|                                                                                                                                                                                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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                                                                                                                                                                                                                                                                                 
|Commission File Number                                                                                                                                                                                                                                                                                         
|SNB BANCSHARES, INC.                                                                                                                                                                                                                                                                                           
|(Name of Small Business Issuer in its Charter)                                                                                                                                                                                                                                                                 
|GEORGIA                                                                                                                                                                                                                                                                                                        
|State or Other Jurisdiction of
Incorporation or Organization                                                                                                                                                                                                                                                   
|4219 FORSYTH ROAD, MACON, GEORGIA 31210                                                                                                                                                                                                                                                                        
|(Address of Principal Executive Offices) (Zip Code)                                                                                                                                                                                                                                                            
|Issuer's Telephone Number                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                               
|(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:                                                                                                                                                                                    
|3,398,317 Shares of $1.00 par value common stock as of September 30, 2002                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                               





|SNB BANCSHARES, INC. AND SUBSIDIARIES         
|----------------------------------------------
|INDEX                                         
|                                              
|PART I                                        
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|PART II                                       
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|SIGNATURES                                    
|CERTIFICATION OF QUARTERLY REPORT ON FORM 10-Q
|EXHIBIT 11                                    
|                                              

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                                                                                                       
|Federal Home Loan Bank Stock, at Cost                                                                                        
|Loans Held for Sale                                                                                                          
|Loans                                                                                                                        
|Premises and Equipment                                                                                                       
|Other Real Estate                                                                                                            
|Goodwill                                                                                                                     
|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 3,398,317 and 3,372,969 Shares, Respectively      
|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 financial statements.

1

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 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                                                                                                                                                                        
|Mortgage Origination Fees                                                                                                                                                               
|Other                                                                                                                                                                                   
|                                                                                                                                                                                        
|Noninterest Expense                                                                                                                                                                     
|Salaries and Employee Benefits                                                                                                                                                          
|Occupancy and Equipment                                                                                                                                                                 
|Data Processing                                                                                                                                                                         
|Marketing                                                                                                                                                                               
|Office Supplies and Printing                                                                                                                                                            
|Telephone                                                                                                                                                                               
|Loss on Foreclosed Property                                                                                                                                                             
|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 THE THREE MONTHS ENDED SEPTEMBER 30
(UNAUDITED)
($ IN THOUSANDS)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                    
|Net Income                                                                                                                                                          
|Other Comprehensive Income, Net of Income Tax                                                                                                                       
|Unrealized Holding Gains                                                                                                                                            
|Comprehensive Income                                                                                                                                                

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



- 3 -

PART I, ITEM 1 (CONTINUED)

Financial Information



|SNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 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                                                                                                                                                                       
|Mortgage Origination Fees                                                                                                                                                              
|Other                                                                                                                                                                                  
|                                                                                                                                                                                       
|Noninterest Expense                                                                                                                                                                    
|Salaries and Employee Benefits                                                                                                                                                         
|Occupancy and Equipment                                                                                                                                                                
|Data Processing                                                                                                                                                                        
|Marketing                                                                                                                                                                              
|Office Supplies and Printing                                                                                                                                                           
|Telephone                                                                                                                                                                              
|Loss on Foreclosed Property                                                                                                                                                            
|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 THE NINE MONTHS ENDED SEPTEMBER 30
(UNAUDITED)
($ IN THOUSANDS)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                   
|Net Income                                                                                                                                                         
|Other Comprehensive Income, Net of Income Tax                                                                                                                      
|Unrealized Holding Gains                                                                                                                                           
|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 THE NINE MONTHS ENDED SEPTEMBER 30
(UNAUDITED)
($ IN THOUSANDS)
|---------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                         
|Cash Flows From Operating Activities                                                                                                                     
|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                                                                                                                
|Sale (Purchase) of Federal Home Loan Bank Stock                                                                                                          
|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                                                                                                                
|Proceeds From (Repayment of) Federal Funds
Purchased and Repurchase Agreements                                                                           
|Proceeds From Demand Note to the U.S. Treasury                                                                                                           
|Proceeds From (Principal Payments on) Other Borrowed Money                                                                                               
|Dividends Paid                                                                                                                                           
|Issuance of Common Stock                                                                                                                                 
|                                                                                                                                                         
|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.

- 6 -

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.

Changes in Accounting Principles and Effects of New Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No. 113, Accounting for Derivative Instruments and Hedging Activities, which establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheets as either an asset or liability measured at its fair value. The statement requires that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria is met. Special accounting for qualifying hedges allows a derivative's gain and losses to offset related results on the hedged item in the statements of income, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. 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, which delays the original effective date of SFAS No. 133 until fiscal years beginning after June 15, 2000. In June 2000, the FASB issued SFAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities an Amendment of FASB Statement No. 133, which addresses a limited number of issues causing implementation difficulties for certain entities that apply Statement 133. The derivative statements have had no material effect on the financial position and results of operations of SNB.

