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

                                   FORM 10-QSB

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

                For the Quarterly Period Ended September 30, 2005

                                       OR

      -----   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

               For the Transition Period from _________to_________

                          Commission File No. 000-50466

                             DEKALB BANKSHARES, INC.
        (Exact name of small business issuer as specified in its charter)

                   South Carolina                          61-1444253
            (State or other jurisdiction                (I.R.S. Employer
         of incorporation or organization)            Identification No.)

                             631 West DeKalb Street
                          Camden, South Carolina 29020
                    (Address of principal executive offices)

                                  803.432.7575
                (Issuer's telephone number, including area code)
                ------------------------------------------------

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 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 [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                Yes [ ] No [ X ]

State the number of shares outstanding of each of the issuer's classes of common
stock as of the latest practicable date.

      610,139 shares of common stock, no par value, as of October 31, 2005

   Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]


<PAGE>


                             DeKalb Bankshares, Inc.


                                      INDEX

<TABLE>
<CAPTION>

PART I. FINANCIAL INFORMATION                                                                                      Page No.

Item 1. Financial Statements (Unaudited)

<S>                                                                                                                   <C>
        Condensed Consolidated Balance Sheets - September 30, 2005 and December 31, 2004..................................3

        Condensed  Consolidated   Statements  of  Income  -  Nine  months  ended September 30, 2005 and 2004
           and Three months ended September 30, 2005 and 2004.............................................................4

        Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income -
           Nine months ended September 30, 2005 and 2004..................................................................5

        Condensed Consolidated Statements of Cash Flows - Nine months ended September 30, 2005 and 2004...................6

        Notes to Condensed Consolidated Financial Statements...........................................................7-10

Item 2. Management's Discussion and Analysis or Plan of Operation.....................................................11-16

Item 3. Controls and Procedures..........................................................................................17

PART II. OTHER INFORMATION

Item 6. Exhibits.........................................................................................................17
</TABLE>



<PAGE>

                             DEKALB BANKSHARES, INC.
                      Condensed Consolidated Balance Sheets

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements
<TABLE>
<CAPTION>
                                                                                              September 30,             December 31,
                                                                                                  2005                      2004
                                                                                                  ----                      ----
                                                                                               (Unaudited)
Assets:
   Cash and cash equivalents:
<S>                                                                                          <C>                       <C>
     Cash and due from banks ...................................................             $    575,409              $    567,773
     Federal funds sold ........................................................                1,389,000                 3,175,000
     Other interest bearing deposits ...........................................                   85,507                    61,793
                                                                                             ------------              ------------

       Total cash and cash equivalents .........................................                2,049,916                 3,804,566
                                                                                             ------------              ------------
Time deposits with other banks .................................................                        -                   313,494
Investment securities:
   Securities available-for-sale ...............................................               11,596,082                 9,594,385
   Nonmarketable equity securities .............................................                  576,694                   474,813
                                                                                             ------------              ------------
       Total investment securities .............................................               12,172,776                10,069,198
Loans receivable ...............................................................               29,353,522                26,643,037
   Less allowance for loan losses ..............................................                 (300,000)                 (266,478)
                                                                                             ------------              ------------
       Loans, net ..............................................................               29,053,522                26,376,559
Premises and equipment, net ....................................................                1,373,411                 1,411,412
Accrued interest receivable ....................................................                  174,718                   150,875
Other assets ...................................................................                  471,807                   433,673
                                                                                             ------------              ------------
       Total assets ............................................................             $ 45,296,150              $ 42,559,777
                                                                                             ============              ============

Liabilities
Deposits:
   Noninterest-bearing transaction accounts ....................................             $  2,720,030              $  2,788,768
   Interest-bearing transaction accounts .......................................                3,759,777                 3,449,845
   Savings .....................................................................                3,237,408                 3,812,952
   Time deposits $100,000 and over .............................................               12,916,820                12,771,447
   Other time deposits .........................................................                6,647,487                 5,487,366
                                                                                             ------------              ------------
       Total deposits ..........................................................               29,281,522                28,310,378
Securities sold under agreements to repurchase .................................                3,000,000                 3,000,000
Advances from Federal Home Loan Bank ...........................................                7,600,000                 5,900,000
Accrued interest payable .......................................................                   75,020                   120,117
Other liabilities ..............................................................                  109,740                    36,887
                                                                                             ------------              ------------
       Total liabilities .......................................................               40,066,282                37,367,382
                                                                                             ------------              ------------
Shareholders' equity
Common stock, no par value; 20,000,000 shares
   authorized, 610,139 shares issued and outstanding ...........................                5,877,597                 5,877,597
Retained (deficit) .............................................................                 (543,904)                 (644,608)
Accumulated other comprehensive loss ...........................................                 (103,825)                  (40,594)
                                                                                             ------------              ------------
       Total shareholders' equity ..............................................                5,229,868                 5,192,395
                                                                                             ------------              ------------
       Total liabilities and shareholders' equity ..............................             $ 45,296,150              $ 42,559,777
                                                                                             ============              ============
</TABLE>

            See notes to condensed consolidated financial statements.


                                       3
<PAGE>


                             DEKALB BANKSHARES, INC.
                        Consolidated Statements of Income
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                           Nine Months Ended                 Three Months Ended
                                                                              September 30,                      September 30,
                                                                              -------------                      -------------
                                                                         2005             2004              2005             2004
                                                                         ----             ----              ----             ----

Interest income:
<S>                                                                    <C>              <C>              <C>              <C>
   Loans, including fees .......................................       $1,390,453       $1,106,222       $  489,871       $  395,051
   Investment securities, taxable ..............................          290,259          257,502          108,373           90,438
   FHLB interest and dividends .................................           13,985            7,938            4,804            3,498
   Federal funds sold ..........................................           35,798           14,621           10,632            5,481
   Time deposits with other banks ..............................            2,567            5,153               71            1,538
                                                                       ----------       ----------       ----------       ----------
       Total ...................................................        1,733,062        1,391,436          613,751          496,006
                                                                       ----------       ----------       ----------       ----------

