SECURITY AND EXCHANGE COMMISSION
	WASHINGTON, D. C. 20549

	FORM 10-Q

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

For quarter ended   March 31, 2002   Commission file number   2-71249

                         SOUTH BANKING COMPANY
	(Exact name of registrant as specified in its charter)

              Georgia                         58-1418696
(State or other jurisdiction of (I.R.S. Employer Identification Number)
 incorporation or organization)

 104 North Dixon Street, Alma, Georgia                 31510
(Address of principal executive offices)             (Zip Code)


Registrant's telephone number, including area code   (912) 632-8631


Former name, former address and former fiscal year, if changed since last
report.

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such report(s), and (2) has been subject
to such filing requirement for the past 90 days.


                                             Yes    X        No

Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of March 31, 2002.


    Common stock, $1.00 par value - 399,500  shares outstanding

SOUTH BANKING COMPANY
ALMA, GEORGIA



Part I.  Financial Information

         Consolidated Financial Statements . . . . . . . . . . . 4 -  9

         Notes to Consolidated Financial Statements . . . . . . 10 - 12

         Management's Discussion and Analysis of Financial
          Condition and Results of Operations . . . . . . . . . 13 - 19


Part II. Other Information  . . . . . . . . . . . . . . . . . .      20

SOUTH BANKING COMPANY

SOUTH BANKING COMPANY
ALMA, GEORGIA
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

				March 31,			December 31,
				2002				2001

ASSETS

Cash and due from banks	$	9,110,865		$	11,140,462

Deposits in other banks -
 interest bearing		$	872,000		$	1,273,000

Investment securities:
 Available for sale	$	15,788,662		$	17,173,350

 Held to maturity 	$	147,588		$	147,536

Georgia Bankers stock	$	547,283		$	547,283
Federal Home Loan Bank stock	$	426,100		$	426,100
Federal funds sold	$	23,709,000		$	10,252,000

Loans 			$	169,909,598		$	172,378,811
Less: Unearned discount	(	    287,810)	(	    288,968)
Reserve for loan losses	(	  2,900,210)	(	  2,756,780)

 				$	166,721,578		$	169,333,063

Bank premises and equipment	$	6,749,848		$	6,715,813

Intangible assets	$	1,621,625		$	1,680,572

Other assets	$	5,468,153		$	6,101,344

Total Assets	$	231,162,702		$	224,790,523

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
CONSOLIDATED BALANCE SHEETS (Con't)
(UNAUDITED)


					March 31,			December 31,
					2002				2001

	LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Deposits:  Demand - non-interest
                     bearing	$	30,571,787		$	29,999,788
           Demand - interest
			  bearing		33,607,857			32,764,586
           Savings			12,064,208			10,537,057
           Time			     125,769,344			122,699,172

					$	202,013,196		$     196,000,603
Borrowing					5,521,904			5,581,251
Accrued expenses and other
 liabilities			1,929,565				1,850,430
Federal funds purchased			-				-
Note payable - Federal Home
     Loan Bank			1,500,000				1,500,000
Total Liabilities			$	210,964,665		$	204,932,284

Stockholders' Equity
Common stock $1 par value; shares
 authorized - 1,000,000,  shares
 issued and outstanding at
 March 31, 2002 and December 31,
 2001 - 399,500 and 399,500,
 respectively			$	399,500		$	399,500
Surplus					3,070,831			3,070,831
Undivided profits				16,714,060			16,291,126
Accumulated other comprehensive
   income					13,646			96,782

Total Stockholders' Equity	$	20,198,037		$	19,858,239
Total Liabilities and
 Stockholders' Equity	$	231,162,702		$	224,790,523

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
CONSOLIDATED STATEMENT OF INCOME AND
COMPREHENSIVE INCOME
(UNAUDITED)

					Three Months		Three Months
					Ended				Ended
					March 31,			March 31,
					2002				2001

Interest Income
Interest and fees on loans	$	3,537,825		$   4,461,307
Interest on federal funds sold	66,734			286,670
Interest on deposits with other
 banks					8,960				11,039

Interest on investment securities:
 U. S. Treasury				7,695				7,695
 U. S. government agencies		171,865			265,140
 Mortgage backed securities		1,724				5,534
 State and political subdivisions	14,605			18,819
 Dividends					10,071			20,228

