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 MARCH 31, 2003

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO _________


Commission file number 0-27984


                       Ridgestone Financial Services, Inc.
         ---------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


         Wisconsin                                               39-1797151
-------------------------------                              ------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

                             13925 West North Avenue
                           Brookfield, Wisconsin 53005
                     --------------------------------------
                    (Address of principal executive offices)

                                   262-789-1011
                            -------------------------
                           (Issuer's telephone number)


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.

     Class                                Outstanding as of March 31, 2003
     -----                                --------------------------------
     Common Stock, no par value                        877,659

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


<PAGE>

               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY

                                      INDEX

                                                                            Page
                                                                          Number
PART I - FINANCIAL INFORMATION

     Item 1.  Financial Statements............................................ 1

              Consolidated Balance Sheets at
              March 31, 2003 and December 31, 2002............................ 1

              Consolidated Statements of Income
              For the Three  Months Ended March 31, 2003 and 2002 ............ 2

              Consolidated Statements of Cash Flows
              For the Three Months Ended March 31, 2003 and 2002.............. 3

              Consolidated Statements of Stockholders' Equity
              For the Three Months Ended March 31, 2003 and 2002.............. 4

              Notes to Consolidated Financial Statements...................... 5


     Item 2.  Management's Discussion and Analysis............................ 6

     Item 3. Controls and Procedures..........................................11


PART II - OTHER INFORMATION


     Item 6.  Exhibits and Reports on Form 8-K................................12


SIGNATURES     ...............................................................13

CERTIFICATIONS ...............................................................14



<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                 BALANCE SHEETS
                      March 31, 2003 and December 31, 2002


                                                                      March 31,          December 31,
                                                                        2003                2002
                                                                    (Unaudited)
                                                                 -----------------    ----------------
<S>                                                                   <C>                 <C>
ASSETS
Cash and due from banks                                               $ 4,145,560         $ 4,431,478
Federal funds sold                                                              0                   0
                                                                 -----------------    ----------------
   Cash and cash equivalents                                            4,145,560           4,431,478

Interest bearing deposits in banks                                         87,991              87,427
Available for sale securities - stated at fair value                      116,500             138,460
Loans, less allowance for loan losses of $766,118
and $736,118 in 2003 and 2002, respectively                            75,386,314          73,250,825
Mortgage loans held for sale                                            3,819,500           2,160,021
Premises and equipment, net                                             2,490,131           2,488,734
Cash surrender value of life insurance                                  2,269,016           2,252,516
Accrued interest receivable and other assets                            1,264,043           1,157,560
                                                                 -----------------    ----------------

   Total Assets                                                       $89,579,055         $85,967,021
                                                                 =================    ================

LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES
Deposits:
   Demand                                                             $15,042,666         $14,352,801
   Savings and NOW                                                     28,318,043          29,680,304
   Other Time                                                          29,398,458          27,152,835
                                                                 -----------------    ----------------
      Total deposits                                                   72,759,167          71,185,940

Borrowed funds                                                          7,562,000           5,612,000
Accrued interest payable and other liabilities                          1,468,255           1,568,170
                                                                 -----------------    ----------------

   Total Liabilities                                                   81,789,422          78,366,110
                                                                 -----------------    ----------------

STOCKHOLDERS' EQUITY
Preferred stock, no par value, 2,000,000 shares authorized,
     no shares issued
Common stock, no par value, 10,000,000 shares authorized;
    877,659 shares issued and
outstanding                                                             8,423,619           8,423,619
Accumulated deficit                                                     (609,432)           (807,465)
Accumulated other comprehensive loss                                     (24,554)            (15,243)
                                                                 -----------------    ----------------

   Total Stockholders' Equity                                           7,789,633           7,600,911
                                                                 -----------------    ----------------

   Total Liabilities and Stockholders' Equity                         $89,579,055         $85,967,021
                                                                 =================    ================

</TABLE>


                                       1
<PAGE>

<TABLE>
<CAPTION>
                                 RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                          CONSOLIDATED STATEMENTS OF INCOME
                                     Three Months Ended March 31, 2003 and 2002
                                                     (Unaudited)


