or our proposed
subsidiary's,  liquidity  increasing  or  decreasing  in any material way in the
foreseeable  future,  other than as a result of our current securities offering.

CAPITAL  ADEQUACY

     We  believe  that  the  net  proceeds of the offering will satisfy our cash
requirements  for  at least the 12 months following the opening of the Bank, our
proposed  subsidiary.  Accordingly,  we  do  not  anticipate  that  it  will  be
necessary  to  raise  additional  funds  to  operate  during  that  period.  All
anticipated  material expenditures for such period have been identified and will
be  provided  for  from  the  proceeds  of  the  offering.

     The  following  is  our  plan  of  operation that describes the significant
factors  affecting  our  financial  position  and  operating  results during the
periods  included  in  the  preceding  condensed  financial  statements.

PLAN  OF  OPERATION

     As  of  June  30, 2002, we were in the development stage and will remain in
that stage until at least 770,000 shares, at $10.00 per share, have been sold in
the offering and we receive final approval from our bank regulatory agencies for
the  new  bank.  We  were  incorporated on October 1, 2001 to serve as a holding
company for the proposed bank.  The Bank is being organized as a state-chartered
bank  under  the  laws of the State of Georgia with its location in Blairsville,
Union  County,  Georgia.

     Our  operations  from April 16, 2001 through June 30, 2002 have been funded
by  advances  from the organizers and through a line of credit from Nexity Bank.
The  total  amount  of  the  line  of  credit is $700,000, of which $332,500 was
outstanding  at  June  30,  2002.  The line of credit has been guaranteed by our
organizers,  bears  interest at the prime rate minus one-half of one percent and
is  due  on  June  10,  2003.  Interest expense in the amount of $2,963 has been
imputed  on  the  organizers'  advances  at a rate equal to the prime rate minus
one-half  of  one percent for the period from April 16, 2001, date of inception,
to  June  30,  2002.


                                        8
<PAGE>
     We  had  a net loss of $374,285 for the period from April 16, 2001, date of
inception,  through June 30, 2002.  These losses resulted from expenses incurred
in  connection  with  activities  related to our organization.  These activities
included  (without limitation) the preparation and filing of an application with
the  Georgia  Department  of  Banking  and  Finance  to  charter  the  Bank, the
preparation  and  filing  of an application with the FDIC to obtain insurance of
the  deposits of the Bank, applying to become a bank holding company, responding
to  questions  and providing additional information to the Georgia Department of
Banking  and  Finance  and  the FDIC in connection with the application process,
preparing  to  sell  our  common stock in the offering, meetings and discussions
among  various  organizers  regarding  application  information, target markets,
capitalization  issues,  salaries  and benefits, and planning and organizing for
the  opening  of  the Bank.  Because we are in the organizational stage, we have
had  no  operations  from  which  to  generate  revenues.

     Since  our inception, all activities have been related to our organization,
including, organizing the Bank, obtaining all required regulatory approvals, and
obtaining stock subscriptions.  We intend to devote the remainder of this fiscal
year  to  completing  the  offering,  completing  the  organization of the Bank,
organizing  and  developing  our  other  business  activities,  and  opening and
operating  the  Bank.  These organizational activities will include with respect
to  the  Bank, completing all required steps for final approval from the Georgia
Department  of  Banking  and  Finance  for the Bank to open for business, hiring
qualified  personnel,  conducting  public  relations  activities,  developing
prospective  business  contacts,  and  taking  other  actions  necessary  for  a
successful  bank opening.  With respect to the Company, these activities include
the pursuit of approval from the Federal Reserve Bank of Atlanta and the Georgia
Department  of Banking and Finance to become a bank holding company by acquiring
all  of  the  capital  stock  to  be  issued  by  the  Bank.

     Once  opened,  the  Bank  will  offer  a  full  range of commercial banking
services  to  individuals  and  small  business customers in its primary service
area.  These  services  will  include  personal  and  business  loans,  checking
accounts,  savings,  and  time  certificates of deposit.  The loans, transaction
accounts,  and time certificates will be at rates competitive with those offered
in  the  Bank's  primary  service area.  Customer deposits with the Bank will be
insured  to  the  maximum  extent  provided  by  law through the FDIC.  The Bank
intends  to  offer  night  depository  and  bank-by-mail  services  and  to sell
travelers  checks  (issued  by  an independent entity) and cashiers checks.  The
Bank  does  not  anticipate  offering trust and fiduciary services initially and
will  rely  on trust and fiduciary services offered by correspondent banks until
the  Bank  determines  that  it  is  profitable to offer such services directly.

     Initially,  the  Bank  anticipates  deriving  its  income  principally from
interest  charged  on  loans  and,  to  a lesser extent, from interest earned on
investments, from fees received in connection with the origination of loans, and
from  other  services.  The  Bank's  principal  expenses  are  anticipated to be
interest  expense  on  deposits  and  operating  expenses.

     Following  the offering, we believe we can satisfy future cash requirements
indefinitely,  and will not have to raise additional capital during the first 12
months  of  operations.  The  Bank intends to accept deposits and make loans and
investments  in accordance with an asset and liability management framework that
emphasizes  appropriate  levels  of  liquidity  and  interest  rate  risk.


                                        9
<PAGE>
                           PART II - OTHER INFORMATION



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

          (a)  Exhibits.

               99.1 Certification  of  Chief  Executive  Officer  and  Principal
                    Accounting  Officer  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


                                       10
<PAGE>
                                   SIGNATURES



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 13, 2002                      /s/  John  D. Carini
       -------------------                  -----------------------------------
                                            John D. Carini
                                            Chief Executive Officer
                                            (Principal Executive Officer)



Date:  August 13, 2002                       /s/  David K. George
       -------------------                   ----------------------------------
                                             David K. George
                                             President
                                             (Principal Accounting Officer)


                                       11
<PAGE>