Thomasville Bancshares (THVB) 10QSB 2007 Q3 Quarterly report (small business)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-QSB

(Mark One)

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

For the quarterly period ended September 30, 2007.

OR

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to            

Commission File No. 0-25929

THOMASVILLE BANCSHARES, INC.

(Exact name of small business issuer as specified in its charter)

Georgia	58-2175800
(State of Incorporation)	(I.R.S. Employer Identification No.)

301 North Broad Street, Thomasville, Georgia 31792

(Address of Principal Executive Offices)

(229) 226-3300

(Issuer’s Telephone Number)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x    No  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

APPLICABLE ONLY TO CORPORATE ISSUERS: State the number of shares outstanding of each of the issuer’s classes of common equity as of the latest practicable date.

Common stock, $1.00 par value per share 2,962,859 shares issued and outstanding as of November 13, 2007.

Transitional small business disclosure format (check one):    Yes  ¨    No  x

THOMASVILLE BANCSHARES, INC.

INDEX

			Page Number
Part I – FINANCIAL INFORMATION
	Item 1.	Financial Statements
		Consolidated balance sheets as of September 30, 2007 and December 31, 2006	3
		Consolidated statements of income For the three months ended September 30, 2007 and 2006	4
		Consolidated statements of income For the nine months ended September 30, 2007 and 2006	5
		Consolidated statements of comprehensive income For the three months ended September 30, 2007 and 2006	6
		Consolidated statements of comprehensive income For the nine months ended September 30, 2007 and 2006	7
		Consolidated statements of stockholders’ equity	8
		Consolidated statements of cash flows For the nine months ended September 30, 2007 and 2006	9
		Condensed notes to consolidated financial statements	10
	Item 2.	Management’s discussion and analysis	13
	Item 3.	Controls and procedures	28
Part II – OTHER INFORMATION			29
SIGNATURES			31
EXHIBITS
	31.1	Rule 13a–14(a) Certification
	32	Section 1350 Certification

2

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2007 AND DECEMBER 31, 2006

	2007			2006
Assets
Cash and due from banks	$	5,321,105		$	13,523,928
Interest-bearing deposits in banks		34,085			5,329
Federal funds sold		40,418,793			17,614,164
Securities available for sale, at fair value		17,070,616			13,413,548
Restricted equity securities, at cost		1,297,550			1,266,649
Other equity securities, at cost		290,000			290,000
Loans		275,805,035			242,460,338
Less: allowance for loan losses		3,457,151			3,364,533
Loans, net		272,347,884			239,095,805
Premises and equipment, net		6,257,231			5,900,751
Goodwill		3,372,259			3,372,259
Interest receivable		3,534,730			2,905,420
Other assets		1,944,199			1,872,295
	$	351,888,452		$	299,260,148
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	29,281,736		$	31,973,060
Interest-bearing		279,697,324			228,731,052
Total deposits		308,979,060			260,704,112
Other borrowings		7,883,333			7,341,667
Junior subordinated debentures		4,124,000			4,124,000
Securities sold under agreements to repurchase		781,973			—
Accrued interest payable		957,926			551,731
Other liabilities		687,992			429,219
Total liabilities		323,414,284			273,150,729
Commitments and contingencies
Stockholders’ equity
Common stock, par value $1.00; 10,000,000 shares authorized; 2,962,071 and 2,957,698 issued and outstanding		2,962,071			2,957,698
Paid-in capital		8,505,687			8,298,041
Retained earnings		17,058,337			14,987,978
Accumulated other comprehensive loss		(51,927	)		(134,298	)
Total stockholders’ equity		28,474,168			26,109,419
	$	351,888,452		$	299,260,148

See Notes to Consolidated Financial Statements.

3

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS

ENDED SEPTEMBER 30, 2007 AND 2006

	2007		2006
Interest income
Interest and fees on loans	$	5,340,906	$	4,749,566
Interest on taxable securities		188,047		147,510
Interest on federal funds sold		159,503		161,256
Interest on deposits in other banks		418		608
		5,688,874		5,058,940
Interest expense
Interest on deposits		2,770,315		2,036,319
Interest on other borrowings		179,136		361,843
		2,949,451		2,398,162
Net interest income		2,739,423		2,660,778
Provision for loan losses		60,000		105,000
Net interest income after provision for loan losses		2,679,423		2,555,778
Noninterest income
Service charges on deposit accounts		176,055		191,281
Other service charges, commissions and fees		58,458		47,486
Trust and investment services		628,634		567,920
Mortgage origination fees		48,644		67,350
Other		87,165		118,678
		998,956		992,715
Noninterest expense
Salaries and employee benefits		1,096,409		1,016,883
Equipment		140,123		141,210
Occupancy		86,015		68,075
Data processing		108,545		125,476
Advertising and marketing		84,432		72,881
Legal and accounting		90,840		93,136
Other operating		363,324		362,193
		1,969,688		1,879,854
Income before income taxes		1,708,691		1,668,639
Applicable income taxes		627,317		552,743
Net income	$	1,081,374	$	1,115,896
Basic earnings per share	$	0.37	$	0.38
Diluted earnings per share	$	0.35	$	0.36

See Notes to Consolidated Financial Statements.