Interest expense:
   Time deposits $100,000 and over .............................          253,953          144,251           96,490           54,293
   Other deposits ..............................................          165,012          126,226           63,872           44,079
   Other interest expense ......................................          218,948          133,507           82,372           50,922
                                                                       ----------       ----------       ----------       ----------
       Total ...................................................          637,913          403,984          242,734          149,294
                                                                       ----------       ----------       ----------       ----------

Net interest income ............................................        1,095,149          987,452          371,017          346,712
Provision for loan losses ......................................           45,712           76,000            8,210           37,000
                                                                       ----------       ----------       ----------       ----------
Net interest income after provision for
   loan losses .................................................        1,049,437          911,452          362,807          309,712
                                                                       ----------       ----------       ----------       ----------

Noninterest income:
   Service charges on deposit accounts .........................          113,250          107,914           42,700           34,080
   Gain on sales of securities available for sale ..............                -                -                -                -
   Residential mortgage origination fees .......................          183,617           64,104           59,993           21,455
   Other service charges, commissions and fees .................           29,290           22,180            9,445            7,816
                                                                       ----------       ----------       ----------       ----------
       Total ...................................................          326,157          194,198          112,138           63,351
                                                                       ----------       ----------       ----------       ----------

Noninterest expenses:
   Salaries and employee benefits ..............................          666,364          517,394          225,635          173,493
   Occupancy expense ...........................................           61,181           61,834           20,053           21,045
   Furniture and equipment expense .............................           38,578           35,069           13,516           12,041
   Other operating expenses ....................................          447,938          385,164          148,230          131,556
                                                                       ----------       ----------       ----------       ----------
       Total ...................................................        1,214,061          999,461          407,434          338,135
                                                                       ----------       ----------       ----------       ----------

Income before income taxes .....................................          161,533          106,189           67,511           34,928
Income tax expense .............................................           60,829           39,520           25,470           13,100
                                                                       ----------       ----------       ----------       ----------

Net income .....................................................       $  100,704       $   66,669       $   42,041       $   21,828
                                                                       ==========       ==========       ==========       ==========

Earnings per share
Basic earnings per share .......................................       $      .17       $      .11       $      .07       $      .04
Diluted earnings per share .....................................       $      .16       $      .11       $      .07       $      .04
</TABLE>


            See notes to condensed consolidated financial statements.



                                       4
<PAGE>

                             DEKALB BANKSHARES, INC.
               Condensed Consolidated Statements of Shareholders'
                        Equity and Comprehensive Income
             For the nine months ending September 30, 2005 and 2004
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                        Accumulated
                                                        Common Stock                   Retained            Other
                                                        ------------                   Earnings        Comprehensive
                                                     Shares         Amount             (Deficit)           Income          Total
                                                     ------         ------             ---------           ------          -----
<S>                                                  <C>           <C>               <C>               <C>              <C>
Balance,
   December 31, 2003 ......................          609,060       $ 5,866,807       $  (732,329)      $   (22,632)     $ 5,111,846

Net income
   for the period .........................                                               66,669                             66,669

Other comprehensive
   income, net of tax $1,206 ..............                                                                (2,054)           (2,054)
                                                                                                                        -----------

Comprehensive
   income .................................                                                                                  64,615

Exercise of stock options .................            1,079            10,790                                               10,790
                                                     -------       -----------       -----------       -----------      -----------

Balance,
   September 30, 2004 .....................          610,139       $ 5,877,597       $  (665,660)      $   (24,686)     $ 5,187,251
                                                     =======       ===========       ===========       ===========      ===========

Balance,
   December 31, 2004 ......................          610,139       $ 5,877,597       $  (644,608)      $   (40,594)     $ 5,192,395

Net income
   for the period .........................                                              100,704                            100,704


Other comprehensive
   income, net of tax $37,134 .............                                                               (63,231)          (63,231)
                                                                                                                        -----------

Comprehensive
   income .................................                                                                                  37,473
                                                     -------       -----------       -----------       -----------      -----------

Balance,
   September 30, 2005 .....................          610,139       $ 5,877,597       $  (543,904)      $  (103,825)     $ 5,229,868
                                                     =======       ===========       ===========       ===========      ===========
</TABLE>



            See notes to condensed consolidated financial statements.

                                       5
<PAGE>


                             DEKALB BANKSHARES, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                           Nine Months Ended
                                                                                                             September 30,
                                                                                                             -------------
                                                                                                      2005                  2004
                                                                                                      ----                  ----
Cash flows from operating activities:
<S>                                                                                              <C>                    <C>
   Net income ........................................................................           $   100,704            $    66,669
   Adjustments to reconcile net income to net cash provided
   by operating activities:
     Provision for loan losses .......................................................                45,712                 76,000
     Depreciation and amortization expense ...........................................                90,837                 81,461
     Gain on sale of premises and equipment ..........................................                (1,522)                     -
     Accretion and premium amortization ..............................................                12,712                 12,678
     Deferred income tax provision ...................................................                55,544                 34,660
     (Increase) in interest receivable ...............................................               (23,843)               (25,303)
     Increase (decrease) in interest payable .........................................               (45,097)                11,587
     (Decrease) in other assets ......................................................               (93,678)               (25,178)
     Increase in other liabilities ...................................................                72,853                 42,050
                                                                                                 -----------            -----------
       Net cash provided by operating activities .....................................               214,222                274,624
                                                                                                 -----------            -----------
Cash flows from investing activities:
   Net increase in loans made to customers ...........................................            (2,722,674)            (3,507,513)
   Purchases of securities available-for-sale ........................................            (3,515,070)            (6,076,919)
   Sale, calls or maturities of securities available-for-sale ........................                     -              1,501,206
   Payments received on mortgage backed securities ...................................             1,437,430              1,488,850
   Purchase of non-marketable equity securities ......................................              (101,881)              (198,212)
   Purchases of premises and equipment ...............................................               (63,715)               (38,086)
   Sale of premises and equipment ....................................................                12,400                      -
   Maturities (purchases) of time deposits with other banks ..........................               313,494                 (3,416)
                                                                                                 -----------            -----------
       Net cash used by investing activities .........................................            (4,640,016)            (6,834,090)
                                                                                                 -----------            -----------
Cash flows from financing activities:
   Exercise of stock options .........................................................                     -                 10,790
   Net increase (decrease) in demand deposits, interest-bearing
     transaction accounts and savings accounts .......................................              (334,350)             2,153,783
   Net increase in certificates of deposit and other time deposits ...................             1,305,494              2,133,923
   Increase in securities sold under agreements to repurchase ........................                     -              3,000,000
   Increase in advances from the Federal Home Loan Bank ..............................             1,700,000                900,000
                                                                                                 -----------            -----------
     Net cash provided by financing activities .......................................             2,671,144              8,198,496
                                                                                                 -----------            -----------
Net increase (decrease) in cash and cash equivalents .................................            (1,754,650)             1,639,030
Cash and cash equivalents, beginning .................................................             3,804,566              2,269,695
                                                                                                 -----------            -----------
Cash and cash equivalents, end .......................................................           $ 2,049,916            $ 3,908,725
                                                                                                 ===========            ===========
Cash paid during the period for:
   Interest ..........................................................................           $   692,466            $   392,397
                                                                                                 ===========            ===========
   Taxes .............................................................................           $     4,527            $     1,920
                                                                                                 ===========            ===========
</TABLE>