On July 20, 2001 the FASB issued SFAS No. 141, Business Combinationsand SFAS No. 142, Goodwill and Other Intangible Assets. These statements make significant changes to the accounting for business combinations, goodwill, and intangible assets. SFAS No. 141 eliminates the pooling-of-interests method of accounting for business combinations with limited exceptions for combinations initiated prior to July 1, 2001. In addition, it further clarifies the criteria for recognition of intangible assets separately from goodwill. This statement is effective for business combinations completed after June 30, 2001.

SFAS No. 142 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 Banks are required to adopt the provisions of SFAS No. 142 effective January 1, 2002. It is anticipated that the adoption of SFAS No. 142 will not have a material effect on the Company's financial statements.

- 7 -

PART I, ITEM 1 (CONTINUED)

Financial Information

1. Basis of Presentation (Continued)

Segment Reporting

Reportable segments are business units which offer different products and services and require different management and marketing strategies. Management of SNB Bancshares, Inc. considers that all banking operations are essentially similar within each of its subsidiaries and that there are no reportable operating segments. However, fee income from mortgage loans originated and sold to investors increased significantly with the July 2000 acquisition of Fairfield Financial Services, Inc. (Fairfield). Consolidated other income for the period ended September 30, 2002, includes approximately $6.3 million of Fairfield fee income. Such income may fluctuate significantly with increases or decreases in mortgage rates.

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 September 30, 2002 are comprised of the following:



|                                                           | ($ in Thousands)
|---------------------------------------------------------- | ----------------
|Commercial                                                 | $ 38,952        
|Real Estate-Construction                                   | 173,810         
|Real Estate-Other                                          | 182,281         
|Installment Loans to Individuals for Personal Expenditures | 19,619          
|All Other                                                  | 2,106           
|                                                           | 416,768         
|Allowance for Loan Losses                                  | (4,954)         
|Unearned Interest and Fees                                 | (420)           
|                                                           | $411,394        

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.

- 8 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(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 nine months ended September 30, 2002 under the requirements of SFAS 128:

|                               | Three Months
Ended
September 30, 2002 |  | Nine Months
Ended
September 30, 2002
|------------------------------ | ------------------------------------- |  | ------------------------------------
|Basic Earnings Per Share       |                                       |  |                                     
|Net Income Per Common Share    | $ 0.49                                |  | $ 1.29                              
|Weighted Average Common Shares | 3,395,755                             |  | 3,386,676                           
|Diluted Earnings Per Share     |                                       |  |                                     
|Net Income Per Common Share    | $ 0.48                                |  | $ 1.26                              
|Weighted Average Common Shares | 3,442,357                             |  | 3,451,703                           

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 $19.94 and $18.65 for the three- and nine-month periods. SNB's stock is quoted on the NASDAQ market under the symbol SNBJ.

SNB adopted the provisions of Statement of Financial Accounting Standards No. 142 as of January 1, 2002 and, accordingly, ceased amortization of goodwill. If net income for the three-month and nine-month periods of 2001 were adjusted to exclude goodwill amortization, reported net income would be $1,225,000 and $3,207,000, respectively. There would be no effect on basic or diluted earnings per share.



(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.

- 9 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(4) Allowance for Loan Losses (Continued)

The following table presents the Company



|                                          | ($ in Thousands)
|----------------------------------------- | ----------------
|                                          | 2002            
|Allowance for Loan Losses, June 1         | $4,858          
|Charge-Offs                               |                 
|Commercial, Financial and Agricultural    | 168             
|Real Estate Mortgage                      | 6               
|Consumer                                  | 140             
|                                          | 314             
|Recoveries                                |                 
|Commercial, Financial and Agricultural    | -               
|Real Estate Mortgage                      | 1               
|Consumer                                  | 6               
|                                          | 7               
|Net Charge-Offs                           | (307)           
|Provision for Loan Losses                 | 403             
|Allowance for Loan Losses, September 30   | $4,954          
|Ratio of Net Charge-Offs to Average Loans | (0.07)%         

- 10 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(4) Allowance for Loan Losses (Continued)