4

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTHS

ENDED SEPTEMBER 30, 2007 AND 2006

	2007		2006
Interest income
Interest and fees on loans	$	15,373,545	$	13,528,507
Interest on taxable securities		470,189		441,385
Interest on federal funds sold		731,461		335,996
Interest on deposits in other banks		937		1,591
		16,576,132		14,307,479
Interest expense
Interest on deposits		7,922,165		5,720,090
Interest on other borrowings		511,752		631,988
		8,433,917		6,352,078
Net interest income		8,142,215		7,955,401
Provision for loan losses		190,000		315,000
Net interest income after provision for loan losses		7,952,215		7,640,401
Noninterest income
Service charges on deposit accounts		514,809		550,698
Other service charges, commissions and fees		169,542		139,718
Trust and investment services		1,908,076		1,639,546
Mortgage origination fees		193,250		145,211
Other		235,450		279,801
		3,021,127		2,754,974
Noninterest expense
Salaries and employee benefits		3,359,216		3,074,439
Equipment		428,824		413,512
Occupancy		261,931		256,452
Data processing		373,797		357,500
Advertising and marketing		277,595		248,181
Legal and accounting		218,147		184,336
Other operating		1,042,877		960,463
		5,962,387		5,494,883
Income before income taxes		5,010,955		4,900,492
Applicable income taxes		1,755,768		1,833,750
Net income	$	3,255,187	$	3,066,742
Basic earnings per share	$	1.10	$	1.04
Diluted earnings per share	$	1.06	$	1.03

See Notes to Consolidated Financial Statements.

5

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS

ENDED SEPTEMBER 30, 2007 AND 2006

	2007		2006
Net income	$	1,081,374	$	1,115,896
Other comprehensive income:
Net unrealized holding gains arising during period, net of tax of $59,300 and $32,918		115,112		63,899
Total other comprehensive income		115,112		63,899
Comprehensive income	$	1,196,486	$	1,179,795

See Notes to Consolidated Financial Statements.

6

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS

ENDED SEPTEMBER 30, 2007 AND 2006

	2007		2006
Net income	$	3,255,187	$	3,066,742
Other comprehensive income (loss):
Net unrealized holding gains (losses) arising during period, net of tax (benefits) of $42,434 and $(1,304)		82,371		(2,531	)
Total other comprehensive income (loss)		82,371		(2,531	)
Comprehensive income	$	3,337,558	$	3,064,211

See Notes to Consolidated Financial Statements.

7

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)

AND FOR THE YEAR ENDED DECEMBER 31, 2006

	Common Stock			Paid-in		Retained			Accumulated Other Comprehensive			Total
	Shares	Par Value		Capital		Earnings			Income (Loss)
Balance, December 31, 2005	2,940,507	$	2,940,507	$	8,160,931	$	11,553,880		$	(178,300	)	$	22,477,018
Net income	—		—		—		4,320,831			—			4,320,831
Cash dividends paid, $0.30 per share	—		—		—		(886,733	)		—			(886,733	)
Other comprehensive income	—		—		—		—			44,002			44,002
Issuance of common stock	2,053		2,053		46,387		—			—			48,440
Exercise of stock options	400		400		3,600		—			—			4,000
Stock-based compensation	—		—		24,902		—			—			24,902
Issuance of restricted stock	14,738		14,738		62,221		—			—			76,959
Balance, December 31, 2006	2,957,698		2,957,698		8,298,041		14,987,978			(134,298	)		26,109,419
Net income	—		—		—		3,255,187			—			3,255,187
Other comprehensive income	—		—		—		—			82,371			82,371
Dividends paid, $0.40 per share							(1,184,828	)					(1,184,828	)
Issuance of common stock	4,373		4,373		103,146		—			—			107,519
Issuance of restricted stock	—		—		104,500		—			—			104,500
Balance, September 30, 2007	2,962,071	$	2,962,071	$	8,505,687	$	17,058,337		$	(51,927	)	$	28,474,168

See Notes to Consolidated Financial Statements.

8

THOMASVILLE BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS

ENDED SEPTEMBER 30, 2007 AND 2006

	2007			2006
OPERATING ACTIVITIES
Net income	$	3,255,187		$	3,066,742
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan loss		190,000			315,000
Depreciation		268,562			269,533
Increase in interest receivable		(629,310	)		(608,456	)
Increase in interest payable		406,195			232,828
Decrease in taxes payable		(100,466	)		(201,171	)
Net other operating activities		250,995			381,897
Total adjustments		385,976			389,631
Net cash provided by operating activities		3,641,163			3,456,373
INVESTING ACTIVITIES
Increase in interest-bearing deposits in banks		(28,756	)		(4,410	)
Purchases of securities available for sale		(7,012,264	)		(3,227,012	)
Proceeds from maturities of securities available for sale		3,480,000			—
(Increase) decrease in federal funds sold		(22,804,629	)		12,672,190
Increase in loans, net		(33,442,079	)		(10,233,239	)
Net change in restricted equity securities		(30,901	)		84,000
Net purchases of premises and equipment		(631,135	)		(291,093	)
Net cash used in investing activities		(60,469,764	)		(999,564	)
FINANCING ACTIVITIES
Increase (decrease) in deposits		48,274,948			(428,490	)
Repayment of other borrowings		(1,458,334	)		(3,600,596	)
Proceeds from other borrowings		2,000,000			—
Increase in securities sold under agreements to repurchase		781,973			—
Issuance of common stock, net		107,519			35,106
Issuance of restricted stock		104,500			103,100
Proceeds from exercise of stock options		—			4,000
Dividends paid		(1,184,828	)		(886,733	)
Net cash provided by (used in) financing activities		48,625,778			(4,773,613	)
Net decrease in cash and due from banks		(8,202,823	)		(2,316,804	)
Cash and due from banks at beginning of year		13,523,928			9,613,584
Cash and due from banks at end of year	$	5,321,105		$	7,296,780
SUPPLEMENTAL DISCLOSURES
Cash paid for interest	$	8,027,722		$	6,119,250
Cash paid for income taxes		1,550,000			1,829,000

See Notes to Consolidated Financial Statements.

