================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                             ----------------------
                                    FORM 10-Q

            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

   For the Quarterly Period Ended September 30, 2001 - Commission File Number
                                    0-25422

                             ----------------------

                              PAB BANKSHARES, INC.
                            (A Georgia Corporation)
                 IRS Employer Identification Number: 58-1473302

                3250 NORTH VALDOSTA ROAD, VALDOSTA, GEORGIA 31602
                        TELEPHONE NUMBER: (229) 241-2775


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 [X]  No [ ]

The  number  of shares outstanding of the registrant's common stock at September
30, 2001 was 9,489,663 shares.


================================================================================


<PAGE>
                                TABLE OF CONTENTS
                                -----------------

                                                                            Page
                                                                            ----
PART  I   FINANCIAL  INFORMATION
-------   ----------------------
  Item 1.    Consolidated  Financial  Statements  (Unaudited)
               Statements  of  Condition                                       3
               Statements  of  Income                                          4
               Statements  of  Comprehensive  Income                           5
               Statements  of  Cash  Flows                                     6
               Notes  to  Consolidated  Financial  Statements                  7
  Item 2.    Management's Discussion and Analysis of Financial Condition
               and  Results  of  Operations                                   10
  Item 3.    Qualitative and Quantitative Disclosures About Market Risk       16

PART  II  OTHER  INFORMATION
--------  ------------------
  Item 6.    Exhibits  and  Reports  on  Form  8-K                            17

SIGNATURES                                                                    18


                                      -2-
<PAGE>
<TABLE>
<CAPTION>
PART  I.  FINANCIAL  INFORMATION


                      PAB BANKSHARES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CONDITION
                 AS OF SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

-----------------------------------------------------------------------------------------------

                                                                 SEPTEMBER 30,     DECEMBER 31,
                                                                     2001             2000
                                                                ---------------  --------------
<S>                                                             <C>              <C>
                                                                 (UNAUDITED)

ASSETS
  Cash and due from banks                                       $   20,875,057   $  29,697,335
  Interest-bearing deposits in other banks                          14,034,736      13,414,020
  Federal funds sold                                                34,378,000      43,415,000
  Investment securities                                            104,916,061      84,924,830

  Loans                                                            644,100,877     580,736,533
  Allowance for loan losses                                         (8,623,957)     (8,184,641)
                                                                ---------------  --------------
          Net loans                                                635,476,920     572,551,892
                                                                ---------------  --------------

  Premises and equipment                                            23,420,828      22,380,725
  Goodwill and other intangible assets                               6,097,111       6,450,742
  Investment in unconsolidated subsidiary                              111,069          57,639
  Cash value of bank-owned life insurance policies                   9,266,636       9,041,355
  Foreclosed assets                                                    525,654         566,518
  Other assets                                                      10,941,088      12,406,513
                                                                ---------------  --------------

          Total assets                                          $  860,043,160   $ 794,906,569
                                                                ===============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
  Deposits:
     Noninterest-bearing                                        $   75,771,900   $  70,679,023
     Interest-bearing                                              633,357,979     566,500,715
                                                                ---------------  --------------
          Total deposits                                           709,129,879     637,179,738
                                                                ---------------  --------------

  Federal funds purchased and securities sold under
     agreements to repurchase                                       18,471,353      12,165,591
  Advances from the Federal Home Loan Bank                          43,752,117      58,701,282
  Other borrowings                                                   7,667,280       7,667,280
  Other liabilities                                                  7,481,099       8,412,198
                                                                ---------------  --------------
          Total liabilities                                        786,501,728     724,126,089
                                                                ---------------  --------------

  Stockholders' equity:
     Preferred stock, no par value, 1,500,000 shares authorized,
       no shares issued                                                      -               -
     Common stock, no par value, 98,500,000 shares authorized,
       9,489,663 and 9,501,947 shares issued                         1,217,065       1,217,065
     Additional paid-in capital                                     29,487,009      29,754,284
     Retained earnings                                              40,636,152      38,939,722
     Accumulated other comprehensive income                          2,201,206         869,409
                                                                ---------------  --------------
          Total stockholders' equity                                73,541,432      70,780,480
                                                                ---------------  --------------

          Total liabilities and stockholders' equity            $  860,043,160   $ 794,906,569
                                                                ===============  ==============
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                      PAB BANKSHARES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)

---------------------------------------------------------------------------------------------------------------


                                                              THREE  MONTHS  ENDED       NINE  MONTHS  ENDED
                                                                 SEPTEMBER  30,             SEPTEMBER  30,
                                                           --------------------------  -------------------------
                                                               2001          2000         2001          2000
                                                           ------------  ------------  -----------  ------------
<S>                                                        <C>           <C>           <C>          <C>
INTEREST INCOME
  Interest and fees on loans                               $13,506,679   $13,088,123   $41,449,091  $37,530,717
  Interest and dividends on investment securities:
    Taxable                                                  1,373,936       953,609     4,026,563    3,042,163
    Nontaxable                                                  47,968        56,541       144,412      173,427
  Other interest income                                        524,990       574,360     2,602,123    1,281,339
                                                           ------------  ------------  -----------  ------------
     Total interest income                                  15,453,573    14,672,633    48,222,189   42,027,646
                                                           ------------  ------------  -----------  ------------

INTEREST EXPENSE
  Interest on deposits                                       7,857,626     6,286,392    24,396,086   17,041,975
  Interest on federal funds purchased and securities sold
    under agreements to repurchase                             154,235       174,694       430,483      493,341
  Interest on Federal Home Loan Bank advances                  757,779     1,083,311     2,574,661    2,801,558
  Interest on other borrowings                                 106,501             -       365,886            -
                                                           ------------  ------------  -----------  ------------
     Total interest expense                                  8,876,141     7,544,397    27,767,116   20,336,874
                                                           ------------  ------------  -----------  ------------

