<PAGE>

                                 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

                  For the Quarterly Period Ended June 30, 2000

                                       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 number 000-24139

                         Decatur First Bank Group, Inc.
                         ------------------------------
             (Exact name of registrant as specified in its charter)

           Georgia                                       58-2254289
---------------------------------------     ------------------------------------
    (State of Incorporation)                (I.R.S. Employer Identification No.)

1120 Commerce Drive
Decatur, Georgia                                             30030
----------------------------------------    ------------------------------------
(Address of principal executive offices)                   (Zip Code)


                                  404-373-1000
                               ------------------
                               (Telephone Number)


     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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  XX   NO
                                      ---

             Common stock, par value $5 per share:   942,729 shares
                       outstanding as of  August 1, 2000

                 Transitional Small Business Disclosure Format
                                  (check one)
                              Yes          No   XX
                                  ----         ----
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.

                                     INDEX

<TABLE>
<CAPTION>
                                                                                  Page No.
                                                                                  --------
<S>           <C>                                                                  <C>

PART I        FINANCIAL INFORMATION

   Item 1.    Financial Statements

              Balance Sheet (unaudited) at June 30, 2000                              3

              Statements of Operations (unaudited) for the Three Months
              and the Six Months Ended June 30, 2000 and 1999                         4

              Statements of Comprehensive Income (unaudited) for the Six
              Months Ended June 30, 2000 and 1999                                     5

              Statements of Cash Flows (unaudited) for the Six Months
              Ended June 30, 2000 and 1999                                            6

              Notes to Financial Statements (unaudited)                               7

   Item 2.    Management's Discussion and Analysis of Financial Condition and
              Results of Operations                                                   8

PART II.      OTHER INFORMATION

   Item 1.    Legal Proceedings                                                      10

   Item 2.    Changes in Securities                                                  10

   Item 3.    Defaults Upon Senior Securities                                        10

   Item 4.    Submission of Matters to a Vote of Security Holders                    10

   Item 5.    Other Information                                                      10

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

</TABLE>

This Report contains statements which constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current expectations of the Company, its directors or its officers with respect
to, among other things: (i) the Company's financing plans; (ii) trends affecting
the Company's financial condition or results of operations; (iii) the Company's
growth strategy and operating strategy; and (iv) the declaration and payment of
dividends. Investors are cautioned that any such forward-looking statement is
not a guarantee of future performance and involves risks and uncertainties, and
that actual results may differ materially from those projected in the forward-
looking statements as a result of various factors discussed herein and those
factors discussed in detail in the Company's filings with the Securities and
Exchange Commission.

                                      -2-
<PAGE>

                         PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

                         DECATUR FIRST BANK GROUP, INC.
                                 Balance Sheet
                                 June 30, 2000
                                  (Unaudited)

                                     Assets
                                     ------
<TABLE>
<CAPTION>

<S>                                                  <C>
Cash and due from banks                              $ 2,342,002
Federal funds sold                                     5,810,000
                                                     -----------

     Cash and cash equivalents                         8,152,002

Investment securities available for sale              17,913,688
Loans, net                                            30,415,404
Premises and equipment, net                            1,913,279
Accrued interest receivable and other assets           1,229,222
                                                     -----------

                                                     $59,623,595
                                                     ===========

                     Liabilities and Stockholders' Equity
                     ------------------------------------

Liabilities:
   Deposits:
     Noninterest-bearing                             $10,228,188
     Interest-bearing                                 35,617,096
                                                     -----------

     Total deposits                                   45,845,284

   FHLB Advances                                       5,000,000
   Accrued interest payable and other liabilities        260,716
                                                     -----------

     Total liabilities                                51,106,000
                                                     -----------

Stockholders' equity:
   Preferred stock, no par value; authorized
     2,000,000 shares; no issued shares                        -
   Common stock, $5 par value; authorized
     10,000,000 shares; issued 942,729 shares          4,713,645
   Additional paid-in capital                          4,676,193
   Accumulated deficit                                  (473,984)
   Accumulated comprehensive income                     (398,259)
                                                     -----------

     Total stockholders' equity                        8,517,595
                                                     -----------

                                                     $59,623,595
                                                     ===========

</TABLE>


See accompanying notes to financial statements.

                                      -3-
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.