9

THOMASVILLE BANCSHARES, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Thomasville Bancshares, Inc. (the “Company”) and subsidiary have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month and the nine-month periods ended September 30, 2007 are not necessarily indicative of the results that may be expected for the year ending December 31, 2007. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Form 10-KSB for the year ended December 31, 2006.

The consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation.

In preparing the consolidated financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, the valuation of foreclosed real estate, contingent assets and liabilities and deferred tax assets.

2. TRUST AND MONEY MANAGEMENT

Property and funds held by the Company and its subsidiary in a fiduciary or other capacity for the benefit of its customers are not included in the accompanying consolidated financial statements since such items are not assets of the Company. Income earned from fees charged against trust assets, including money management services, is recognized in the Company’s consolidated income statements.

10

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

3. EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share are computed by dividing net income by the sum of the weighted-average number of shares of common stock outstanding and potential common shares. Potential common shares consist of stock options and restricted stock.

Presented below is a summary of the components used to calculate basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2007		2006		2007		2006
Net income	$	1,081,374	$	1,115,896	$	3,255,187	$	3,066,742
Weighted average common shares outstanding		2,962,071		2,957,128		2,959,885		2,947,854
Effect of dilutive stock options and restricted stock		103,722		112,413		102,267		111,253
Weighted average dilutive common shares outstanding		3,065,793		3,069,541		3,062,152		3,059,107

4. STOCK-BASED COMPENSATION PLANS

The Company has three stock option plans under which it has granted options to its employees to purchase common stock at the fair market price on the date of grant. The plans provide for “incentive stock options” and “non-qualified stock options”. The incentive stock options are intended to qualify under Section 422 of the Internal Revenue Code for favorable tax treatment. It is the Company’s policy to issue new shares for stock option exercises.

Under the plans, the Board of Directors can grant stock options to employees of the Company to purchase up to 139,200 shares of its common stock. At September 30, 2007, there were no shares available for grant under the plans.

11

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

4. STOCK-BASED COMPENSATION PLANS (Continued)

Prior to January 1, 2006, the Company accounted for its stock option plans under the recognition and measurement provision of Accounting Principles Board (“APB”) Opinion No. 25,Accounting for Stock Issued to Employees, and related Interpretations, as permitted by FASB No. 123,Accounting for Stock-Based Compensation. Effective January 1, 2006, the Company adopted FASB No. 123R,Share-Based Payment, utilizing the “modified prospective” method as described in FASB No. 123R. In the “modified prospective” method, compensation cost is recognized for all stock-based payments granted after the effective date and for all unvested awards granted prior to the effective date. In accordance with FASB No. 123R, prior period amounts were not restated. FASB No. 123R also requires the tax benefits associated with these stock-based payments to be classified as financing activities in the Consolidated Statements of Cash Flows, rather than as operating cash flows as required under previous regulations.

At September 30, 2007, there was approximately $669,812 of unrecognized compensation cost related to stock-based payments, which is expected to be recognized over a weighted-average period of 4.17 years.

Restricted Stock

In March 1996, the Board of Directors of the Company approved a deferred compensation plan (the “Plan”) for the Company’s and Bank’s directors and officers which grants to each person restricted shares of the Company’s common stock for attending Board/Committee meetings and bonuses. Shares of restricted stock granted pursuant to the Plan shall not vest until the earlier to occur of: (a) the retirement of a director from the Company’s Board of Directors or (b) a change in control of the Company. On several occasions, shares of restricted stock have been awarded to executive officers of the Company and its subsidiary. These shares vest only upon the directors’ or officers’ retirement, resignation or upon a change in control. At September 30, 2007, 104,425 shares of restricted stock were outstanding.

12

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

This Analysis should be read in conjunction with the 2006 Annual Report on Form 10-KSB and the consolidated financial statements & related notes included in this quarterly filing. The Company’s accounting policies, which are described in detail in Form 10-KSB, are integral to understanding the results reported. The Company’s accounting policies require management’s judgment in valuing assets, liabilities, commitments and contingencies. A variety of factors could affect the ultimate value that is obtained when earning income, recognizing an expense, recovering an asset, or relieving a liability. This Analysis contains forward-looking statements with respect to business and financial matters. Actual results may vary significantly from those contained in these forward-looking statements. See the section entitled Forward-Looking Statements within this Analysis.

DESCRIPTION OF BUSINESS

Thomasville Bancshares, Inc., a Georgia corporation, was formed in March 1995 to organize and act as the holding company for Thomasville National Bank (the “Bank”), a national banking association. The Bank opened for business in October 1995, and presently operates two branches in Thomasville, Georgia. The Bank is a full service commercial bank, with trust powers, and offers a full range of banking services to individual and corporate customers in its primary market area of Thomas County, Georgia and surrounding counties. The Bank also offers trust and investment services through TNB Financial Services, a division of the Bank.