            See notes to condensed consolidated financial statements.



                                        6
<PAGE>


                             DEKALB BANKSHARES, INC.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)


Note 1 - Basis of Presentation

The accompanying  financial statements have been prepared in accordance with the
requirements  for  interim  financial  statements  and,  accordingly,  they  are
consolidated and omit  disclosures,  which would  substantially  duplicate those
contained in DeKalb  Bankshares,  Inc.'s 2004 Annual Report on Form 10-KSB.  The
financial  statements as of September 30, 2005 and for the interim periods ended
September  30, 2005 and 2004 are  unaudited  and, in the opinion of  management,
include all adjustments  (consisting of normal recurring adjustments) considered
necessary for a fair presentation.  The financial information as of December 31,
2004 has been derived from the audited financial statements as of that date.

Note 2 - Recently Issued Accounting  Pronouncements - The following is a summary
of recent authoritative  pronouncements that affect accounting,  reporting,  and
disclosure of financial information by the Company:

In December  2004,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Statement  of Financial  Accounting  Standards  (SFAS) No. 123  (revised  2004),
"Share-Based  Payment" ("SFAS No.  123(R)").  Statement  No.123(R) covers a wide
range  of  share-based   compensation   arrangements  including  share  options,
restricted share plans, performance-based awards, share appreciation rights, and
employee share purchase plans. SFAS No. 123(R) will require companies to measure
all  employee  stock-based  compensation  awards  using a fair value  method and
record such expense in its financial  statements.  In addition,  the adoption of
SFAS No. 123(R)  requires  additional  accounting and disclosure  related to the
income  tax  and  cash  flow  effects   resulting   from   share-based   payment
arrangements.  SFAS No. 123(R) is effective for small business issuers beginning
with the first interim or annual  reporting  period of a company's  first fiscal
year beginning on or after December 15, 2005.

In April 2005,  the  Securities  and Exchange  Commission's  Office of the Chief
Accountant and its Division of  Corporation  Finance  released Staff  Accounting
Bulletin  (SAB) No.107 to provide  guidance  regarding the  application  of FASB
Statement  No.123(R).  SAB 107  provides  interpretive  guidance  related to the
interaction  between Statement  No.123(R) and certain SEC rules and regulations,
as well as the staff's  views  regarding the  valuation of  share-based  payment
arrangements for public companies.  SAB 107 also reminds public companies of the
importance of including disclosures within filings made with the SEC relating to
the accounting for share-based  payment  transactions,  particularly  during the
transition  to  Statement  No.123(R).  The Company is currently  evaluating  the
impact that the adoption of SFAS No. 123(R) will have on its financial position,
results of operations and cash flows. The cumulative effect of adoption, if any,
will be  measured  and  recognized  in the  statement  of  income on the date of
adoption.

In November  2003, the Emerging  Issues Task Force ("EITF")  reached a consensus
that certain  quantitative  and qualitative  disclosures  should be required for
debt and marketable equity  securities  classified as available for sale or held
to maturity under SFAS No. 115 and SFAS No. 124 that are impaired at the balance
sheet  date  but  for  which   other-than-temporary   impairment  has  not  been
recognized.  Accordingly  the  EITF  issued  EITF  No.  03-1,  "The  Meaning  of
Other-Than-Temporary  Impairment and Its  Application  to Certain  Investments."
This issue  addresses  the meaning of  other-than-temporary  impairment  and its
application  to investments  classified as either  available for sale or held to
maturity  under  SFAS  No.  115  and  provides   guidance  on  quantitative  and
qualitative  disclosures.  The  disclosure  requirements  of EITF  No.  03-1 are
effective for annual financial statements for fiscal years ending after June 15,
2004. The effective date for the measurement  and  recognition  guidance of EITF
No. 03-1 has been delayed.  The FASB staff has issued a proposed  Board-directed
FASB Staff Position ("FSP"), FSP EITF 03-1-a,  "Implementation  Guidance for the
Application  of Paragraph 16 of Issue No.  03-1." The proposed FSP would provide
implementation guidance with respect to debt securities that are impaired solely
due   to   interest    rates   and/or   sector    spreads   and   analyzed   for
other-than-temporary   impairment   under  the   measurement   and   recognition
requirements  of  EITF  No.  03-1.  The  delay  of the  effective  date  for the
measurement  and  recognition  requirements  of EITF No. 03-1 will be superseded
concurrent  with the final issuance of FSP EITF 03-1-a.  Adopting the disclosure
provisions of EITF No. 03-1 did not have any impact on the  Company's  financial
position or results of operations.

