----

----

**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-QSB**

**[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**[        ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)**

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

| Community                  Banks of Georgia, Inc.                                                   |
|-----------------------------------------------------------------------------------------------------|
| (Exact                  name of small business issuer as specified in its                  charter) |

| Georgia                                                   | 20-0485183                                            |
|-----------------------------------------------------------|-------------------------------------------------------|
| (State                  of Incorporation)                 | (I.R.S.                  Employer Identification No.) |
|                                                      |                                                  |
| 15                  Sammy McGhee Blvd.                    |                                                  |
| Jasper,                  Georgia                          | 30143                                                 |
| (Address                  of principal executive offices) | (Zip                  Code)                           |

| 706-253-9600                        |
|-------------------------------------|
| (Telephone                  Number) |

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Table            of Contents

**COMMUNITY        BANKS OF GEORGIA, INC. **

| **INDEX**                 |                                                                                                       |                      |
|---------------------------|------------------------------------------------------------------------------------------------------------|---------------------------|
|                      |                                                                                                       |                      |
|                      |                                                                                                       | Page                  No. |
|                      |                                                                                                       |                      |
| PART                  I   | FINANCIAL                  INFORMATION                                                                     |                      |
|                      |                                                                                                       |                      |
| Item                  1.  | Consolidated                  Financial Statements                                                         |                      |
|                      |                                                                                                       |                      |
|                      | Consolidated                  Balance Sheet (unaudited) at June 30, 2005                  and              |                      |
|                 | Consolidated                  Balance Sheet (audited) at December 31,                  2004                | 3                         |
|                      |                                                                                                       |                      |
|                      |                                                                                                       |                      |
|                      | Consolidated                  Statements of Earnings (unaudited) for the Three                  Months and |                      |
|                      | Six                  Months Ended June 30, 2005 and 2004                                                   | 4                         |
|                      |                                                                                                       |                      |
|                      | Consolidated                  Statements of Comprehensive Income (unaudited)                  for the      | 5                         |
|                      | Three                  Months and Six Months Ended June 30, 2005 and                  2004                 |                      |
|                      |                                                                                                       |                      |
|                      | Consolidated                  Statements of Cash Flows (unaudited) for                  the Six Months     |                      |
|                      | Ended June                  30, 2005 and 2004                                                         | 6                         |
|                      |                                                                                                       |                      |
|                      | Notes                  to Consolidated Financial Statements                  (unaudited)                   | 7-8                       |
|                      |                                                                                                       |                      |
| Item                  2.  | Management's                  Discussion and Analysis of Financial Condition                  and          |                      |
|                      | Results                  of Operations                                                                     | 9-10                      |
|                      |                                                                                                       |                      |
| Item                  3.  | Controls                  and Procedures                                                                   | 11                        |
|                      |                                                                                                       |                      |
| PART                  II. | OTHER                  INFORMATION                                                                         |                      |
|                      |                                                                                                       |                      |
| Item                  1.  | Legal                  Proceedings                                                                         | 12                        |
|                      |                                                                                                       |                      |
| Item                  2.  | Unregistered                  Sales of Equity Securities and Use of                  Proceeds              | 12                        |
|                      |                                                                                                       |                      |
| Item                  3.  | Defaults                  Upon Senior Securities                                                           | 12                        |
|                      |                                                                                                       |                      |
| Item                  4.  | Submission                  of Matters to a Vote of Security                  Holders                      | 12                        |
|                      |                                                                                                       |                      |
| Item                  5.  | Other                  Information                                                                         | 12                        |
|                      |                                                                                                       |                      |
| Item                  6.  | Exhibits                                                                                                   | 12                        |