The Company’s results of operations are largely dependent on net interest income, which is the difference between the interest earned on loans and securities and interest paid on deposits and borrowings. The results of operations are also affected by the level of income/fees from loans, deposits, borrowings, trust services, as well as operating expenses, the provision for loan losses, the impact of federal and state income taxes, and the relative levels of interest rates and economic activity.

FINANCIAL CONDITION

Consolidated assets totaled $351,888,452 at September 30, 2007, up $52,628,304 or 17.59% from year-end 2006. Asset growth was concentrated in the loan portfolio, available for sale securities and federal funds sold. Specifically, loans grew $33,344,697 and available for sale securities, $3,657,068; and federal funds sold increased $22,804,629. Loans comprised approximately 82.36%, investment securities, 5.10%, and federal funds sold, 12.06%, of earning assets at September 30, 2007 versus 86.93%, 4.88%, and 6.40% respectively at December 31, 2006. Overall, earning assets continued to approximate 95.21% of total assets at September 30, 2007. Refer to the Liquidity section of this Analysis for details on deposits and other funding sources.

13

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Available for sale Investment Securities

On a carrying value basis, investment securities increased $3,657,068 or 27.26% since December 31, 2006. At September 30, 2007, the security portfolio was comprised of primarily U.S. Government sponsored agency securities. Overall, securities comprised 5.10% of earning assets at September 30, 2007, up 22 basis points from year-end 2006 levels. Management believes the credit quality of the investment portfolio remains sound.

The amortized cost and estimated fair value of investment securities are delineated in the table below:

Investment Securities by Category September 30, 2007 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale:
U. S. Government sponsored agencies	$	17,149	$	6	$	(84	)	$	17,071

As shown, the market value of the securities portfolio reflected $78,000 in net unrealized losses at September 30, 2007; refer to the Capital Adequacy section of this Analysis for more details on investment securities and related fair value. The Company has a concentration in the obligations of U.S. Government sponsored agencies.

Loans

Loans grew 13.75% or $33,344,697 at September 30, 2007 compared to December 31, 2006. The loan to deposit ratio aggregated 89.3% at September 30, 2007 versus 93.0% at December 31, 2006, and 99.8% a year ago. Despite economic uncertainties within the Company’s markets, management is optimistic that loan volumes will continue to grow in 2007. Managerial strategies to increase loan production include continuing competitive pricing on loan products and development of additional loan relationships, all without compromising portfolio quality. During the same period in 2006, net loans increased $9,598,171. Loans outstanding are presented by type in the table below.

14

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Loans (Continued)

Loans by Category (In thousands)	September 30, 2007			December 31, 2006			September 30, 2006
Commercial, financial and agricultural	$	48,132		$	38,506		$	37,122
Real estate – construction		13,081			12,182			11,844
Real estate – mortgage		187,827			171,293			162,164
Consumer		9,520			9,867			9,580
Other		17,245			10,613			16,238
Total Loans		275,805			242,461			236,948
Allowance for loan losses		(3,457	)		(3,365	)		(2,992	)
Loans, net	$	272,348		$	239,096		$	233,956

Although the Company’s loan portfolio is diversified, significant portions of its loans are collateralized by real estate. The Bank’s real estate loans consist of residential first and second mortgage loans, residential construction loans and commercial real estate loans. At September 30, 2007, real estate loans approximated $200,908,000, and commitments to extend credit on such loans approximated $21,601,000. These loans are made consistent with the Bank’s appraisal policy and real estate lending policy which detail maximum loan-to-value ratios and maturities. In management’s opinion, these loan-to-value ratios are sufficient to compensate for fluctuations in the real estate market to minimize the risk of loss to the Bank. On an aggregate basis, commitments to extend credit and standby letters of credit approximated $41,824,000 at September 30, 2007; because a substantial amount of these contracts expire without being drawn upon, total contractual amounts do not represent future credit exposure or liquidity requirements. The Company has not funded or incurred any losses on letters of credit during 2007.

Nonperforming Assets

Nonperforming assets consist of nonaccrual loans, restructured loans, foreclosed real estate and other assets. Nonperforming assets increased by $1,872,000, or 643.03%, from December 31, 2006, and 300% from September 30, 2006. Total nonperforming assets were $2,163,000 at September 30, 2007, which consisted of: $42,000 in nonaccrual loans secured by real estate; $66,000 in consumer loans; and $2,044,000 in restructured loans. Included in restructured loans is a $1,950,000 loan secured by real estate that was restructured during the third quarter of 2007. This loan was restructured to accommodate a slight reduction in the value of the collateral, and the loan is currently performing. In the opinion of management, the loan is well-collateralized and the guarantor of the principal has adequate financial means to repay the loan should the guaranty be called upon.

As a percent of total assets, nonperforming assets totaled 0.61% at September 30, 2007 versus 0.10% at year-end 2006 and 0.20% a year ago. No material credits have been transferred or removed from nonaccrual status during 2007. Refer to the subsection entitled Policy Note for criteria used by management in classifying loans as nonaccrual. The allowance for loan losses approximated 1.61 times the nonperforming loans balance at September 30, 2007 versus 11.56 at year-end 2006 and 13.54 times a year ago. Management is unaware of any other material developments in nonperforming assets at September 30, 2007 that should be presented or otherwise discussed.

