UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q





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

For the Quarterly Period Ended

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

For the Transition Period from _________________________________to_______________________________

Commission File Number___330076_________________________________________________________________

SNB BANCSHARES, INC

(Name of Small Business Issuer in its Charter)

GEORGIA                                                                                       58-2107916

State or Other Jurisdiction of                                                                                    (I.R.S. Employer

Incorporation or Organization                                                                                  Identification No.)

2918 RIVERSIDE DRIVE, MACON, GEORGIA 31204

(Address of Principal Executive Offices) (Zip Code)

Issuer's Telephone Number

SAME AS ABOVE

(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. XYes No



APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes No



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:

3,372,969 Shares of $1.00 par value common stock as of June 30, 2001_____________________









|SNB BANCSHARES, INC. AND SUBSIDIARIES
|-------------------------------------
|                                     
|                                     
|INDEX                                
|                                     
|                                     
|                                     
|                                     
|                                     
|PART I                               
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|PART II                              
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     

PART I, ITEM 1

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT PER SHARE AND SHARE AMOUNTS)
|-----------------------------------------------------------------------------------------------------------------------------
|                                                                                                                             
|ASSETS                                                                                                                       
|                                                                                                                             
|                                                                                                                             
|                                                                                                                             
|Cash and Due from Banks                                                                                                      
|                                                                                                                             
|Federal Funds Sold                                                                                                           
|                                                                                                                             
|Investments Securities                                                                                                       
|                                                                                                                             
|Loans                                                                                                                        
|                                                                                                                             
|Premises and Equipment                                                                                                       
|                                                                                                                             
|Other Real Estate                                                                                                            
|                                                                                                                             
|Other Assets                                                                                                                 
|                                                                                                                             
|Total Assets                                                                                                                 
|                                                                                                                             
|                                                                                                                             
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                         
|                                                                                                                             
|Deposits                                                                                                                     
|                                                                                                                             
|Demand Notes to U.S. Treasury                                                                                                
|                                                                                                                             
|Other Borrowed Money                                                                                                         
|                                                                                                                             
|Other Liabilities                                                                                                            
|                                                                                                                             
|Stockholders' Equity                                                                                                         
|Common Stock, Par Value $1 Per Share; Authorized
10,000,000 Shares, Issued 3,372,969 Shares                                  
|Paid-In Capital                                                                                                              
|Retained Earnings                                                                                                            
|Accumulated Other Comprehensive Income, Net of Tax                                                                           
|                                                                                                                             
|                                                                                                                             
|                                                                                                                             
|Total Liabilities and Stockholders' Equity                                                                                   



The accompanying notes are an integral part of these condensed consolidated balance sheets.



- 1 -

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THREE MONTHS ENDED JUNE 30
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AND SHARE AMOUNTS)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                               
|                                                                                                                                                                               
|Interest Income                                                                                                                                                                
|Loans, Including Fees                                                                                                                                                          
|Federal Funds Sold                                                                                                                                                             
|Investment Securities                                                                                                                                                          
|Other                                                                                                                                                                          
|                                                                                                                                                                               
|                                                                                                                                                                               
|Interest Expense                                                                                                                                                               
|Deposits                                                                                                                                                                       
|Federal Funds Purchased                                                                                                                                                        
|Demand Notes Issued to the U.S. Treasury                                                                                                                                       
|FHLB Loans                                                                                                                                                                     
|Repurchase Agreements                                                                                                                                                          
|Other                                                                                                                                                                          
|                                                                                                                                                                               
|                                                                                                                                                                               
|                                                                                                                                                                               
|Net Interest Income                                                                                                                                                            
|                                                                                                                                                                               
|Provision for Loan Losses                                                                                                                                                      
|                                                                                                                                                                               
|Net Interest Income After Provision for Loan Losses                                                                                                                            
|                                                                                                                                                                               
|Noninterest Income                                                                                                                                                             
|Service Charges on Deposits                                                                                                                                                    
|Other Service Charges, Commissions and Fees                                                                                                                                    
|Securities Gains (Losses)                                                                                                                                                      
|Mortgage Origination Fees                                                                                                                                                      
|Other                                                                                                                                                                          
|                                                                                                                                                                               
|                                                                                                                                                                               
|Noninterest Expense                                                                                                                                                            
|Salaries and Employee Benefits                                                                                                                                                 
|Occupancy and Equipment                                                                                                                                                        
|Office Supplies and Printing                                                                                                                                                   
|Other                                                                                                                                                                          
|                                                                                                                                                                               
|                                                                                                                                                                               
|                                                                                                                                                                               
|Income Before Income Taxes                                                                                                                                                     
|                                                                                                                                                                               
|Income Taxes                                                                                                                                                                   
|                                                                                                                                                                               
|Net Income                                                                                                                                                                     
|                                                                                                                                                                               
|Basic Earnings Per Share                                                                                                                                                       
|                                                                                                                                                                               
|Diluted Earnings Per Share                                                                                                                                                     
|                                                                                                                                                                               
|Weighted Average Common Shares Outstanding                                                                                                                                     



The accompanying notes are an integral part of these condensed consolidated financial statements.



- 2 -

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THREE MONTHS ENDED JUNE 30
(UNAUDITED)
($ IN THOUSANDS)
|-----------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                           
|                                                                                                                                                           
|                                                                                                                                                           
|                                                                                                                                                           
|Net Income                                                                                                                                                 
|                                                                                                                                                           
|Other Comprehensive Income, Net of Income Tax                                                                                                              
|Unrealized Holding Gains (Losses)                                                                                                                          
|                                                                                                                                                           
|Comprehensive Income                                                                                                                                       

The accompanying notes are an integral part of these condensed consolidated financial statements.