The following table presents the Company





|                                          | ($ in Thousands)
|----------------------------------------- | ----------------
|                                          | 2002            
|Allowance for Loan Losses, January 1      | $4,099          
|Charge-Offs                               |                 
|Commercial, Financial and Agricultural    | 253             
|Real Estate Mortgage                      | 74              
|Consumer                                  | 337             
|                                          | 664             
|Recoveries                                |                 
|Commercial, Financial and Agricultural    | 9               
|Real Estate Mortgage                      | 2               
|Consumer                                  | 55              
|                                          | 66              
|Net Charge-Offs                           | (598)           
|                                          |                 
|Provision for Loan Losses                 | 1,453           
|Allowance for Loan Losses, September 30   | $4,954          
|Ratio of Net Charge-Offs to Average Loans | (0.14)%         

- 11 -

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 September 30, 2002 are summarized as follows:



|Securities Available for Sale | Amortized
Cost   |  | Gross
Unrealized
Gains |  | Gross
Unrealized
Losses |  | Fair
Value
|----------------------------- | ---------------- |  | ---------------------- |  | ----------------------- |  | ----------
|                              | ($ in Thousands)
|U.S. Treasuries               | $ 2284           |  | $ 96                   |  |                         |  | $ 2,380   
|U.S. Government Agencies      |                  |  |                        |  |                         |  |           
|Mortgage Backed               | 23,660           |  | 631                    |  |                         |  | 24,291    
|Other                         | 6,304            |  | 429                    |  |                         |  | 6,733     
|State, County and Municipal   | 7,943            |  | 421                    |  |                         |  | 8,364     
|                              | $40,191          |  | $1,577                 |  | $ -                     |  | $41,768   
|Securities Held to Maturity   |                  |  |                        |  |                         |  |           
|State, County and Municipal   | $ 1,506          |  | $ 114                  |  | $ -                     |  | $ 1,620   

Unrealized holding gains, net of tax, on securities available for sale in the amount of $1,041,000 have been credited to stockholders' equity as of September 30, 2002.

(6) Other Borrowed Money

Other borrowed money is comprised of the following as of September 30, 2002:



|                                                                                                                                                                                                                                                                                                                                                                                       | ($ in Thousands)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------
|Advances from the Federal Home Loan Bank (FHLB) with Maturities in Varying Amounts Through March 23, 2011 and Interest Rates Ranging from 1.82 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. | $44,000         
|Advances under the Warehouse Line with the FHLB Have an Interest Rate of FHLB/Atlanta Daily Rate Credit Advance Rate, Plus .50% The Interest Rate Adjusts Daily Based On the Index and Spread. As of September 30, 2002, The Interest Rate Was 2.67%.                                                                                                                                  | 18,696          
|$14,000,000 Line-of-Credit with The Bankers Bank, Maturing on January 1, 2013. Interest Payable Quarterly at Prime Minus 50 Basis Points. Secured by All Stock Owned by SNB Bancshares, Inc. in Security Bank of Bibb County and Security Bank of Houston County.                                                                                                                      | 9,000           
|Securities Sold Under Agreement to Repurchase.                                                                                                                                                                                                                                                                                                                                         | 6,294           
|Total Other Borrowed Money                                                                                                                                                                                                                                                                                                                                                             | $77,990         

- 12 -

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       |  | ($ in Thousands)
|---------- |  | ----------------
|           |  |                 
|2002       |  | $23,696         
|2003       |  | 22,000          
|2004       |  | 7,900           
|2005       |  | 900             
|Thereafter |  | 17,200          
|Total      |  | $71,696         

(7) Deposits

Components of deposits as of September 30, 2002 are as follows:



|                        |  | $ in Thousands
|----------------------- |  | --------------
|Demand                  |  | $ 63,851      
|Interest-Bearing Demand |  | 43,711        
|Savings                 |  | 56,828        
|Time, $100,000 and Over |  | 76,967        
|Other Time              |  | 167,242       
|                        |  | $408,599      

Brokered deposits are third-party time deposits placed by or through the assistance of a deposit broker. As of September 30, 2002, SNB had $34,251,000 in brokered deposits compared to $34,947,000 at December 31, 2001.

(8) 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 in August 2000 under the same plan. The terms of the 1999 incentive stock option plan are essentially the same as the 1996 incentive stock option plan.

- 13 -

PART I, ITEM 1 (CONTINUED)

Financial Information

(8) Stockholders' Equity (Continued)

During the first quarter of 2002, the board of directors of SNB Bancshares, Inc. adopted a performance based incentive stock option plan. Under this plan 105,000 options were granted in May 2002 at $19.51 per share. The vesting schedule for these options is two tiered. Options in the first tier are vested over three years based on a 12 percent increase in earnings per share over the base year diluted earnings per share of $1.03 each year. If the maximum diluted earnings per share of $1.45 is reached during the three-year period, the vested shares are doubled. Under the second tier, additional shares are vested for two executive officers based on the same requirements except the diluted earnings per share must increase 15 percent a year to a maximum of $1.57 during the three-year period. The first year of vesting for this plan is based on the Company's performance for 2001.