Other  accounting  standards  that have been  issued or  proposed by the FASB or
other standards-setting  bodies that do not require adoption until a future date
are not  expected  to  have a  material  impact  on the  consolidated  financial
statements upon adoption.


                                       7
<PAGE>


                             DEKALB BANKSHARES, INC.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

Note 3 - Stock-Based Compensation

The Company has a stock-based employee  compensation plan which is accounted for
under the recognition and measurement  principles of Accounting Principles Board
("APB") Opinion No. 25, "Accounting for Stock Issued to Employees",  and related
Interpretations.  No stock-based employee  compensation cost is reflected in the
net income (loss),  as all stock options granted under the Company's plan had an
exercise price equal to the market value of the  underlying  common stock on the
date of grant.  The following table  illustrates the effect on net income (loss)
and  earnings  (losses)  per common share as if the Company had applied the fair
value recognition  provisions of Financial  Accounting  Standards Board ("FASB")
Statement of Financial  Accounting  Standards ("SFAS") No. 123,  "Accounting for
Stock-Based Compensation", to stock-based employee compensation.

<TABLE>
<CAPTION>
                                                                                            Nine Months Ended September 30,
                                                                                            -------------------------------
                                                                                            2005                       2004
                                                                                            ----                       ----
<S>                                                                                      <C>                        <C>
Net income, as reported ..................................................               $    100,704               $   66,669
Deduct: Total stock-based employee
  compensation expense determined
  under fair value based method
  for all awards, net of related tax effects .............................                    (45,124)                  (7,858)
                                                                                         ------------               ----------

Pro forma net income .....................................................               $     55,580               $   58,811
                                                                                         ============               ==========

Earnings per share:
  Basic - as reported ....................................................               $        .17               $      .11
                                                                                         ============               ==========
  Basic - pro forma ......................................................               $        .09               $      .10
                                                                                         ============               ==========

  Diluted - as reported ..................................................               $        .16               $      .11
                                                                                         ============               ==========
  Diluted - pro forma ....................................................               $        .09               $      .10
                                                                                         ============               ==========
</TABLE>


<TABLE>
<CAPTION>
                                                                                            Three Months Ended September 30,
                                                                                            --------------------------------
                                                                                            2005                        2004
                                                                                            ----                        ----
<S>                                                                                      <C>                        <C>
Net income, as reported ..................................................               $    42,041                $   21,828
Deduct: Total stock-based employee
  compensation expense determined
  under fair value based method
  for all awards, net of related tax effects .............................                    45,124                         -
                                                                                         -----------                ----------

Pro forma net income (loss) ..............................................               $    (3,082)               $   21,828
                                                                                         ===========                ==========

Earnings per share:
  Basic - as reported ....................................................               $       .07                $      .04
                                                                                         ===========                ==========
  Basic - pro forma ......................................................               $      (.01)               $      .04
                                                                                         ===========                ==========

   Diluted - as reported .................................................               $       .07                $      .04
                                                                                         ===========                ==========
   Diluted - pro forma ...................................................               $      (.01)               $      .04
                                                                                         ===========                ==========
</TABLE>


                                       8
<PAGE>

                             DEKALB BANKSHARES, INC.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

Note 4 - Earnings Per Share

A reconciliation  of the numerators and denominators used to calculate basic and
diluted  earnings  per share for the nine months  ended  September  30, 2005 and
2004, and the three months ended September 30, 2005 and 2004 are as follows:

<TABLE>
<CAPTION>
                                                                                         Nine Months Ended September 30, 2005
                                                                                         ------------------------------------
                                                                                     Income                Shares          Per Share
                                                                                  (Numerator)           (Denominator)        Amount
                                                                                  -----------           -------------        ------
<S>                                                                                 <C>                    <C>               <C>
Basic earnings per share
  Income available to common shareholders ............................              $100,704               610,139           $   .17
                                                                                                                             =======
Effect of dilutive securities
  Stock options ......................................................               100,704                 5,457
                                                                                    --------               -------
Diluted earnings per share
  Income available to common shareholders
    plus assumed conversions .........................................              $100,704               615,596           $   .16
                                                                                    ========              ========           =======

<CAPTION>
                                                                                          Nine Months Ended September 30, 2004
                                                                                          ------------------------------------
                                                                                    Income                Shares           Per Share
                                                                                  (Numerator)          (Denominator)         Amount
                                                                                  -----------          -------------         ------
<S>                                                                                 <C>                   <C>                <C>
Basic earnings per share
  Income available to common shareholders ...........................               $66,669               609,095            $   .11
                                                                                                                             =======
Effect of dilutive securities
  Stock options .....................................................                                       1,038
                                                                                    -------               -------
Diluted earnings per share
  Income available to common shareholders
    plus assumed conversions ........................................               $66,669               610,133            $   .11
                                                                                    =======               =======            =======

<CAPTION>
                                                                                         Three Months Ended September 30, 2005
                                                                                         -------------------------------------
                                                                                     Income                Shares          Per Share
                                                                                   (Numerator)         (Denominator)         Amount
                                                                                   -----------         -------------         ------
<S>                                                                                 <C>                   <C>                <C>
Basic earnings per share
  Income available to common shareholders ...........................               $42,041               610,139            $   .07
                                                                                                                             =======
Effect of dilutive securities
  Stock options .....................................................                                       8,112
                                                                                    -------               -------
Diluted earnings per share
  Income available to common shareholders
    plus assumed conversions ........................................               $42,041               618,251            $   .07
                                                                                    =======               =======            =======

<CAPTION>
                                                                                          Three Months Ended September 30, 2004
                                                                                          -------------------------------------
                                                                                     Income               Shares           Per Share
                                                                                   (Numerator)         (Denominator)         Amount
                                                                                   -----------         -------------         ------
<S>                                                                                 <C>                   <C>                <C>
Basic earnings per share
  Income available to common shareholders ...........................               $21,828               609,166            $   .04
                                                                                                                             =======
Effect of dilutive securities
  Stock options .....................................................                     -                 2,441
                                                                                    -------               -------
Diluted earnings per share
  Income available to common shareholders
    plus assumed conversions ........................................               $21,828               611,607            $   .04
                                                                                    =======               =======            =======
</TABLE>