     Net interest income                                     6,577,432     7,128,236    20,455,073   21,690,772

Provision for loan losses                                      487,833       367,000     1,068,500    1,095,437
                                                           ------------  ------------  -----------  ------------
     Net interest income after provision for loan losses     6,089,599     6,761,236    19,386,573   20,595,335
                                                           ------------  ------------  -----------  ------------

OTHER INCOME
  Service charges on deposit accounts                        1,529,559     1,015,173     4,255,402    2,847,694
  Other fee income                                             355,999       301,010     1,085,074      819,003
  Securities transactions, net                                   2,143        (8,610)        2,124      (19,667)
  Equity in earnings of unconsolidated subsidiary              149,425       128,495       403,431      455,341
  Gain (loss) on disposal of assets                             (4,770)         (197)        9,227     (174,365)
  Other noninterest income                                     166,600        82,174       800,295      282,986
                                                           ------------  ------------  -----------  ------------
     Total other income                                      2,198,956     1,518,045     6,555,553    4,210,992
                                                           ------------  ------------  -----------  ------------

OTHER EXPENSES
  Salaries and employee benefits                             3,591,038     2,773,086    10,611,592    8,378,707
  Occupancy expense of premises                                401,252       312,584     1,162,268      877,217
  Furniture and equipment expense                              638,523       372,341     1,864,215    1,171,977
  Amortization of goodwill and other intangibles                88,936        89,880       322,244      269,641
  Other noninterest expense                                  1,731,197     1,385,564     5,050,866    4,558,191
                                                           ------------  ------------  -----------  ------------
     Total other expenses                                    6,450,946     4,933,455    19,011,185   15,255,733
                                                           ------------  ------------  -----------  ------------

     Income before income tax expense                        1,837,609     3,345,826     6,930,941    9,550,594
Income tax expense                                             526,335     1,171,731     2,100,617    3,243,767
                                                           ------------  ------------  -----------  ------------

     Net income                                            $ 1,311,274   $ 2,174,095   $ 4,830,324  $ 6,306,827
                                                           ============  ============  ===========  ============

Earnings per common share:
  Basic                                                    $      0.14   $      0.23   $      0.51  $      0.66
                                                           ============  ============  ===========  ============
  Diluted                                                  $      0.14   $      0.23   $      0.51  $      0.66
                                                           ============  ============  ===========  ============

Weighted-average shares outstanding:
  Basic                                                      9,494,641     9,509,770     9,495,981    9,536,080
                                                           ============  ============  ===========  ============
  Diluted                                                    9,565,999     9,575,208     9,566,468    9,614,228
                                                           ============  ============  ===========  ============

Dividends declared per share                               $      0.11   $      0.11   $      0.33  $      0.32
                                                           ============  ============  ===========  ============
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                               PAB BANKSHARES, INC. AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                          (UNAUDITED)

-------------------------------------------------------------------------------------------------------------


                                                                THREE  MONTHS  ENDED     NINE  MONTHS  ENDED
                                                                   SEPTEMBER  30,           SEPTEMBER  30,
                                                              -----------------------  -----------------------
                                                                 2001         2000        2001         2000
                                                              -----------  ----------  -----------  ----------
<S>                                                           <C>          <C>         <C>          <C>
Net income                                                    $1,311,274   $2,174,095  $4,830,324   $6,306,827

Other comprehensive income:
  Unrealized holding gains arising during
    the period, net of tax of $304,148 and $311,909 for
    the quarter and $735,348 and $173,777 for the year           577,232      534,128   1,333,199      245,881
  Reclassification adjustment for (gains) losses included in
    net income, net of tax (benefit) of ($729) and $2,927 for
    the quarter and ($722) and $6,687 for the year                (1,414)       5,683      (1,402)      12,980
                                                              -----------  ----------  -----------  ----------
                                                                 575,818      539,811   1,331,797      258,861
                                                              -----------  ----------  -----------  ----------
            Comprehensive income                              $1,887,092   $2,713,906  $6,162,121   $6,565,688
                                                              ===========  ==========  ===========  ==========
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -5-
<PAGE>
<TABLE>
<CAPTION>
                               PAB BANKSHARES, INC. AND SUBSIDIARIES
                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                           NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                            (UNAUDITED)

----------------------------------------------------------------------------------------------