A summary of option transactions for the nine months ended September 30, 2002 follows:

|                                             |  | Incentive Stock Options
|-------------------------------------------- |  | -----------------------
|Outstanding, December 31, 2001               |  | 167,500                
|Granted                                      |  | 105,000                
|Canceled                                     |  | -                      
|Exercised                                    |  | (10,250)               
|Outstanding, September 30, 2002              |  | 262,250                
|Eligible to be Exercised, September 30, 2002 |  | 121,556                

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

|                     | Security Bank of Bibb County |  | Security Bank of Houston County |  |        
|-------------------- | ---------------------------- |  | ------------------------------- |  | -------
|                     | Actual                       |  | Actual                          |  | Minimum
|Tier 1 Capital Ratio | 9.60%                        |  | 9.35%                           |  | 4.00%  
|Total Capital Ratio  | 10.64                        |  | 10.44                           |  | 8.00   
|Leverage Ratio       | 8.95                         |  | 7.91                            |  | 4.00   

(9) Noncash Financing Activities

Noncash investing activities for the nine months ended September 30 are as follows:



|                                                    | ($ in Thousands)
|--------------------------------------------------- | ----------------
|                                                    | 2002            
|Acquisition of Real Estate through Loan Foreclosure | $497            

- 14 -

PART I, ITEM 1 (CONTINUED)

Financial Information



(10) Other Comprehensive Income

For the nine months ended September 30, 2002, 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      |  | $ 793            |  | $269       |  | $524      
|Reclassification Adjustment   |  | (134)            |  | (45)       |  | (89)      
|Net Unrealized Gain           |  | $ 659            |  | $224       |  | $435      



(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 has been amortized on the straight-line method over 10 years through December 31, 2001. As a result of the issuance of SFAS No. 142, effective January 1, 2002, the goodwill will no longer be amortized but is being reviewed for impairment.

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 2002 will equate to 50 percent of Fairfield Financial Services, Inc.=s earnings for the year. Stock payments for 2002 will be based on 50 percent of 2002 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. If Fairfield Financial sustains losses, no additional purchase price payments are due. The contingent payment made in 2002 as a result of 2001 earnings is a combination of cash and stock totaling approximately $1 million.

- 15 -

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 nine-month periods ended September 30, 2002 and 2001. 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.

Overview

SNB is a Georgia corporation formed to act as a bank holding company for Security Bank of Bibb County (formerly Security National Bank )("SB-Bibb") under the federal Bank Holding Company Act of 1956, as amended, and the bank holding company laws of Georgia. SNB was incorporated on February 10, 1994 at the instruction of management of SB-Bibb. At a special meeting of the stockholders of SB-Bibb on August 2, 1994, the stockholders of SB-Bibb voted in favor of a plan reorganization and agreement of merger pursuant to which SB-Bibb became a wholly-owned subsidiary of SNB. The reorganization was effective on September 30, 1994, as a result of which the shares of common stock of SB-Bibb then issued and outstanding were converted into shares of the common stock of SNB. SB-Bibb has operated as a wholly-owned subsidiary of SNB since that time, although the functions and business of SB-Bibb, its board of directors, staff and physical office locations underwent no changes as a result of the reorganization.

SB-Bibb is a state-chartered bank that engages in the commercial banking business primarily in Bibb County, Georgia. SB-Bibb commenced operations on November 4, 1988. The bank operates seven full service banking offices and one limited service office in Macon, Georgia. On March 1, 1999, the Bank converted its banking charter from a national to a state charter, and changed its name from Security National Bank to Security Bank of Bibb County.

On August 8, 1998, SNB acquired a 100 percent interest in Crossroads Bancshares, Inc., the parent holding company of Crossroads Bank of Georgia in Perry and Warner Robins, Georgia. The two companies merged in a pooling of interests stock swap transaction and, accordingly, all prior financial information shown below has been restated as if this business combination had always existed. The parent company of Crossroads Bank was subsequently dissolved. On June 3, 1999, Crossroads Bank changed its name to Security Bank of Houston County ("SB-Houston") and now operates as a wholly-owned subsidiary of SNB, with four full service banking offices in Perry and Warner Robins.

