UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

For the Quarterly Period Ended June 30, 2000

For the Transition Period from to

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. X Yes 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:

Transitional Small Business Disclosure Format (Check One): Yes No

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

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

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

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

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

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

The consolidated financial statements include SNB Bancshares, Inc. (the Company) and its wholly-owned subsidiaries, Security Bank (formerly Security National Bank), located in Macon, Georgia and Crossroads Bank of Georgia, located in Perry, Georgia (the Banks). All intercompany accounts have been eliminated in consolidation.

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.

Loans as of June 30, 2000 are comprised of the following:

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.

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 shareholders divided by the weighted average number of shares outstanding during the reporting periods. Diluted earnings per share reflects the potential dilution that would occur if warrants and options were exercised and converted into common stock. The following presents earnings per share for the three and six months ended June 30, 2000 under the requirements of SFAS 128:

The assumed exercise of stock options is included in the diluted earnings per share computation using the treasury stock method and assuming an average market price for SNB Bancshares, Inc. stock of $14.8269 and $15.1629 for the three and six month periods, respectively. SNB's stock is quoted on the NASDAQ market under the symbol SNBJ.

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

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

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

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

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

Investment securities as of June 30, 2000 are summarized as follows:

Unrealized holding losses, net of tax, on securities available for sale in the amount of $471,000 have been charged to stockholders' equity as of June 30, 2000.

Other borrowed money is comprised of the following as of June 30, 2000:

Maturities of all FHLB advances for each of the next five years and thereafter are as follows:

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 another incentive stock option plan which granted certain officers and key employees the right to purchase 83,500 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 an additional 10,000 options were granted at $17.94 per share in September 1999. The terms of the 1999 incentive stock option plan are essentially the same as the 1996 incentive stock option plan.

A summary of option transactions for the six months ended June 30, 2000 follows:

The Company is required to maintain minimum amounts of capital to total "risk weighted" assets, as defined by the banking regulations. As of June 30, 2000, the Company is required to have minimum Tier 1 and Total Capital Ratios of 4 percent and 8 percent, respectively, and a leverage ratio (Tier 1 Capital to average assets) of at least 4 percent. The Company's actual ratios as of June 30, 2000 are as follows:

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

For the six months ended June 30, 2000, other comprehensive income is comprised of the following:

The following narrative presents management's discussion and analysis of SNB Bancshares, Inc.'s (SNB's) financial condition and results of operations as of and for the six-month periods ended June 30, 2000 and 1999. The historical financial statements of SNB are set forth elsewhere herein. This discussion should be read in conjunction with those financial statements and the other financial information included in this report. SNB owns and operates Security Bank of Bibb County (Bibb) and Security Bank of Houston County (Houston). SNB and its wholly-owned subsidiaries are collectively known as "the Company."

The Company's net income for the three-month and six-month periods ended June 30, 2000 was $970,000 or $0.29 diluted earnings per share and $1,778,000 or $0.53 diluted earnings per share, respectively, compared to $791,000 or $0.23 and $1,598,000 or $0.47 in the same three-month and six-month periods of the preceding year. The increase in net income for the three months and six months ended June 30, 2000 primarily relates to the above average growth of the Company's loan portfolio brought about largely from the planned acquisition of the assets of Group Financial Southeast, a Macon based mortgage operation.

The Company recorded an annualized return on average assets of 1.25 percent for the six-month period ended June 30, 2000 compared to 1.30 percent for the same period in 1999. Return on average equity of 12.64 percent was recorded for the six-month period ended June 30, 2000, compared to 12.13 percent for the same period in 1999.

At June 30, 2000, the Company had total assets of $327 million compared to $283 million at December 31, 1999. Management, again, attributes the majority of this increase to the above average growth of the Company's loan portfolio. At June 30, 1999, the Company had total assets of $259 million compared to $252 million at December 31, 1998. Total interest-earning assets increased $34 million or 13.28 percent from $290 million or 88.71 percent of total assets as of June 30, 2000, compared to $256 million or 90.42 percent of total assets as of December 31, 1999. Ninety-five percent of this increase was realized entirely in the loan portfolio.