                                                                       2001           2000
                                                                   -------------  -------------
<S>                                                                <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                       $  4,830,324   $  6,306,827
    Adjustments to reconcile net income to net cash
    provided by operating activities:
    Depreciation, amortization and accretion, net                     2,033,061      1,381,204
    Provision for loan losses                                         1,068,500      1,095,437
    Net realized (gain) loss on securities transactions                  (2,124)        19,667
    Net (gain) loss on disposal of assets                                (9,227)       174,365
    Equity in earnings of unconsolidated subsidiary                    (403,431)      (455,341)
    Dividends received from unconsolidated subsidiary                   350,000        350,000
    Net (increase) decrease in accrued interest receivable, prepaid
       expenses and other assets                                        384,450     (1,193,735)
    Net increase (decrease) in accrued interest payable, accrued
       expenses and other liabilities                                (1,660,871)     1,029,017
                                                                   -------------  -------------
         Net cash provided by operating activities                    6,590,682      8,707,441
                                                                   -------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Increase in interest-bearing deposits in other banks                 (620,716)      (917,699)
  Increase (decrease) in Federal funds sold                           9,037,000    (16,810,000)
  Activities on securities available for sale:
     Purchases                                                      (50,173,666)    (2,167,444)
     Proceeds from sales and calls                                   14,076,942        559,142
     Proceeds from maturities and paydowns                           18,091,818     10,444,131
  Net increase in loans                                             (64,090,216)   (63,951,576)
  Purchase of premises and equipment                                 (2,669,337)    (4,932,902)
  Proceeds from disposal of assets                                    1,034,497        839,169
  Proceeds from life insurance benefits                                       -        511,031
                                                                   -------------  -------------
         Net cash used in investing activities                      (75,313,678)   (76,426,148)
                                                                   -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in deposits                                           71,950,141     63,413,278
  Net increase in Federal funds purchased and
     securities sold under repurchase agreements                      6,305,762      1,541,102
  Advances from the Federal Home Loan Bank                              700,000     27,770,000
  Payments on Federal Home Loan Bank advances                       (15,649,165)   (25,757,465)
  Dividends paid                                                     (3,138,745)    (3,119,358)
  Proceeds from the exercise of stock options                           171,875         29,515
  Acquisition of stock under stock repurchase plans                    (439,150)    (1,434,522)
                                                                   -------------  -------------
         Net cash provided by financing activities                   59,900,718     62,442,550
                                                                   -------------  -------------

         Net decrease in cash and due from banks                     (8,822,278)    (5,276,157)
Cash and due from banks at beginning of period                       29,697,335     31,524,206
                                                                   -------------  -------------
Cash and due from banks at end of period                           $ 20,875,057   $ 26,248,049
                                                                   =============  =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
     Interest                                                      $ 26,972,380   $ 19,850,785
                                                                   =============  =============
     Taxes                                                         $  2,263,444   $  3,666,300
                                                                   =============  =============

NONCASH INVESTING AND FINANCING TRANSACTIONS:
  Increase in unrealized gains on securities
     available for sale                                            $  2,066,420   $    439,325
                                                                   =============  =============
</TABLE>

See accompanying notes to consolidated financial statements.


                                      -6-
<PAGE>
                      PAB BANKSHARES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

-------------------------------------------------------------------------------


NOTE  1.  NATURE  OF  BUSINESS

     PAB Bankshares, Inc. ("PAB") is a multi-bank holding company whose business
     is conducted by its five subsidiary banks (the "Banks") and an investment
     advisory services subsidiary called PAB Financial Services, LLC ("PAB
     Financial"). The Banks offer a broad range of commercial and consumer
     banking products and services to its customers at 17 banking offices
     located in south Georgia, south-metro Atlanta, and central Florida. Through
     PAB Financial, the Banks are also able to offer brokerage and investment
     services to their customers. Both PAB and the Banks are subject to the
     regulations of certain Federal and state agencies and are regularly
     examined by those regulatory agencies.

     During the second quarter of 2001, PAB completed the consolidation of its
     Florida bank charter, Friendship Community Bank of Ocala, Florida, into its
     lead bank, The Park Avenue Bank of Valdosta, Georgia ("Park Avenue").

     On September 7, 2001 PAB announced a plan to consolidate its five remaining
     bank charters into one charter. PAB will consolidate the charters of
     Farmers & Merchants Bank of Adel, Eagle Bank and Trust of Statesboro,
     Baxley Federal Bank of Baxley, and First Community Bank of Bainbridge into
     Park Avenue. The merged banks will continue to operate under their trade
     names and will be managed by their respective community presidents. The
     mergers are expected to begin in December 2001 and be completed by
     September 30, 2002.


NOTE  2.  BASIS  OF  PRESENTATION

     The accompanying consolidated financial information of PAB is unaudited;
     however, such information reflects all adjustments (consisting of normal
     recurring adjustments) which are, in the opinion of management, necessary
     for a fair presentation of the financial position and results of
     operations. The results of operations for the three months and nine months
     ended September 30, 2001 are not necessarily indicative of the results that
     may be expected for the full year. These statements should be read in
     conjunction with the consolidated financial statements and notes thereto
     included in PAB's Annual Report on Form 10-K for the year ended December
     31, 2000.

     The accounting and reporting policies of PAB conform to generally accepted
     accounting principles and general practices within the financial services
     industry. In preparing the consolidated financial statements, management is
     required to make estimates and assumptions that affect the reported amounts
     of assets and liabilities as of the date of the statement of condition 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, and the valuation of
     foreclosed real estate and deferred tax assets.

     PAB's consolidated financial statements include the accounts of PAB and its
     subsidiaries. All significant intercompany transactions and accounts have
     been eliminated in consolidation.


                                      -7-
<PAGE>
                      PAB BANKSHARES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

--------------------------------------------------------------------------------

NOTE  3.  STOCKHOLDERS'  EQUITY

     On February 28, 2001, PAB's Board of Directors declared a quarterly cash
     dividend of $0.11 per share payable to shareholders of record as of March
     31, 2001. The dividends were paid on April 16, 2001.

     On May 29, 2001, PAB's Board of Directors declared a quarterly cash
     dividend of $0.11 per share payable to shareholders of record as of June
     30, 2001. The dividends were paid on July 16, 2001.

     On August 29, 2001, PAB's Board of Directors declared a quarterly cash
     dividend of $0.11 per share payable to shareholders of record as of
     September 28, 2001. The dividends were paid on October 15, 2001.

     During the nine months ended September 30, 2001, PAB acquired and cancelled
     39,784 shares of common stock for a total cost of $439,150 through two
     stock repurchase plans approved by the Board of Directors. At September 30,
     2001, a balance of 90,600 shares was available for repurchase under the
     2001 plan.

     During the nine months ended September 30, 2001, PAB issued 27,500 shares
     of common stock for a total of $171,875 upon the exercise of employee stock
     options.


