SNB Bancshares, Inc. Announces First Quarter 2005 Results

SNB Bancshares, Inc. Announces First Quarter 2005 Results 


SUGAR LAND, Texas, April 28  /PRNewswire-FirstCall/ -- SNB Bancshares, Inc.
(NASDAQ:SNBT), the parent company of Southern National Bank of Texas, today
announced solid operating results due to a significant increase in net interest
income, principally as a result of strong loan growth, offset by a writedown
for the previously announced restructuring of its securities portfolio.  For
the first quarter of 2005, the Company recorded a $2.2 million loss, or $0.18
per share.  Net earnings for the first quarter 2005, excluding the after-tax
non-recurring impairment charge of $4.1 million or $0.33 per share, would have
been $1.9 million, a 46% increase compared with $1.3 million earned in the
first quarter of 2004.  Net earnings per diluted share excluding the
non-recurring impairment charge would have been $0.15 on 12.9 million shares in
the first quarter of 2005 compared with $0.17 on 7.2 million shares in the
first quarter of 2004.

Net earnings excluding the non-recurring impairment charge is considered a
non-GAAP financial measure as defined under the rules and regulations of the
Securities and Exchange Commission.  Management believes that this presentation
of net earnings excluding such charge should enhance investors' understanding
of the Company's earnings performance during the first quarter of 2005.

"The restructuring and de-leveraging of our balance sheet and the associated
impairment charge was a necessary step to reduce our risks in a rising interest
rate environment and to improve profitability going forward," said R. Darrell
Brewer, Treasurer and Chief Financial Officer.  "While we remain liability
sensitive, paying down debt lessened our liability-sensitive position, thus
reducing our risk from rising interest rates, and increased yields on our bond
portfolio should improve our net interest margin.  We do not anticipate any
need for further large-scale securities sales.  We will fund loan growth with
deposits, short-term and cash equivalent investments, cash flows from
securities and short-term borrowings as needed," said Brewer. "Of the $163
million in proceeds from the sale of low yielding securities, which had a
weighted average yield of approximately 2.76%, $75 million was used to pay down
Federal Home Loan Bank borrowings, which had an average cost of funds of 2.48%.
 In addition, $88 million was reinvested in securities with a weighted average
yield of approximately 4.90%.  Furthermore, we will benefit from increased cash
flows from these new securities."

FIRST QUARTER RESULTS

Strong loan growth and improving yields from the loan portfolio helped offset
higher cost of funds.  In spite of the significant increase in short term
interest rates over the past 12 months, our net interest margin in the first
quarter of 2005 expanded 14 basis points compared with the first quarter of
2004.

Net Interest Income

Net interest income for the first quarter of 2005 increased 29% to $7.9
million, compared with $6.1 million for the same period in 2004.  The increase
was primarily due to a 24% increase in average earning assets, partially offset
by a 63 basis point increase in weighted average rates on interest-bearing
liabilities.  The average balance of interest-earning assets in the first
quarter of 2005 increased $210.9 million compared with the same period in 2004
while the average yield increased 63 basis points to 5.06% from 4.43%.  The
average balance of interest-bearing liabilities increased $153.9 million in the
first quarter of 2005 compared with the first quarter of 2004.  The weighted
average rates on interest bearing liabilities increased to 2.56% in the first
quarter of 2005 from 1.93% in the first quarter of 2004.

The provision for loan losses in the first quarter of 2005 was down moderately
at $600,000 compared with $750,000 in the first quarter of 2004 and the fourth
quarter of 2004, reflecting sound asset quality.  Net interest income after
provision for loan losses increased 36% to $7.3 million for the first quarter
of 2005 compared with $5.4 million in the same period in 2004.

Non-interest Income

Non-interest income declined in the first quarter of 2005 compared with the
same period in 2004 primarily due to the non-recurring impairment charge and no
gains from sales of securities.  Non-interest income totaled a loss of $5.7
million in the first quarter of 2005 compared with income of $744,000 in the
first quarter of 2004, with the decrease primarily due to the $6.1 million
impairment charge related to the restructuring of our securities portfolio
during the first quarter of 2005 and the fact that there were no gains on the
sale of securities in the first quarter of 2005 compared with $359,000 in gains
on sales of securities during the same period in 2004.