                                                                         Three Months Ended
                                                               March 31,                     March 31,
                                                                  2003                          2002
                                                         -----------------------       -----------------------
<S>                                                                 <C>                           <C>
Interest income
      Interest and fees on loans                                    $ 1,258,655                   $ 1,032,162
      Interest on federal funds sold                                          0                        30,485
      Interest on deposits in banks                                         565                           717
                                                         -----------------------       -----------------------
            Total interest income                                     1,259,220                     1,063,364
                                                         -----------------------       -----------------------

Interest expense
      Interest on deposits                                              320,765                       391,881
      Interest on borrowed funds                                         58,214                        19,855
                                                         -----------------------       -----------------------
            Total interest expense                                      378,979                       411,736
                                                         -----------------------       -----------------------
Net interest income before provision for loan losses                    880,241                       651,628
Provision for loan losses                                                30,000                        35,000
                                                         -----------------------       -----------------------
Net interest income after provision for loan losses                     850,241                       616,628
                                                         -----------------------       -----------------------

Noninterest income
      Service charges on deposit accts                                   35,627                        31,757
      Secondary market loan fees                                         89,911                        29,435
      Gain on sale of other real estate                                   2,321                             0
      Increase in cash surrender value                                   31,500                        43,304
      Other income                                                       58,732                        22,678
                                                         -----------------------       -----------------------
            Total noninterest income                                    218,091                       127,174
                                                         -----------------------       -----------------------

Noninterest expense
      Salaries and employee benefits                                    437,847                       401,993
      Occupancy and equipment expense                                    57,703                        57,487
      Other expenses                                                    266,061                       175,725
                                                         -----------------------       -----------------------
              Total noninterest expense                                 761,611                       635,205
                                                         -----------------------       -----------------------

Income before income taxes                                              306,721                       108,597

Provision for income taxes                                              108,688                        31,300
                                                         -----------------------       -----------------------

Net income                                                           $  198,033                     $  77,297
                                                         =======================       =======================

Earnings per share
      Basic                                                          $      .23                      $    .09
      Diluted                                                        $      .21                      $    .09

Weighted average shares outstanding                                     877,659                       876,492

</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
                         RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                             Three Months Ended March 31, 2003 and 2002
                                             (Unaudited)

                                                                   Three Months Ended
                                                                       March 31,              March 31,
                                                                         2003                   2002
                                                                 ------------------     -------------------
<S>                                                                    <C>                    <C>
Cash flows from operating activities:
     Net income                                                        $   198,033            $     77,297
          Adjustments to reconcile net income to
               net cash flows from operating activities:
               Depreciation                                                 38,400                  39,000
               Provision for loan losses                                    30,000                  35,000
               Net increase in cash surrender value                        (16,500)                      0
          Net change in:
               Mortgage loans held for sale                             (1,659,479)                564,700
               Accrued interest receivable and other assets               (437,165)               (535,742)
               Accrued interest payable and other liabilities              173,888                 183,372
                                                                 ------------------     -------------------
                    Net cash flows from operating activities            (1,672,823)                363,627
                                                                 ------------------     -------------------

Cash flows from investing activities:
          Net increase in interest-bearing deposits in banks                  (564)                   (718)
          Net increase in loans                                         (2,095,961)             (3,194,897)
          Additions to premises and equipment                              (39,797)                (94,312)
                                                                 ------------------     -------------------
                    Net cash flows from investing activities            (2,136,322)             (3,289,927)
                                                                 ------------------     -------------------

Cash flows from financing activities:
          Net increase in deposits                                       1,573,227               3,382,883
          Proceeds from borrowed funds                                   1,950,000               3,000,000
                                                                 ------------------     -------------------
                    Net cash flows from financing activities             3,523,227               6,382,883
                                                                 ------------------     -------------------

                       Net change in cash and cash equivalents            (285,918)               3,456,583