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Table          of Contents

**PART      I. FINANCIAL INFORMATION**

CONSOLIDATED

**COMMUNITY      BANKS OF GEORGIA, INC. **

Balance 

| Assets                                                                                                                                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                             |   | June                30, 2005(unaudited) |   | December                31, 2004(audited) |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Cash                  and due from banks, including reserve requirements of                  $341,000and                  $258,000, respectively |   | $ | 2,969,755 |   |   | 818,805 |   |
| Federal                funds sold                                                                                                                |   |   | 3,728,000 |   |   | 1,542,000 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                         |   |   | 6,697,755 |   |   | 2,360,805 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Investment                securities available for sale                                                                                          |   |   | 23,002,568 |   |   | 24,075,600 |   |
| Other                investments                                                                                                                 |   |   | 588,032 |   |   | 514,951 |   |
| Loans,                net                                                                                                                        |   |   | 140,191,531 |   |   | 119,421,210 |   |
| Premises                and equipment, net                                                                                                       |   |   | 2,517,217 |   |   | 2,454,068 |   |
| Accrued                interest receivable and other assets                                                                                      |   |   | 1,915,849 |   |   | 1,885,664 |   |
| Bank                owned life insurance                                                                                                         |   |   | 2,505,767 |   |   | 2,070,533 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Total                assets                                                                                                                      |   | $ | 177,418,719 |   |   | 152,782,831 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Liabilities                and Shareholders' Equity                                                                                              |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                     |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                        |   |   |   |   |   |   |   |
| Demand                                                                                                                                           |   | $ | 7,605,657 |   |   | 7,683,588 |   |
| Interest                bearing demand and money market                                                                                          |   |   | 18,673,861 |   |   | 15,030,470 |   |
| Savings                                                                                                                                          |   |   | 2,446,570 |   |   | 2,323,849 |   |
| Time                                                                                                                                             |   |   | 75,885,359 |   |   | 67,186,621 |   |
| Time                over $100,000                                                                                                                |   |   | 53,578,109 |   |   | 42,492,030 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Total                deposits                                                                                                                    |   |   | 158,189,556 |   |   | 134,716,558 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Federal                Home Loan Bank advances                                                                                                   |   |   | 3,900,000 |   |   | 3,900,000 |   |
| Accrued                interest payable and other liabilities                                                                                    |   |   | 801,305 |   |   | 622,792 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Total                liabilities                                                                                                                 |   |   | 162,890,861 |   |   | 139,239,350 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Commitments                                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Shareholders'                equity:                                                                                                             |   |   |   |   |   |   |   |
| Common                stock, $5 par value; 10,000,000 shares authorized;                                                                         |   |   |   |   |   |   |   |
| 970,000                shares issued and outstanding                                                                                             |   |   | 4,850,000 |   |   | 4,850,000 |   |
| Additional                paid-in capital                                                                                                        |   |   | 5,803,524 |   |   | 5,803,524 |   |
| Retained                earnings                                                                                                                 |   |   | 3,927,808 |   |   | 2,880,866 |   |
| Accumulated                comprehensive (loss) income                                                                                           |   |   | (53,474 | ) |   | 9,091 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
| Total                shareholders’ equity                                                                                                  |   |   | 14,527,858 |   |   | 13,543,481 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |
|                                                                                                                                             |   | $ | 177,418,719 |   |   | 152,782,831 |   |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC. **