15

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Nonperforming Assets (Continued)

There was approximately $41,000 in loans past due 90 days or more and still accruing interest at September 30, 2007. Management is unaware of any material concentrations within these past due balances. The table below provides further information about nonperforming assets and loans past due 90 plus days and still accruing interest:

Nonperforming Assets (In thousands)	September 30, 2007			December 31, 2006			September 30, 2006
Nonaccrual loans:
Commercial, financial and agricultural	$	—		$	—		$	—
Real estate – construction		—			—			—
Real estate – mortgage		42			132			95
Consumer		66			65			32
Other		—			—			—
Total nonaccrual loans		108			197			127
Restructured loans		2,044			94			94
Total nonperforming loans		2,152			291			221
Foreclosed real estate		—			—			320
Other repossessed assets		11			—			—
Total nonperforming assets	$	2,163		$	291		$	541
Accruing loans past due 90 days or more	$	41		$	19		$	71
Ratios:
Nonperforming loans to net loans		0.79	%		0.12	%		0.09	%
Nonperforming assets to net loans plus foreclosed/repossessed assets		0.79	%		0.12	%		0.23	%

Policy Note. Loans classified as nonaccrual have been placed in nonperforming, or impaired, status because the borrower’s ability to make future principal and/or interest payments has become uncertain. The Company considers a loan to be nonaccrual when the collection of recorded interest or principal is not anticipated in the foreseeable future. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Nonaccrual loans that are impaired are reduced to the lower of the principal balance of the loan or the market value of the underlying real estate or other collateral net of selling costs. Any impairment in the principal balance is charged against the allowance for loan losses. Accrued interest on any loan placed on nonaccrual status is reversed. Interest income on nonaccrual loans, if subsequently recognized, is recorded on a cash basis. No interest is subsequently recognized on nonaccrual (or former nonaccrual) loans until all principal contractually due has been collected. Foreclosed real estate represents real property acquired by foreclosure or directly by title or deed transfer in settlement of debt. Provisions for subsequent devaluations of foreclosed real estate are charged to operations, while costs associated with improving the properties are generally capitalized.

16

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Allowance for Loan Losses

The Company continuously reviews its loan portfolio and maintains an allowance for loan losses available to absorb losses inherent in the portfolio. The nine-month provision for loan losses at September 30, 2007 totaled $190,000 and net charge-offs, $98,000. The comparable provision and net charge-offs amounts at September 30, 2006 were $315,000 and $36,000. Net charge-offs represented 0.038% of average loans at September 30, 2007, while at September 30, 2006 net charge-offs represented 0.016% of average loans. The Company is committed to the early recognition of problem loans and to an appropriate and adequate level of allowance. The adequacy of the allowance is further discussed in the next subsection of this Analysis. Activity in the allowance is presented in the table below:

Allowance for Loan Losses Nine Months Ended September 30, (In thousands)	2007			2006
Allowance for loan losses at beginning of year	$	3,365		$	2,713
Provision for loan losses		190			315
Charge-offs:
Commercial, financial and agricultural		—			2
Real estate – construction		—			—
Real estate – mortgage		100			—
Consumer		1			47
Other		6			7
Total charge-offs		107			56
Recoveries:
Commercial, financial and agricultural		—			5
Real estate – construction		—			—
Real estate – mortgage		—			—
Consumer		6			7
Other		3			8
Total recoveries		9			20
Net charge-offs (recoveries)		98			36
Allowance for loan losses at end of period	$	3,457		$	2,992
Net loans outstanding at end of period	$	272,348		$	233,957
Average net loans outstanding at end of period	$	254,564		$	231,996
Ratios:
Allowance to net loans		1.27	%		1.28	%
Net charge-offs (recoveries) to average loans		0.038	%		0.016	%
Provision to average loans		0.075	%		0.136	%
Recoveries to total charge-offs		8.411	%		35.714	%

17

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Allowance for Loan Losses (Continued)

The Company prepares a comprehensive analysis of the allowance for loan losses at least quarterly. The allowance calculation is also reviewed annually by an independent accounting firm. The Bank’s Board of Directors is responsible for affirming the allowance methodology and assessing the general and specific allowance factors in relation to estimated and actual net charge-off trends. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows, or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

Deposits

Deposits grew $48,274,948 or 18.52% since year-end 2006. Noninterest-bearing deposits decreased $2,691,324 or 8.42%, while interest-bearing deposits increased $50,966,272 or 22.28%. The increase in interest-bearing deposits was reflected in one category, interest-bearing demand. The interest-bearing demand increase was due to an increase in the balances held in NOW accounts by TNB Financial Services clients. While the time deposits are continuously growing, the growth is not through the reliance on brokered time deposits. The decline in brokered deposits has been offset by demand in the local market. The reliance on these volatile brokered deposits has declined approximately $5,075,000 or 26.57% since year end. Overall, interest-bearing deposits comprised 90.52%, and noninterest-bearing deposits, 9.48%, of total deposits at September 30, 2007. The distribution of interest-bearing balances at September 30, 2007 and certain comparable quarter-end dates is shown in the table below:

	September 30, 2007				December 31, 2006				September 30, 2006
Deposits (Dollars in thousands)	Balances		Percent of Total		Balances		Percent of Total		Balances		Percent of Total
Interest-bearing demand deposits1	$	202,794	72.50	%	$	161,569	70.64	%	$	140,975	67.96	%
Savings		6,935	2.48	%		7,593	3.32	%		7,689	3.71	%
Time certificates		69,968	25.02	%		59,569	26.04	%		58,772	28.33	%
Total interest-bearing deposits	$	279,697	100.00	%	$	228,731	100.00	%	$	207,436	100.00	%

¹ NOW and money market accounts.