Cash and cash equivalents - beginning                                  $ 4,431,478            $  9,601,962
                                                                 ------------------     -------------------
Cash and cash equivalents - ending                                     $ 4,145,560            $ 13,058,545
                                                                 ==================     ===================

Supplemental cash flow disclosures

            Cash paid for interest                                     $   352,014            $    294,648
            Cash paid for income taxes                                 $   188,740            $          0

</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>
                                   RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                                    CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                       Three Months Ended March 31, 2003 and 2002
                                                      (Unaudited)


                                                                                        Accumulated
                                                                                           Other
                                                 Common            Accumulated         Comprehensive
                                                  Stock              Deficit               Loss                Total

<S>                                           <C>                  <C>                   <C>               <C>
Balances, December 31, 2001                   $   8,417,117        $ (1,308,899)         $  (56,603)       $  7,051,615
Comprehensive income:
     Net income - three months                                           77,297                                  77,297
     Other comprehensive income-
          change in unrealized loss on
          securities available for sale                                                      11,400              11,400
                                                                                                          ---------------
     Total comprehensive income                                                                                  88,697
                                                                                                          ---------------
Balances, March 31, 2002                      $   8,417,117        $ (1,231,602)         $  (45,203)       $  7,140,312
                                            ================    ================    ==================    ===============

Balances, December 31, 2002                   $   8,423,619           $(807,465)         $  (15,243)       $  7,600,911

Comprehensive income:
     Net income - three months                                          198,033                                 198,033
     Other comprehensive loss-change in
          unrealized loss on securities
          available for sale                                                                 (9,311)             (9,311)
                                                                                                          ---------------
         Total comprehensive income                                                                             188,722
                                                                                                          ---------------

Balances, March 31, 2003
                                              $   8,423,619        $   (609,432)         $  (24,554)       $  7,789,633
                                            ================    ================    ==================    ===============

</TABLE>

                                       4
<PAGE>
               RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              March, 2003 and 2002
                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Ridgestone
Financial Services, Inc. (the "Company") have been prepared in accordance with
accounting principles generally accepted in the United States of America for
interim financial information and with the instructions to Form 10-QSB.
Accordingly, they do not include all of the information and footnotes required
by accounting principles generally accepted in the United States of America for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) considered necessary for the fair
presentation of the Company's financial position as of March 31, 2003 and
December 31, 2002 and the Company's results of operations, changes in
stockholder equity, and cash flows for the three months ended March 31, 2003 and
2002 have been made. Operating results for the three months ended March 31, 2003
are not necessarily indicative of the results that may be expected for the year
ended December 31, 2003. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted. The accounting policies followed by the Company are set
forth in Note 1 to the Company's consolidated financial statements contained in
the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002.
For further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 2002.

NOTE 2 - PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary, Ridgestone Bank (the "Bank"). All
significant intercompany accounts and transactions have been eliminated in the
consolidated financial statements.

The consolidated income of the Company is principally from the income of the
Bank. The Bank grants commercial, residential and consumer loans and accepts
deposits from customers primarily in southeastern Wisconsin. The Bank is subject
to competition from other financial institutions and non-financial institutions
providing financial products. Additionally, the Company and the Bank are subject
to the regulations of certain regulatory agencies and undergo periodic
examination by those regulatory agencies.

NOTE 3 - STOCK-BASED COMPENSATION PLAN

At March 31, 2003, the Company has a stock-based employee compensation plan. The
Company accounts for this plan under the recognition and measurement principles
of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related
interpretations. No stock-based employee compensation cost is reflected in net
income (loss), as all options granted under this plan had an exercise price
equal to the approximate market value of the underlying common stock on the date
of grant. The following table illustrates, in accordance with SFAS No. 148,
Accounting for Stock-Based Compensation - Transition and Disclosure, the effect
on net income (loss) and earnings per share if the Company had applied the fair
value recognition provisions of SFAS No. 123, Accounting for Stock-Based
Compensation, to stock-based employee compensation.
<TABLE>
<CAPTION>
                                                                                March 31, 2003                March 31, 2002
<S>                                                                          <C>                           <C>
          Net income - as reported                                           $          198,033            $           77,297
          Deduct: Total stock-based employee compensation expense
                determined under a fair value based method for all awards
                granted, net of related tax effects                                      28,764                        36,495
                        Pro forma net income                                 $          169,269            $           40,802
                                                                                ================              ================