Consolidated

|                                                                     |   | Three                Months Ended |      | Six                Months Ended |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|-----------|---------------------------------|--------|
|                                                                     |   | June                30, 2005      |      | June                30, 2004    |   | June                30, 2005 |   | June                30, 2004 |   |
| Interest                income:                                          |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Loans,                including loan fees                                |   | $                                 | 2,433,214 |                            |   | 1,766,750 |   |   | 4,641,832 |   |   | 3,405,211 |   |
| Investment                securities                                     |   |                              | 281,412   |                            |   | 275,795 |   |   | 561,873 |   |   | 539,979 |   |
| Federal                funds sold                                        |   |                              | 15,239    |                            |   | 5,190 |   |   | 21,116 |   |   | 9,486 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Total                interest income                                     |   |                              | 2,729,865 |                            |   | 2,047,735 |   |   | 5,224,821 |   |   | 3,954,676 |   |
| Interest                expense:                                         |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Deposits                                                                 |   |                              | 1,110,360 |                            |   | 639,109 |   |   | 2,005,239 |   |   | 1,221,657 |   |
| Federal                Home Loan Bank advances                           |   |                              | 33,371    |                            |   | 11,479 |   |   | 58,436 |   |   | 22,958 |   |
| Other                                                                    |   |                              | 1,890     |                            |   | 541 |   |   | 6,207 |   |   | 1,202 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Total                interest expense                                    |   |                              | 1,145,621 |                            |   | 651,129 |   |   | 2,069,882 |   |   | 1,245,817 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Net                interest income                                       |   |                              | 1,584,244 |                            |   | 1,396,606 |   |   | 3,154,939 |   |   | 2,708,859 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                                 |   |                              | 60,000    |                            |   | 100,000 |   |   | 192,500 |   |   | 140,000 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Net                interest income after provision for loan losses       |   |                              | 1,524,244 |                            |   | 1,296,606 |   |   | 2,962,439 |   |   | 2,568,859 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Other                income:                                             |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts                       |   |                              | 97,774    |                            |   | 89,850 |   |   | 185,159 |   |   | 161,409 |   |
| Mortgage                origination fees                                 |   |                              | 16,315    |                            |   | 12,508 |   |   | 25,034 |   |   | 29,564 |   |
| Other                income                                              |   |                              | 44,065    |                            |   | 33,545 |   |   | 96,967 |   |   | 63,221 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Total                other income                                        |   |                              | 158,154   |                            |   | 135,903 |   |   | 307,160 |   |   | 254,194 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Other                expenses:                                           |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                            |   |                              | 432,040   |                            |   | 355,351 |   |   | 836,529 |   |   | 683,967 |   |
| Occupancy                and equipment                                   |   |                              | 94,716    |                            |   | 93,276 |   |   | 195,319 |   |   | 180,155 |   |
| Other                operating                                           |   |                              | 312,192   |                            |   | 233,426 |   |   | 662,456 |   |   | 454,271 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Total                other expenses                                      |   |                              | 838,948   |                            |   | 682,053 |   |   | 1,694,304 |   |   | 1,318,393 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Net                earnings before income tax expense                    |   |                              | 843,450   |                            |   | 750,456 |   |   | 1,575,295 |   |   | 1,504,660 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                        |   |                              | 316,958   |                            |   | 283,429 |   |   | 528,353 |   |   | 570,068 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Net                earnings                                              |   | $                                 | 526,492   |                            |   | 467,027 |   |   | 1,046,942 |   |   | 934,592 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Earnings                per common share:                                |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share (based on average outstanding    |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| shares                of 970,000)                                        |   | $                                 | .54       |                            |   | .48 |   |   | 1.08 |   |   | .96 |   |
|                                                                     |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share (based on average outstanding  |   |                              |      |                            |   |   |   |   |   |   |   |   |   |
| shares                of 1,036,667, 1,035,000, 1,036,667, and 1,035,000) |   | $                                 | .51       |                            |   | .45 |   |   | 1.01 |   |   | .90 |   |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC. **

Statements 

|                                                                    |   | Three                Months Ended |    | Six                Months Ended |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|---------|---------------------------------|--------|
|                                                                    |   | June                30, 2005      |    | June                30,2004     |   | June                30, 2005 |   | June                30, 2004 |   |
|                                                                    |   |                              |    |                            |   |   |   |   |   |
| Net                earnings                                             |   | $                                 | 526,492 |                            | $      | 467,027 |   | $ | 1,046,942 |   | $ | 934,592 |   |
|                                                                    |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss), net of tax:           |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Unrealized                gain (loss) on securities available-for-sale, |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| net                of tax (benefit) of $65,740, ($343,831),             |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
|  ($38,347)                and ($240,656)                           |   |                              | 107,259 |                            |   | (560,987 | ) |   | (62,565 | ) |   | (392,650 | ) |
|                                                                    |   |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Comprehensive                (loss) income                              |   | $                                 | 633,751 |                            | $      | (93,960 | ) | $ | 984,377 |   | $ | 541,942 |   |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC. **