                                       9
<PAGE>


                             DEKALB BANKSHARES, INC.
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

Note 5 - Comprehensive Income

Comprehensive  income includes net income and other comprehensive  income, which
is defined as nonowner related  transactions in equity. The following table sets
forth the amounts of other  comprehensive  income  included in equity along with
the related tax effect for the nine month periods  ended  September 30, 2005 and
2004, and for the three months ended September 30, 2005 and 2004:

<TABLE>
<CAPTION>
                                                                                           Nine Months Ended September 30, 2005
                                                                                           ------------------------------------
                                                                                       Pre-Tax          (Expense)        Net-of-tax
                                                                                       Amount            Benefit           Amount
                                                                                       ------            -------           ------
Unrealized gains (losses) on securities:
<S>                                                                                  <C>                <C>               <C>
   Unrealized holding gains (losses) arising during the period .............         $(100,365)         $  37,134         $ (63,231)
   Plus: reclassification adjustment for gains (losses)
   realized in net income ..................................................                 -                  -                 -
                                                                                     ---------          ---------         ---------
   Net unrealized gains (losses) on securities .............................          (100,365)            37,134           (63,231)
                                                                                     ---------          ---------         ---------
Other comprehensive income (loss) ..........................................         $(100,365)         $  37,134         $ (63,231)
                                                                                     =========          =========         =========

<CAPTION>
                                                                                           Nine Months Ended September 30, 2004
                                                                                           ------------------------------------
                                                                                       Pre-Tax          (Expense)        Net-of-tax
                                                                                       Amount            Benefit           Amount
                                                                                       ------            -------           ------
Unrealized gains (losses) on securities:
<S>                                                                                  <C>                <C>                <C>
   Unrealized holding gains (losses) arising during the period .............         $(3,260)           $ 1,206            $(2,054)
   Plus: reclassification adjustment for gains (losses)
   realized in net income ..................................................               -                  -                  -
                                                                                     -------            -------            -------
   Net unrealized gains (losses) on securities .............................          (3,260)             1,206             (2,054)
                                                                                     -------            -------            -------
Other comprehensive income (loss) ..........................................         $(3,260)           $ 1,206            $(2,054)
                                                                                     =======            =======            =======


<CAPTION>
                                                                                           Three Months Ended September 30, 2005
                                                                                           ------------------------------------
                                                                                       Pre-Tax          (Expense)        Net-of-tax
                                                                                       Amount            Benefit           Amount
                                                                                       ------            -------           ------
Unrealized gains (losses) on securities:
<S>                                                                                   <C>               <C>                <C>
   Unrealized holding gains (losses) arising during the period ..............         $(33,270)         $ 12,310           $(20,960)
   Plus: reclassification adjustment for gains (losses)
   realized in net income ...................................................                -                 -                  -
                                                                                      --------          --------           --------
   Net unrealized gains (losses) on securities ..............................          (33,270)           12,310            (20,960)
                                                                                      --------          --------           --------
Other comprehensive income (loss) ...........................................         $(33,270)         $ 12,310           $(20,960)
                                                                                      ========          ========           ========

<CAPTION>
                                                                                           Three Months Ended September 30, 2004
                                                                                           ------------------------------------
                                                                                       Pre-Tax          (Expense)        Net-of-tax
                                                                                       Amount            Benefit           Amount
                                                                                       ------            -------           ------
Unrealized gains (losses) on securities:
<S>                                                                                   <C>               <C>                <C>
   Unrealized holding gains (losses) arising during the period ..............         $198,086          $(73,292)          $124,794
   Plus: reclassification adjustment for gains (losses)
   realized in net income ...................................................                -                 -                  -
                                                                                      --------          --------           --------
   Net unrealized gains (losses) on securities ..............................          198,086           (73,292)           124,794
                                                                                      --------          --------           --------
Other comprehensive income (loss) ...........................................         $198,086          $(73,292)          $124,794
                                                                                      ========          ========           ========
</TABLE>
Accumulated other comprehensive income consists solely of the unrealized gain on
securities available-for-sale, net of the deferred tax effects.



                                       10
<PAGE>

                             DEKALB BANKSHARES, INC.

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

The  following is a discussion  of our  financial  condition as of September 30,
2005 compared to December 31, 2004,  and the results of operations for the three
and nine months ended  September 30, 2005 and 2004.  This  discussion  should be
read in conjunction with our consolidated  financial statements and accompanying
notes appearing in this report and in conjunction with the financial  statements
and related notes and disclosures in our 2004 Annual Report on Form 10-KSB filed
with  the   Securities   and   Exchange   Commission.   This   report   contains
"forward-looking  statements"  relating to, without limitation,  future economic
performance, plans and objectives of management for future operations,  adequacy
of our allowance for loan losses and projections of revenues and other financial
items  that  are  based  on our  beliefs,  as  well as  assumptions  made by and
information   currently  available  to  us.  The  words  "expect,"   "estimate,"
"anticipate,"  "plan,"  "intend,"  "project,"  and "believe," as well as similar
expressions,  are intended to identify  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.

Results of Operations

Net Interest Income

For the nine months ended  September 30, 2005,  net interest  income,  the major
component of the Company's net income was  $1,095,149,  compared to $987,452 for
the same period in 2004,  an increase of  $107,697.  For the three  months ended
September 30, 2005,  net interest  income was $371,017  compared to $346,712 for
the  comparable  period  of 2004.  The  improvements  in the 2005  periods  were
primarily  attributable  to  increased  loan volume as the Company  continued to
build its loan portfolio,  and to an increase in the investment  portfolio.  The
average rate realized on  interest-earning  assets  increased from 5.29% for the
nine months ended  September 30, 2004 to 5.65% for the 2005 period.  The average
rate paid on interest-bearing  liabilities  increased from 1.80% to 2.44% during
this same period. The net interest spread and net interest margin were 3.22% and
3.57%,  respectively  for the nine months ended September 30, 2005,  compared to
3.48% and 3.72% for the nine months ended  September 30, 2004.  The net interest
spread and net  interest  margin were 3.17% and 3.55% for the three months ended
September  30,  2005  compared  to 3.44% and 3.72%  for the three  months  ended
September 30, 2004.