NOTE  4.  EARNINGS  PER  SHARE

     The following table sets forth the computation of basic and diluted
     earnings per share:

<TABLE>
<CAPTION>
                                                 THREE  MONTHS  ENDED     NINE  MONTHS  ENDED
                                                    SEPTEMBER  30,          SEPTEMBER  30,
                                                ----------------------  ----------------------
                                                   2001        2000        2001        2000
                                                ----------  ----------  ----------  ----------
<S>                                             <C>         <C>         <C>         <C>
  Basic earnings per share:
    Net income                                   $1,311,274  $2,174,095  $4,830,324  $6,306,827
                                                 ----------  ----------  ----------  ----------
     Weighted average common shares outstanding   9,494,641   9,509,770   9,495,981   9,536,080
                                                 ----------  ----------  ----------  ----------
      Earnings per common share                  $     0.14  $     0.23  $     0.51  $     0.66
                                                 ==========  ==========  ==========  ==========

  Diluted earnings per share:
    Net income                                   $1,311,274  $2,174,095  $4,830,324  $6,306,827
                                                 ----------  ----------  ----------  ----------

    Weighted average common shares outstanding    9,494,641   9,509,770   9,495,981   9,536,080
    Effect of dilutive stock options                 71,358      65,438      70,487      78,148
                                                 ----------  ----------  ----------  ----------
      Weighted average diluted common
       shares outstanding                         9,565,999   9,575,208   9,566,468   9,614,228
                                                 ----------  ----------  ----------  ----------

       Earnings per common share                 $     0.14  $     0.23  $     0.51  $     0.66
                                                 ==========  ==========  ==========  ==========
</TABLE>


                                      -8-
<PAGE>
                      PAB BANKSHARES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

--------------------------------------------------------------------------------


NOTE  5.  RECENT  ACCOUNTING  DEVELOPMENTS

     On July 20, 2001, the Financial Accounting Standards Board (FASB) issued
     Statement No. 141, Business Combinations, and Statement No. 142, Goodwill
     and Other Intangible Assets. Statement No. 141 requires that the purchase
     method of accounting be used for business combinations initiated after June
     30, 2001. Use of the pooling-of-interests method of accounting for business
     combinations is no longer permitted. Statement No. 142 requires that
     goodwill no longer be amortized to earnings, but instead be reviewed at
     least annually for impairment. The straight-line amortization of goodwill
     on PAB's books will cease upon adoption of Statement No. 142 on January 1,
     2002.

     On July 6, 2001, the Federal Financial Institutions Examination Council
     published its Interagency Policy Statement on Allowance for Loan and Lease
     Losses Methodologies and Documentation for Banks and Savings Institutions.
     On the same date, the Securities and Exchange Commission issued parallel
     guidance in Staff Accounting Bulletin No. 102, Selected Loan Loss Allowance
     Methodology and Documentation Issues. Both documents provide guidance for
     financial institutions on the development, documentation, and application
     of a systematic methodology for determining allowances for loan losses in
     accordance with generally accepted accounting principles. Management
     believes that its current methodology for determining its allowance for
     loan losses is in accordance with this new guidance.

     There were no other recent accounting pronouncements adopted by PAB that
     management considers to have had a material impact on PAB's financial
     condition or results of operations.


NOTE  6.  SUBSEQUENT  EVENTS

     On October 15, 2001, Park Avenue entered into an agreement to sell its
     Richmond Hill banking office to Southeastern Bank of Darien, Georgia.
     Subject to regulatory approval, the sale is anticipated to close by year
     end. At September 30, 2001, the Richmond Hill banking office had total
     loans of $8.8 million and total deposits of $3.9 million.


                                      -9-
<PAGE>
CAUTIONARY  NOTICE  REGARDING  FORWARD-LOOKING  STATEMENTS

Some of the statements in this Quarterly Report on Form 10-Q, including, without
limitation, matters discussed under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operation," as well as oral
statements made by PAB Bankshares, Inc. ("PAB") or the officers, directors, or
employees of PAB may constitute "forward-looking statements" within the meaning
of the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended. Forward-looking statements include statements about the
competitiveness of the banking industry, potential regulatory obligations, our
strategies, statements regarding net interest income and loan loss reserve, and
other statements that are not historical facts. When or if we use in this
Quarterly Report words like "anticipate," "believe," "expect," "estimate" and
similar expressions, you should consider them as identifying forward-looking
statements. These forward-looking statements involve risks and uncertainties and
are based on the beliefs and assumptions of management of PAB, and on the
information available to management at the time that these disclosures were
prepared. Factors that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements include, among others,
the following possibilities: (1) competitive pressures among depository and
other financial institutions may increase significantly; (2) changes in the
interest rate environment may reduce margins; (3) general economic conditions
may be less favorable than expected, resulting in, among other things, a
deterioration in credit quality and/or a reduction in demand for credit; (4)
legislative or regulatory changes, including changes in accounting standards,
may adversely affect the businesses in which PAB is engaged; (5) costs or
difficulties related to the integration of the businesses of PAB and its merger
partners may be greater than expected; (6) expected cost savings associated with
mergers may not be fully realized or realized within the expected time frame;
(7) deposit attrition, customer loss or revenue loss following mergers may be
greater than expected; (8) competitors may have greater financial resources and
develop products that enable such competitors to compete more successfully than
PAB; and (9) adverse changes may occur in the bond and equity markets. Many of
such factors are beyond PAB's ability to control or predict, and readers are
cautioned not to put undue reliance on such forward-looking statements. PAB
disclaims any obligation to update or revise any forward-looking statements
contained in this Quarterly Report, whether as a result of new information,
future events or otherwise.


ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION
            AND  RESULTS  OF  OPERATION

FINANCIAL  CONDITION

At September 30, 2001, PAB's total assets were $860 million, an 8.2% increase
since year end. Total loans were $644.1 million, a 10.9% increase, and total
deposits were $709.1 million, an 11.3% increase. The resulting loan-to-deposit
ratio at quarter end was at 90.9% compared to a ratio of 91.1% at year end.
PAB's investment portfolio was valued at $104.9 million with a net unrealized
gain of $3.4 million at quarter end. Total advances from the Federal Home Loan
Bank of Atlanta (the "FHLB") were $43.8 million, a 25.5% decrease since year
end. Total stockholders' equity of PAB was $73.5 million, or $7.75 per share at
quarter end compared to $7.45 per share at year end.

RESULTS  OF  OPERATIONS

For the third quarter of 2001, net income was $1.31 million, or 14 cents per
diluted share compared to 23 cents per diluted share in the third quarter of
2000. Net interest income was $6.58 million, a 7.7% decrease compared to the
third quarter of 2000. The provision for loan losses was $488,000, a 32.9%
increase. Excluding non-recurring gains and losses, noninterest income was $2.20
million, a 39.2% increase. Noninterest expense was $6.45 million, a 29.2%
increase. Income tax expense was $526,000, a 55.1% decrease.


                                      -10-
<PAGE>
For the year to date, net income was $4.83 million, or 51 cents per diluted
share compared to 66 cents per diluted share in 2000. Net interest income was
$20.46 million, a 5.7% decrease compared to the same period in 2000. The
provision for loan losses was $1,068,500, a 2.5% decrease. Excluding
non-recurring gains and losses, noninterest income was $6.54 million, a 48.8%
increase. Noninterest expense was $19.01 million, a 24.4% increase. Income tax
expense was $2.10 million, a 35.2% decrease.

The reasons for these changes are discussed in more detail below.

Comparisons with the prior year are affected by the acquisition of Friendship
Community Bank of Ocala, Florida in December 2000, which was recorded using the
purchase method of accounting.

Net  Interest  Income
---------------------
For the third quarter of 2001, net interest income (on a taxable-equivalent
basis) was $6.6 million, a 7.8% decline compared to the $7.16 million earned
during the same period last year. Total interest income (on a taxable-equivalent
basis) was $15.48 million, a 5.3% increase compared to the $14.7 million earned
in 2000. The increase in interest income was due to an increase of $125.6
million, or 19.2%, in the average volume of earning assets compared to the same
period last year. However, a decline in the average yield earned on those assets
offset most of the positive growth. Total interest expense was $8.88 million, a
17.7% increase compared to the $7.54 million paid in 2000. The increase in
interest expense is primarily due to an increase of $130.6 million, or 23.2%, in
the average volume of interest-bearing liabilities compared to the same period
last year.

Overall, the decrease in the net interest income is primarily the result of
having an asset sensitive balance sheet during an unprecedented period of cuts
in short term interest rates made by the Federal Open Markets Committee. Being
asset sensitive in the short term, the Banks' interest-earning assets reprice
more frequently than its interest-bearing liabilities. PAB did however, have a
decline in its average cost of funds from a high of 5.65% in the first quarter
of 2001 to 5.08% this quarter. Over the next few quarters, management
anticipates some improvement in its net interest income as the majority of those
liabilities continue to reprice at lower rates.

For the year to date, net interest income (on a taxable-equivalent basis) was
$20.53 million, a 5.7% decline compared to the $21.78 million earned during the
same period last year. Total interest income (on a taxable-equivalent basis) was
$48.3 million, a 14.7% increase, and total interest expense was $27.77 million,
a 36.5% increase.


                                      -11-
<PAGE>
The following tables illustrate the changes in interest income and interest
expense on a fully taxable equivalent basis resulting from changes in volume and
changes in rates for each category of interest-earning assets and
interest-bearing liabilities. The change in interest attributable to rate has
been determined by applying the change in rate between periods to average
balances outstanding in the later period. The change in interest due to volume
has been determined by applying the rate from the earlier period to the change
in average balances outstanding between periods. Thus, changes that are not
solely due to volume have been consistently attributed to rate.

<TABLE>
<CAPTION>
For the Quarter Ended September 30,               2001  vs.  2000
------------------------------------------------------------------------
                                             Increase   Changes Due To
                                            (Decrease)  Rate      Volume
------------------------------------------------------------------------
                                               (Dollars In Thousands)
<S>                                           <C>      <C>       <C>

Increase (decrease) in:
  Income from earning assets:
    Loans                                     $  419   $(1,535)  $1,954
    Taxable securities                           420         6      414
    Nontaxable securities                        (13)       (7)      (6)
    Other short-term investments                 (49)     (305)     256
------------------------------------------------------------------------
       Total interest income                     777    (1,841)   2,618
------------------------------------------------------------------------
  Expense from interest-bearing liabilities:
    Demand deposits                              157       (70)     227
    Savings deposits                               3       (33)      36
    Time deposits                              1,411       (80)   1,491
    FHLB advances                               (325)     (106)    (219)
    Notes payable                                107         -      107
    Other short-term borrowings                  (20)      (23)       3
------------------------------------------------------------------------
       Total interest expense                  1,333      (312)   1,645
------------------------------------------------------------------------
       Net interest income                    $ (556)  $(1,529)  $  973
========================================================================
</TABLE>