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AND SHARE AMOUNTS)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|Interest Income                                                                                                                                                                  
|Loans, Including Fees                                                                                                                                                            
|Federal Funds Sold                                                                                                                                                               
|Investment Securities                                                                                                                                                            
|Other                                                                                                                                                                            
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|Interest Expense                                                                                                                                                                 
|Deposits                                                                                                                                                                         
|Federal Funds Purchased                                                                                                                                                          
|Demand Notes Issued to the U.S. Treasury                                                                                                                                         
|FHLB Loans                                                                                                                                                                       
|Repurchase Agreements                                                                                                                                                            
|Other                                                                                                                                                                            
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|Net Interest Income                                                                                                                                                              
|                                                                                                                                                                                 
|Provision for Loan Losses                                                                                                                                                        
|                                                                                                                                                                                 
|Net Interest Income After Provision for Loan Losses                                                                                                                              
|                                                                                                                                                                                 
|Noninterest Income                                                                                                                                                               
|Service Charges on Deposits                                                                                                                                                      
|Other Service Charges, Commissions and Fees                                                                                                                                      
|Securities Gains (Losses)                                                                                                                                                        
|Mortgage Origination Fees                                                                                                                                                        
|Other                                                                                                                                                                            
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|Noninterest Expense                                                                                                                                                              
|Salaries and Employee Benefits                                                                                                                                                   
|Occupancy and Equipment                                                                                                                                                          
|Office Supplies and Printing                                                                                                                                                     
|Other                                                                                                                                                                            
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|                                                                                                                                                                                 
|Income Before Income Taxes                                                                                                                                                       
|                                                                                                                                                                                 
|Income Taxes                                                                                                                                                                     
|                                                                                                                                                                                 
|Net Income                                                                                                                                                                       
|                                                                                                                                                                                 
|Basic Earnings Per Share                                                                                                                                                         
|                                                                                                                                                                                 
|Diluted Earnings Per Share                                                                                                                                                       
|                                                                                                                                                                                 
|Weighted Average Common Shares Outstanding                                                                                                                                       



The accompanying notes are an integral part of these condensed consolidated financial statements.

- 4 -

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR SIX MONTHS ENDED JUNE 30
(UNAUDITED)
($ IN THOUSANDS)
|---------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|                                                                                                                                                         
|Net Income                                                                                                                                               
|                                                                                                                                                         
|Other Comprehensive Income, Net of Income Tax                                                                                                            
|Unrealized Holding Gains (Losses)                                                                                                                        
|                                                                                                                                                         
|Comprehensive Income                                                                                                                                     



The accompanying notes are an integral part of these condensed consolidated financial statements.

- 5 -

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR SIX MONTHS ENDED JUNE 30
(UNAUDITED)
($ IN THOUSANDS)
|-----------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|Cash Provided by Operations                                                                                                                    
|                                                                                                                                               
|Cash Flows from Investing Activities                                                                                                           
|Purchases of Securities Available for Sale                                                                                                     
|Sale of Securities Available for Sale                                                                                                          
|Maturities of Securities Available for Sale                                                                                                    
|Maturities of Securities Held to Maturity                                                                                                      
|Net Loans Made to Customers                                                                                                                    
|Purchase of Premises and Equipment, Net                                                                                                        
|Proceeds from Sale of Other Real Estate                                                                                                        
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|Cash Flows from Financing Activities                                                                                                           
|Net Decrease in Noninterest-Bearing Deposits                                                                                                   
|Net Increase in Interest-Bearing Deposits                                                                                                      
|Federal Funds Purchased                                                                                                                        
|Demand Note to the U.S. Treasury                                                                                                               
|Proceeds From (Principal Payments on) Other Borrowed Money                                                                                     
|Dividends Paid                                                                                                                                 
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|Net Increase (Decrease) in Cash and Cash Equivalents                                                                                           
|                                                                                                                                               
|Cash and Cash Equivalents, Beginning                                                                                                           
|                                                                                                                                               
|Cash and Cash Equivalents, Ending                                                                                                              

The accompanying notes are an integral part of these condensed consolidated financial statements.

PART I, ITEM 1 (CONTINUED)

Financial Information

SNB BANCSHARES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(1) Basis of Presentation

The consolidated financial statements include SNB Bancshares, Inc. (the Company) and its wholly-owned subsidiaries, Security Bank of Bibb County (formerly Security National Bank), located in Macon, Georgia and Security Bank of Houston County (formerly Crossroads Bank of Georgia), located in Perry, Georgia (the Banks). The financial statements of Security Bank of Bibb County include its wholly-owned subsidiary, Fairfield Financial Services, Inc. since its formation on August 1, 2000. All intercompany accounts have been eliminated in consolidation.

In June 1998, the Financial Accounting Standards Board ("FASB") issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. SFAS No. 133 is effective for financial statements for all fiscal quarters of all fiscal years beginning after June 15, 1999. In June 1999, the FASB issued SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities Deferral of the Effective Date of FASB Statement No. 133, an amendment of FASB Statement No. 133. SFAS No. 133, as amended, is now effective for all fiscal quarters of all fiscal years beginning after June 15, 2000. Management does not anticipate that the derivative statements will have a material effect, if any, on the financial position and results of operations of the Bank.