Non-interest Expense

Non-interest expense in the first quarter of 2005 increased 16% to $4.9 million
compared with $4.2 million in the first quarter of 2004, primarily due to
increases in compensation, higher professional fees associated with being
publicly traded, and technology upgrades/infrastructure improvements made
during 2004.  Some of these higher expenses were associated with the new branch
opened in Katy in October 2004.

BALANCE SHEET REVIEW

Assets increased to $1.1 billion at March 31, 2005, up 10% from a year ago and
down 5% from December 31, 2004, reflecting the de-leveraged balance sheet.

In the first quarter of 2005, net loans increased 37% year-over-year and 5%
from the linked quarter to $621 million, with double-digit growth in all
categories except consumer and other from a year ago.  Commercial mortgages
were the highest growth category showing a 55% increase over the twelve months.
 According to a survey from infoUSA reported in the Houston Business Journal
March 7, 2005, Houston attracted more than 187,000 new businesses in the past
four years, which equates to a 3.8% growth rate.  "This solid growth in new
businesses, coupled with strong growth from established business in the region
is providing fertile ground for our commercial lending business," said Harvey
Zinn, President and Chief Executive Officer.  Commercial mortgage loans
accounted for 45% of the loan portfolio compared to 39% a year ago;
construction and development loans accounted for 21% from 23% a year ago and
residential loans remained steady at 21%.

In the past twelve months, deposits grew 3% to $867.4 million at March 31,
2005, with a 12% increase in low-cost NOW, savings and money market accounts
which offset a 4% decline in higher cost time deposits.  Average deposits in
the first quarter of 2005 increased 9% to $870.9 million from $801.0 million in
the first quarter of 2004 and up 12% from the linked quarter.  "The loyalty of
our customers is apparent in our deposit growth and demonstrates our ability to
compete in the Houston area market on service and convenience," Zinn said. 
"Our deposit rates remain in the middle of the market, and we believe we can
continue to hold a strong and growing position in our market with this
strategy.  Nevertheless, as interest rates rise, we anticipate our cost of
funds will also rise, although probably not as quickly as the yield curve
itself changes."

Shareholders' equity at March 31, 2005, more than doubled to $83.4 million from
$34.4 million at March 31, 2004, reflecting the $52 million in new equity
raised from the initial public offering in August 2004.  Book value per share
was $6.70 at March 31, 2005, compared to $4.92 at March 31, 2004.  SNB
Bancshares remains well capitalized with all capital ratios above minimum
requirements.

ASSET QUALITY

Nonperforming assets as of March 31, 2005 were $6.9 million, an increase
compared with $6.5 million at March 31, 2004, and up from $4.8 million at
December 31, 2004.  As a percentage of total loans and other real estate owned,
nonperforming assets were 1.11% as of March 31, 2005, down from 1.41% as of
March 31, 2004 and up from 0.80% as of December 31, 2004.  The primary cause
for the increase in nonperforming assets when comparing March 31, 2005 with
December 31, 2004 is $3.1 million in loans with one guarantor secured by
commercial real estate placed on non-accrual during January 2005.  This
increase was partially offset by the sale of one commercial real estate
property in the amount of $895,000.

At March 31, 2005, the allowance for loan losses as a percentage of total loans
was 1.39% compared with 1.34% at March 31, 2004.  Net recoveries totaled
$17,000 for the quarter ended March 31, 2005, compared with net charge-offs of
$219,000 for the same period in 2004.

KATY, TEXAS DE NOVO BRANCH

"Consistent with our strategy to build our franchise through adding de novo or
acquired branches in Fort Bend County and other suitable markets, we opened the
community branch in Katy, Texas, which is about 30 miles west of Houston," said
Harvey Zinn.  "In the six months since it opened, the Katy office has gathered
$6 million of the $1 billion in deposits in this market. This market offers
tremendous opportunities for us, because the competition is almost exclusively
from large national banks against whom we have competed very successfully in
the past.  We believe that further growth in the Katy community, along with
several other expanding areas, will leverage our marketing and staffing
investments and accelerate our acceptance in desirable markets, just as we have
accomplished in our hometown of Sugar Land."