Provision and Allowance for Loan Losses

The  provision  for loan  losses is the  charge to  operating  earnings  that in
management's  judgment is necessary to maintain the allowance for loan losses at
an adequate  level.  For the nine months ended  September 30, 2005 and 2004, the
provision  was $45,712 and  $76,000,  respectively.  For the three  months ended
September  30,  2005 and 2004,  the  provision  for loan  losses  was $8,210 and
$37,000,  respectively.  There were no nonperforming loans at September 30, 2005
and no  nonperforming  loans at September  30, 2004.  $16,798 in loans have been
criticized or classified as of September 30, 2005. Based on present information,
management  believes the  allowance for loan losses is adequate at September 30,
2005 to meet  presently  known and inherent  losses in the loan  portfolio.  The
allowance for loan losses is 1.02% of total loans at September  30, 2005.  There
are risks  inherent  in making all loans,  including  risks with  respect to the
period of time over which loans may be repaid,  risks  resulting from changes in
economic  and industry  conditions,  risks  inherent in dealing with  individual
borrowers,  and, in the case of a  collateralized  loan,  risks  resulting  from
uncertainties about the future value of the collateral. The Company maintains an
allowance for loan losses based on, among other things,  historical  experience,
including  management's  experience  at other  institutions,  an  evaluation  of
economic  conditions,  and regular reviews of  delinquencies  and loan portfolio
quality. Management's judgment about the adequacy of the allowance is based upon
a number of assumptions about future events, which it believes to be reasonable,
but which may not prove to be accurate.  Thus,  there is a risk that charge-offs
in future periods could exceed the allowance for loan losses or that substantial
additional  increases  in the  allowance  for loan  losses  could  be  required.
Additions  to the  allowance  for loan losses  would result in a decrease of the
Company's net income and, possibly, its capital.



                                       11
<PAGE>

                             DEKALB BANKSHARES, INC.

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

Noninterest Income

Total  noninterest  income for the nine  months  ended  September  30,  2005 was
$326,157  compared to $194,198 for the comparable period in 2004, an increase of
$131,959.  The increase is attributable  to an increase in residential  mortgage
origination fees when compared to the previous period. For the nine months ended
September  30, 2005,  fees on  residential  mortgage loan  originations  totaled
$183,617,  compared  to  $64,104  for  the  comparable  period  in  2004.  Total
noninterest  income for the three months ended  September 30, 2005 was $112,138,
compared to $63,351 for the 2004 period.  For the three  months ended  September
30,  2005 fees  received  on  residential  mortgage  loan  originations  totaled
$59,993,  compared to $21,445 for the comparable period in 2004. The increase in
such  residential  mortgage  loan  origination  fees in the 2005 periods are the
result of  continued  favorable  interest  rates and a more  active  origination
strategy.


Noninterest Expense

Total  noninterest  expense for the nine  months  ended  September  30, 2005 was
$1,214,061 compared to $999,461 for the nine months ended September 30, 2004, an
increase of $214,600.  For the quarter  ended  September  30, 2005,  noninterest
expense was $407,434 an increase of $69,299, over the comparable period of 2004.

The primary  component of  noninterest  expense is salaries and benefits,  which
were $666,364 for the nine months ended  September 30, 2005 compared to $517,394
for the same period in 2004.  Salaries and benefits expense totaled $225,635 and
$173,493 for the three months ended  September 30, 2005 and 2004,  respectively.
Other  operating  expenses were $447,938 for the nine months ended September 30,
2005,  compared to $385,164 for the nine months ended  September 30, 2004.  This
increase is the result of various increases in expenses necessary to support the
growth of the Company.  Other  operating  expenses were $148,230 for the quarter
ended September 30, 2005, compared to $131,556 for the same period in 2004.

Net Income

The  Company's  net income for the nine months ended  September 30, 2005 totaled
$100,704  compared to $66,669 for the comparable  2004 period.  The net earnings
are after the  recognition  of an income tax  expense of $60,829 and $39,520 for
the nine  months  ended  September  30,  2005 and  2004,  respectively.  The net
earnings  for the quarter  ended  September  30, 2005 were  $42,041  compared to
$21,828 for the quarter ended  September  30, 2004.  The net earnings were after
the  recognition  of income tax expense in the amount of $25,470 and $13,100 for
the three months ended September 30, 2005 and 2004, respectively.

Assets and Liabilities

During the nine month period ended  September 30, 2005,  total assets  increased
$2,736,373,  or 6.43%,  when compared to December 31, 2004.  During this period,
gross loans increased  $2,710,485 and total  investments  increased  $2,103,578.
This  increase in assets was funded by a $971,144  increase  in  deposits  and a
$1,700,000 increase in advances and other borrowed money.

Investment Securities

Investment  securities totaled $12,172,776 as of September 30, 2005, compared to
$10,069,198  at  December  31,  2004.  All  investments  in the  portfolio  were
designated as  available-for-sale  except for nonmarketable  equity  securities,
consisting  of stock in the  Federal  Home Loan Bank of Atlanta,  which  totaled
$427,200,  and  stock in  Community  Financial  Services,  Inc.,  which  totaled
$149,494 as of September 30, 2005.



                                       12
<PAGE>

                             DEKALB BANKSHARES, INC.

