UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934



For Quarter Ended                               Commission File No. 333-48825-01
September 30, 1999


                            GUARANTY CAPITAL TRUST I


          Delaware                                               54-6422391
(State or Other Jurisdiction of                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)



                1658 State Farm Blvd., Charlottesville, VA 22911
                     (Address of Principal Executive Office)


                                 (804) 970-1100
              (Registrant's Telephone Number, Including Area Code)

         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 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 ___

         As of November 12, 1999,  the Registrant had 8,537 shares of its Common
Stock outstanding.

         * This Form 10-QSB also covers 276,000 shares of the Registrant's $1.75
Convertible Preferred Securities, which were registered under the Securities Act
of 1933, as amended,  pursuant to a registration statement declared effective on
April 29, 1998.


<PAGE>

                                     PART I
                              FINANCIAL INFORMATION


Item 1.    Financial Statements. (See Note Below)

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

         Guaranty  Capital Trust I (the "Trust") is a statutory  business  trust
formed under the Delaware  Business  Trust Act, as amended,  pursuant to a trust
agreement,  as amended  by an amended  and  restated  declaration  of trust (the
"Declaration"),  and the  filing of a  certificate  of trust  with the  Delaware
Secretary  of State on November 21,  1997.  The Trust  exists for the  exclusive
purposes  of (i)  issuing  and  selling  trust  securities  consisting  of $1.75
Convertible  Preferred  Securities  (the  "Preferred   Securities")  and  common
securities (the "Common Securities," and together with the Preferred Securities,
the "Trust Securities"),  representing  undivided beneficial ownership interests
in the assets of the Trust,  (ii)  investing  the proceeds from such issuance in
Junior Subordinated Debt Securities (the "Junior  Subordinated Debt Securities")
of Guaranty Financial  Corporation,  a Virginia corporation (the "Corporation"),
and (iii)  engaging  in only those  other  activities  necessary,  advisable  or
incidental thereto.  The Trust's sole assets are $7,113,425  principal amount of
Junior Subordinated Debt Securities,  and payments under the Junior Subordinated
Debt  Securities  are the sole revenues of the Trust.  Ownership of the Trust is
evidenced by $6,900,000  aggregate  liquidation amount of Preferred  Securities,
which were  initially  held by 38 security  holders,  and by $213,425  aggregate
liquidation  amount  of  Common  Securities,  all  of  which  are  held  by  the
Corporation,  as of May 5,  1998.  The Trust  makes  distributions  on the Trust
Securities to the extent it receives  distributions  from the Corporation on the
Junior  Subordinated Debt Securities.  Distributions on the Trust Securities are
guaranteed  by the  Corporation,  but  only to the  extent  that the  Trust  has
available  funds  to  pay  such   distributions.   Each  Preferred  Security  is
convertible into a number of shares of the Corporation's common stock, $1.25 par
value,  which trades on The Nasdaq  National  Market under the symbol "GSLC," at
the  option  of the  holder  at any time  prior to  repayment  of the  Preferred
Security  either at  redemption  or maturity,  and subject to the  Corporation's
right to terminate the convertibility of the Preferred Securities.

         On May 5,  1998,  the Trust  invested  the  proceeds  from the sale and
issuance of the Trust Securities in the Junior Subordinated Debt Securities. The
Trust's ability to pay distributions to the holders of the Preferred  Securities
is dependent on its receipt of  distributions  on the Junior  Subordinated  Debt
Securities  from the  Corporation.  Therefore,  upon the receipt by the Trust of
payments from the Corporation,  the Trust will pass through such payments to the
holders of the Preferred Securities.



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<PAGE>

         NOTE:  Because the Trust is a special purpose  financing entity with no
separate  business  operations  and the only  assets of the Trust are the Junior
Subordinated  Debt  Securities,  the  Trust  does  not  believe  that  financial
statements for the Trust are meaningful.  Accordingly,  financial statements and
related  financial  information have not been included in this Form 10-QSB.  For
further information  concerning the Corporation,  including financial statements
and other financial  information,  see the  Corporation's  Annual Report on Form
10-KSB for the year ended  December 31, 1998,  and the  Corporation's  Quarterly
Reports on Form 10-QSB for the quarters ended March 31, 1999,  June 30, 1999 and
September 30, 1999, as filed with the Securities and Exchange Commission, copies
of which may be obtained from the Corporate Secretary of the Corporation at 1658
State Farm Boulevard, Charlottesville, Virginia 22911.




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<PAGE>

                                     PART II
                                OTHER INFORMATION

Item 1.    Legal Proceedings.

           None.

Item 2.    Changes in Securities and Use of Proceeds.

           None.

Item 3.    Defaults Upon Senior Securities.

           None.

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

           None.

Item 5.    Other Information.

           None.

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

           (a)    Exhibits.

                  None.

           (b)    Reports on Form 8-K.

                  None.





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<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of the  Securities  and  Exchange Act of
1934,  the  registrant has duly caused this report to be singed on its behalf by
the undersigned thereunto duly authorized.

                                         GUARANTY CAPITAL TRUST I
                                         (Registrant)



Date:    November 15, 1999               /s/ Thomas P. Baker
                                         ---------------------------------------
                                         Name:  Thomas P. Baker
                                         Title: Administrative Trustee
                                                (as principal executive officer
                                                and on behalf of the Registrant)



Date:    November 15, 1999               /s/ L. Benjamin Johnson, III
                                         ---------------------------------------
                                         Name:  L. Benjamin Johnson, III
                                         Title: Administrative Trustee
                                                (as principal financial officer)









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