On July 20,2001, the FASB issued SFAS No.142, Goodwill and Other Intangible Assets. This statement discontinues the practice of amortizing goodwill and indefinite-lived intangible assets and initiates an annual review for impairment. Impairment would be examined more frequently if certain indicators are encountered. Intangible assets with a determinable useful life will continue to be amortized over that period. The amortization provisions apply to goodwill and intangible assets acquired after June 30, 2001. Goodwill and intangible assets on the books at June 30, 2001 will be affected when the Company adopts the statement. At this time, the Company has not determined what the effect of the impairment test of goodwill will be on earnings and the financial position of the Company.

The financial information included herein is unaudited; however, such information reflects all adjustments which are, in the opinion of management, necessary to fairly state the financial position and results of operations for the interim periods presented.

(2) Loans

Loans as of June 30, 2001 are comprised of the following:



|                                                           | ($ in Thousands)
|---------------------------------------------------------- | ----------------
|                                                           |                 
|Commercial                                                 | $ 42,899        
|Real Estate-Construction                                   | 84,599          
|Real Estate-Other                                          | 204,549         
|Installment Loans to Individuals for Personal Expenditures | 20,769          
|All Other                                                  | 2,215           
|                                                           |                 
|                                                           | 355,031         
|Allowance for Loan Losses                                  | (3,570)         
|Unearned Interest and Fees                                 | (190)           
|                                                           |                 
|                                                           | $351,271        

- 7 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(2) Loans (Continued)

Loans are generally reported at principal amount less unearned interest and fees. Impaired loans are recorded under Statement of Financial Accounting Standards (SFAS) No. 114, Accounting by Creditors for Impairment of a Loan and SFAS No. 118, Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures. Impaired loans are loans for which principal and interest are unlikely to be collected in accordance with the original loan terms and, generally, represent loans delinquent in excess of 90 days which have been placed on nonaccrual status and for which collateral values are less than outstanding principal and interest. Small balance, homogeneous loans are excluded from impaired loans. Generally, interest payments received on impaired loans are applied to principal. Upon receipt of all loan principal, additional interest payments are recognized as interest income on the cash basis.

Other nonaccrual loans are loans for which payments of principal and interest are considered doubtful of collection under original terms but collateral values equal or exceed outstanding principal and interest.

(3) Earnings Per Share

Statement of Financial Accounting Standards No. 128 establishes standards for computing and presenting basic and diluted earnings per share. Basic earnings per share is calculated and presented based on income available to common stockholders divided by the weighted average number of shares outstanding during the reporting periods. Diluted earnings per share reflects the potential dilution that would occur if warrants and options were exercised and converted into common stock. The following presents earnings per share for the three and six months ended June 30, 2001 under the requirements of SFAS 128:

|                               | Three Months
Ended
June 30, 2001 |  | Six Months
Ended
June 30, 2001
|------------------------------ | -------------------------------- |  | ------------------------------
|                               |                                  |  |                               
|Basic Earnings Per Share       |                                  |  |                               
|Net Income Per Common Share    | $ 0.31                           |  | $ 0.58                        
|Weighted Average Common Shares | 3,372,969                        |  | 3,372,969                     
|                               |                                  |  |                               
|Diluted Earnings Per Share     |                                  |  |                               
|Net Income Per Common Share    | $ 0.31                           |  | $ 0.58                        
|Weighted Average Common Shares | 3,372,969                        |  | 3,373,513                     

The assumed exercise of stock options is included in the diluted earnings per share computation using the treasury stock method and assuming an average market price for SNB Bancshares, Inc. stock of $14.10 and $14.23 for the three- and six-month periods. SNB's stock is quoted on the NASDAQ market under the symbol SNBJ.



PART I, ITEM 1 (CONTINUED)

Financial Information

(4) Allowance for Loan Losses

The allowance method is used in providing for losses on loans. Accordingly, all loan losses decrease the allowance and all recoveries increase it. The provision for loan losses is based on factors which, in management's judgment, deserve current recognition in estimating possible loan losses. Such factors considered by management include growth and composition of the loan portfolio, economic conditions and the relationship of the allowance for loan losses to outstanding loans.

An allowance for loan losses is maintained for all impaired loans. Provisions are made for impaired loans upon changes in expected future cash flows or estimated net realizable value of collateral. When determination is made that impaired loans are wholly or partially uncollectible, the uncollectible portion is charged off.

The following table presents the Company



|                                          | ($ in Thousands)
|----------------------------------------- | ----------------
|                                          |                 
|                                          | 2001            
|                                          |                 
|Allowance for Loan Losses, April 1        | $3,274          
|                                          |                 
|Charge-Offs                               |                 
|Commercial, Financial and Agricultural    | 41              
|Real Estate  Mortgage                     | -               
|Consumer                                  | 82              
|                                          |                 
|                                          | 123             
|                                          |                 
|Recoveries                                |                 
|Commercial, Financial and Agricultural    | -               
|Real Estate  Mortgage                     | -               
|Consumer                                  | 4               
|                                          |                 
|                                          | 4               
|                                          |                 
|Net Charge-Offs                           | (119)           
|                                          |                 
|Provision for Loan Losses                 | 415             
|                                          |                 
|Allowance for Loan Losses, June 30        | $3,570          
|                                          |                 
|Ratio of Net Charge-Offs to Average Loans | (0.03)%         









- 9 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(4) Allowance for Loan Losses (Continued)