                            Statements of Operations

      For the Three Months and the Six Months Ended June 30, 2000 and 1999
                                  (Unaudited)

<TABLE>
<CAPTION>


                                                      Three Months                 Six Months
                                                     Ended June 30                Ended June 30
                                                 ----------------------      -----------------------
<S>                                              <C>           <C>           <C>        <C>
                                                    2000         1999          2000          1999
                                                 ----------    --------      ----------   ----------
Interest income:
     Interest and fees on loans                  $  768,415    324,670       1,427,404      558,119
     Interest on federal funds sold                  39,771     21,763          71,631       62,528
     Investment securities                          287,828    284,435         552,482      580,722
                                                 ----------    -------       ---------    ---------
     Total interest income                        1,096,014    630,868       2,051,517    1,201,369
                                                 ----------    -------       ---------    ---------
Interest expense on deposits                        329,346    219,141         642,210      434,944
Interest expense on borrowings                       75,644          -         102,301            -
                                                 ----------    -------       ---------    ---------
     Total interest expense                         404,990    219,141         744,511      434,944
                                                 ----------    -------       ---------    ---------
     Net interest income                            691,024    411,727       1,307,006      766,425

Provision for loan losses                            75,000    105,797         150,000      115,090
                                                 ----------    -------       ---------    ---------
     Net interest income after provision
      for loan losses                               616,024    305,930       1,157,006      651,335
                                                 ----------    -------       ---------    ---------
Other income:
     Service charges on deposit accounts             51,181     28,979          90,219       58,911
     Securities gains (losses)                            -     (3,327)              -       (2,335)
     Gain on sales of loans                          38,186     98,855          47,466      118,773
     Other operating income                           8,536     10,968          21,230       29,047
                                                 ----------    -------       ---------    ---------
          Total other income                         97,903    135,478         158,915      204,396
                                                 ----------    -------       ---------    ---------
Other expense:
     Salaries and other personnel expense           308,130    217,916         564,949      425,153
     Net occupancy and equipment expense             70,229     44,294         133,530       89,267
     Other operating expense                        229,469    210,153         432,896      383,194
                                                 ----------    -------       ---------    ---------
          Total other expense                       607,828    472,363       1,131,375      897,614
                                                 ----------    -------       ---------    ---------
          Earnings (loss) before income taxes       106,099    (30,955)        184,546      (41,883)

          Income tax expense                         40,316          -          70,126            -
                                                 ----------    -------       ---------    ---------

          Net earnings (loss)                    $   65,783    (30,955)        114,420      (41,883)
                                                 ==========    =======       =========    =========
Earnings (loss) per common share:
     Average outstanding shares                     942,597    942,032         942,523      941,958
     Net earnings (loss) per share                     $.07      (0.03)           0.12        (0.04)
                                                 ==========    =======       =========    =========

</TABLE>

See accompanying notes to financial statements.

                                      -4-
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.

                       Statements of Comprehensive Income

                For the Six Months Ended June 30, 2000 and 1999
<TABLE>
<CAPTION>


<S>                                                        <C>        <C>
                                                             2000       1999
                                                           --------   --------

Net earnings (loss)                                        $114,420    (41,883)
Other comprehensive income, net of tax:
 Unrealized gains (losses) on investment
   securities available-for-sale:
    Unrealized gains (losses) arising during the period       4,871   (456,491)
    Less: Income tax expense related to investment
     Securities available for sale                           (1,851)         -
    Less: Reclassification adjustment for gains
     included in net earnings                                     -     (2,335)
                                                           --------   --------

Other comprehensive income (loss)                             3,020   (458,826)
                                                           --------   --------

Comprehensive income (loss)                                $117,440   (500,709)
                                                           ========   ========

</TABLE>



See accompanying notes to financial statements.