On July 31, 2000, SB-Bibb 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 SB-Bibb incorporated as Fairfield Financial Services, Inc. ("Fairfield"). The purchase transaction involved a combination of SNB stock and cash consideration. Fairfield is a well-established real estate mortgage lending company with a number of production locations throughout Georgia and the Southeast, including offices in Macon, Columbus, Warner Robins, Richmond Hill, Stockbridge, Fayetteville and St. Simons Island. The Company functions as a subsidiary of SB-Bibb.

- 16 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Overview (Continued)

Substantially all of the business of SNB is conducted through its two subsidiary banks. Both banks offer a full range of lending services including the specialized Fairfield mortgage subsidiary, deposit products, Internet banking, automated teller machines, safe deposit boxes, credit cards, night depositories, and other services for the convenience of its customers, who mainly reside in Bibb and Houston Counties. As of September 30, 2002, SNB had 228 employees on a full-time equivalent basis.

SNB's net income for the three-month and nine-month periods ended September 30, 2002 was $1,657,000 or $0.48 diluted earnings per share and $4,355,000 or $1.26 diluted earnings per share respectively, compared to $1,208,000 or $0.36 and $3,158,000 or $0.94 in the same three-month and nine-month periods of the preceding year. The increase in net income for the three months and nine months ended September 30, 2002 primarily relates to SNB repricing deposit at lower rates as a result of the declining interest rate environment during 2001.

The Company recorded an annualized return on average assets of 1.16 percent for the nine-month period ended September 30, 2002 compared to 1.00 percent for the same period in 2001. Return on average equity of 15.89 percent was recorded for the nine-month period ended September 30, 2002, compared to 12.91 percent for the same period in 2001.

At September 30, 2002, the Company had total assets of $530 million compared to $505 million at December 31, 2001. At September 30, 2001, the Company had total assets of $451 million compared to $410 million at December 31, 2000. Total interest-earning assets increased $21 million or 4.51 percent to $487 million at September 30, 2002 from $466 million at December 31, 2001.

Financial Condition

Cash and Cash Equivalents

Cash and due from banks increased approximately $2.7 million or 14.75 percent to $21.0 million at September 30, 2002 from $18.3 million at December 31, 2001. The source of this increase is most evident in the analysis of the Company=s cash flows from operating activities, which reports cash inflows of $3.7 million.

Investment Securities

Investment securities have decreased $4.2 million or 8.84 percent since December 31, 2001 when investment securities totaled $47.5 million. As of September 30, 2002, investment securities were $43.3 million. While continuing to strategically manage the Company=s interest rate sensitive assets and liabilities, management has shifted more assets from the investment portfolio to accommodate the increased loan demand. The Company=s investment in securities is largely centered in U.S. Government Agency securities.



- 17 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Financial Condition (Continued)

Loans Receivable

Loans receivable, excluding loans held for sale, were $416.8 million at September 30, 2002, an increase of $33.1 million or 8.75 percent from $378.3 million at December 31, 2001. As a result of the purchase of Group Financial Southeast (Fairfield Financial), a residential real estate mortgage company based in Macon, Georgia, SNB continues to experience growth in the loan portfolio. The majority of new loans being funded are real estate loans, including construction loans. Real estate construction loans have increased 28.8 percent from $134.9 million as of December 31, 2001 to $173.8 million as of September 30, 2002. Real estate secured loans, excluding construction loans, net of loans held for sale have increased as well, from $179 million as of December 31, 2001 to $182.3 million as of September 30, 2002, an increase of 1.84 percent. As of September 30, 2002, real estate secured loans comprised 85.4 percent of the Company=s loan portfolio compared to 83.0 percent as of December 31, 2001. Loans held for sale decreased $12.5 million from $41.2 million at December 31, 2001 to $28.7 million at September 30, 2002, offsetting the $37.4 million increase in loans.

Nonperforming Assets

The Company=s total nonperforming assets were $5.9 million or 1.10 percent of total assets at September 30, 2002 compared to $5.9 million or 1.18 percent at December 31, 2001. Nonperforming loans increased $600,000 or 18.8 percent from $3.2 million at December 31, 2001 to approximately $3.8 million at September 30, 2002. The amount of other real estate owned that was held by the Company on September 30, 2002 totaled $2 million, a decrease of $677,000 since December 31, 2001. Forty-seven percent of the balance in other real estate relates to the foreclosure on one relationship.