The following table presents the Company's loan loss experience on all loans for the six months ended June 30:





|                                          | ($ in Thousands)
|----------------------------------------- | ----------------
|                                          |                 
|                                          | 2001            
|                                          |                 
|Allowance for Loan Losses, January 1      | $3,003          
|                                          |                 
|Charge-Offs                               |                 
|Commercial, Financial and Agricultural    | 132             
|Real Estate  Mortgage                     | -               
|Consumer                                  | 167             
|                                          |                 
|                                          | 299             
|                                          |                 
|Recoveries                                |                 
|Commercial, Financial and Agricultural    | -               
|Real Estate Mortgage                      | -               
|Consumer                                  | 22              
|                                          |                 
|                                          | 22              
|                                          |                 
|Net Charge-Offs                           | (277)           
|                                          |                 
|Provision for Loan Losses                 | 844             
|                                          |                 
|Allowance for Loan Losses, June 30        | $3,570          
|                                          |                 
|Ratio of Net Charge-Offs to Average Loans | (0.08)%         



PART I, ITEM 1 (CONTINUED)

Financial Information

(5) Investment Securities

The Bank records investment securities under Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in Debt and Equity Securities. In accordance with the provisions of SFAS 115, the Bank elected to classify securities individually as either available for sale or held to maturity. Securities classified as held to maturity are recorded at amortized cost. Those classified as available for sale are adjusted to market value through a tax-effected increase or reduction in stockholders' equity.

Investment securities as of June 30, 2001 are summarized as follows:



|Securities Available for Sale | Amortized
Cost   |  | Gross
Unrealized
Gains |  | Gross
Unrealized
Losses |  | Fair
Value
|----------------------------- | ---------------- |  | ---------------------- |  | ----------------------- |  | ----------
|                              | ($ in Thousands)
|                              |                  |  |                        |  |                         |  |           
|U.S. Treasuries               | $ 2,281          |  | $ 62                   |  |                         |  | $ 2,343   
|U.S. Government Agencies      |                  |  |                        |  |                         |  |           
|Mortgage Backed               | 19,508           |  | 160                    |  | $(16)                   |  | 19,652    
|Other                         | 10,637           |  | 430                    |  |                         |  | 11,067    
|State, County and Municipal   | 5,839            |  | 165                    |  | (9)                     |  | 5,995     
|Other                         | 2,926            |  |                        |  |                         |  | 2,926     
|                              |                  |  |                        |  |                         |  |           
|                              | $41,191          |  | $817                   |  | $(25)                   |  | $41,983   
|Securities Held to Maturity   |                  |  |                        |  |                         |  |           
|                              |                  |  |                        |  |                         |  |           
|State, County and Municipal   | $ 1,781          |  | $ 74                   |  | $ -                     |  | $ 1,855   

Unrealized holding gains, net of tax, on securities available for sale in the amount of $525,000 have been charged to stockholders' equity as of June 30, 2001.

(6) Other Borrowed Money

Other borrowed money is comprised of the following as of June 30, 2001:



|                                                                                                                                                                                                                                                                                                                                                                                       |  | ($ in Thousands)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------
|Advances from the Federal Home Loan Bank (FHLB) with Maturities in Varying Amounts Through March 23, 2011 and Interest Rates Ranging from 3.82 Percent to 4.55 Percent. Under the Blanket Agreement for Advances and Security Agreement with the FHLB, Residential First Mortgage Loans and Certain Investment Securities Are Pledged as Collateral for the FHLB Advances Outstanding. |  | $41,918         
|                                                                                                                                                                                                                                                                                                                                                                                       |  |                 
|$10,000,000 Line-of-Credit with The Bankers Bank, Maturing on December 31, 2010. Interest Payable Quarterly at Prime Minus 50 Basis Points. Secured by All Stock Owned by SNB Bancshares, Inc. in Security Bank of Bibb County.                                                                                                                                                        |  | 4,000           
|                                                                                                                                                                                                                                                                                                                                                                                       |  |                 
|Federal Funds Purchased and Securities Sold Under Agreement to Repurchase                                                                                                                                                                                                                                                                                                              |  | 14,805          
|                                                                                                                                                                                                                                                                                                                                                                                       |  |                 
|Obligations Under Capital Lease                                                                                                                                                                                                                                                                                                                                                        |  | 59              
|                                                                                                                                                                                                                                                                                                                                                                                       |  |                 
|Total Other Borrowed Money                                                                                                                                                                                                                                                                                                                                                             |  | $60,782         

- 11 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(6) Other Borrowed Money (Continued)

Maturities of line-of-credit and all FHLB advances for each of the ensuing years are as follows:



|Year       |  | Amount 
|---------- |  | -------
|           |  |        
|2001       |  | $19,918
|2002       |  | 9,000  
|2003       |  | 3,750  
|2004       |  | 800    
|Thereafter |  | 12,450 
|           |  |        
|Total      |  | $45,918

(7) Stockholders

During 1996, the board of directors of SNB Bancshares, Inc. adopted the 1996 incentive stock option plan which granted key officers the right to purchase 62,500 shares of common stock at the price of $9.00, as adjusted for stock splits, representing the market value of the stock at the date of the option grant. Option holders may exercise in accordance with a vesting schedule beginning with 20 percent the first year and increasing 20 percent for each year thereafter such that 100 percent of granted options may be exercised by the end of the fifth year. Unexercised options expire at the end of the tenth year.

In 1999, the board of directors of SNB Bancshares, Inc. adopted an additional incentive stock option plan which authorized the granting to certain officers and key employees rights to purchase 125,000 shares of common stock at a price representing the market value of the stock at the date of the option grant. In May 1999, 73,500 options were granted at the price of $18.50 per share and 10,000 options were granted at $17.94 per share in September 1999. An additional 25,500 options were granted at $13.00 per share in August 2000 under this same plan. The terms of the 1999 incentive stock option plan are essentially the same as the 1996 incentive stock option plan.