                                      -5-
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.
                            Statements of Cash Flows
                For the Six Months Ended June 30, 2000 and 1999
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                                                2000         1999
                                                                             -----------   ----------
<S>                                                                          <C>           <C>
Cash flows from operating activities:
   Net earnings (loss)                                                       $   114,420      (41,883)
     Adjustments to reconcile net earnings (loss) to net
      cash provided by operating activities:
       Provision for loan losses                                                 150,000      115,090
       Depreciation, amortization and accretion                                  100,629       98,032
       Securities losses                                                               -        2,335
       Change in other                                                           156,705       15,557
                                                                             -----------   ----------
              Net cash provided by operating activities                          521,754      189,131
                                                                             -----------   ----------
Cash flows from investing activities:
   Proceeds from sales, maturities and paydowns
     of investment securities available for sale                               2,080,956    6,010,992
   Purchases of investment securities available for sale                      (2,931,798)  (4,402,717)
   Change in loans                                                            (5,965,032)  (6,364,710)
   Purchases of premises and equipment                                           (31,336)    (821,370)
                                                                             -----------   ----------
              Net cash used by investing activities                           (6,847,210)  (5,577,805)
                                                                             -----------   ----------
Cash flows from financing activities:
   Net change in deposits                                                      4,620,918    2,244,428
   Net change in borrowings                                                    5,000,000            -
   Issuance of stock awards                                                        1,749        5,000
   Sale (purchase) of treasury shares                                              1,820       (1,600)
                                                                             -----------   ----------
              Net cash provided by financing activities                        9,624,487    2,247,828
                                                                             -----------   ----------
Net change in cash and cash equivalents                                        3,299,031   (3,140,846)

Cash and cash equivalents at beginning of the period                           4,852,971    7,629,634
                                                                             -----------   ----------
Cash and cash equivalents at end of period                                   $ 8,152,002    4,488,788
                                                                             ===========   ==========
Noncash investing activities:
   Change in unrealized loss on securities available for sale, net of tax    $     3,020     (458,826)

</TABLE>

See accompanying notes to financial statements.

                                      -6-
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.
                         Notes to Financial Statements
                                  (Unaudited)

(1)  Organization and Basis of Presentation
     --------------------------------------

     Decatur First Bank Group, Inc. (Decatur First), a bank holding company,
     owns 100% of the outstanding common stock of Decatur First Bank (the Bank),
     which operates in the Decatur, Georgia area. The Bank opened for business
     on September 2, 1997.

     The consolidated financial statements include the accounts of Decatur First
     and the Bank. All intercompany accounts and transactions have been
     eliminated in consolidation.

     The interim financial statements included herein are unaudited but reflect
     all adjustments which, in the opinion of management, are necessary for a
     fair presentation of the financial position and results of operations for
     the inteim period presented. All such adjustments are of a normal recurring
     nature. The results of operations for the period ended June 30, 2000 are
     not necessarily indicative of the results of a full year's operations.

     The accounting principles followed by Decatur First and the methods of
     applying these principles conform with generally accepted accounting
     principles (GAAP) 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.

                                      -7-
<PAGE>

Item 2.
                         DECATUR FIRST BANK GROUP, INC.

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

                For the Six Months Ended June 30, 2000 and 1999

Financial Condition

     Total assets at June 30, 2000 were $59,623,595 representing a $9,864,699
(20%) increase from December 31, 1999. Deposits increased $4,620,917 (12%) and
loans increased $5,815,032 (24%) from December 31, 1999 to June 30, 2000. The
allowance for loan losses at June 30, 2000 totaled $524,087, representing 1.5%
of total loans compared to December 31, 1999 totals of $373,156, which
represented 1.7% of total loans. Cash and cash equivalents increased $3,299,031
from December 31, 1999 to June 30, 2000.

     There were no related party loans or other loans which were considered
nonperforming at June 30, 2000.

Results of Operations

     Net income for the six months ended June 30, 2000 was $114,420, compared to
a net loss of $41,883 for the same period in 1999.  The increase in net income
was primarily associated with an increase in net interest income ($541,000).
These increases were offset by $234,000 in additional other expenses as well as
an increase in provision for loan losses of $35,000.

     For the six months ended June 30, 2000, the Bank's yield on earning assets
was 8.3% while the cost of funding sources was 4.12%. While the net interest
spread was 4.18%, the net interest margin, which considers the effect of non-
interest bearing deposits, was 5.24%, an increase of 111 basis points as
compared to the same period in the prior year. The increase in the net interest
margin was due to an increase in the amount of outstanding loans and the
proportion of outstanding loans as well as an increase in non-interest bearing
deposits relative to total deposits.  Net interest income increased $541,000 for
the six months ended June 30, 2000 over the same period for 1999 primarily due
to the volume of earning assets and interest bearing liabilities.  Management
monitors the rate sensitivity of earning assets and interest-bearing liabilities
over the entire life of these instruments, but places particular emphasis on the
first year.