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

Loans

Gross loans  increased  $2,710,485  during the nine months ended  September  30,
2005. The largest  increase in loans was in  construction  loans which increased
$1,886,756 to $5,247,308  as of September  30, 2005.  Balances  within the major
loans  receivable  categories as of September 30, 2005 and December 31, 2004 are
as follows:

                                                   September 30,    December 31,
                                                       2005             2004
                                                       ----             ----
Mortgage loans on real estate:
   Real estate 1- 4 family .................       $ 9,936,381       $10,336,516
   Commercial ..............................         9,153,500         8,622,253
   Construction ............................         5,247,308         3,360,552
   Second mortgages ........................           221,124            99,595
   Equity lines of credit ..................         2,083,060         1,880,511
                                                   -----------       -----------
       Total mortgage loans ................        26,641,373        24,299,427
Commercial and industrial ..................         1,651,476         1,141,832
Consumer and other .........................         1,060,673         1,201,778
                                                   -----------       -----------
       Total gross loans ...................       $29,353,522       $26,643,037
                                                   ===========       ===========

Risk Elements in the Loan Portfolio

The following is a summary of the risk elements in the loan portfolio:

                                                     September 30, September 30,
                                                          2005         2004
                                                          ----         ----
Loans: Non-accrual ................................     $     -       $     -
Accruing loans more than 90 days past due .........     $     -       $     -
Loans identified by internal review mechanism:
   Criticized .....................................     $16,628       $25,646
   Classified .....................................     $     -       $     -

Criticized  loans have  potential  weaknesses  that deserve close  attention and
could, if uncorrected, result in deterioration of the prospects for repayment or
the  Company's   credit  position  at  a  future  date.   Classified  loans  are
inadequately protected by the sound worth and paying capacity of the borrower or
any  collateral  and there is a distinct  possibility  or  probability  that the
Company will sustain a loss if the deficiencies are not corrected.

Activity in the Allowance for Loan Losses is as follows:

<TABLE>
<CAPTION>
                                                                                           September 30,              September 30,
                                                                                                2005                       2004
                                                                                                ----                       ----
<S>                                                                                        <C>                        <C>
Balance, January 1, ..........................................................             $    266,478               $    305,000
Provision for loan losses for the period .....................................                   45,712                     76,000
Net loans (charged-off) recovered for the period .............................                  (12,190)                  (144,698)
                                                                                           ------------               ------------

Balance, end of period .......................................................             $    300,000               $    236,302
                                                                                           ============               ============

Gross loans outstanding, end of period .......................................             $ 29,353,522               $ 24,986,964
                                                                                           ============               ============

Allowance for loan losses to loans outstanding ...............................                     1.02%                      0.95%
</TABLE>




                                       13
<PAGE>

                             DEKALB BANKSHARES, INC.

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

Deposits

Total  deposits   increased  $971,144  or  3.43%,  from  December  31,  2004  to
$29,281,522  at  September  30,  2005.  The largest  increase  was in other time
deposits which increased  $1,160,121,  or 21.14%, to $6,647,487 at September 30,
2005.  These  deposits are generally more sensitive to changes in interest rates
and   are,    therefore,    considered   less   stable   than   core   deposits.
Noninterest-bearing  deposits decreased  $68,738,  or 2.46%, to $2,720,030 as of
September 30, 2005.

Balances  within the major  deposit  categories  as of  September  30,  2005 and
December 31, 2004 are as follows:

                                                     September 30,  December 31,
                                                         2005           2004
                                                         ----           ----
Noninterest-bearing transaction accounts .......     $ 2,720,030     $ 2,788,768
Interest-bearing transaction accounts ..........       3,759,777       3,449,845
Savings ........................................       3,237,408       3,812,952
Time deposits $100,000 and over ................      12,916,820      12,771,447
Other time deposits ............................       6,647,487       5,487,366
                                                     -----------     -----------
       Total deposits ..........................     $29,281,522     $28,310,378
                                                     ===========     ===========

Advances from the Federal Home Loan Bank

Advances  from the Federal Home Loan Bank of Atlanta  totaled  $7,600,000  as of
September 30, 2005,  as compared to  $5,900,000 as of December 31, 2004.  One of
the  advances of  $1,000,000  was entered into on July 23, 2002 with an interest
rate of  3.87%  and a  maturity  date of  July  23,  2012.  This  advance  has a
"knockout"  provision  beginning on July 23, 2003,  that allows the Federal Home
Loan Bank of Atlanta to convert the advance to an adjustable rate advance if the
3 Month LIBOR rate  exceeds  7.00%.  Another  advance  totaling  $400,000 has an
adjustable  interest  rate of 3.83% as of September  30, 2005.  Another  advance
totaling  $500,000 has an adjustable  interest rate of 3.79% as of September 30,
2005.  Another  advance  totaling  $2,000,000  has an interest rate of 3.79% and
matures  July 22,  2015,  but is callable by the Federal Home Bank of Atlanta on
July 22, 2008. We also borrowed  $3,700,000  under the daily rate credit program
with a rate of 4.16% as of September 30, 2005 that is subject to change daily.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase  totaled  $3,000,000 at September
30, 2005, with an interest rate of 2.95% maturing January 20, 2007.

Liquidity

Liquidity needs are met by the Company through cash and short-term  investments,
and   scheduled   maturities   of  loans  and  through   pricing   policies  for
interest-bearing  deposit  accounts.  As of September  30, 2005,  the  Company's
primary sources of liquidity included federal funds sold totaling $1,389,000 and
un-pledged securities available-for-sale totaling $701,948. The Company also has
lines of credit  available with  correspondent  banks to purchase  federal funds
totaling  $1,900,000 at September  30, 2005.  In addition,  the Company also has
borrowing capacity  available through the Federal Home Loan Bank of Atlanta.  As
of September,  30, 2005 the  Company's  ability to borrow funds from the Federal
Home Loan Bank of Atlanta  totaled  $9,057,932 of which the Company had borrowed
$7,600,000 as of September 30, 2005.

Securities  classified as available-for  sale are recorded at fair market value.
While several  individual  securities  are in an unrealized  loss position as of
September 30, 2005 we have the ability and intent to hold these securities until
such time as the value recovers or the securities  mature. We believe,  based on
industry  analyst reports and credit ratings that the  deterioration in value is
attributable  to changes in market  interest rates and not in the credit quality
of   the   issuer   and    therefore,    these   losses   are   not   considered
other-than-temporary.


                                       14
<PAGE>

                             DEKALB BANKSHARES, INC.