          Basic earnings per share - as reported                             $             0.23            $             0.09
                        Pro forma basic earnings per share                   $             0.19            $             0.05

          Diluted earnings per share - as reported                           $             0.21            $             0.09
                        Pro forma diluted earnings per share                 $             0.18            $             0.05

</TABLE>

                                       5
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

GENERAL

Ridgestone Financial Services, Inc. (the "Company") was formed in May 1994 under
the laws of the State of Wisconsin for the purpose of becoming the bank holding
company of Ridgestone Bank (the "Bank").

The Bank was capitalized on December 6, 1995, and commenced operation on
December 7, 1995. The Bank was organized as a Wisconsin chartered commercial
bank with depository accounts insured to the maximum extent allowable by the
Federal Deposit Insurance Corporation. The Bank provides full service commercial
and consumer banking services in Brookfield, Wisconsin, and adjacent
communities.

CRITICAL ACCOUNTING POLICIES. In preparing consolidated financial statements in
conformity with accounting principles generally accepted in the United States of
America, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities as of the date of the balance
sheet and reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The Company has identified the
determination of the allowance for loan loss reserves and deferred tax assets as
critical accounting policies that require material estimates and that are
particularly susceptible to significant change in the near term.

     Allowance for Loan Losses. The allowance for loan losses is determined
     using a methodology which reserves currently for those loans in which it is
     determined that a loss is probable based on characteristics of the
     individual loan, historical loss patterns of similar, "homogeneous" loans
     and environmental factors unique to each measurement date. The allowance
     for loan losses is determined in accordance with FASB Statements 5 and 114
     and provides for losses that have potentially been incurred as of the
     balance sheet date. The allowance is based on past events and current
     economic conditions, and does not include the effects of expected losses on
     specific loans or groups of loans that are related to future events or
     expected changes in economic conditions. The reserving methodology used by
     the Company has the following components:

     Specific reserve. On a monthly basis, management reviews all past due loans
     and loans previously classified in order to classify or reclassify loans
     requiring attention, or those with potential losses. Problem loans include
     credits that have been identified as having underlying problems based on
     assessment of the borrowers' business or collateral. Included in this group
     are those nonaccrual loans that meet the criteria as being "impaired". A
     loan is considered impaired when, based on current information and events,
     it is probable that the Bank will be unable to collect the scheduled
     payments of principal and interest when due according to the contractual
     terms of the loan agreement. Factors considered by management in
     determining impairment include payment status, collateral value, and the
     probability of collecting scheduled principal and interest payments when
     due. Impairment is measured on a loan by loan basis for commercial and
     construction loans by either the present value of expected future cash
     flows discounted at the loan's effective interest rate, the loan's
     obtainable market price, or the fair value of the collateral if the loan is
     collateral dependent. Ranges of loss are determined based on best- and
     worst- case scenarios for each loan.

     Reserves for homogeneous loan pools. The Company makes a significant number
     of loans which, due to their underlying similar characteristics, are
     assessed for loss as "homogeneous" pools. The homogeneous pools of loans
     are made up of commercial, commercial real estate, residential mortgages
     and consumer loans. All of the loans included in the homogeneous pools have
     been excluded from the specific reserve allocation previously discussed.
     The Company allocates the allowance for loan losses to each loan category
     based on a defined methodology that has been in use, without material
     change, for several years. The methodology is based on historical loss
     information and regulatory averages.