     Other income decreased approximately $45,000 for the six months ended June
30, 2000, compared to the same period for 1999 due to a reduction in fees from
the sale of SBA loans.  This decrease was offset with an increase in service
charges on deposit accounts of approximately $32,000 related to an increase in
the number of accounts.

     Other expense increased approximately $234,000 for the six months ended
June 30, 2000, compared to the same period for 1999, primarily due to an
increase in the volume of business, which led to additional expense necessary to
service new business.

                                      -8-
<PAGE>

Capital

     The following tables present Decatur First's regulatory capital position at
June 30, 2000:

     Risk-Based Capital Ratios
     -------------------------

     Tier 1 Tangible Capital, Actual                     19.65%
     Tier 1 Tangible Capital minimum requirement          4.00%
                                                         -----

     Excess                                              15.65%
                                                         =====

     Total Capital, Actual                               20.83%
     Total Capital minimum requirement                    8.00%
                                                         -----

     Excess                                              12.83%
                                                         =====
  Leverage Ratio
  --------------

     Tier 1 Tangible Capital to adjusted total assets
       ("Leverage Ratio")                                15.22%
     Minimum leverage requirement                         4.00%
                                                         -----

     Excess                                              11.22%
                                                         =====

                                      -9-
<PAGE>

                          PART II.  OTHER INFORMATION

                         DECATUR FIRST BANK GROUP, INC.



Item 1.  Legal Proceedings
         -----------------
         None

Item 2.  Changes in Securities
         ---------------------
         During the three months ended June 30, 2000 Decatur First granted 100
         shares of its common stock, $5.00 par value, to selected employees as
         compensation for their services to the Bank. Since the Company only
         granted the shares to employees, the transactions did not involve a
         public offering, and therefore were exempt from registration under
         Section 4(2) of the Securities Act of 1933. The following table sets
         forth the number of shares issued to employees on the dates indicated:

         Date             Number of Shares
         ----             ----------------

         Jan. 18, 2000           40
         April 19, 2000         100

         Additionally, on June 6, 2000, Decatur First sold 140 shares of its
         common stock being held as treasury shares to an employee. This sale of
         140 shares for cash consideration of $1,820.00 did not involve a public
         offering, and therefore was exempt from registration under Section 4(2)
         of the Securities Act of 1933.

Item 3.  Defaults Upon Senior Securities
         -------------------------------
         None

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

         a. On May 2, 2000, Decatur First held its annual meeting of
            shareholders at which the following five Class II directors nominees
            were elected to a three year term expiring in 2003 by the vote
            indicated:

                                      For      Withheld       Total
                                    -------    --------      -------
           Merriell Autrey, Jr.     675,756     266,873      942,629
           John Walter Drake        675,756     266,873      942,629
           William F. Floyd         675,756     266,873      942,629
           Robert E. Lanier         675,756     266,873      942,629
           Roger K. Quillen         675,756     266,873      942,629

Item 5.  Other Information
         -----------------
         Shareholder proposals submitted for consideration at Decatur First's
         2001 Annual Meeting of Shareholders must be received by Decatur First
         no later than December 1, 2000, to be included in the 2001 proxy
         materials. A shareholder must notify Decatur First before February 1,
         2001 if the shareholder has a proposal to present at the 2001 Annual
         Meeting which the shareholder intends to present other than by
         inclusion in Decatur First's proxy material. If Decatur First does not
         receive notice prior to February 1, 2001, proxies solicited by the
         management of Decatur First will confer discretionary authority upon
         the management of Decatur First to vote upon any such proposal.


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

         Exhibit
         Number
         -------

           27       Financial Data Schedule (for SEC purposes only)

         No reports on Form 8-K were filed during the quarter for which this
         report was filed.

                                      -10-
<PAGE>

                         DECATUR FIRST BANK GROUP, INC.

                                   SIGNATURES

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

                                      DECATUR FIRST BANK GROUP, INC.



                                      By: /s/ Judy B. Turner
                                         --------------------------------------
                                         Judy B. Turner
                                         President, Chief Executive Officer and
                                          Principal Accounting Officer


                                      Date:  August 14, 2000
                                           -----------------------------------



                                      -11-