The following table presents the Company=s nonperforming assets as of September 30, 2002:



|                                                           |  | ($ in
Thousands)
|---------------------------------------------------------- |  | ----------------
|Impaired and Other Nonaccrual Loans                        |  | $3,799          
|Loans Past Due 90 Days or More and Still Accruing Interest |  | 11              
|Restructured Loans not Included in the Above               |  | 19              
|Total Nonperforming Loans                                  |  | 3,829           
|Other Real Estate Owned                                    |  | 2,028           
|Total Nonperforming Assets                                 |  | $5,857          

- 18 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Financial Condition (Continued)

Deposits

Total deposits increased $33.5 million or 8.93 percent from $375.1 million at December 31, 2001 to $408.6 million at September 30, 2002. This increase is due to an increase in interest-bearing deposits of $40.9 million or 13.46 percent offset by a decrease in noninterest-bearing deposits of $7.4 million or 10.39 percent over the same time period. In August 2002, the Company implemented a program called High Performance Checking (HPC) to bring in low cost deposits. HPC has also created cross-selling opportunities, primarily certificates of deposit. Since the program was implemented, 1,287 accounts or $10.7 million in Demand Deposits and 296 accounts or $23.2 million in Time Deposits have been opened.

Other Borrowed Money

Other borrowed money totaled $78 million as of September 30, 2002, a decrease of 13.53 percent since December 31, 2001 when other borrowed money totaled $90.2 million. Borrowings from the Federal Home Loan Bank (FHLB) totaled $62.7 million or 80.4 percent of total other borrowed money as of September 30, 2002. Management utilized the majority of these borrowings to fund additional loan requests.

Equity

At September 30, 2002, total equity was $39.1 million or 7.36 percent of total assets compared to $34.8 million or 6.89 percent of total assets as of December 31, 2001. Total equity increased primarily due to the retention of net income during the period, net of dividends paid. The growth in equity outpaced the growth in assets during this period, resulting in an increase in equity ratios.

Results of Operations

Net Income

The Company

Net Interest Income

The annualized net interest margin of the Company, net interest income divided by average earning assets, was 4.41 percent for the nine-month period ended September 30, 2002 compared to 4.19 percent for the same nine-month period of the preceding year. The increase in the net interest margin resulted primarily from the decrease in interest paid on deposits and other borrowed money.

Total interest income decreased to $24.5 million for nine-month period ended September 30, 2002, from $25.4 million during the comparable prior year period. The decrease is largely due to the repricing of some loans at lower rates offset by an increase in average loans.

Total interest expense decreased 26.35 percent and 29.93 percent for the three and nine months ended September 30, 2002, respectively, compared to the prior periods ended September 30, 2001. Again, this decrease was due to the favorable rate environment which allowed SNB to reprice interest-bearing liabilities at lower rates compared to the same periods in the prior year.

- 19 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

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

Average Balance Sheets

|                                   |  | Average Balance
Nine Months Ended
September 30 |  | Rate/Yield
Nine Months Ended
September 30
|---------------------------------- |  | ---------------------------------------------- |  | -----------------------------------------
|                                   |  | 2001                                           |  | 2000                                     
|                                   |  | ($ in Thousands)                               |  |                                          
|Interest-Earning Assets            |  |                                                |  |                                          
|Loans                              |  | $417,142                                       |  | $348,842                                 
|Securities                         |  | 44,044                                         |  | 43,825                                   
|Federal Funds Sold                 |  | 5,185                                          |  | 3,066                                    
|Interest-Bearing Due From Banks    |  | 1,009                                          |  | 933                                      
|Total Interest-Earning Assets      |  | $467,380                                       |  | $396,666                                 
|Interest-Bearing Liabilities       |  |                                                |  |                                          
|Deposits                           |  | $327,951                                       |  | $273,305                                 
|Borrowings                         |  | 71,479                                         |  | 59,948                                   
|Total Interest-Bearing Liabilities |  | $399,430                                       |  | $333,253                                 
|Interest Rate Spread               |  |                                                |  | 3.96%                                    
|Net Interest Margin                |  |                                                |  | 4.41%                                    

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 nine months ended September 30, 2002 compared to the nine months ended September 30, 2001.

- 20

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

|Rate/Volume Analysis            |  | Changes From 2001 to 2002 (1)
|------------------------------- |  | -----------------------------
|                                |  | Volume                       
|                                |  | ($ in Thousands)             
|Interest Income                 |  |                              
|Loans                           |  | $6,058                       
|Securities                      |  | (19)                         
|Federal Funds Sold              |  | 119                          
|Interest-Bearing Due From Banks |  | -                            
|Total Interest Income           |  | 6,158                        
|Interest Expense                |  |                              
|Deposits                        |  | 2,897                        
|Borrowings                      |  | 544                          
|Total Interest Expense          |  | 3,441                        
|Net Interest Income             |  | $2,717                       

(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 nine-month periods ended September 30, 2002, the provision for loan losses totaled $403,000 and $1,453,000, 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.