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

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.  Our significant  accounting policies are described
in the notes to the financial statements of DeKalb Bankshares,  Inc. at December
31, 2004 as filed in our 2004 Annual Report on Form 10-KSB.  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.

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 portions of this report and our
2004 Annual Report on Form 10-KSB that address our allowance for loan losses for
a description of our processes and methodology for determining our allowance for
loan losses.

Capital Resources

Total  shareholders'   equity  increased  $37,473  from  December  31,  2004  to
$5,229,868  at  September  30,  2005.  This is the  result of net income for the
period of $100,704, which was offset by a negative adjustment of $63,231 for the
unrealized loss on securities available for sale.

The Company and the Bank are subject to various regulatory capital  requirements
administered by the federal banking agencies.  Quantitative measures established
by regulation to ensure capital  adequacy  require the Bank to maintain  minimum
ratios  of  Tier  1  and  total   capital   as  a   percentage   of  assets  and
off-balance-sheet exposures,  adjusted for risk weights ranging from 0% to 100%.
Tier 1 capital of the Bank includes common stockholders'  equity,  excluding the
unrealized  gain  or  loss  on  securities  available-for-sale,   minus  certain
intangible assets. Tier 2 capital includes the allowance for loan losses subject
to certain  limitations.  Total  capital for purposes of  computing  the capital
ratios consists of the sum of Tier 1 and Tier 2 capital.  The regulatory minimum
requirements are 4% for Tier 1 and 8% for total risk-based capital.

The Bank is also  required  to  maintain  capital  at a minimum  level  based on
adjusted  quarterly  average assets,  which is known as the leverage ratio. Only
the strongest banks are allowed to maintain  capital at the minimum  requirement
of 3%. All others are subject to maintaining  ratios 1% to 2% above the minimum.
The Federal Reserve has similar capital guidelines but it applies its guidelines
on a bank only basis for bank holding  companies  with less than $150 million in
consolidated assets.

The following table  summarizes the Bank's  risk-based  capital at September 30,
2005:

Shareholders' equity ..........................................     $ 5,216,681
Less: unrealized losses on available-for-sale securities ......         103,824
                                                                    -----------
Tier 1 capital ................................................       5,320,505
Plus: allowance for loan losses(1) ............................         300,000
                                                                    -----------
Total risk-based capital ......................................     $ 5,620,505
                                                                    ===========

Risk-weighted assets ..........................................     $30,824,000
                                                                    ===========

Risk-based capital ratios
   Tier 1 capital (to risk-weighted assets) ...................           17.26%
   Total risk-based capital (to risk-weighted assets) .........           18.23%
   Tier 1 capital (to total average assets) ...................           12.08%

(1) Limited to 1.25% of risk-weighted assets



                                       15
<PAGE>

                             DEKALB BANKSHARES, INC.

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

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  specified  periods of time. At September 30,
2005,  we had issued  commitments  to extend  credit of  $5,189,596  and standby
letters  of  credit of  $83,030  through  various  types of  commercial  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. Based on historical
experience,  many of the commitments and letters of credit will expire unfunded.
Accordingly, the amounts shown in the table below do not necessarily reflect the
Company's needs for funds in the periods shown.

<TABLE>
<CAPTION>
                                                      After One       After Three
                                       Within          Through          Through                           Greater
                                         One            Three            Twelve           Within            Than
                                        Month           Months           Months          One Year         One Year           Total
                                        -----           ------           ------          --------         --------           -----
<S>                                  <C>              <C>              <C>              <C>              <C>              <C>
Unused commitments
   to extend credit ..........       $  130,765       $  121,300       $2,551,767       $2,803,832       $2,385,764       $5,189,596
Standby letters of
   credit ....................                -                -           15,000           15,000           68,030           83,030
                                     ----------       ----------       ----------       ----------       ----------       ----------
     Total ...................       $  130,765       $  121,300       $2,566,767       $2,818,832       $2,453,794       $5,272,626
                                     ==========       ==========       ==========       ==========       ==========       ==========
</TABLE>




                                       16
<PAGE>


                             DEKALB BANKSHARES, INC.

Item 3. Controls and Procedures

Based  on  the  evaluation  required  by  17  C.F.R.  Section  240.13a-15(b)  or
240.15d-15(b) of the Company's disclosure controls and procedures (as defined in
17  C.F.R.  Sections  240.13a-15(e)  and  240.15d-15(e)),  the  Company's  chief
executive  officer and chief financial  officer concluded that such controls and
procedures,  as of the end of the period covered by this quarterly report,  were
effective.

There  has been no change  in the  Company's  internal  control  over  financial
reporting during the most recent fiscal quarter that has materially affected, or
is reasonably likely to materially  affect,  the Company's internal control over
financial reporting.



Item 6. Exhibits

     Exhibit 31 - Certification  of Chief Executive  Officer and Chief Financial
     Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     Exhibit 32 - Certification  of Chief Executive  Officer and Chief Financial
     Officer  pursuant to Section 906 of the  Sarbanes-Oxley  Act of 2002.  This
     exhibit  is not  "filed"  for  purposes  of  Section  18 of the  Securities
     Exchange  Act of 1934 but is instead  furnished  as provided by  applicable
     rules of the Securities and Exchange Commission.







                                       17
<PAGE>


                             DEKALB BANKSHARES, INC.

                                    SIGNATURE

In accordance with the requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                        s/William C. Bochette, III
                                     By:----------------------------------------
                                        William C. Bochette, III
                                        Chief Executive Officer, President, and
                                        Chief Financial Officer

Date: November 8, 2005



                                       18
<PAGE>

                             DEKALB BANKSHARES, INC.

Exhibit Index

31   Certification  of Chief  Executive  Officer  and  Chief  Financial  Officer
     pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32   Certification  of Chief  Executive  Officer  and  Chief  Financial  Officer
     pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. This exhibit is
     not "filed" for  purposes of Section 18 of the  Securities  Exchange Act of
     1934 but is  instead  furnished  as  provided  by  applicable  rules of the
     Securities and Exchange Commission.




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