THE COMPANY

SNB Bancshares, Inc. (the "Company") is a bank holding company headquartered
approximately 15 miles southwest of downtown Houston in Sugar Land, Texas, the
largest city in fast growing Fort Bend County.  The Company, with total assets
of $1.1 billion, total loans of $630.0 million, total deposits of $867.4
million and total shareholders' equity of $83.4 million, as of March 31, 2005,
has four full-service branches in Harris and Fort Bend Counties.

Notice under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, this press release may
constitute forward-looking statements for the purposes of the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as amended, and as
such, may involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from the results, performance or achievements
expressed or implied by such forward-looking statements.  The Company intends
such forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation Act
of 1995, and is including this statement for purposes of said safe harbor
provisions.

The Company's actual results may differ materially from the results anticipated
in these forward-looking statements due to a variety of factors, including,
without limitation, the following:  (a) the effects of future economic and
business conditions on the Company and our customers; (b) changes in
governmental legislation and regulations; (c) the risks of changes in interest
rates; (d) competition from other banks and financial institutions for customer
deposits and loans; (e) the failure of assumptions underlying the establishment
of reserves for loan losses; (f) changes in the levels of loan prepayments and
the resulting effects on the value of the Company's loan portfolio; (g) the
failure of assumptions underlying the establishment of and provisions made to
the allowance for loan losses; (h) the effect of changes in accounting policies
and practices which may be adopted by regulatory agencies and/or the Financial
Accounting Standards Board; (i) technological changes; (j) acquisition and
integration of acquired businesses; (k) the loss of senior management or
operating personnel and the potential inability to hire qualified personnel at
reasonable compensation levels; (l) acts of terrorism; and (m) other risks and
uncertainties listed from time to time in the Company's reports filed with the
Securities and Exchange Commission.

   Contacts:

   R. Darrell Brewer, CFO
   [phone]
   

   Whitney Rowe, Investor Relations & Corp. Secretary
   [phone]
   



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                (Dollars in thousands, except outstanding
                        shares and per share data)
                               (Unaudited)

                                             For the Three Months
                                                Ended March 31,
                                      2005           2004       % chg

  EARNINGS SUMMARY:
  Net earnings (loss)                 $(2,186) (A)    $1,259    (273.6)
  Basic earnings per share             $(0.18) (B)     $0.18    (197.7)
  Diluted earnings per share            (0.17) (C)      0.17    (200.1)

  Weighted average shares outstanding:
    Common stock                    9,755,689      3,767,320     159.0
    Class B stock                   2,678,696      3,226,669     (17.0)
    Total                          12,434,385      6,993,989      77.8

  Shares outstanding at end of period:
    Common stock                    9,758,412      3,777,208     158.3
    Class B stock                   2,676,541      3,216,781     (16.8)
    Total                          12,434,953      6,993,989      77.8

  EARNINGS STATEMENT DATA:
  Interest income:
    Loans                              $9,797         $6,501      50.7 %
    Securities:
      Taxable                           3,926          3,321      18.2
      Nontaxable                          133             22     504.5
    Federal funds sold and
     earning deposits                      14             99     (85.9)
      Total interest income            13,870          9,943      39.5

  Interest expense:
    Demand deposits                     1,786            951      87.8
    Certificates and other time
     deposits                           2,668          2,193      21.7
    Junior subordinated debentures        624            521      19.8
    Other borrowings                      883            145     509.0
      Total interest expense            5,961          3,810      56.5

  Net interest income                   7,909          6,133      29.0
  Provision for loan losses               600            750     (20.0)
  Net interest income after provision   7,309          5,383      35.8
  Noninterest income:
    Service charges on deposit
     accounts                             223            237      (5.9)
    Gain on sale of securities-net        ---            359    (100.0)
    Impairment write-down
     of securities                     (6,144)           ---       ---
    Other                                 187            148      26.4
      Total noninterest income         (5,734)           744    (870.7)