Statements 

|                                                                                                   |   | 2005   |        | 2004   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|
| Cash                flows from operating activities:                                                   |   |   |        |   |   |   |   |
| Net                earnings                                                                       |   | $      | 1,046,942   |   |   | 934,592 |   |
| Adjustments                to reconcile net earnings to net                                            |   |   |        |   |   |   |   |
| cash                provided by operating activities:                                                  |   |   |        |   |   |   |   |
| Provision                for loan losses                                                               |   |   | 192,500     |   |   | 140,000 |   |
| Depreciation,                amortization and accretion                                                |   |   | 80,999      |   |   | 70,150 |   |
| Increase                in bank owned life insurance                                                   |   |   | (30,185     | )      |   | (33,270 | ) |
| Change                in:                                                                              |   |   |        |   |   |   |   |
| Accrued                interest receivable and other assets                                            |   |   | (396,887    | )      |   | (406,789 | ) |
| Accrued                interest payable and other liabilities                                          |   |   | 178,513     |   |   | 333,337 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Net                cash provided by operating activities                                               |   |   | 1,071,882   |   |   | 1,038,020 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Cash                flows from investing activities:                                                   |   |   |        |   |   |   |   |
| Proceeds                from calls, maturities, and                                                    |   |   |        |   |   |   |   |
| paydowns                of securities available for sale                                               |   |   | 2,325,357   |   |   | 615,526 |   |
| Purchases                of other investments                                                          |   |   | (73,081     | )      |   | (138,401 | ) |
| Purchases                of investment securities available for sale                                   |   |   | (1,353,982  | )      |   | (4,384,242 | ) |
| Net                change in loans                                                                     |   |   | (20,962,821 | )      |   | (15,422,757 | ) |
| Purchases                of premises and equipment                                                     |   |   | (143,403    | )      |   | (105,103 | ) |
| Purchase                of bank owned life insurance                                                   |   |   | -           |   |   | (450,705 | ) |
|                                                                                                   |   |   |        |   |   |   |   |
| Net                cash used by investing activities                                                   |   |   | (20,207,930 | )      |   | (19,885,682 | ) |
|                                                                                                   |   |   |        |   |   |   |   |
| Cash                flows from financing activities:                                                   |   |   |        |   |   |   |   |
| Net                change in deposits                                                                  |   |   | 23,472,998  |   |   | 19,812,130 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Net                cash provided by financing activities                                               |   |   | 23,472,998  |   |   | 19,812,130 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Net                increase in cash and cash equivalents                                               |   |   | 4,336,950   |   |   | 964,468 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Cash                and cash equivalents at beginning of the period                                    |   |   | 2,360,805   |   |   | 3,249,225 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Cash                and cash equivalents at end of period                                              |   | $      | 6,697,755   |   |   | 4,213,693 |   |
|                                                                                                   |   |   |        |   |   |   |   |
| Supplemental                schedule of noncash investing activities:                                  |   |   |        |   |   |   |   |
| Change                in unrealized (loss) on securities available for sale, net of                tax |   | $      | (100,912    | )      |   | (392,650 | ) |
|                                                                                                   |   |   |        |   |   |   |   |
| Supplemental                disclosure of cash flow information:                                       |   |   |        |   |   |   |   |
| Interest                paid                                                                           |   | $      | 2,034,778   |   |   | 1,198,383 |   |
| Taxes                paid                                                                              |   | $      | 471,802     |   |   | 622,395 |   |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC.**