                                       6
<PAGE>

     Actual loss ratios experienced in the future could vary from those
     projected. This uncertainty occurs because other factors affecting the
     determination of probable losses inherent in the loan portfolio may exist
     which are not necessarily captured by the application of historical loss
     ratios. To ensure a higher degree of confidence, an unallocated allowance
     is also maintained. The unallocated portion of the allowance reflects
     management's view that the allowance should have a margin that recognizes
     the imprecision underlying the process of estimating expected credit
     losses. Determination of the probable losses inherent in the portfolio,
     which are not necessarily captured by the allocated methodology discussed
     above, involves the exercise of judgment. Factors considered in the
     evaluation of the adequacy of the Company's unallocated allowance include
     portfolio exposure due to concentration in specific industries. While
     management uses the best information available to make its evaluation,
     future adjustments to the allowance may be necessary if there are
     significant changes in economic conditions.

     Deferred Taxes. Amounts provided for income tax expense are based on income
     reported for financial statement purposes and do not necessarily represent
     amounts currently payable under tax laws. Deferred income tax assets and
     liabilities are computed annually for differences between the financial
     statement and tax bases of assets and liabilities that will result in
     taxable or deductible amounts in the future based on enacted tax laws and
     rates applicable to the periods in which the differences are expected to
     affect taxable income. As changes in tax laws or rates are enacted,
     deferred tax assets and liabilities are adjusted through the provision for
     income taxes. The differences relate principally to the allowance for loan
     losses, deferred compensation, and net operating loss carryforwards.
     Valuation allowances are established when necessary to reduce deferred tax
     assets to the amount expected to be realized.

The following is a discussion of the Company's Financial Condition and Results
of Operations as of and for the three months ended March 31, 2003. The
discussion provides additional analysis of the financial statements and should
be read in conjunction with that information.


FINANCIAL CONDITION

TOTAL ASSETS. Total assets of the Company as of March 31, 2003 were $89,579,055
compared to $85,967,021 as of December 31, 2002, an increase of $3,612,034 or
4%. The increase was primarily the result of loan growth and an increase in
long-term mortgage loans held for sale in the secondary loan market.

CASH AND CASH EQUIVALENTS. Cash and due from banks which represent cash
maintained at the Bank and funds that the Bank and the Company have deposited in
other financial institutions, was $4,145,560 at March 31, 2003, compared to
$4,431,478 at December 31, 2002. The decrease of $286,000 was primarily due to
net loan activity which used cash of $3,755,000 funded by a $1,573,000 net
increase in deposits and $1,950,000 of proceeds from borrowed funds.

INVESTMENT SECURITIES. The Company's investment portfolio currently consists of
securities placed in the available for sale category which may be liquidated to
provide cash for operating or financing purposes. The available-for-sale
securities portfolio decreased to $116,500 at March 31, 2003 from $138,460 at
December 31, 2002 as a result of a decrease in the market value of available for
sale securities.

LOANS. Loan demand remained strong with an increase of $2,165,489, or 3%, as
total loans prior to the allowance for loan losses grew from $73,986,943 as of
December 31, 2002 to $76,152,432 as of March 31, 2003. There were $3,819,500 and
$2,160,021 of mortgage loans held for sale at March 31, 2003 and December 31,
2002, respectively. These loans represent loans originated with the intent to be
sold in the secondary loan market. The Company has secondary market sales
commitments for these loans mitigating interest rate risk on loans held for
sale.

                                       7
<PAGE>

At March 31, 2003, the mix of the loan portfolio included Commercial loans of
$33,697,182 or 44% of total loans; Commercial Real Estate loans of $22,858,984
or 30% of total loans; Residential Real Estate loans of $18,919,075 or 25% of
total loans; and Consumer loans of $677,191 or 1% of total loans.

At December 31, 2002, the mix of the loan portfolio included Commercial loans of
$33,532,942 or 45% of total loans; Commercial Real Estate loans of $25,831,597
or 35% of total loans; Residential Real Estate loans of $13,783,616 or 19% of
total loans; and Consumer loans of $838,788 or 1% of total loans.

ALLOWANCE FOR LOAN LOSSES. Based on the loss estimates described in "General -
Critical Accounting Policies - Allowance for Loan Losses," management determines
its best estimate of the required loan loss reserve. Management's evaluation of
these factors resulted in an allowance for loan losses of $766,118 or 1.01% of
gross loans at March 31, 2003 compared to $736,118 or 0.99% of gross loans at
December 31, 2002.