A summary of option transactions for the six months ended June 30, 2001 follows:

|                                        |  | Incentive Stock Options
|--------------------------------------- |  | -----------------------
|                                        |  |                        
|Granted                                 |  | 171,500                
|Canceled                                |  | -                      
|Exercised                               |  | -                      
|                                        |  |                        
|Outstanding, June 30, 2001              |  | 171,500                
|                                        |  |                        
|Eligible to be Exercised, June 30, 2001 |  | 93,900                 

The Banks are required to maintain minimum amounts of capital to total



- 12 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(7) Stockholders

|                     | Security Bank of Bibb County |  | Security Bank of Houston County |  |        
|-------------------- | ---------------------------- |  | ------------------------------- |  | -------
|                     | Actual                       |  | Actual                          |  | Minimum
|                     |                              |  |                                 |  |        
|Tier 1 Capital Ratio | 8.44%                        |  | 8.41%                           |  | 4.00%  
|Total Capital Ratio  | 10.15%                       |  | 9.88%                           |  | 8.00%  
|Leverage Ratio       | 11.18%                       |  | 10.88%                          |  | 4.00%  



(8) Noncash Financing Activities

Noncash investing activities for the six months ended June 30 are as follows:

($ in Thousands)



|                                                    | 2001   |  | 2000
|--------------------------------------------------- | ------ |  | ----
|                                                    |       
|Acquisition of Real Estate through Loan Foreclosure | $2,782 |  | $376





(9) Other Comprehensive Income

For the six months ended June 30, 2001, other comprehensive income is comprised of the following:

|                              |  | Before Tax       |  | Tax Effect |  | Net of Tax
|----------------------------- |  | ---------------- |  | ---------- |  | ----------
|                              |  | ($ in Thousands)
|Unrealized Gain on Securities |  |                  |  |            |  |           
|Gain Arising During Year      |  | $548             |  | $186       |  | $362      
|Reclassification Adjustment   |  | (48)             |  | (16)       |  | (32)      
|                              |  |                  |  |            |  |           
|Net Unrealized Gain           |  | $500             |  | $170       |  | $330      





(10) Commitments

Security Bank of Bibb County is currently constructing a new corporate center in Macon, Georgia. The total estimated cost to complete the construction is $1,686,000. At June 30, 2001, the Bank had paid approximately $215,000 of the total estimated cost.



- 13 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(11) Acquisition of Assets

On July 31, 2000, Security Bank of Bibb County purchased the assets of Group Financial Southeast (dba Fairfield Financial) in a business combination accounted for as a purchase. The assets were placed in a newly formed subsidiary of Security Bank of Bibb County incorporated as Fairfield Financial Services, Inc. Fairfield Financial is primarily engaged in residential real estate mortgage lending in the state of Georgia.

The results of operations of Fairfield Financial are included in the accompanying financial statements since the date of acquisition. The initial purchase price approximated $1.4 million, which consists of approximately $1.0 millionin cash and 32,345 shares of SNB Bancshares stock valued at $388,140 at closing. The initial cost of the acquisition exceeded the fair value of the assets of Fairfield Financial by $988,000. The excess is recorded as goodwill and is being amortized on the straight-line method over 10 years.

The Asset Purchase Agreement provides for additional contingent payments of purchase price for years ended 2001-2005 based on the earnings of Fairfield Financial Services, Inc. The additional payments, if any, areto be payable in cash and stock. Cash payments for 2001 will equate to 60 percent of Fairfield Financial Services, Inc.'s earnings for the year. Stock payments for 2001 will be based on 40 percent of 2001 earnings utilizing a specific formula for determining number of shares. The number of shares issued during any year cannot exceed 75,000. The maximum number of shares under the agreement cannot exceed 300,000 for years 2001-2005. All additional payments of cash and stock will be charged to goodwill and will be tested for impairment beginning in 2002. If Fairfield Financial sustains losses, no additional purchase price payments are due.

PART I, ITEM 2

Financial Information

SNB BANCSHARES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following narrative presents management's discussion and analysis of SNB Bancshares, Inc. and Subsidiaries (SNB's) financial condition and results of operations as of and for the three- and six-month periods ended June 30, 2001 and 2000. The historical financial statements of SNB are set forth elsewhere herein. This discussion should be read in conjunction with those financial statements and the other financial information included in this report. SNB owns and operates Security Bank of Bibb County (Bibb) and Security Bank of Houston County (Houston). Security Bank of Bibb County owns and operates Fairfield Financial Services, Inc. (Fairfield). Fairfield was incorporated with acquired assets and began operation on August 1, 2000. SNB and its wholly-owned subsidiaries are collectively known asAthe Company.@



Overview

The Company

The Company recorded an annualized return on average assets of 0.94 percent for the six-month period ended June 30, 2001 compared to 1.25 percent for the same period in 2000. Return on average equity of 12.22 percent was recorded for the six-month period ended June 30, 2001, compared to 12.64 percent for the same period in 2000.