<TABLE>
<CAPTION>
For the Quarter Ended September 30,               2001  vs.  2000
------------------------------------------------------------------------
                                             Increase   Changes Due To
                                            (Decrease)  Rate      Volume
------------------------------------------------------------------------
                                               (Dollars In Thousands)
<S>                                          <C>       <C>       <C>
Increase  (decrease)  in:
  Income  from  earning  assets:
    Loans                                    $ 3,918   $(1,699)  $5,617
    Taxable securities                           984        14      970
    Nontaxable securities                        (44)      (15)     (29)
    Other short-term investments               1,321      (588)   1,909
------------------------------------------------------------------------
       Total interest income                   6,179    (2,288)   8,467
------------------------------------------------------------------------
  Expense from interest-bearing liabilities:
    Demand deposits                              412         1      411
    Savings deposits                              19       (72)      91
    Time deposits                              6,923     1,721    5,202
    FHLB advances                               (227)     (138)     (89)
    Notes payable                                366         -      366
    Other short-term borrowings                  (63)      (39)     (24)
------------------------------------------------------------------------
       Total interest expense                  7,430     1,473    5,957
------------------------------------------------------------------------
       Net interest income                   $(1,251)  $(3,761)  $2,510
========================================================================
</TABLE>


                                      -12-
<PAGE>
The following tables summarize the average balance of interest-earning assets
and interest-bearing liabilities, the amount of interest earned and paid, and
the average yields and rates. Federally tax-exempt income is presented on a
taxable-equivalent basis assuming a 34% Federal tax rate. Loan average balances
include loans on nonaccrual status.

<TABLE>
<CAPTION>
For the Quarter Ended September 30,               2001                       2000
-----------------------------------------------------------------------------------------------
                                                  Interest  Average            Interest  Average
                                        Average    Income/   Yield/   Average   Income/  Yield/
                                        Balance    Expense   Rate     Balance   Expense   Rate
-----------------------------------------------------------------------------------------------
<S>                                    <C>        <C>        <C>      <C>       <C>       <C>
                                                         (Dollars In Thousands)
Interest-earning assets:
  Loans                                $628,264   $ 13,507   8.53%    $546,844  $ 13,088  9.52%
  Investment securities:
    Taxable                              95,014      1,374   5.74%      66,291       954  5.72%
    Nontaxable                            4,480         73   6.44%       4,844        86  7.04%
  Other short-term investments           51,450        525   4.05%      35,631       574  6.41%
                                       --------------------           ------------------
      Total interest-earning assets     779,208     15,479   7.88%     653,610    14,702  8.95%
                                       --------------------           ------------------
    Interest-bearing liabilities:
    Demand deposits                    $143,980   $    967   2.66%    $112,502  $    810  2.86%
    Savings deposits                     34,944        180   2.04%      29,077       177  2.42%
    Time deposits                       444,561      6,711   5.99%     347,143     5,300  6.07%
    FHLB advances                        47,671        758   6.31%      59,727     1,083  7.22%
    Notes payable                         7,667        107   5.51%           -         -
    Other short-term borrowings          14,704        155   4.16%      14,481       175  4.80%
                                       --------------------           ------------------
   Total interest-bearing liabilities   693,527      8,878   5.08%     562,930     7,545  5.33%
                                       --------------------           ------------------

  Interest rate spread                                       2.80%                        3.62%
                                                            ======                        =====
  Net interest income                             $  6,601                      $  7,157
                                                  ========                      =========
  Net interest margin                                        3.36%                        4.36%
                                                             =====                        =====
</TABLE>

<TABLE>
<CAPTION>
For the Quarter Ended September 30,               2001                       2000
-----------------------------------------------------------------------------------------------
                                                  Interest  Average            Interest Average
                                        Average    Income/   Yield/   Average   Income/  Yield/
                                        Balance    Expense   Rate     Balance   Expense   Rate
-----------------------------------------------------------------------------------------------
<S>                                    <C>        <C>        <C>    <C>       <C>       <C>
                                                         (Dollars In Thousands)
Interest-earning assets:
  Loans                                $605,853   $ 41,449   9.15%  $526,915  $ 37,531  9.51%
  Investment securities:
    Taxable                              91,448      4,026   5.89%    69,332     3,042  5.86%
    Nontaxable                            4,529        219   6.46%     5,097       263  6.89%
  Other short-term investments           71,866      2,602   4.84%    28,847     1,281  5.93%
                                       --------------------           ----------------
    Total interest-earning assets       773,696     48,296   8.35%   630,191    42,117  8.93%
                                       --------------------           ----------------
  Interest-bearing liabilities:
    Demand deposits                    $136,195   $  2,879   2.83%  $116,741  $  2,467  2.82%
    Savings deposits                     34,060        589   2.31%    29,355       570  2.60%
    Time deposits                       443,253     20,928   6.31%   323,124    14,005  5.79%
    FHLB advances                        53,909      2,575   6.39%    55,680     2,802  6.72%
    Notes payable                         7,667        366   6.38%         -         -
    Other short-term borrowings          13,234        430   4.35%    13,915       493  4.74%
                                       --------------------           ----------------
  Total interest-bearing liabilities    688,318     27,767   5.39%   538,815    20,337  5.04%
                                       --------------------           ----------------

  Interest rate spread                                       2.96%                      3.89%
                                                            =======                    ======
  Net interest income                             $ 20,529                    $ 21,780
                                                  ========                    ========
  Net interest margin                                        3.55%                      4.62%
                                                            =======                    ======
</TABLE>


                                      -13-
<PAGE>
Provision  for  Loan  Losses
----------------------------
Management continues to monitor and adjust the level of the allowance for loan
losses in relation to net charge-offs, as well as the overall level of the
allowance for loan losses to loans outstanding and management's assessment of
loan losses inherent in the loan portfolio. Management adjusts the level of the
allowance for loan losses as needed through the provision. Although the
provision for the year to date is $27,000 less than last year, the provision
made for the year to date does cover 170% of the $629,000 in net charge-offs for
the year.

