8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) ofthe
Securities Exchange Act of 1934

_________________

Date of Report
(Date of earliest
event reported):         November 14, 2003

Ridgestone Financial Services, Inc.
(Exact name of registrant as specified in its charter)

Wisconsin	0-27984	39-1797151
(State or other	(Commission File	(IRS Employer
jurisdiction of	Number)	Identification No.)
incorporation)

13925 West North Avenue, Brookfield, Wisconsin 53005
(Address of principal executive offices, including zip code)

(262) 789-1011
(Registrant’s telephone number)

Item 7. Financial Statements and Exhibits.

(a)      Not applicable.

(b)      Not applicable.

(c)     Exhibits. The following exhibit is being furnished herewith:

(99)         Financial statements of Ridgestone Financial Services, Inc., including Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002, Consolidated Statements of Income for the three and nine months ended September 30, 2003 and 2002, Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002, Consolidated Statements of Stockholders’ Equity for the nine months ended September 30, 2003 and 2002 and Notes to Consolidated Financial Statements.

Item 9. Regulation FD Disclosure.

        On November 14, 2003, Ridgestone Financial Services, Inc. (the “Company”) filed its Quarterly Report on Form 10-QSB with the Securities and Exchange Commission. The Company has furnished herewith as Exhibit 99 certain financial information contained in such Quarterly Report on Form 10-QSB, including Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002, Consolidated Statements of Income for the three and nine months ended September 30, 2003 and 2002, Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002, Consolidated Statements of Stockholders’ Equity for the nine months ended September 30, 2003 and 2002 and Notes to Consolidated Financial Statements.

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 hereunto duly authorized.

	RIDGESTONE FINANCIAL SERVICES, INC.
Dated: November 14, 2003	By: /s/ Christine V. Lake                  Christine V. Lake        Executive Vice President

Exhibit Index to Current Report on Form 8-K

        Exhibit
        Number       Description

(99) Financial statements of Ridgestone Financial Services, Inc., including Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002, Consolidated Statements of Income for the three and nine months ended September 30, 2003 and 2002, Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002, Consolidated Statements of Stockholders’ Equity for the nine months ended September 30, 2003 and 2002 and Notes to Consolidated Financial Statements.

EX-99

RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2003 and December 31, 2002

	September 30, 2003 (Unaudited)			December 31, 2002
ASSETS
Cash and due from banks	$	3,893,557		$	4,431,478
Federal Funds sold		4,801,000			0
Total cash and cash equivalents		8,694,557			4,431,478
Interest bearing deposits in banks		549,719			87,427
Available for sale securities-stated at fair value		949,700			138,460
Loans receivable		75,543,025			73,986,943
Less: Allowance for estimated loan losses		(688,833	)		(736,118	)
Net loans receivable		74,854,192			73,250,825
Mortgage loans held for sale		418,250			2,160,021
Premises and equipment, net		2,491,223			2,488,734
Cash surrender value of life insurance		2,323,016			2,252,516
Accrued interest receivable and other assets		1,159,024			1,157,560
Total Assets	$	91,439,681		$	85,967,021
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Demand	$	15,464,853		$	14,352,801
Savings and NOW		28,914,465			29,680,304
Other Time		31,633,736			27,152,835
Total deposits		76,013,054			71,185,940
Federal funds purchased		0			1,112,000
Other borrowings		4,500,000			4,500,000
Accrued interest payable and other liabilities		1,719,121			1,568,170
Guaranteed preferred beneficial interests in the
corporation's subordinated debentures		1,500,000			0
Total Liabilities		83,732,175			78,366,110
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 2,000,000 shares authorized,
no shares issued		0			0
Common stock, no par value, 10,000,000 shares authorized,
879,659 and 877,659 shares issued, respectively		8,433,619			8,423,619
Treasury stock, 50,000 and 0 shares at cost, respectively		(493,015	)		0
Accumulated deficit		(232,798	)		(807,465	)
Accumulated other comprehensive loss		(300	)		(15,243	)
Total Stockholders' Equity		7,707,506			7,600,911
Total Liabilities and Stockholders' Equity	$	91,439,681		$	85,967,021

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RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three and Nine Months Ended September 30, 2003 and 2002
(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30, 2003		September 30, 2002		September 30, 2003		September 30, 2002
Interest income
Interest and fees on loans	$	1,203,047	$	1,177,255	$	3,745,360	$	3,295,132
Interest on federal funds sold		13,867		7,229		13,870		63,462
Interest on deposits in banks		3,042		735		4,175		2,179
Total interest income		1,219,956		1,185,219		3,763,405		3,360,773
Interest expense
Interest on deposits		320,450		358,193		906,572		1,125,323
Interest on borrowed funds		14,013		46,200		157,532		101,245
Interest on preferred securities		27,125		0		27,125		0
Total interest expense		361,588		404,393		1,091,229		1,226,568
Net interest income before provision
for loan losses		858,368		780,826		2,672,176		2,134,205
Provision for loan losses		273,000		65,000		348,000		125,000
Net interest income after provision
for loan losses		585,368		715,826		2,324,176		2,009,205
Non-interest income
Secondary market loan fees		182,489		61,872		414,569		108,903
Gain on sale of other real estate		0		0		13,638		0
Service charges on deposit accounts		42,878		44,193		117,734		112,983
Gain on sale of available for sale securities		5,290		0		5,290		0
Increase in cash surrender value		31,500		30,150		94,500		103,604
Other income		37,291		27,205		130,706		74,381
Total non-interest income		299,448		163,420		776,437		399,871
Non-interest expense
Salaries and employee benefits		359,361		405,034		1,253,963		1,205,604
Occupancy and equipment expense		48,978		64,362		171,644		192,694
Other expense		236,557		190,490		788,515		515,911
Total non-interest expense		644,896		659,886		2,214,122		1,914,209
Income before income taxes		239,920		219,360		886,491		494,867
Provision for income taxes		81,801		74,371		311,824		159,575
Net income	$	158,119	$	144,989	$	574,667	$	335,292
Earnings per share  -Basic	$	0.19	$	0.17	$	0.66	$	0.38
-Diluted	$	0.17	$	0.16	$	0.60	$	0.37
Average shares outstanding		845,116		876,923		866,692		876,633