The resulting provisions for loan losses are the amounts required to maintain
the allowance for loan losses at levels deemed necessary by management after
taking into consideration charge-offs and recoveries. The provisions for loan
losses for the three months ended March 31, 2003 and 2002 were $30,000 and
$35,000, respectively. Management recognizes there are significant estimates in
the process and the ultimate losses could be significantly different from those
currently estimated. For additional information regarding the Company's
allowance for loan losses, see "Results of Operations - Provision for Loan
Losses" below.

DEPOSITS. Deposits as of March 31, 2003 were $72,759,167 compared to $71,185,940
at December 31, 2002, an increase of $1,573,227 or 2%, with the majority of
growth in time deposits.

BORROWED FUNDS. In November 2000, the Bank became a member of the Federal Home
Loan Bank (the "FHLB"). As a member, the Bank has the capacity to borrow funds
from the FHLB up to a predetermined amount based on the amount of certain types
of loans carried by the Bank.

The Bank continued to see strong and increasing demand for loans and mortgage
loans held for sale in the secondary market during fiscal 2002 and the first
three months of 2003. As a result of this increasing demand, in order to fund
loan growth, the Bank borrowed $4,500,000 from the FHLB during fiscal 2002, with
applicable interest rates ranging from 3.61% to 3.99% and with varying
maturities through May 2004. On March 31, 2003, the Bank also purchased
$3,062,000 in Federal Funds, which are inter-bank funds with daily maturities,
resulting in total borrowings of $7,562,000 as of March 31, 2003.

LIQUIDITY. For banks, liquidity generally represents the ability to meet
withdrawals from deposits and the funding of loans. The assets that provide
liquidity are cash, federal funds sold and securities. Further, subject to
certain limits, the Company has the ability to acquire additional funds through
short-term borrowings from other financial institutions. Liquidity needs are
influenced by economic conditions, interest rates and competition. The
loan-to-deposit ratio prior to the allowance for loan losses on March 31, 2003
was 105% compared to 104% at December 31, 2002. The funds needed to meet the
increase in loan growth during the first quarter of 2003 came from deposit
growth and short-term borrowings.

Management continues to place emphasis on generating deposits in the local
community to keep pace with increasing loan demand.

Net cash used in operating activities for the three months ended March 31, 2003,
was $1,672,823. The cash was primarily used to fund increased mortgage loans
held for sale in the secondary market. Mortgage loans held for sale in the
secondary market increased to $3,819,500 at March 31, 2003 compared to
$2,160,021 at December 31, 2002.

                                       8
<PAGE>

OFF-BALANCE SHEET LIABILITIES. The Company is party to financial instruments
with off-balance sheet risk in the normal course of business to meet the
financing needs of its customers. These financial instruments include
commitments to extend credit, commitments under credit card arrangements,
commercial letters of credit and standby letters of credit. These financial
instruments are recorded in the financial statement when they are funded or
related fees are incurred or received.

As of March 31, 2003, the Company had $18,199,346 in financial instruments with
off-balance sheet risk compared to $19,400,871 at December 31, 2002.

ASSET/LIABILITY MANAGEMENT. Closely related to liquidity management is the
management of interest-earning assets and interest-bearing liabilities. The
Company manages its rate sensitivity position to avoid wide swings in net
interest margins and to minimize risk due to changes in interest rates.

Changes in net interest income, other than volume related changes, arise when
interest rates on assets reprice in a time frame or interest rate environment
that is different from the repricing period for liabilities. Changes in net
interest income also arise from changes in the mix of interest-earning assets
and interest-bearing liabilities.