Total Interest Income		$	3,819,479		$	5,076,432

Interest Expense
Interest on deposits		$	1,464,553		$	2,529,460
Interest on other borrowings		63,091			138,773

Total Interest Expense		$	1,527,644		$	2,668,233
Net Interest Income		$	2,291,835		$	2,408,199
Provision for loan losses		225,000			141,500

Net interest income after provisions
 for loan losses			$	2,066,835		$	2,266,699

Other Operating Income
Service charge on deposit accounts	$	417,381		$	410,320
Commission on insurance				21,196			23,214
Other income					142,006			361,989
Gain (loss) sale of securities			587				-
Computer income					156,094			134,706
Financial service income			24,610				-
Total Other Operating Income	$	761,874		$	930,229

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
CONSOLIDATED STATEMENT OF INCOME AND
COMPREHENSIVE INCOME (Con't)
(UNAUDITED)

					Three Months			Three Months
					Ended					Ended
					March 31,				March 31,
					2002					2001

Other Operating Expenses
Salaries				$	912,808			$	944,876
Profit sharing and other personnel
 expense					165,744				179,117
Occupancy expense				128,872				129,016
Furniture and fixtures expense	282,018				260,753
Payroll taxes				61,502				62,006
Data processing				72,097				72,796
Other operating expenses		564,367				532,043
Total Other Operating Expenses$	2,187,408			$	2,180,607
Income before income taxes	$	641,301 			$	1,016,321
Applicable income taxes			218,367				341,674
Net income				$	422,934			$	674,647
Other comprehensive income, net of tax
 Unrealized gains (losses) on
  securities			$(	83,136)			$	149,979

Other comprehensive income (loss)	$(	83,136)		$	149,979
Comprehensive income			$	339,798		$	824,626
Per share data on weighted average
 outstanding shares
Weighted average outstanding shares		399,500	 		399,500

Net income per share			$	1.059		$	1.689

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
STATEMENT OF CASH FLOWS
(UNAUDITED)

					Three Months			Three Months
					Ended					Ended
					March 31,				March 31,
					2002					2001

Cash Flows From Operating Activities:
 Net income				$	422,934		$	674,647
 Add expenses not requiring cash:
  Provision for depreciation and
   amortization				295,538			281,660
  Provision for loan losses		225,000			141,500
 Bond portfolio losses (gains) (   	1,463)			-
 Gain on sale of other real estate
  owned					-				-
 Increase (decrease) in taxes payable 222,367			380,666
 Increase (decrease) in interest payable (	281,240)	284,515
 Increase (decrease) in other liabilities		138,008  (	167,985)
 (Increase) decrease in interest
  receivable				389,247			196,874
 (Increase) decrease in prepaid
  expenses				(	20,049)		(      45,343)
 (Increase) decrease in other assets 51,290			220,526
 Recognition of unearned loan income  1,158				-
Net Cash Provided (Used) by Operating
 Activities				$	1,442,790		$	1,967,060
Cash Flows From Investing Activities:
 Proceeds from maturities of investment
  securities - available for sale	$	3,164,822	$	6,664,682
 Proceeds from maturities of investment
  security - held to maturity			-				-
 Purchase of investment
		securities - AFS		(	1,655,063)	(	4,750,000)
 Purchase of investment
		securities - HTM				-			-
 Net loans to customers			2,385,327		(	4,924,274)
 Purchase of premise and equipment(	264,719)		(	201,499)
 Proceeds from sale of equipment		-				-
 Proceeds from other real estate owned	-				-
 Purchase of FHLB stock				-				-
Net Cash Provided (Used) by Investing
 Activities				$	3,630,367		$(	3,211,091)

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
STATEMENT OF CASH FLOWS (Con't)
(UNAUDITED)

						Three Months		Three Months
 						Ended				Ended
						March 31,			March 31,
						2002				2001

Cash Flows From Financing Activities:
 Net increase (decrease) in demand
  deposits, NOW and money market	$	1,415,270		$	5,970,898
 Net increase (decrease) in savings
  and time deposit			4,597,323				5,153,067
 Net increase (decrease) in borrowings (	59,347)		(	26,384)
 Dividends paid					-				-
 Redemptions of company stock			-				-
 Federal funds purchased			-				-
 Net decrease - note payable - FHLB		-			(	13,333)
Net Cash Provided (Used) by
 Financing Activities			$	5,953,246		$	11,084,248
Net Increase (Decrease) in Cash
 and Cash Equivalents			$	11,026,403		$	9,840,217
Cash and Cash Equivalents at
 Beginning of Year				22,665,462			24,430,193
Cash and Cash Equivalents at
 End of Period				$	33,691,865		$	34,270,410