18

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Deposits (Continued)

The Company had $14,025,000 in brokered deposits at September 30, 2007 compared to $19,100,000 at year-end and a year ago.

Approximately 67.09% of time certificates at September 30, 2007 were scheduled to mature within the next twelve months. The composition of average deposits and the fluctuations therein at September 30, for the last two periods is shown in the Average Balances table included in the Operations section of this Analysis.

FHLB Advances

Advances outstanding with the FHLB totaled approximately $7,880,000 at September 30, 2007, up approximately $538,000 from year-end. All advances accrue interest at an effective rate that ranges between 3.81% and 5.69% as of September 30, 2007. Interest is payable monthly or quarterly on all outstanding advances. The year to date interest expense on the advances approximates $265,000 as of September 30, 2007. The advances are collateralized by the pledging of qualifying 1-4 family mortgages included in the loan portfolio as of September 30, 2007.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is the Company’s ability to meet all deposit withdrawals immediately, while also providing for the credit needs of customers. The September 30, 2007 financial statements evidence a satisfactory liquidity position as total cash and cash equivalents amounted to $45.8 million, representing 13.01% of total assets. Investment securities, which amounted to $18.0 million, or 5.22% of total assets, provide a secondary source of liquidity because they can be converted into cash in a timely manner. The Company’s management closely monitors and maintains appropriate levels of interest earning assets and interest bearing liabilities so that maturities of assets are such that adequate funds are provided to meet customer withdrawals and loan demand. The Company is not aware of any trends, demands, commitments, events or uncertainties that will result in or are reasonably likely to result in the Company’s liquidity increasing or decreasing in any material way.

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

The Bank maintains an adequate level of capitalization as measured by the following capital ratios and the respective minimum capital requirements established by the Bank’s primary regulator, the Office of the Comptroller of the Currency (“OCC”).

	Bank September 30, 2007		Minimum Required by Regulator
Total capital to risk weighted assets	12.5	%	8.0	%
Tier I capital to risk weighted assets	11.3	%	4.0	%
Tier I capital to average assets	9.0	%	4.0	%

Dividend Policy

The Company is a legal entity separate and distinct from its subsidiary, and its revenues and liquidity position depend primarily on the payment of dividends from its subsidiary. Banking regulations limit the amount of dividends the Bank may pay without prior approval of the regulatory agencies. Year-to-date, Thomasville National Bank has paid $1,184,828 of the $8,319,000 in cash dividends available to the Company in 2007 without such prior approval. The Company uses regular dividends paid by the Bank in order to pay annual dividends to its own shareholders. Management anticipates that the Company will continue to pay cash dividends on a recurring basis.

Impact of Inflation

The effects of inflation on the local economy and the Company’s operating results have been relatively modest the last several years. Because substantially all the Company’s assets and liabilities, including cash, securities, loans, and deposits, are monetary in nature, their values are less sensitive to the effects of inflation than to changing interest rates. As discussed in the preceding section, the Company attempts to control the impact of interest rate fluctuations by managing the relationship between its interest sensitive assets and liabilities.

20

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

RESULTS OF OPERATIONS

For the 3 months ended September 30, 2007 and 2006:

Net income for the 2007 third quarter totaled $1,081,374, down $34,522 or 3.09% from September 30, 2006 and 2.15% since June 30, 2007. On a per share basis, quarterly basic earnings per share declined $0.01 to $0.37 at September 30, 2007 from $0.38 in 2006. Variations in operating results are further discussed within the next three subsections of this Analysis.

Net Interest Income

Net interest income of $2,739,423 was a $78,645 or 2.96% increase from the $2,660,778 for the comparable period in 2006. Interest earnings on loans and investment securities improved $591,340 or 12.45% and $40,537 or 27.48% from same period results in 2006 while earnings on federal funds sold decreased by $1,753. The targeted federal funds rate remained unchanged by the Federal Reserve for most of the third quarter of 2007. The target rate was cut by 50 basis points on September 18, 2007 to 4.75% from 5.25%.

Provision for Loan Losses

A provision of $60,000 was recorded in the third quarter 2007 compared to $105,000 during the year earlier period. Nonperforming loans increased $1,988,000 during the quarter to $2,152,000 at September 30, 2007. The ratio of nonperforming loans to total loans increased 73 basis points to 0.78% at September 30, 2007, compared with 0.06% at June 30, 2007. The allowance for loan losses as a percentage of total loans was approximately at 1.25% for the quarter ending September 30, 2007 compared with 1.36% at June 30, 2007.

Noninterest Income and Expense

Noninterest income increased $6,241 or 0.63% during the third quarter 2007 compared to 2006. The nominal increase in noninterest income is mainly due to an increase in income from trust services that was offset by decreases in service charges on deposit accounts, mortgage origination fees and other income. The income from trust services increased $60,714 in the third quarter 2007 compared to 2006, which is primarily attributable to the increase in the trust accounts being serviced by TNB Financial Services. Mortgage origination fees decreased by $18,706 from the third quarter 2007 compared to 2006, which can be attributed to a decrease in the volume of mortgage activity. The largest decline in noninterest income was in the other category. The decline was largely due to approximately a $59,000 gain being recognized in the third quarter 2006 for the sale of other real estate and other assets.