CAPITAL RESOURCES. Capital ratios applicable to the Bank and the Company at
March 31, 2003 and December 31, 2002 were as follows:

<TABLE>
<CAPTION>
                                                                                                   To Be Well Capitalized
                                                                         For Capital Adequacy      Under Prompt Corrective
                                                   Actual                      Purposes               Action Provisions
                                          -------------------------    -------------------------   -------------------------
                                              Amount        Ratio          Amount       Ratio          Amount        Ratio
                                          ---------------  --------    --------------- ---------   ---------------  --------
<S>                                        <C>              <C>         <C>               <C>        <C>
As of March 31, 2003
    Total capital (to risk weighted
    assets)
       Ridgestone Financial Services,      $   8,580,000    10.7 %      $   6,408,000     8.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   8,228,000    10.3 %      $   6,381,000     8.0 %      $  7,976,000    10.0 %
    Tier 1 capital (to risk weighted
    assets)
       Ridgestone Financial Services,      $   7,814,000     9.8 %      $   3,204,000     4.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   7,462,000     9.4 %      $   3,190,000     4.0 %      $  4,786,000     6.0 %
    Tier 1 capital (to average assets)
       Ridgestone Financial Services,      $   7,814,000     9.0 %      $   3,488,000     4.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   7,462,000     8.6 %      $   3,475,000     4.0 %      $  4,344,000     5.0 %
As of December 31, 2002
    Total capital (to risk weighted
    assets)
       Ridgestone Financial Services,      $   8,368,000    11.0 %      $   6,061,000     8.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   7,993,000    10.6 %      $   6,045,000     8.0 %      $  7,556,000    10.0 %
    Tier 1 capital (to risk weighted
    assets)
       Ridgestone Financial Services,      $   7,631,000    10.1 %      $   3,031,000     4.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   7,257,000     9.6 %      $   3,022,000     4.0 %      $  4,534,000     6.0 %
    Tier 1 capital (to average assets)
       Ridgestone Financial Services,      $   7,631,000     9.2 %      $   3,316,000     4.0 %      $    N/A         N/A
       Inc.
       Ridgestone Bank                     $   7,257,000     8.8 %      $   3,302,000     4.0 %      $  4,128,000     5.0 %

</TABLE>

Management intends to maintain capital levels in excess of minimums established
by the regulatory authorities. The Bank was categorized as "well capitalized"
under the regulatory framework for capital adequacy as of March 31, 2003 and
December 31, 2002.

                                       9
<PAGE>

RESULTS OF OPERATIONS

NET INCOME. For the three months ended March 31, 2003, the Company reported net
income of $198,033, an increase of $120,736 or 156% compared to net income of
$77,297 for the three months ended March 31, 2002. The increase for the three
months is attributed primarily to net interest margin improvement, growth in
loans and an increase in non-interest income.

NET INTEREST INCOME. Total interest income increased by $195,856 for the three
months ended March 31, 2003 as compared with the same period in 2002. Total
interest expense decreased by $32,757 for the three months ended March 31, 2002
as compared with the same period in 2002. For the three months ended March 30,
2003, the Company's net interest margin improved to 4.56% compared to 3.94% for
the same period in 2002. Net interest income before provision for loan losses
for the three months ended March 31, 2003 was $880,241 compared to $651,628 for
the same period in 2002, an increase of $228,613 or 35%. The net interest income
increase for the three months ended March 31, 2003 compared to the same period
last year is primarily due to loan growth and net interest margin improvement.

PROVISION FOR LOAN LOSSES. The allowance for loan losses is established as
losses are estimated to have occurred through a provision for loan losses
charged to earnings. Loan losses are charged against the allowance when
management believes the collectibility of a loan balance is unlikely. Subsequent
recoveries, if any, are credited to the allowance. The allowance for loan losses
is adequate to cover probable credit losses relating to specifically identified
loans, as well as probable credit losses inherent in the balances of the loan
portfolio. In accordance with FASB Statements 5 and 114, the allowance is
provided for losses that have been incurred as of the balance sheet date and is
based on past events and current economic conditions, and does not include the
effects of expected losses on specific loans or groups of loans that are related
to future events or expected changes in economic conditions. See "General -
Critical Accounting Policies - Allowance for Loan Losses" for additional factors
used in determining the loan loss reserve and provision for loan losses.