On an annualized basis, PAB's net charge-offs as a percentage of average total
loans outstanding for the year to date is 0.14%, compared to 0.12% for the prior
year to date.

The ratio of the allowance for loan losses to total loans was 1.34% at quarter
end, compared to 1.41% at year end. The amount of nonperforming loans
outstanding at the indicated dates is presented in the following table by
category.

<TABLE>
<CAPTION>
As of Quarter End (in thousands)                   Sep-2001    Jun-2001    Mar-2001    Dec-2000    Sep-2000
------------------------------------------------  ----------  ----------  ----------  ----------  ----------
<S>                                               <C>         <C>         <C>         <C>         <C>
Loans accounted for on a nonaccrual basis         $   8,522   $   2,014   $   2,624   $   2,430   $   1,971
Accruing loans which are contractually past due
  90 days or more as to principal or interest
  payments                                            2,116       1,647         477         509       1,140
Other impaired loans                                  4,433       4,433       4,433       4,433       4,433
------------------------------------------------  ----------  ----------  ----------  ----------  ----------
     Total nonperforming loans                    $  15,071   $   8,094   $   7,534   $   7,372   $   7,544
================================================  ==========  ==========  ==========  ==========  ==========

Total nonperforming loans as a percentage of
     total loans                                       2.34%       1.31%       1.28%       1.27%       1.35%
================================================  ==========  ==========  ==========  ==========  ==========

Allowance for loan losses as a percentage of
     total nonperforming loans                         57.2%      101.8%      110.2%      111.0%       75.3%
================================================  ==========  ==========  ==========  ==========  ==========
</TABLE>

Of the nearly $7 million net increase in total nonperforming loans since June
30, 2001, approximately $4.6 million represent one commercial real estate
development line that was placed on nonaccrual status at the end of September.
Management is currently evaluating its position on this line and a specific
reserve may be warranted in the fourth quarter.

Other  Income
-------------
During the third quarter of 2001, total other income (excluding nonrecurring
gains and losses) was $2.2 million, a 39.2% increase compared to $1.58 million
during the same period in 2000.

Service charges and fees on deposit accounts for the quarter was $1,530,000, a
50.7% increase compared to the same period in 2000. This increase was due to an
increase in the volume of transaction accounts primarily in new markets and the
addition of an overdraft privilege product made available to deposit customers
beginning in March 2001.

Other  Expenses
---------------
During the third quarter, total other expense was $6.45 million, a 29.2%
increase compared to the same period in 2000. Most of the increased cost (in
comparison to the prior year) relates to the cost associated with entering new
markets either via acquisition or branching. The following table compares
noninterest expense for the year to date, excluding the cost of the new markets
(Ocala, McDonough, and Richmond Hill), to the same period in 2000.

<TABLE>
<CAPTION>
For the Nine Months Ended
September 30, 2001 and 2000
------------------------------------------------------------------------------------
                                     Cost of
                                       New         2001               $        %
                             2001    Markets   Adjusted    2000     Change   Change
------------------------------------------------------------------------------------
<S>                         <C>      <C>       <C>        <C>      <C>       <C>
                                           (Dollars In Thousands)
Salaries & benefits         $10,612  $    987  $   9,625  $ 8,379  $ 1,246     14.9%
Occupancy expense             1,162       205        957      877       80      9.1%
Equipment expense             1,864        87      1,777    1,172      605     51.6%
Goodwill amortization           322       165        157      270     (113)   -41.9%
Other operating expense       5,051       570      4,481    4,558      (77)    -1.7%
------------------------------------------------------------------------------------
    Total other expense     $19,011  $  2,014  $  16,997  $15,256  $ 1,741     11.4%
====================================================================================
</TABLE>


                                      -14-
<PAGE>
Income  Tax  Expense
--------------------
During the third quarter, income tax expense was 28.6% of pretax income. Income
tax expense was 35.0% of pretax income during the same period in 2000. The
decrease in the effective tax rate is primarily the result of the utilization of
our REIT structure to maximize state tax savings.


LIQUIDITY  AND  CAPITAL  RESOURCES

Liquidity is an important factor in the financial condition of PAB and affects
it's ability to meet the borrowing needs and deposit withdrawal requirements of
its customers. Assets, consisting principally of loans and investment
securities, are funded by customer deposits, borrowed funds, and retained
earnings.

The investment portfolio is one of PAB's primary sources of liquidity.
Maturities of securities provide a constant flow of funds that are available for
cash needs. Contractual investment securities that mature within one year total
$21 million. However, mortgage-backed securities and securities with call
provisions create cash flows earlier than the contractual maturities. Estimates
of prepayments on mortgage-backed securities and call provisions on Federal
agency and state and municipals increase the forecasted cash flow from the
investment portfolio. Maturities in the loan portfolio also provide a steady
flow of funds. In addition, PAB's liquidity continues to be enhanced by a
relatively stable core deposit base and the availability of additional advances
from the FHLB, Fed Funds lines of credit with other regional banks, and an
operating line of credit with the Bankers Bank of Atlanta, Georgia. At September
30, 2001, PAB's liquidity ratio was 19.9% and its dependency ratio was 15.6%.

PAB's liquidity from investments is somewhat limited since the Banks have
pledged certain investments to secure public deposits, certain borrowing
arrangements, and for other purposes. At September 30, 2001, approximately $44.1
million, or 49% of PAB's investment portfolio was pledged as collateral to
others.