- 21 -

PART I, ITEM 2 (CONTINUED)

Financial Information

Results of Operations (Continued)

Noninterest Income and Expense

Noninterest income for the three and nine months ended September 30, 2002 totaled $3.5 million and $9.6 million, respectively, compared to $2.9 million and $7.9 million for the comparable prior periods. Mortgage origination fees for the nine months ended September 30, 2002 totaled $6.3 million compared to $5.0 million for the comparable prior period. This increase was a direct result of the impressive performance of Fairfield Financial.

Noninterest expenses increased $2.5 million or 17.9 percent for the third quarter of 2002 over the same period in 2001. The increase correlates with the increase in mortgage origination fees as the salaries are commission driven. Loss on foreclosed property increased over the same period in 2001 due to an increase in the valuation allowance on other real estate of $339,000.

Income Taxes

Income tax expense totaled $978,000 and $2.5 million for the three- and nine-month periods ended September 30, 2002, compared to $633,000 and $1.8 million for the comparable prior periods, respectively. These amounts resulted in the effective tax rates of 34 percent for 2002 and 2001.

Liquidity and Capital Adequacy

Stockholders=equity increased to $39.1 million at September 30, 2002 due primarily to retention of earnings, net of dividends paid. Unrealized gains on investment securities available for sale net of taxes totaled $1,041,000 at September 30, 2002. 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 September 30, 2002, of which 4 percent must be Tier 1 capital. Security Bank of Bibb County and Security Bank of Houston County's total risk-based capital ratios were 10.64 percent and 10.44 percent, respectively, and the Tier 1 risk-based capital ratios were 9.60 percent and 9.35 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. Bibb and Houston's leverage ratios were 8.95 percent and 7.91 percent, respectively.

- 22 -

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 September 30, 2002, both of the Company=s subsidiary banks were in compliance with established guidelines.

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

SNB's financial performance is impacted by, among other factors, interest rate risk and credit risk. SNB does not use derivatives to mitigate credit risk, relying instead on a loan review process and the provision for loan losses. See Provision for Loan Losses herein.

The management of interest rate risk is the primary goal of SNB's asset/liability management function. SNB attempts to achieve consistent growth in net interest income while limiting volatility from changes in interest rates. Management seeks to accomplish this goal by balancing the maturity and repricing characteristics of various assets and liabilities. SNB's asset/liability mix is sufficiently balanced so that the effect on net interest income of interest rate moves in either direction is not expected to be significant over time.

- 23 -

PART I, ITEM 3 (CONTINUED)

Financial Information

Quantitative and Qualitative Disclosures About Market Risk (Continued)

One tool used by SNB to measure its interest rate sensitivity is a cumulative gap analysis model that seeks to measure the repricing differentials, or gap, between rate-sensitive assets and liabilities over various time horizons. The following table reflects the gap positions of SNB's consolidated balance sheet as of September 30, 2002 at various pricing intervals.



|                                                                                     |  | Assets and Liabilities Repricing Within
|------------------------------------------------------------------------------------ |  | ---------------------------------------
|                                                                                     |  | 3 Months                               
|($ in thousands)                                                                     |  | or Less                                
|Earning Assets                                                                       |  |                                        
|Interest-Bearing Due from Banks                                                      |  | $ 291                                  
|Federal Funds Sold                                                                   |  | 106                                    
|Investment Securities                                                                |  | 1,569                                  
|Loans, Net of Unearned Income                                                        |  | 261,727                                
|Total Interest-Earning Assets                                                        |  | 263,693                                
|Interest-Bearing Liabilities                                                         |  |                                        
|Interest-Bearing Demand Deposits (1)                                                 |  | 43,711                                 
|Savings (1)                                                                          |  | 56,828                                 
|Time Deposits                                                                        |  | 50,687                                 
|Other Borrowed Money                                                                 |  | 29,990                                 
|Total Interest-Bearing Liabilities                                                   |  | 181,216                                
|                                                                                     |  |                                        
|Interest-Sensitivity Gap                                                             |  | 82,477                                 
|Cumulative Interest-Sensitivity Gap                                                  |  | $ 82,477                               
|Interest Rate Sensitivity Gap as a
Percentage of Interest-Earnings Assets            |  | 16.88%                                 
|Cumulative Interest Rate Sensitivity
Gap as a Percentage of Interest- Earning Assets |  | 16.88%                                 

(1) Interest-bearing Demand and Savings Accounts for repricing purposes are considered to reprice within three months or less

- 24 -

PART I, ITEM 4

Financial Information

Controls and Procedures

The Company maintains a system of internal controls and procedures designed to provide reasonable assurance as to the reliability of the published financial statements and other disclosures included in this report. As of September 30, 2002, an evaluation was performed of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Rule 13a-14 of the Securities Exchange Act of 1934. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of September 30, 2002. There have been no significant changes in the Company's internal controls or in other factors which would significantly affect internal controls subsequent to the date the evaluation was carried out.