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

SOUTH BANKING COMPANY
ALMA, GEORGIA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

		The accounting and financial reporting policies of South Banking
Company and its subsidiaries conform to generally accepted accounting
principles and to general practice within the banking industry.  The
consolidated statements include the accounts of South Banking Company and
its wholly owned subsidiaries.  All material intercompany accounts and
transactions have been eliminated in consolidation.  The accompanying
interim financial statements are unaudited.  In management's opinion, the
consolidated financial statements reflect a fair presentation of the
consolidated financial position of South Banking Company and subsidiaries,
and the results of its operations and its cash flows for the interim
periods presented, in conformity with generally accepted accounting
principles.  These interim financial statements should be read in
conjunction with the audited financial statements and footnote disclosures
in the Bank's 10K for the fiscal year ended December 31, 2001.

	Basic earnings per share have been computed by dividing net income
(the numerator) by the weighted average number of common shares (the
denominator) for the period.

	In June 1997, the FASB issued SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information."  SFAS No. 131 requires
that public companies report certain information about operating segments
in complete sets of financial statements of the company and in condensed
financial statements of interim periods issued to shareholders.  It also
requires that public companies report certain information about their
products and services, the geographic areas in which they operate, and
their major customers.  SFAS No. 131 applies to fiscal years beginning
after December 15, 1997.  South Banking Company is a four bank holding
company operating primarily in Southeast Georgia.  The primary purpose of
the company is the delivery of financial services within its market.  Each
of the company's entities are part of the same reporting segment, whose
operating results are regularly reviewed by management. Therefore,
consolidated financial statements, as presented, fairly reflect the
operating results of the financial services segment of our business.

	In June 1997, FASB issued SFAS No. 130, "Reporting Comprehensive
Income" ("SFAS 130").  SFAS 130 established standards for reporting and
display of comprehensive income and its components in the financial
statements.  SFAS 130 applies to fiscal years beginning after December 15,
1997. Reclassification of financial statements for earlier periods has been
provided for comparative purposes.

SOUTH BANKING COMPANY
ALMA, GEORGIA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	During 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities" ("SFAS 133"), which establishes
accounting and reporting standards for derivative instruments and for hedging
activities.  The statement requires that all derivatives be recognized as
either assets or liabilities in the statement of financial position and be
measured at fair value.  SFAS 133 is effective for fiscal quarters of all
fiscal years beginning after June 15, 1999; earlier application is
permitted. The company does not hold or issue derivative instruments as
defined by SFAS 133; and accordingly, it is the opinion of management that
there will be no future impact from this recent accounting standard.

	The Financial Accounting Standards Board (FASB) issued Statement of
Financial Standards (SFAS) No. 141, Business Combinations, and SFAS No. 142,
Goodwill and Other Intangible Assets, on July 20, 2001.

	SFAS No. 141 provides that all business combinations shall be
accounted for using the purchase method of accounting; the use of the
pooling-of-interests method is now prohibited.  The provisions of SFAS No.
141 apply to all business combinations initiated after June 30, 2001 or to
all business combinations accounted for by the purchase method that are
completed after June 30, 2001.  The Company has not been involved in any
recent business combination discussions.

	SFAS No. 142 provides that goodwill shall not be amortized but should
be tested for impairment on an annual basis, using criteria prescribed in
the statement.  If the carrying amount of goodwill exceeds its implied fair
value, as recalculated, an impairment loss equal to the excess shall be
recognized.  Recognized intangible assets other than goodwill should be
amortized over their useful lives and reviewed for impairment in accordance
with SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to Be Disposed Of (superseded by SFAS No. 144, see
discussion which follows).  SFAS No. 142 will be effective for fiscal years
beginning after December 15, 2001.

SOUTH BANKING COMPANY
ALMA, GEORGIA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	The Company's intangible assets at December 31, 2001 are classified as
intangible assets other than goodwill.  Approximately $1.576 million of the
intangibles recorded on the balance sheet at December 31, 2001 represents the
remaining unamortized intangible related to the Company's 2000 acquisition of
three branch offices from another bank.  The balance of $104 thousand is the
remaining intangibles from the original purchase of the bank in 1996.  The
intangible are being amortized over eight to ten years in accordance with
SFAS No. 72, Accounting for Certain Acquisitions of Banking or Thrift
Institutions, which was not superseded by SFAS No. 142.  During December
2001, the FASB announced it will undertake a limited-scope project to
reconsider part of the guidance in SFAS No. 72.  Issuance of a final
statement is not expected until the fourth quarter of 2002.

	SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of, was issued by the FASB
on October 3, 2001 and is effective for fiscal years beginning after
December 15, 2001.  This statement effectively supersedes SFAS No. 121 and
Accounting Principles Board (APB) Opinion No. 30 and requires that long-
lived assets, including discontinued operations, that are to be disposed of
by sale be measured at the lower of carrying amount or fair value less cost
to sell.  The statement also resolves certain implementation issues
regarding SFAS No. 121.  This statement is not expected to have a material
impact on the Company's statements of financial condition or results of
operations.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

     Liquidity management involves the matching of the cash flow requirements
of customers, who may be either depositors desiring to withdraw funds or
borrowers needing assurance that sufficient funds will be available to meet
their credit needs and the ability of South Banking Company and its
subsidiaries (the "Company") to meet those needs.  The Company strives to
maintain an adequate liquidity position by managing the balances and
maturities of interest-earning assets and interest-bearing liabilities so
that the balance it has in short-term investments (Federal funds sold) at
any given time will adequately cover any reasonably anticipated immediate
need for funds. Additionally, the subsidiary banks (the "Banks") maintain
relationships with correspondent banks, which could provide funds to them
on short notice, if needed.

	The liquidity and capital resources of the Company are monitored on a
periodic basis by state and federal regulatory authorities.  As determined
under guidelines established by these regulatory authorities, the Banks'
liquidity ratios at March 31, 2002 were considered satisfactory.  At that
date, the Banks' Federal funds sold were adequate to cover any reasonably
anticipated immediate need for funds.  The Company is aware of no events or
trends likely to result in a material change in liquidity. At March 31, 2002,
the Company's and the Banks' capital asset ratios were considered well
capitalized based on guidelines established by regulatory authorities.
During the three months ended March 31, 2002, total capital increased
$339,798 to $20,198,037.  This increase in capital resulted from net
earnings of $422,934 and an increase of $83,136 in unrealized losses on
securities available for sale, net of taxes.

	At March 31, 2002, South Banking Company had one binding commitment
for capital expenditures. South Banking Company's subsidiary, Alma Exchange
Bank, had entered into an agreement to remodel its main bank building.  Most
of the remodeling had been completed prior to March 31, 2002; however, final
construction work and payments will approximate $200,000.

Results of Operations

	The following discussion and analysis presents the significant changes
in financial condition and the results of operations of South Banking Company
and Subsidiaries for the periods indicated.  This discussion and analysis
should be read in conjunction with the Company's 2001 Form 10-K.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations (Con't)

	Since the primary business activities of South Banking Company are
conducted through its Banks, this discussion focuses primarily on the
financial condition and operations of the Banks.  Included in this discussion
are forward looking statements based on management's current expectations,
actual results, however, may differ.  Amounts and percentages used in this
discussion have been rounded. The acquisition of the three branches by
subsidiary, Pineland State Bank, in July of 2000 has an impact on these
comparisons and all comments below should be read taking the acquisition in
effect.

Earnings Summary

	Net income for the first quarter of 2002 was $442,934 down $251,713
from $674,647 in the first quarter of 2001.  On a per share basis earnings
registered a similar decrease from $1.689 to $1.059.  These levels of income
represent annualized returns on average assets of .74% and 1.19%,
respectively.  Return on average equity also decreased from 14.40% to 8.45%.
Details concerning the Company's results of operations are discussed in the
following sections of this report.

	Net interest income for the first quarter of 2002 totaled $2,291,835,
down $116,364 from $2,408,199 in the first quarter of 2001.

	Interest income is being impacted by the mix of assets, the level of
earning assets and the interest rate environment.  Average earning assets
for the quarter of $206.7 million are $4.2 million in excess of the first
quarter 2001 average.  These funds have historically been invested in the
loan portfolio until this quarter when loan demand weakened.  At March 31
funds were temporarily held in federal funds sold waiting for seasonal loan
demands.  The rate environment and loan volume has caused loan income to
decrease $923,482 from $4,461,307 in the first quarter of 2001 to $3,537,825
in the first quarter of 2002.  This increase reflects the volatile repricing
of the Bank's substantial portfolio of one-year fixed rate loans; however,
the reduction in the prime rate has stopped and the impact of the changes
have begun to level off.