The Consolidated Financial Statements do not reflect various commitments and
contingent liabilities that arise in the normal course of business. These
off-balance sheet financial instruments include commitments to extend credit and
standby letters of credit. Such financial instruments are included in the
financial statements when funds are distributed or the instruments become
payable. At September 30, 2001, the Banks had outstanding commitments to extend
credit through open lines of credit of approximately $77.2 million and
outstanding letters of credit of approximately $2.3 million.

Stockholders'  Equity
---------------------
PAB maintains a ratio of stockholders' equity to total assets that is adequate
relative to industry standards. PAB's ratio of stockholders' equity to total
assets was 8.6% at September 30, 2001, compared to 8.9% at December 31, 2000.
Both PAB and the Banks are required to comply with capital adequacy standards
established by the Federal Reserve and the FDIC. The following table summarizes
PAB's capital ratios at September 30, 2001.

<TABLE>
<CAPTION>
                                                                         Minimum
                                                                        Regulatory
                                                   September 30, 2001   Requirement
------------------------------------------------------------------------------------
<S>                                                <C>                  <C>
Total Capital to Risk Weighted Assets                            11.5%          8.0%
Tier 1 Capital to Risk Weighted Assets                           10.2%          4.0%
Tier 1 Capital to Average Assets (Leverage Ratio)                 7.8%          4.0%
------------------------------------------------------------------------------------
</TABLE>


                                      -15-
<PAGE>
ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

PAB is exposed to U.S. dollar interest rate changes and accordingly, it manages
exposure by considering the possible changes in the net interest margin. PAB
does not have any trading instruments nor does it classify any portion of the
investment portfolio as held for trading. PAB does not engage in any off-balance
sheet hedging activities or enter into any derivative instruments with a higher
degree of risk than mortgage-backed securities, which are commonly held pass
through securities. Finally, PAB has no material direct exposure to foreign
currency exchange rate risk, commodity price risk, and other market risks.

Interest rates play a major part in the net interest income of a financial
institution. The sensitivity to rate changes is known as "interest rate risk."
The repricing of interest earning assets and interest-bearing liabilities can
influence the changes in net interest income. As part of PAB's asset/liability
management program, the timing of repriced assets and liabilities is referred to
as Gap management. It is PAB's policy to maintain a Gap ratio in the one-year
time horizon of .80 to 1.20. The table below has two measures of Gap, regulatory
and management adjusted. The Regulatory Gap considers only contractual
maturities or repricings. The management adjusted Gap considers such things as
prepayments on certain interest rate sensitive assets and the circumstances
under which core deposits are repriced. Although interest-bearing transaction
accounts are available to reprice in the three-month window, historical
experiences show these deposits more stable over the course of one year. The
management adjusted Gap indicates PAB is asset sensitive in relation to changes
in market interest rates. Being asset sensitive would result in net interest
income increasing in a rising rate environment and decreasing in a declining
rate environment.

PAB uses simulation analysis to monitor changes in net interest income due to
changes in market interest rates. The simulation of rising, declining, and flat
interest rate scenarios allow management to monitor and adjust interest rate
sensitivity to minimize the impact of market interest rate swings. The analysis
of the impact on net interest income over a twelve-month period is subjected to
a gradual 100 basis point increase or decrease in market rates on net interest
income and is monitored on a quarterly basis. At September 30, 2001, the
simulation model projected net interest income would increase 9.8% if rates
gradually rise by 100 basis points over the next twelve months. On the other
hand, the model projected net interest income to decrease 11.6% if rates
gradually decline by 100 basis points over the next year.

<TABLE>
<CAPTION>
CUMULATIVE  GAP  ANALYSIS

Regulatory Defined                                  3-Month    6-Month    1-Year
-----------------------------------------------------------------------------------
                                                       (Dollars in thousands)
<S>                                                 <C>       <C>        <C>
Rate Sensitive Assets (RSA)                         $323,092  $376,255   $ 440,757
Rate Sensitive Liabilities (RSL)                     304,072   426,344     571,273
-----------------------------------------------------------------------------------
RSA minus RSL (Gap)                                 $ 19,020  $(50,089)  $(130,516)

Gap Ratio (RSA/RSL)                                     1.06      0.88        0.77


Management Adjusted                                  3-Month    6-Month    1-Year
-----------------------------------------------------------------------------------
                                                        (Dollars in thousands)

Rate Sensitive Assets (RSA)                         $323,092  $376,255   $ 440,757
Rate Sensitive Liabilities (RSL)                     139,250   261,521     488,863
-----------------------------------------------------------------------------------
RSA minus RSL (Gap)                                 $183,843  $114,734   $ (48,104)

Gap Ratio (RSA/RSL)                                     2.32      1.44        0.90
</TABLE>


                                      -16-
<PAGE>
PART  II. OTHER  INFORMATION

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  Exhibits.

          None.

     (b)  Reports  on  Form  8-K.

          On  September 7, 2001, the Registrant filed a report on Form 8-K under
          Item  5 to report (i) PAB's plan to consolidate its five separate bank
          charters into on bank charter, (ii) PAB had finalized its migration of
          all  of  its  banks  to  a  common data processing system, and (iii) a
          realignment  of  PAB's  senior  management  team.



                                      -17-
<PAGE>
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.

PAB  BANKSHARES,  INC.
----------------------
Registrant

     Date:  November  14,  2001          By:  /s/  Michael  E.  Ricketson
            -------------------               ----------------------------------
                                              Michael  E.  Ricketson
                                              President, Chief Executive Officer

     Date:  November  14,  2001          By:  /s/  Jay  Torbert
            -------------------               ----------------------------------
                                              Jay  Torbert,
                                              Senior Vice President, Chief
                                              Financial  Officer



                                      -18-
<PAGE>