25

CERTIFICATION



I

1. I have reviewed this quarterly report on Form 10-Q of SNB Bancshares, Inc;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

November 14, 2002

H. Averett Walker
President and CEO

- 26 -

CERTIFICATION



I, Michael T. O'Dillon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of SNB Bancshares, Inc;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

November 14, 2002

Michael T. O'Dillon
Senior Vice President, Treasurer and CFO

- 27 -

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-K, Exhibit 99(a) footnote 23, filed with the Securities and Exchange Commission for the year ended December 31, 2001 (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 September 30, 2002.

ITEM 5

Other Information

On October 25, 2002, the Company announced the execution of a definitive agreement pursuant to which the Bank of Gray will be acquired by merger. The stockholders of the Bank of Gray will receive $15 million in cash and 1,571,000 common shares of the Company. Pending regulatory and stockholder review and approval, the merger is expected to consummate during the second quarter of 2003.

The Company issued a press release on November 4, 2002 announcing its plans to expand into the Brunswick/Glynn County, Georgia market. The Security Bank of Bibb County subsidiary will open a bank branch in Brunswick by the end of 2002. The branch will operate in a temporary location until the third quarter of 2003, when construction will begin on its new full service banking facility. A contract for $490,000 has been signed for the purchase of the property for the new branch.

- 28 -

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 September 30, 2002.                                                                                               

- 29

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 WALKERH. Averett Walker
President/Chief Executive Officer                          
|----------------------------------------------------------------------------------------------
|Date:November 14, 2002                                                                        
|                                                                                              
|MICHAEL T. O'DILLONMichael T. O'Dillon
Senior Vice-President/Treasurer/Chief Financial Officer
|Date:November 14, 2002                                                                        
|                                                                                              

- 30 -

CERTIFICATION OF QUARTERLY REPORT ON FORM 10-Q

OF

SNB BANCSHARES, INC.

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002



The undersigned is the Chief Executive Officer of SNB Bancshares, Inc. (the "Registrant"). This Certification is made pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Certification accompanies the Quarterly Report on Form 10-Q of the Registrant for the quarterly period ended September 30, 2002.

I certify that such Quarterly Report on Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

This Certification is executed as of September 14, 2002.

H. AVERETT WALKER

H. Averett Walker
President and CEO

- 31

CERTIFICATION OF QUARTERLY REPORT ON FORM 10-Q

OF

SNB BANCSHARES, INC.

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002

The undersigned is the Chief Financial Officer of SNB Bancshares, Inc. (the "Registrant"). This Certification is made pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Certification accompanies the Quarterly Report on Form 10-Q of the Registrant for the quarterly period ended September 30, 2002.

I certify that such Quarterly Report on Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

This Certification is executed as of September 14, 2002.



MICHAEL T O'DILLON

Michael T. O'Dillon
Senior Vice President, Treasurer and CFO

- 32 -

EXHIBIT NO. 11

STATEMENT OF COMPUTATION OF EARNINGS PER SHARE



|                                          |  | Nine Months Ended
September 30, 2002 |  | Three Months Ended
September 30, 2002
|----------------------------------------- |  | ------------------------------------ |  | -------------------------------------
|                                          |  | Shares                               |  | Earnings
Per Share                   
|                                          |  | (in Thousands)                       |  | (in Thousands)                       
|Basic Weighted Average
Shares Outstanding |  | 3,387                                |  | $1.29                                
|Diluted                                   |  |                                      |  |                                      
|Average Shares Outstanding                |  | 3,387                                |  |                                      
|Common Stock Equivalents                  |  | 65                                   |  |                                      
|                                          |  | 3,452                                |  | $1.26                                
|                                          |  |                                      |  |                                      
|                                          |  | Nine Months Ended
September 30, 2001 |  | Three Months Ended
September 30, 2001
|                                          |  | Shares                               |  | Earnings
Per Share                   
|                                          |  | (in Thousands)                       |  | (in Thousands)                       
|Basic Weighted Average
Shares Outstanding |  | 3,373                                |  | $0.94                                
|Diluted                                   |  |                                      |  |                                      
|Average Shares Outstanding                |  | 3,373                                |  |                                      
|Common Stock Equivalents                  |  | 1                                    |  |                                      
|                                          |  | 3,374                                |  | $0.94                                
|                                          |  |                                      |  |                                      

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