21

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

RESULTS OF OPERATIONS (Continued)

Noninterest Income and Expense (Continued)

Noninterest expense increased $89,834 or 4.78% during the third quarter 2007 compared to 2006. Salaries and benefits accounted for the majority of the change by increasing $79,500 or 7.82%. The increase is contributed to higher overall employee costs in 2007 compared to the 2006 costs. Occupancy expense also increased in the third quarter by $18,000 as compared to the third quarter 2006. The increase in this expense is related to the branch addition completed in 2006 which increased all of the occupancy related expenses, but the largest increase was in the real estate taxes. The increase in personnel and occupancy expenses was offset slightly by a decline in data processing expenses of approximately $31,000. This decrease was mainly noted in the actual costs of data processing and not in the related expenses such as outside programmers and ATMs. The remaining components of noninterest expense were fairly consistent with the expenses recorded during the third quarter 2006.

For the 9 months ended September 30, 2007 and 2006:

Net income for the nine months ended September 30, 2007 increased by $188,445 or 6.14% to $3,255,187 as compared with $3,066,742 for the year earlier period. On a per share basis, basic earnings per share grew $0.06 to $1.10 for the nine months ended September 30, 2007 from $1.04 for the same period in 2006. An increase in net interest income and noninterest income along with a decline in the provision expense all contributed to an increase in net earnings for the period. A slight increase in noninterest expense did offset some of this earnings growth. Variations in operating results are further discussed within the next three subsections of this Analysis.

Net Interest Income

Net interest income of $8,142,215 was an $186,814 or 2.35% increase from the $7,955,401 for the comparable nine month period in 2006. Interest income on loans and investment securities improved $1,845,038 or 13.64% and $28,804 or 6.53%, respectively, from comparable period results in 2006 while earnings on federal funds sold more than doubled with an increase of $395,465. Average earning assets increased approximately $34,332,000 or 13.26% to $293,283,000 compared with $258,951,000 for the 2006 period. Average interest-bearing liabilities increased $35,925,000 or 16.17% to $258,083,000 compared with $222,158,000 during the period ending September 30, 2006. The targeted federal funds rate, which had remained unchanged since June 2006, was lowered on September 18, 2007. The Federal Reserve cut the rate by 50 basis points to 4.75% from 5.25%. Comparative details about average balances, income/expense, and average yields earned and rates paid on interest-earning assets and liabilities for the last two years are provided in the next table.

22

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

RESULTS OF OPERATIONS (Continued)

Provision for Loan Losses

A provision of $190,000 was recorded for the nine month period ending September 30, 2007 compared to $315,000 during the year earlier period. Nonperforming loans increased $1,861,000 to $2,152,000 at September 30, 2007 compared with $291,000 at December 31, 2006. The ratio of nonperforming loans to total loans increased 66 basis points to 0.78% at September 30, 2007, compared with 0.12% at December 31, 2006. The allowance for loan losses as a percentage of total loans also decreased 14 basis points to 1.25% at September 30, 2007 from 1.39% at December 31, 2006.

The intense competition for loans and deposits continues in 2007 and shows no sign of abating. The number of existing financial institutions in the Company’s market areas essentially guarantees downward pressure on net interest spreads and margins as all participants struggle to amass and grow market share. Volume of assets and deposits will become even more important as margins decline. Strategies implemented by management to increase average loans outstanding emphasize competitive pricing on loan products and development of additional loan relationships, all without compromising portfolio quality. Management’s strategy for deposits is to closely manage anticipated market increases and maintain a competitive position with respect to pricing and products.

23

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Selected Average Balances, Income/Expense, and Average Yields Earned and Rates Paid

Average Balances1	2007							2006
Nine Months Ended September 30, (Dollars in thousands)	Average Balances			Income/ Expense		Yields/ Rates		Average Balances			Income/ Expense		Yields/ Rates
Assets
Interest-earning assets:
Loans2	$	258,024		$	15,374	7.94	%	$	234,837		$	13,529	7.68	%
Taxable investment securities		16,220			470	3.86	%		14,870			441	3.95	%
Federal funds sold		19,019			731	5.12	%		9,192			336	4.87	%
Interest-bearing deposits in banks		20			1	6.67	%		52			2	5.13	%
Total interest-earning assets		293,283			16,576	7.54	%		258,951			14,308	7.37	%
Non-interest earning assets:
Cash		11,639							7,994
Allowance for loan losses		(3,460	)						(2,841	)
Other assets		15,277							12,345
Total noninterest-earning assets		23,456							17,498
Total assets	$	316,739						$	276,449
Liabilities and Stockholder’s Equity
Interest-bearing liabilities:
Savings and interest-bearing demand deposits3	$	186,582		$	5,730	4.09	%	$	144,017		$	3,786	3.51	%
Time deposits		59,180			2,193	4.94	%		62,389			1,934	4.13	%
Other borrowings		8,197			285	4.64	%		11,628			416	4.77	%
Junior subordinated debentures		4,124			227	7.34	%		4,124			216	6.98	%
Total interest-bearing liabilities		258,083			8,435	4.36	%		222,158			6,352	3.81	%
Non-interest-bearing liabilities and stockholders’ equity:
Demand deposits		29,302							29,724
Other liabilities		2,719							1,407
Stockholders’ equity		26,635							23,160
Total noninterest-bearing liabilities and stockholders’ equity		58,656							54,291
Total liabilities and stockholders’ equity	$	316,739						$	276,449
Interest rate spread						3.18	%						3.56	%
Net interest income				$	8,141							7,956
Net interest margin						3.70	%						4.10	%

¹ Averages presented generally represent average daily balances.

² Average loans are shown net of unearned income. Nonperforming loans are included.