Notes

|  (1) | Basis                of Presentation |
|-----------|--------------------------------------|

|   | The                accounting principles followed and the methods of applying these                principles conform with accounting principles generally accepted                in the                United States of America and with general practices within the banking                industry. In preparing financial statements in conformity with GAAP,                management is required to make estimates and assumptions that affect                the                reported amounts in the financial statements. Actual results could                differ                significantly from those estimates. Material estimates common to                the                banking industry that are particularly susceptible to significant                change                in the near term include, but are not limited to, the determinations                of                the allowance for loan losses, the valuation of real estate acquired                in                connection with or in lieu of foreclosure on loans, and valuation                allowances associated with deferred tax assets, the recognition of                which                are based on future taxable income. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reclassifications |
|-----|-------------------|

| (3) | Net                Earnings Per Share |
|-----|---------------------------------------|

| **For                the Six Months Ended June 30, 2005:**                |   |   Net                Earnings |      | WeightedAverageCommon                Shares |   |  Per                ShareAmount |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------|-----------|---------------------------------------------|--------|--------------------------------------|--------|
|  Basic                earnings per share                             |   | $                                       | 1,046,942 |                                        |   | 970,000                              |   | $ | 1.08 |   |
| Effect                of dilutive securities - stock options and warrants |   |                                    | -         |                                        |   | 66,667                               |   |   | (.07 | ) |
|                                                                      |   |                                    |      |                                        |   |                                 |   |   |   |   |
| Diluted                earnings per share                                 |   | $                                       | 1,046,942 |                                        |   | 1,036,667                            |   | $ | 1.01 |   |

| **For                the Six Months Ended June 30, 2004:**                |   |   Net                Earnings |    | WeightedAverageCommon                Shares |   |  Per                ShareAmount |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------|---------|---------------------------------------------|--------|--------------------------------------|--------|
|  Basic                earnings per share                             |   | $                                       | 934,592 |                                        |   | 970,000                              |   | $ | .96 |   |
| Effect                of dilutive securities - stock options and warrants |   |                                    | -       |                                        |   | 65,000                               |   |   | (.06 | ) |
|                                                                      |   |                                    |    |                                        |   |                                 |   |   |   |   |
| Diluted                earnings per share                                 |   | $                                       | 934,592 |                                        |   | 1,035,000                            |   | $ | .90 |   |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC. **

| (3)   | Net                Earnings Per Share, continued |
|-----------------|--------------------------------------------------|

| **For                the Three Months Ended June 30, 2005:**              |   |   | Net                Earnings |   |   | WeightedAverageCommon                Shares |   |   | Per                ShareAmount |   |
|---------------------------------------------------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------------|--------|
|  Basic                earnings per share                             |   | $      | 526,492                     |   |   | 970,000                                     |   | $      | .54                            |   |
| Effect                of dilutive securities - stock options and warrants |   |   | -                           |   |   | 66,667                                      |   |   | (.03                           | )      |
|                                                                      |   |   |                        |   |   |                                        |   |   |                           |   |
| Diluted                earnings per share                                 |   | $      | 526,492                     |   |   | 1,036,667                                   |   | $      | .51                            |   |

| **For                the Three Months Ended June 30, 2004:**              |   |   Net                Earnings |    | WeightedAverageCommon                Shares |   |  Per                ShareAmount |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------|---------|---------------------------------------------|--------|--------------------------------------|--------|
|  Basic                earnings per share                             |   | $                                       | 467,027 |                                        |   | 970,000                              |   | $ | .48 |   |
| Effect                of dilutive securities - stock options and warrants |   |                                    | -       |                                        |   | 65,000                               |   |   | (.03 | ) |
|                                                                      |   |                                    |    |                                        |   |                                 |   |   |   |   |
| Diluted                earnings per share                                 |   | $                                       | 467,027 |                                        |   | 1,035,000                            |   | $ | .45 |   |

| (4)   | Off                Balance Sheet Arrangements |
|-----------------|-----------------------------------------------|

| (5)   | Subsequent                Events |
|-----------------|----------------------------------|