	Interest expense, the other component of net interest income,
decreased $1,140,589 when compared to the first quarter of last year
including the fact that the average balance of interest bearing liabilities
was down only $2,938,797 million.  The overall cost of interest bearing
liabilities for the quarter of 3.47% is 172 basis points lower than in the
first quarter of 2001, reflecting several rate changes implemented in 2001
that decreased rates.  Most of the higher rates have matured and overall
rates have lowered substantially.

	This combination of higher average balances and lower rates produced
a net interest margin of 3.92% for the quarter, down from 4.83% in the first
quarter of last year.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Earnings Summary (Con't)

	The provision for loan losses is a charge to earnings in the current
period to replenish the allowance for loan losses and maintain it at the
level management determines is adequate.  The provision for loan losses
charged to earnings amounted to $225,000 and $141,500 during the three
months ended March 31, 2002 and 2001, respectively.

Noninterest Income

	Following is a comparison of noninterest income for the three months
ended March 31, 2002 and 2001.

					Three			Three
					Months		Months
					Ended			Ended
     	   				March 31,		March 31,
					2002			2001
Service charges on deposits	$	417,381	$	410,320
Other service charges, commissions
 & fees					21,196		23,214
Other income				323,297		496,695

Total Noninterest Income	$	761,874	$	930,229


	Total noninterest income for the three months ended March 31, 2002
was $168,355 lower than during the same period in 2001.  The primary
decrease is related to reduction in gain on sale of SBA loans.

	During the third quarter of 1998, the Bank began offering brokerage
services, including stocks, bonds, mutual funds and annuities, to its
customers.  The effect on the deposit base has been limited as less than one
quarter of the total sales have come from Bank deposits.  In the long-term,
management believes this service could actually increase deposits.

Noninterest Expense

	Noninterest expense includes all items of expense other than interest
expense, the provision for loan losses, and income taxes. Total noninterest
expense for the first quarter of 2002 of $2,187,408 was $6,801, or .3%
greater than during the first quarter of 2001.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Noninterest Expense (Con't)

	Expense had little change from 2001 as salary and other personnel
expenses had a slight decrease as management has attempted to control costs
as interest margins have been significantly reduced.

	Other non-personnel expense had little change.  Management expects
this trend to remain constant during the remainder of the year.

Income Taxes

	The Company's provision for income taxes, which totaled $218,367 in
the first quarter of 2002 and $341,674 in the first quarter of 2001,
includes both federal and state income taxes.  The effective tax rates
during the two periods were 34.05% in 2002 and 33.6% in 2001.

Financial Condition

	Average total assets during the first quarter of 2002 were
$227,976,613, up from $226,653,073 from the first quarter of 2001.  A
detailed discussion of the Bank's financial condition, and its various
balance sheet components follows:

Loan Portfolio

	The loan portfolio, which represents South's largest asset, has
decreased during the first quarter by $2,469,213 to $169,909,598.
Competitive pressures from auto manufacturers and a variety of mortgage
providers continue to make loan growth at acceptable yields and risk levels
difficult for those types of loans.  Management also believes that with the
recent decline in the local farming economy, there exists little opportunity
to expand and develop the agricultural loan portfolio. In the year since
March 31, 2001, the loan portfolio has changed very little. Commercial and
real estate lending remains the largest part of the portfolio and where any
growth will be derived.

	The Bank is also a party to financial instruments with off-balance
sheet risk in the normal course of business to meet the financing needs of
its customers.  These financial instruments include commitments to extend
credit and letters of credit.  Those instruments involve, to varying degrees,
elements of credit and interest rate risk in excess of the amount recognized
in the consolidated balance sheets.  At March 31, 2002, commitments to extend
credit, including unused lines of credit, totaled $20,169,000 while letters
of credit totaled $428,000.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Loan Portfolio (Con't)

	Company policy requires those loans which are past due 90 days or more
be placed on nonaccrual status unless they are both well secured and in the
process of collection.  The following table provides a summary of past due
loans and nonperforming assets.