At June 30, 2001, the Company had total assets of $436 million compared to $410 million at December 31, 2000. Management, again, attributes the majority of this increase to the above average growth of the Company

Financial Condition

Cash and Cash Equivalents

Cash and due from banks decreased approximately $2.6 million or 11.23 percent to $20.5 million at June 30, 2001 from $23.1 million at December 31, 2000. Federal funds sold decreased by $3.1 million or 70.45 percent to $1.3 million at June 30, 2001 from $4.4 million at December 31, 2000. The uses of these decreases are most evident in the analysis of the Company





- 15 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Financial Condition (Continued)

Investment Securities

Investment securities have decreased $7.7 million or 14.95 percent since December 31, 2000 when investment securities totaled $51.5 million. As of June 30, 2001, investment securities were $43.8 million. While continuing to strategically manage the Company

Loans Receivable, Net

Aggregate loans receivable were $334.7 million at June 30, 2001, an increase of $32.4 million or 10.7 percent from $302.3 million at December 31, 2000. As a result of the purchase of Group Financial Southeast (Fairfield Financial), a residential real estate mortgage company based in Macon, Georgia, the Company has experienced above average growth in the loan portfolio. The majority of new loans being funded are construction and other real estate loans. Real estate construction loans have increased $22.3 percent from $62.3 million as of December 31, 2000 to $84.6 million as of June 30, 2001. Other real estate secured loans have increased as well, from $189.7 million as of December 31, 2000 to $204.5 million as of June 30, 2001, an increase of 7.80 percent. As of June 30, 2001, real estate secured loans comprised 81.4 percent of the Company

Nonperforming Assets

The Company



- 16 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Financial Condition (Continued)

Nonperforming Assets (Continued)

The following table presents the Company



|                                                           |  | ($ in
Thousands)
|---------------------------------------------------------- |  | ----------------
|                                                           |  |                 
|Impaired and Other Nonaccrual Loans                        |  | $1,504          
|Loans Past Due 90 Days or More and Still Accruing Interest |  | 172             
|Restructured Loans not Included in the Above               |  | -               
|                                                           |  |                 
|Total Nonperforming Loans                                  |  | 1,676           
|                                                           |  |                 
|Other Real Estate Owned                                    |  | 2,973           
|                                                           |  |                 
|Total Nonperforming Assets                                 |  | $4,649          

Deposits

Total deposits increased $25 million or 8.04 percent from $311.6 million at December 31, 2000 to $336.6 million at June 30, 2001. This increase is due to an increase in interest-bearing deposits of $30.1 million or 12.25 percent offset by a decrease in non interest-bearing deposits of $5.1 million or 7.77 percent over the same time period. The majority of this deposit growth is due to Bibb purchasing $20 million, in brokered deposits during the first six months of the current year.

Other Borrowed Money

Other borrowed money amounted to $60.8 million as of June 30, 2001, a decrease of 3.65 percent since December 31, 2000 when other borrowed money totaled $63.1 million. Borrowings from the Federal Home Loan Bank (FHLB) amounted to $41.9 million or 68.9 percent of total other borrowed money as of June 30, 2001. Management utilized the majority of these borrowings to fund the additional loan requests.

Equity

At June 30, 2001, total equity was $32.8 million or 7.53 percent of total assets compared to $31.1 million or 7.57 percent of total assets as of December 31, 2000. Total equity increased primarily due to the retention of net income during the period, net of dividends paid. However, the growth in equity was outpaced by the growth in assets during this period, resulting in a decrease in equity ratios.

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations

Net Income

The Company's net income increased 9.67 percent to $1,950,000 for the six months ended June 30, 2001, compared to $1,778,000 recorded in the comparable prior period. The increase in net income is primarily a result of the acquisition of Fairfield Financial which has generated above average loan growth for the Company. Fairfield also benefited from the surge in home refinancing resulting from recent drops in interest rates.

Net Interest Income

The annualized net interest margin of the Company, net interest income divided by average earning assets, was 4.10 percent six-month period ended June 30, 2001 compared to 4.04 percent for the same six-month period of the proceeding year. The increase in the net interest margin resulted primarily from the decrease in interest paid on other borrowed money.

Total interest income increased to $8.6 million and $17.0 million for the three- and six-month periods ended June 30, 2001, respectively, from $6.1 million and $11.7 million during the comparable prior year periods, respectively. Again, the increase is largely due to an increase in loans of 48.10 percent as of June 30, 2001 compared to June 30, 2000.

Total interest expense increased 61.23 percent and 74.33 percent for the three and six months ended June 30, 2001, respectively, compared to the prior periods ended June 30, 2000. This increase was primarily the result of additional borrowings needed to fund loan growth along with an increase in deposits during the period.

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

The following table presents the effective yields and costs of funds for the six-month periods ended June 30:

Average Balance Sheets

|                                   |  | Average Balance
Six Months Ended
June 30 |  | Rate/Yield
Six Months Ended
June 30
|---------------------------------- |  | ---------------------------------------- |  | -----------------------------------
|                                   |  | 2001                                     |  | 2000                               
|                                   |  | ($ in Thousands)                         |  |                                    
|Interest-Earning Assets            |  |                                          |  |                                    
|Loans                              |  | $341,334                                 |  | $217,190                           
|Securities                         |  | 44,273                                   |  | 40,853                             
|Federal Funds Sold                 |  | 4,172                                    |  | 5,235                              
|Interest-Bearing Due From Banks    |  | 1,158                                    |  | 132                                
|                                   |  |                                          |  |                                    
|Total Interest-Earning Assets      |  | $390,937                                 |  | $263,410                           
|                                   |  |                                          |  |                                    
|Interest-Bearing Liabilities       |  |                                          |  |                                    
|Deposits                           |  | $270,214                                 |  | $195,086                           
|Borrowings                         |  | 58,053                                   |  | 17,689                             
|                                   |  |                                          |  |                                    
|Total Interest-Bearing Liabilities |  | $328,267                                 |  | $212,775                           
|                                   |  |                                          |  |                                    
|Interest Rate Spread               |  |                                          |  | 3.22%                              
|                                   |  |                                          |  |                                    
|Net Interest Margin                |  |                                          |  | 4.10%                              

The following table provides a detailed analysis of the changes in interest income and interest expense due to changes in rate and volume for the six months ended June 30, 2001 compared to the six months ended June 30, 2000.