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Table          of Contents

MANAGEMENT’S

**Financial      Condition**

**Results      of Operations**

*Overall      Year to Date.*
** **

*Net      Interest Income. *

*Provision      for Loan Losses.*

*Other      Income.*

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Table          of Contents

*Other      expense.*

**Capital**

| Risk-Based                Capital Ratios                             |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|
|                                                                      |   |   |   |
| Tier                  1 Tangible Capital, Actual                          |   |   | 10.74  | % |
| Tier                  1 Tangible Capital minimum requirement              |   |   | 4.00   | % |
|                                                                      |   |   |   |   |
| Excess                                                                    |   |   | 6.74   | % |
|                                                                      |   |   |   |   |
| Total                  Capital, Actual                                    |   |   | 11.83  | % |
| Total                  Capital minimum requirement                        |   |   | 8.00   | % |
|                                                                      |   |   |   |   |
| Excess                                                                    |   |   | 3.83   | % |
|                                                                      |   |   |   |   |
| Leverage                  Ratio                                           |   |   |   |   |
|                                                                      |   |   |   |   |
| Tier                  1 Tangible Capital to adjusted total assets, Actual |   |   | 8.70   | % |
| Minimum                  leverage requirement                             |   |   | 4.00   | % |
|                                                                      |   |   |   |   |
| Excess                                                                    |   |   | 4.70   | % |
|                                                                      |   |   |   |   |

**Liquidity**

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Table          of Contents

CONTROLS

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC. **

**PART      II. OTHER INFORMATION**

| Item                1. | LEGAL                  PROCEEDINGS |
|------------------------|------------------------------------|

|   | None |
|--------|------|

|   |   |
|--------|--------|

| Item                2. | UNREGISTEREDSALES                  OF EQUITY SECURITIES AND USE OF                  PROCEEDS |
|------------------------|----------------------------------------------------------------------------------------------|

|   | None |
|--------|------|

| Item                3. | DEFAULTSUPON                  SENIOR                  SECURITIES |
|------------------------|------------------------------------------------------------------|

|   | None |
|--------|------|

| Item                4. | SUBMISSIONOF                  MATTERS TO A VOTE OF SECURITY                  HOLDERS |
|------------------------|--------------------------------------------------------------------------------------|

|   | None |
|--------|------|

| Item                5. | OTHER                  INFORMATION |
|------------------------|------------------------------------|

|   | None |
|--------|------|

| Item              6. | EXHIBITS   |
|----------------------|----------------------|

| (a)   | Exhibits |
|-----------------|----------|

|   | ExhibitNumber |  Description                                                                                                                                                                                                     |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 31.1          | Certification                  by Chief Executive Officer pursuant to Rule 13a - 14(a) / 15d -                  14(a).                                                                                                |
|   | 31.2          | Certification                  by Chief Financial Officer pursuant to Rule 13a - 14(a) / 15d -                  14(a).                                                                                                |
|   | 32.1          | Certification                  by Chief Executive Officer pursuant to 18 U.S.C. Section 1350,                  as adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002 |
|   | 32.2          | Certification                  by Chief Financial Officer pursuant to 18 U.S.C. Section 1350,                  as adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002 |

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Table          of Contents

**COMMUNITY      BANKS OF GEORGIA, INC.**

**SIGNATURES**

|   | COMMUNITY                  BANKS OF GEORGIA, INC.                                                                                                                                                                                                                                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   | By:                      /s/ John T.                  Trammell                                                 |
|   |                         John T. Trammell, President/CEO                                                                                                                                                                                                    |
|   |                         (Principal Executive Officer)                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   | Date:                  August 15,                  2005                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   | By:                    /s/ Frank N.                  Eubanks                                                   |
|   |                         Frank N. Eubanks, CFO                                                                                                                                                                                                              |
|   |                         (Principal Financial and Accounting Officer)                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                     |
|   | Date:                  August 15,                  2005                                                                                                                                                                                                                                  |