Summary of Past Due Loans and Nonperforming Assets
              (in thousands)

								-------March 31-------
								2002			2001
                                                      (Unaudited)
	Loans past due 90 or more days
      still accruing interest			$	357		$	371

	Nonperforming assets:
	 Nonaccruing loans			$	938		$	1,602
	 Other real estate owned			1,265			575

							$	2,203		$	2,177


	Management makes this determination by its analysis of overall loan
quality, changes in the mix and size of the loan portfolio, previous loss
experience, general economic conditions, information about specific
borrowers, and other factors.  At March 31, 2002, the allowance for loan
losses was $2,900,210 or 1.71% of gross loans. Given the inherent risk
contained in the portfolio, including the nonaccrual loan described above as
well as commitments to extend credit, this level is considered adequate.
Management is not aware of any trends, uncertainties or other information
relating to the loan portfolio, which it expects will materially impact
future operating results, liquidity, or capital resources.

	The provision for loan losses is a charge to earnings which is made to
maintain the allowance for loan losses at a significant level. The provision
totaled $225,000 during the first quarter of 2002 and $141,500 during the
first quarter of 2001.

Securities Portfolio and Federal Funds Sold

	The Bank's securities portfolio consists of available for sale and
held to maturity securities while no securities are maintained in a trading
account.  At March 31, 2002, the held to maturity portfolio totaled $147,588.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Securities Portfolio and Federal Funds Sold (Con't)

	Management attempts to emphasize the available for sale portfolio due
to the flexibility it allows in managing the balance sheet structure and
addressing asset/liability issues. At March 31, 2002,this portfolio had an
estimated fair value of $17,173,350, $13,646 more than the amortized cost.
Such benefit represents an unrealized gain.

	This portfolio is invested primarily in U.S. Treasury and agency
obligations and tax exempt municipals.  The treasury and agency portion of
the portfolio, including agency backed mortgage securities, total
$14,544,935 at quarter end or 92.1% of the available for sale portfolio.
Tax exempt municipals totaling $984,906 comprised 6.24%. The remainder of
the portfolio, which totals $258,821, consists of bank holding company
stock and equities.

	The Bank has typically favored investments with maturities of five
years or less which have known cash flow patterns.  Such instruments
typically provide greater safety, less market value fluctuation and more
simplified asset/liability issues.  However, some callable securities and
mortgage backed securities may be purchased from time to time for their
increased yield.

	The Bank generally tries to minimize its involvement in the overnight
federal funds sold market, instead relying on the continually maturing
securities portfolio to provide the liquidity needed to fund loans or meet
deposit withdraw demands.  Nonetheless, at any given time, the execution of
specific investing or funding strategies or normal fluctuations in deposit
and loan balances may require the bank to sell, or buy, funds on an
overnight basis.  In addition, any daily excess funds are maintained in
Federal Funds until demands on accounts are determined.

Deposits and Other Funding Sources

	Total deposits at March 31, 2002 of $202,013,196 were up from their
year end total of $196,000,603.  The first quarter has traditionally been
a slow growth period.  First quarter deposits have increased $6,012,593.

	Noninterest bearing deposits increased $571,999 to $30,571,787 during
the quarter.  In contrast to this, interest bearing deposits increased
$5,440,594 or 3.28%, to $171,441,409 during the quarter. Increases were
experienced in all types of interest bearing deposits.

SOUTH BANKING COMPANY
ALMA, GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Deposits and Other Funding Sources (Con't)

	In addition to deposits the Bank may generate funding by the use of
borrowings.

Impact of Inflation

     The consolidated financial statements and related data included in
this report were prepared in accordance with generally accepted accounting
principles, which require the Company's financial position and results of
operations to be measured in terms of historical dollars, except for the
available for sale securities portfolio. Consequently, the relative value
of money generally is not considered. Nearly all of the Company's assets
and liabilities are monetary in nature and, as a result, interest rates and
competition in the market area tend to have a more significant impact on the
Company's performance than the effect of inflation.

	SOUTH BANKING COMPANY
	ALMA, GEORGIA
	PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 6.  Exhibits and Reports on Form 8-K

         (A)  Exhibits

         (27) Financial Data Schedule

The registrant has not filed any reports on Form 8-K during the three month
period ended March 31, 2002.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.

                                  SOUTH BANKING COMPANY
                                  (Registrant)

Date:  May 7, 2002               By:
                                     Paul Bennett
                                     President

Date:  May 7, 2002               By:
                                     Olivia Bennett
                                     Vice President
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