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

|Rate/Volume Analysis            |  | Changes From 2000 to 2001 (1)
|------------------------------- |  | -----------------------------
|                                |  | Volume                       
|                                |  | ($ in Thousands)             
|Interest Income                 |  |                              
|Loans                           |  | $11,808                      
|Securities                      |  | 227                          
|Federal Funds Sold              |  | (70)                         
|Interest-Bearing Due From Banks |  | -                            
|                                |  |                              
|Total Interest Income           |  | 11,965                       
|                                |  |                              
|Interest Expense                |  |                              
|Deposits                        |  | 3,565                        
|Borrowings                      |  | 2,586                        
|                                |  |                              
|Total Interest Expense          |  | 6,151                        
|                                |  |                              
|Net Interest Income             |  | $ 5,814                      

(1)	Changes in net interest income for the periods, based on either changes in average balances or changes in average rates for interest-earning assets and interest-bearing liabilities, are shown on this table. During each year there are numerous and simultaneous balance and rate changes; therefore, it is not possible to precisely allocate the changes between balances and rates. For the purpose of this table, changes that are not exclusively due to balance changes or rate changes have been attributed to rates.

Provision for Loan Losses

The Company establishes a provision for loan losses, which is charged to operations, in order to maintain the allowance for loan losses at a level which is deemed to be appropriate by management. The amount of this provision is based upon an assessment of prior loss experience, the volume and type of lending presently being conducted by the Company, industry standards, past due loans, economic conditions of the Company's market area and other factors related to the collectability of the Company's loan portfolio. For the three- and six-month periods ended June 30, 2001, the provision for loan losses amounted to $415,000 and $844,000, respectively.

Although management utilizes its best judgment in providing for inherent losses, there can be no assurance that the Company will not have to increase its provisions for loan losses in the future as a result of future increases in nonperforming loans or for other reasons which could adversely affect the Company's results of operations. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments of information that is available to them at the time of their examination.

- 20 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

Noninterest Income and Expense

Noninterest income for the three and six months ended June 30, 2001 totaled $2.5 million and $5 million, respectively, compared to $840,000 and $1.5 million for the comparable prior periods. Mortgage origination fees for the six months ended June 30, 2001 totaled $3.2 million compared to $194,000 for the comparable prior period. This increase was a direct result of the acquisition of Fairfield Financial.

Noninterest expenses increased $2.1 million or 83.18 percent for the second quarter of 2001 over the same period in 2000. Salaries and employee benefits and other expenses increased due to the acquisition of Fairfield during the third quarter of 2000.

Income Taxes

Income tax expense totaled $604,000 and $1.1 million for the three- and six-month periods ended June 30, 2001, compared to $492,000 and $927,000 for the comparable prior periods, respectively. These amounts resulted in the effective tax rates of 34 percent for 2001 and 2000.

Liquidity and Capital Adequacy

Stockholders'equity increased to $32.8 million at June 30, 2001 due primarily to retention of earnings, net of dividends paid. Unrealized gains on investment securities available for sale net of taxes totaled $525,000 at June 30, 2001. It is management's intention to continue paying a reasonable return on stockholders'investment while retaining adequate earnings to allow for continued growth.

The Federal Reserve Board measures capital adequacy for bank holding companies by using a risk-based capital frame-work and by monitoring compliance with minimum leverage ratio guidelines. The minimum ratio of total risk-based capital to risk-adjusted assets is 8 percent at June 30, 2001, of which 4 percent must be Tier 1 capital. Bibb and Houston's leverage ratios were 11.18 percent and 10.88 percent, respectively.

In addition, the Federal Reserve Board has established minimum leverage ratio guidelines for bank holding companies. Those guidelines provide for a minimum leverage ratio of 3 percent for financial institutions that meet certain criteria, including that they maintain the highest regulatory rating. All other financial institutions are required to maintain a leverage ratio of 4 percent. Security Bank of Bibb County and Security Bank of Houston County's total risk-based capital ratios were 10.15 percent and 9.88 percent, respectively, and the Tier 1 risk-based capital ratios were 8.44 percent and 8.41 percent, respectively.



- 21 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

Liquidity and Capital Adequacy (Continued)

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) establishes minimum capital requirements for all depository institutions and established five capital tiers: Awell capitalized,@Aadequately capitalized,@Aunder-capitalized,@Asignificantly under-capitalized@andAcritically under-capitalized.@FDICIA imposes significant restrictions on the operations of a bank that is not at least adequately capitalized. A depository institution's capital tier will depend upon where its capital levels are in relation to various other capital measures that include a risk-based capital measure, a leverage ratio capital measure and other factors. Under regulations adopted, for an institution to be well capitalized, it must have a total risk-based capital ratio of at least 10 percent, a Tier 1 risk-based capital ratio of at least 6 percent and a Tier 1 leverage ratio of at least 5 percent. Also, the institution may not be subject to any specific capital order or directive.

At June 30, 2001, both of the Company's subsidiary banks were in compliance with established guidelines.