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RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2003 and 2002
(Unaudited)

	Nine Months Ended
	September 30, 2003			September 30, 2002
Cash flows from operating activities:
Net income	$	574,667		$	335,292
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation		115,200			117,000
Gain on sale of available for sale securities		(5,290	)		0
Provision for loan losses		348,000			125,000
Net increase in cash surrender value		(70,500	)		(91,347	)
Net change in:
Mortgage loans held for sale		1,741,771			(1,612,700	)
Accrued interest receivable and other assets		(1,464	)		(399,138	)
Accrued interest payable and other liabilities		150,951			627,954
Net cash provided by (used in) operating activities		2,853,335			(897,939	)
Cash flows from investing activities:
Net increase in interest-bearing deposits		(462,292	)		(2,180	)
Proceeds from sale of available for sale
securities		108,993			0
Purchase of available for sale securities		(900,000	)		(50,000	)
Net increase in loans		(1,951,367	)		(13,253,085	)
Additions to premises and equipment		(117,689	)		(95,980	)
Net cash used in investing activities		(3,322,355	)		(13,401,245	)
Cash flows from financing activities:
Net increase in deposits		4,827,114			1,694,387
Net increase (decrease) in borrowed funds		(1,112,000	)		6,792,000
Purchase of treasury stock		(493,015	)		0
Proceeds from issuance of common stock		10,000			6,502
Issuance of subordinated debentures		1,500,000			0
Net cash provided by financing activities		4,732,099			8,492,889
Net change in cash and cash equivalents		4,263,079			(5,806,295	)
Cash and cash equivalents, beginning		4,431,478			9,601,962
Cash and cash equivalents, ending	$	8,694,557		$	3,795,667
Supplemental cash flow disclosures
Cash paid for interest	$	1,113,027		$	715,285
Cash paid for income taxes	$	387,740		$	0

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RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Nine Months Ended September 30, 2003 and 2002
(Unaudited)

	Common Stock		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balances
December 31, 2001	$	8,417,117	$	0		$	(1,308,899	)	$	(56,603	)	$	7,051,615
Net income				0			335,292						335,292
Other comprehensive income-change in
net unrealized gain on securities
available for sale, net of tax										33,900			33,900
Total comprehensive income													369,192
Common stock issued		6,502											6,502
Balances
September 30, 2002	$	8,423,619	$	0			(973,607	)	$	(22,703	)	$	7,427,309
Balances
December 31, 2002	$	8,423,619	$	0			(807,465	)	$	(15,243	)	$	7,600,911
Net income							574,667						574,667
Other comprehensive incone-change in
net unrealized gain on securities
available for sale, net of tax										14,943			14,943
Total comprehensive income													589,610
Common stock issued		10,000											10,000
Treasury Stock				(493,015	)								(493,015	)
Balances
September 30, 2003	$	8,433,619	$	(493,015	)	$	(232,798	)	$	(300	)	$	7,707,506

4

RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003 and 2002
(Unaudited)

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Ridgestone Financial Services, Inc. (the “Company”) 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 of 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 adjustments) considered necessary for the fair presentation have been included. Operating results for the three and nine months ended September 30, 2003 are not necessarily indicative of the results that may be expected for the year ended December 31, 2003. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The accounting policies followed by the Company are set forth in Note 1 to the Company’s consolidated financial statements contained in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2002. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2002.

NOTE 2 – PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Ridgestone Bank (the “Bank”) and Ridgestone Capital Trust I. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

The consolidated income of the Company is principally from the income of the Bank. The Bank grants commercial, residential and consumer loans and accepts deposits from customers primarily in southeastern Wisconsin. The Bank is subject to competition from other financial institutions and non-financial institutions providing financial products. Additionally, the Company and the Bank are subject to the regulations of certain regulatory agencies and undergo periodic examination by those regulatory agencies.

NOTE 3 – STOCK-BASED COMPENSATION PLAN

At September 30, 2003, the Company has a stock-based employee compensation plan. The Company accounts for this plan under the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted under this plan had an exercise price equal to the approximate market value of the underlying common stock on the date of grant. The following table illustrates, in accordance with SFAS No. 148, Accounting for Stock-Based Compensation – Transition and Disclosure, the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation.

	September 30, 2003		September 30, 2002
Net income - as reported	$	574,667	$	335,292
Deduct: Total stock-based employee compensation
expense determined under a fair value
based method for all awards granted, net of related
tax effects		86,294		109,484
Pro forma net income	$	488,373	$	225,809
Basic earnings per share - as reported	$	0.66	$	0.38
Pro forma basic earnings per share	$	0.56	$	0.26
Diluted earnings per share - as reported	$	0.60	$	0.37
Pro forma diluted earnings per share	$	0.51	$	0.24

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