³ NOW and money market accounts.

24

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Analysis of Changes in Net Interest Income

The average balance table above provides detailed information about average balances, income/expense, and average yields earned and rates paid on interest-earning assets and interest-bearing liabilities for the nine months ended September 30, 2007 and 2006.

Noninterest Income and Expense

Noninterest income increased $266,153 or 9.66% during the first nine months of 2007 compared to the same period in 2006. A $268,530 or 16.38% increase in trust and investment service income was the key factor in the increased nine-month results. An increase of $48,039 or 33.08% in mortgage origination fees and an increase of $29,824 or 21.35% in other service charges, commissions and fees also contributed to the higher noninterest income. Service charges on deposit accounts and other operating income posted minimal declines from the same period in 2006. Overall, noninterest expense increased $467,504 or 8.51% during the first nine months of 2007 compared to the same period in 2006. Salaries and other personnel related costs accounted for over 50% of the increase of $284,777 or 8.51% compared to September 30, 2006. The vast majority, or 77%, of employee expenses remained concentrated in salaries and other direct compensation, including related payroll taxes at September 30, 2007. Profit-sharing accruals and other benefits, including insurance, constituted the remaining 12% and 11% of employee expenses. When compared to the prior year, net occupancy and equipment expense increased by 3.10% or $20,791 during the first nine months of 2007 compared to 2006. Data processing and advertising expenses accounted for $16,297 and $29,414 of the increase from 2006 in noninterest expense, respectively. Other operating expenses increased $82,414 or 8.58% at September 30, 2007 compared to 2006; there was not a significant increase in any one other operating expense account that was responsible for the bulk of the 2007 - 2006 fluctuation.

25

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Recent Accounting Pronouncements

Recent accounting pronouncements affecting the Company are discussed in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2006 previously filed with the Securities and Exchange Commission.

Various other accounting proposals affecting the banking industry are pending with the Financial Accounting Standards Board. Given the inherent uncertainty of the proposal process, the Company cannot assess the impact of any such proposals on its financial condition or results of operations.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the Act) provides a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives have made, and may continue to make, various written or oral forward-looking statements with respect to business and financial matters, including statements contained in this report, filings with the Securities and Exchange Commission, and press releases. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” and similar expressions identify forward-looking statements. All statements which address operating performance, events or developments that we expect or anticipate will occur in the future, including statements related to loan growth, deposit growth, per share growth, and statements expressing general sentiment about future operating results and non-historical information, are forward-looking statements within the meaning of the Act. The forward-looking statements are and will be based on management’s then current views and assumptions regarding future events and operating performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements in light of new information or future events.

26

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (Continued)

Forward-Looking Statements (Continued)

Forward-looking statements involve inherent risks and uncertainties. Certain factors that could cause actual results to differ materially from estimates contained in or underlying forward-looking statements include:

• Competitive pressures between depository and other financial institutions may increase significantly.

• Changes in the interest rate environment may reduce margins and impact funding sources.

• General economic or business conditions in the geographic regions and industry in which the Company operates may lead to deterioration in credit quality or a reduced demand for credit.

• Legislative or regulatory changes, including changes in accounting standards, monetary policies, and taxation requirements, may adversely affect the Company’s business.

Other factors include:

• Changes in consumer spending and saving habits as well as real estate markets.

• Management of costs associated with expansion of existing and development of new distribution channels, and ability to realize increased revenues from these distribution channels.

• The outcome of litigation which depends on judicial interpretations of law and findings of juries.

• The effect of mergers, acquisitions, and/or dispositions and their integration into the Company.

• Other risks and uncertainties as detailed from time to time in Company filings with the Securities and Exchange Commission.

The foregoing list of factors is not exclusive. Many of the factors that will determine actual financial performance and values are beyond the Company’s ability to predict or control. This Analysis should be read in conjunction with the consolidated financial statements and related notes.

27

ITEM 3. CONTROLS AND PROCEDURES

Management has developed and implemented a policy and procedures for reviewing disclosure controls and procedures and internal controls over financial reporting on a quarterly basis. Management, including the Chief Executive Officer (who is both the Company’s principal executive and principal financial officer), evaluated the effectiveness of the design and operation of disclosure controls and procedures as of September 30, 2007 and, based on their evaluation, the Company’s Chief Executive Officer concluded that these controls and procedures are operating effectively. Disclosure controls and procedures are the Company’s controls and other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files under the Securities Exchange Act is accumulated and communicated to management, including the principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure. There were no changes in the Company’s internal control over financial reporting during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

28

Part II - Other Information

Item 1. Legal Proceedings.

None

Item 2. Unregistered Sales of Equity 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

29

Item 6. Exhibits.

The following exhibits are filed with this report.

Exhibit Number	Description
3.1	Articles of Incorporation of the Company (incorporated herein by referenced to the Company’s Registration Statement on Form SB-2 under the Securities Act of 1933, Registration Number 33-91536).
3.2	Bylaws of the Company (incorporated herein by referenced to the Company’s Registration Statement on Form SB-2 under the Securities Act of 1933, Registration Number 33-91536).
31.1	Certification Pursuant to Rule 13a-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

30

SIGNATURES

Pursuant to 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.

	THOMASVILLE BANCSHARES, INC.
	(Registrant)
Date: November 14, 2007	By:	/s/ Stephen H. Cheney
		Stephen H. Cheney
		President and Chief Executive Officer
		(Principal Executive, Financial and Accounting Officer)

31