Market Risk and Interest Rate Risk

Market risk is the risk of loss from adverse changes in market prices and rates. The Company's market risk arises primarily from interest rate risk inherent in its lending, investment and deposit taking activities. To that end, management actively monitors and manages its interest rate risk exposure.

Forward Looking Statements

Within these financial statements we have included certain Aforward looking statements@concerning the future operations of the Company. It is management's desire to take advantage of theAsafe harbor@provisions of the Private Securities Litigation Reform Act of 1995. This statement is for the express purpose of availing the Company of the protections of such safe harbor with respect to allAforward looking statements@contained in our financial statements. We have usedAforward looking statements@to describe the future plans and strategies including our expectations of the Company's future financial results. Management's ability to predict results or the effect of future plans and strategy is inherently uncertain. Factors that could affect results include interest rate trends, competition, the general economic climate in the middle Georgia area, the southeastern United States region and the country as a whole, loan delinquency rates, and changes in federal and state regulations. These factors should be considered in evaluating theAforward looking statements,@and undue reliance should not be placed on such statements.

ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

PART II

Other Information

SNB BANCSHARES, INC. AND SUBSIDIARIES

ITEM 1

Legal Proceedings

Not Applicable.

ITEM 2

Changes in Securities (Limitations Upon Payment of Dividends)

The information required for limitations upon payment of dividends is incorporated herein by reference to the Company's annual report of 10-KSB, Exhibit 99(a) footnote 23, filed with the Securities and Exchange Commission for the year ended December 31, 2000 (File No. 000-23261).

ITEM 3

Defaults Upon Senior Securities

Not Applicable.

ITEM 4

Submission of Matters to a Vote of Security Holders

There were no matters submitted to a vote of securities holders during the quarter ended March 31, 2001.

ITEM 5

Other Information

Not Applicable.

PART II

Other Information

ITEM 6

Exhibits and Reports on Form 8-K



|    |  |                                                                                                                                                                                                      |  | Page      
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------
|    |  |                                                                                                                                                                                                      |  |           
|(a) |  | Exhibits Included Herein and Incorporated by Reference:                                                                                                                                              |  |           
|    |  |                                                                                                                                                                                                      |  |           
|    |  | 3(a) -Articles of Incorporation-Filed as Exhibit 3.2 to the Registrant's Registration Statement on
Form S-4 (File No. 333-49977) Filed with the Commission on
April 13, 1999 and Incorporated Herein |  | N/A       
|    |  |                                                                                                                                                                                                      |  |           
|    |  | 3(b) -Bylaws-Filed as Exhibit 3.2 to the Registrant's Registration Statement on Form S-4 (File No. 333-49977), Filed with the Commission on
April 13, 1999 and Incorporated Herein                   |  | N/A       
|    |  |                                                                                                                                                                                                      |  |           
|    |  | 11 -Statement Re Computation of Per Share Earnings                                                                                                                                                   |  | Attachment
|    |  |                                                                                                                                                                                                      |  |           
|(b) |  | Reports on Form 8-K                                                                                                                                                                                  |  |           
|    |  |                                                                                                                                                                                                      |  |           
|    |  | No reports on Form 8-K have been filed by the registrant during the quarter ended June 30, 2001.                                                                                                    

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, SNB Bancshares, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized:



SNB BANCSHARES, INC.





|H. AVERETT WALKER_______
H. Averett Walker
President/Chief Executive Officer                                          
|----------------------------------------------------------------------------------------------------------------------
|                                                                                                                      
|Date:_08/13/01_____________________________________                                                                   
|                                                                                                                      
|                                                                                                                      
|                                                                                                                      
|                                                                                                                      
|MICHAEL T. O'DILLON________________________Michael T. O'Dillon
Senior Vice-President/Treasurer/Chief Financial Officer
|                                                                                                                      
|Date:__08/13/01_____________________________________                                                                  

EXHIBIT NO. 11



STATEMENT OF COMPUTATION OF EARNINGS PER SHARE



|                                          |  | Six Months Ended
June 30, 2001 |  | Three Months Ended
June 30, 2001
|----------------------------------------- |  | ------------------------------ |  | --------------------------------
|                                          |  | Shares                         |  | Earnings
Per Share              
|                                          |  | (in Thousands)                 |  | (in Thousands)                  
|                                          |  |                                |  |                                 
|Basic Weighted Average
Shares Outstanding |  | 3,373                          |  | $0.58                           
|                                          |  |                                |  |                                 
|Diluted                                   |  |                                |  |                                 
|Average Shares Outstanding                |  | 3,373                          |  |                                 
|Common Stock Equivalents                  |  | 1                              |  |                                 
|                                          |  |                                |  |                                 
|                                          |  | 3,374                          |  | $0.58                           
|                                          |  |                                |  |                                 
|                                          |  |                                |  |                                 
|                                          |  |                                |  |                                 
|                                          |  |                                |  |                                 
|                                          |  | Six Months Ended
June 30, 2000 |  | Three Months Ended
June 30, 2000
|                                          |  | Shares                         |  | Earnings
Per Share              
|                                          |  | (in Thousands)                 |  | (in Thousands)                  
|                                          |  |                                |  |                                 
|Basic Weighted Average
Shares Outstanding |  | 3,341                          |  | $0.53                           
|                                          |  |                                |  |                                 
|Diluted                                   |  |                                |  |                                 
|Average Shares Outstanding                |  | 3,341                          |  |                                 
|Common Stock Equivalents                  |  | 7                              |  |                                 
|                                          |  |                                |  |                                 
|                                          |  | 3,348                          |  | $0.53                           
|                                          |  |                                |  |                                 
|                                          |  |                                |  |