Cash and due from banks increased approximately $12.5 million or 59.29 percent to $33.6 million at June 30, 2000 from $21.1 million at December 31, 1999. Federal funds sold increased by $4.1 million or 66.71 percent to $10.2 million at June 30, 2000 from $6.1 million at December 31, 1999. The source of these increases are most evident in the analysis of the Company's cash flows from financing activities, which provided cash inflows to the Company of $41.8 million.

Investment securities have decreased $2.6 million or 5.72 percent since December 31, 1999 when investment securities totaled $45.1 million. As of June 30, 2000, investment securities totaled $42.5 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.

Aggregate loans receivable totaled $237 million at June 30, 2000, an increase of $32.1 million or 15.6 percent from $205.1 million at December 31, 1999. As a result of the April 2000 announcement of the purchase of Group Financial Southeast (Fairfield Financial), a residential real estate mortgage company based in Macon, Georgia, the Company has experienced above average growth in the loan portfolio. The majority of new loans being funded are construction and other real estate loans. Real estate construction loans have increased 114.45 percent from $16.2 million as of December 31, 1999 to $34.7 million as of June 30, 2000. Other real estate secured loans have increased as well, from $129.6 million as of December 31, 1999 to $143.7 million as of June 30, 2000, an increase of 10.9 percent. As of June 30, 2000, real estate secured loans comprised 74.40 percent of the Company's loan portfolio compared to 70.24 percent as of December 31, 1999.

The Company's total nonperforming assets remained the same at approximately $2.0 million or 0.6 percent of total assets at June 30, 2000 compared to $1.4 million or 0.5 percent at December 31, 1999. Nonperforming loans increased $355,000 or 27.2 percent from $1.3 million at December 31, 1999 to approximately $1.7 million at June 30, 2000. The amount of other real estate owned that was held by the Company on June 30, 2000 amounted to $299,000, an increase of $174,000 or 139.2 percent since December 31, 1999.

The following table presents the Company's nonperforming assets as of June 30, 2000:

Deposits increased $21.3 million or 8.97 percent from $237.4 million at December 31, 1999 to $258.7 million at June 30, 2000. Interest-bearing deposits showed an increase of $28.8 million or 15.46 percent over the same time period. The majority of this deposit growth ($19.6 million) was evidenced in the second quarter of 2000 and is also considered to be a direct result of the announcement of the Fairfield Financial acquisition.

Other borrowed money amounted to $35.5 million as of June 30, 2000, an increase of 130.5 percent since December 31, 1999 when other borrowed money totaled $15.4 million. Borrowings from the Federal Home Loan Bank (FHLB) amounted to $32.0 million or 90.3 percent of total other borrowed money as of June 30, 2000. Management utilized the majority of these borrowings to fund the additional loan requests.

At June 30, 2000, total equity was $28.8 million or 8.81 percent of total assets compared to $27.5 million or 9.69 percent of total assets as of December 31, 1999. Total equity increased primarily due to the retention of net income during the intervening period, net of dividends paid. However, the growth in equity was outpaced by the growth in asset during this period, resulting in a decrease in equity ratios.

The Company's net income increased 22.63 percent to $970,000 for the three months ended June 30, 2000, and 11.33 percent to $1,779,000 for the six months ended June 30, 2000 compared to $791,000 and $1,598,000 recorded in the comparable prior periods. This increase in net income is primarily due to above average loan growth resulting in 22.6 and 18.4 percent increases in interest and fees on loans for the three- and six-month periods, respectively. The Company managed to keep noninterest expenses relatively constant during this growth period, further contributing to an increase in net income for the two periods. Noninterest expense for the three- and six-month periods ended June 30, 2000 increased 4.54 and 6.38 percent, respectively.

The Company's net interest margin increased 15.6 percent for the comparable three-month periods and increased 12.2 percent for the comparable six-month periods. Net interest income before the provision for loan losses amounted to $3.4 million and $6.6 million for the three- and six-month periods ended June 30, 2000, respectively, versus $2.1 million and $5.8 million for the comparable periods ended June 30, 1999, respectively.