The Company made a loan loss provision of $30,000 in the first three months of
2003 compared with a provision of $35,000 during the same period in 2002. The
provision was made to bring the allowance to the amount determined necessary by
management based on the analysis performed.

NON-INTEREST INCOME. Total non-interest income was $218,091 for the three months
ended March 31, 2003 compared to $127,174 for the same period in 2002, an
increase of $90,917 or 71%. The increase in non-interest income for the three
months ended March 31, 2003 is primarily due to gains on sales of loans related
to long-term mortgage loans sold in the secondary market.

NON-INTEREST EXPENSE. Total non-interest expenses were $761,611 for the three
months ended March 31, 2003 compared to $635,205 for the same period in 2002, an
increase of $126,406 or 20%. The increase in non-interest expenses for the three
months ended March 31, 2003 is attributed primarily to increased personnel
expenses and general operating expenses.


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters discussed in this Quarterly Report on Form 10-QSB are
"forward-looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes,"
"anticipates," "expects," or other words of similar import. Similarly,
statements that describe the Company's future plans, objectives, or goals are
also forward-looking statements. Such forward-looking statements are subject to
certain risks and uncertainties which could cause actual results to differ
materially from those contemplated in the forward-looking statements. Such risks
include, among others: interest rate trends, the general economic climate in the
Company's market area, loan delinquency rates, and legislative enactments or
regulatory changes which adversely affect the business of the Company and/or the
Bank. Shareholders, potential

                                       10
<PAGE>

investors and other readers are urged to consider these factors in evaluating
the forward-looking statements. The forward-looking statements included herein
are only made as of the date of this Form 10-QSB and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.


ITEM 3.  CONTROLS AND PROCEDURES

Within 90 days prior to the date of filing of this report, the Company carried
out an evaluation, under the supervision and with the participation of the
Company's management, including its Chairman of the Board, President and Chief
Executive Officer and its Senior Vice President and Treasurer, of the design and
operation of the Company's disclosure controls and procedures. Based on this
evaluation, the Company's Chairman of the Board, President and Chief Executive
Officer and the Senior Vice President and Treasurer concluded that the Company's
disclosure controls and procedures are effective for recording, processing,
summarizing and reporting the information the Company is required to disclose in
the reports it files under the Securities Exchange Act of 1934, within the time
periods specified in the SEC's rules and forms.

There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of their evaluation.

                                       11
<PAGE>

PART II - OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     a.   Exhibits

          99.1 Written Statement of the Chairman of the Board, President and
               Chief Executive Officer Pursuant to 18 U.S.C. Section 1350

          99.2 Written Statement of the Senior Vice President and Treasurer
               Pursuant to 18 U.S.C. Section 1350


     b.   Reports on Form 8-K

          The Company did file a Current Report on Form 8-K during the quarter
          ended March 31, 2003.


                                       12
<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.

                                      RIDGESTONE FINANCIAL SERVICES, INC.


Date:   May 13, 2003                  /s/ Paul E. Menzel
                                      ----------------------------------------
                                      Paul E. Menzel
                                      Chairman of the Board, President and Chief
                                      Executive Officer


Date:   May 13, 2003                  /s/ William R. Hayes
                                      ----------------------------------------
                                      William R. Hayes
                                      Senior Vice President and Treasurer


                                       13
<PAGE>

                                 Certifications

I, Paul E. Menzel, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Ridgestone Financial
Services, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
     information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls and
     procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

                                      Date:  May 13, 2003

                                      /s/ Paul E. Menzel
                                      ------------------------------------------
                                      Paul E. Menzel
                                      Chairman of the Board, President and Chief
                                      Executive Officer


                                       14
<PAGE>

                                 Certifications

I, William R. Hayes, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Ridgestone Financial
Services, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
     information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls and
     procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c) presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

     a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

                                           Date:  May 13, 2003


                                           /s/ William R. Hayes
                                           -------------------------------------
                                           William R. Hayes
                                           Senior Vice President and Treasurer


                                       15