Total interest income increased to $6.1 million and $11.8 million for the three- and six-month periods ended June 30, 2000, respectively, from $5.0 million and $9.9 million during the comparable prior year periods, respectively. Again, the increase is primarily due to an increase in loans of 25.5 percent as of June 30, 2000 compared to June 30, 1999.

Total interest expense increased 34.3 percent and 28.8 percent for the three months and six months ended June 30, 2000, respectively, compared to the prior periods ended June 30, 1999. This increase was primarily the result of additional borrowings needed to fund loan growth along with an increase in interest rates during the periods.

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

Average Balance Sheets

The following table provides a detailed analysis of the changes in interest income and interest expense due to changes in rate and volume for the six months ended June 30, 2000 compared to the six months ended June 30, 1999.

The Company establishes a provision for loan losses, which is charged to operations, in order to maintain the allowance for loan losses at a level which is deemed to be appropriate by management. The amount of this provision is based upon an assessment of prior loss experience, the volume and type of lending presently being conducted by the Company, industry standards, past due loans, economic conditions of the Company's market area and other factors related to the collectability of the Company's loan portfolio. For the three- and six-month periods ended June 30, 2000, the provision for loan losses amounted to $272,000 and $499,000, respectively. The provision for loan losses was $149,000 and $338,000 for the three- and six-month periods ended June 30, 1999, 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.

Noninterest income for the three months and six months ended June 30, 2000 totaled $840,000 and $1,527,000, respectively, compared to $769,000 and $1,493,000 for the comparable prior periods, respectively. The increase was largely the result of an increase in deposit account service charges. Service charges on deposit accounts increased 16.23 percent and 13.6 percent for the three months and six months ended June 30, 2000 from the comparable prior periods, respectively.

Total noninterest expense exhibited minimal increases of 4.54 and 6.38 percent for the three months and six months ended June 30, 2000, respectively, compared to the same periods in 1999.

Income tax expense totaled $492,000 and $927,000 for the three- and six-months period ended June 30, 2000, respectively, compared to $375,000 and $812,000 for the comparable prior periods, respectively. These amounts resulted in the effective tax rates of 34 percent for 2000 and 1999.

Shareholders' equity increased to $28.8 million at June 30, 2000 due primarily to retention of earnings, net of dividends paid. Unrealized losses on investment securities available for sale totaled $471,000 at June 30, 2000. It is management's intention to continue paying a reasonable return on shareholders' investment while retaining adequate earnings to allow for continued growth.

The Federal Reserve Board measures capital adequacy for bank holding companies by using a risk-based capital frame-work and by monitoring compliance with minimum leverage ratio guidelines. The minimum ratio of total risk-based capital to risk-adjusted assets is 8 percent at June 30, 2000, of which 4 percent must be Tier 1 capital. The Company's total risk-based capital ratio was 12.95 percent at June 30, 2000. The Company's Tier 1 risk-based capital ratio was 11.94 percent at June 30, 2000.

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. The Company's leverage ratio was 10.21 percent at June 30, 2000.

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) establishes minimum capital requirements for all depository institutions and established five capital tiers: "well capitalized," "adequately capitalized," " under-capitalized," "significantly under-capitalized" and "critically 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. The institution may also not be subject to any specific capital order or directive.

At June 30, 2000, both of the Company's subsidiary banks were in compliance with established guidelines.

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

Within these financial statements we have included certain "forward looking statements" concerning the future operations of the Company. It is management's desire to take advantage of the "safe 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 all "forward looking statements" contained in our financial statements. We have used "forward 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, Year 2000 uncertainties, and changes in federal and state regulations. These factors should be considered in evaluating the "forward looking statements," and undue reliance should not be placed on such statements.

Not Applicable.

Not Applicable.

The information required for limitations upon payment of dividends is incorporated herein by reference to the Company's annual report of 10-KSB, Exhibit 99(a) footnote 23, filed with the Securities and Exchange Commission for the year ended December 31, 1999 (File No. 000-23261).

Not Applicable.

Not Applicable.

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:

EXHIBIT NO. 11