  Noninterest Expense:
    Salaries and employee benefits      2,933          2,684       9.3
    Net occupancy expense                 389            439     (11.4)
    Data processing                       413            286      44.4
    Legal and professional fees           389            137     183.9
    FDIC deposit insurance premium         29             25      16.0
    Other                                 742            648      14.5
      Total noninterest expense         4,895          4,219      16.0

  Earnings (loss) before
   income taxes                        (3,320)         1,908    (274.0)
  Provision (benefit) for
   income taxes                        (1,134)           649    (274.7)
  Net earnings (loss)                 $(2,186) (A)    $1,259    (273.6)%

   (A)  Net loss of $2,186 for the three months ended March 31, 2005
        includes the impairment write-down charge on securities of $4,055,
        net of tax.  Net earnings excluding this charge would have been
        $1,869.

   (B)  Basic loss per share of $0.18 for the three months ended March 31,
        2005 includes the impairment write-down charge on securities of
        $0.33 per share, net of tax.  Basic earnings per share excluding
        this charge would have been $0.15.

   (C)  Diluted loss per share of $0.17 for the three months ended March 31,
        2005 includes the impairment write-down charge of $0.32 per diluted
        share, net of tax.  Diluted earnings per share excluding this charge
        would have been $0.15.



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                (Dollars in thousands, except outstanding
                        shares and per share data)
                               (Unaudited)

                                                          Q1
                                                         2005
  EARNINGS STATEMENT DATA:
  Interest income:
    Loans                                                $9,797
    Securities:
      Taxable                                             3,926
      Nontaxable                                            133
    Federal Funds Sold                                       14
      Total interest income                              13,870

  Interest expense:
    Demand deposits                                       1,786
    Certificates and other time deposits                  2,668
    Junior subordinated debentures                          624
    Other borrowings                                        883
      Total interest expense                              5,961

  Net interest income                                     7,909
  Provision for loan losses                                 600

  Net interest income after provision                     7,309

  Noninterest income:
    Service charges on deposit accounts                     223
    Gain on sale of securities-net                          ---
    Impairment write-down of securities                  (6,144)
    Other                                                   187
      Total noninterest income                           (5,734)

  Noninterest Expense:
    Salaries and employee benefits                        2,933
    Net occupancy expense                                   389
    Data processing                                         413
    Legal and professional fees                             389
    FDIC deposit insurance premium                           29
    Other                                                   742
      Total noninterest expense                           4,895

  Earnings (loss) before income taxes                    (3,320)
  Provision (benefit) for income taxes                   (1,134)
  Net earnings (loss)                                   $(2,186) (A)

  Basic earnings (loss) per share                        $(0.18) (B)
  Diluted earnings (loss) per share                       (0.17) (C)

  Weighted average shares outstanding:
    Common stock                                      9,755,689
    Class B stock                                     2,678,696
    Total                                            12,434,385


                                      Q4         Q3         Q2         Q1
                                     2004       2004       2004       2004
  EARNINGS STATEMENT DATA:
  Interest income:
    Loans                           $9,153     $8,031     $7,085     $6,501
    Securities:
      Taxable                        3,992      4,184      4,030      3,321
      Nontaxable                       111         50         19         22
    Federal Funds Sold                  19         14         22         99
      Total interest income         13,275     12,279     11,156      9,943

  Interest expense:
    Demand deposits                  1,323      1,215      1,025        951
    Certificates and other
     time deposits                   2,333      2,179      2,336      2,193
    Junior subordinated
     debentures                        592        566        516        521
    Other borrowings                 1,047        753        311        145
      Total interest expense         5,295      4,713      4,188      3,810

  Net interest income                7,980      7,566      6,968      6,133
  Provision for loan losses            675        625        900        750
  Net interest income after
   provision                         7,305      6,941      6,068      5,383
  Noninterest income:
    Service charges on deposit
     accounts                          163        193        193        237
    Gain on sale of securities-
     net                                 0        197        144        359
    Impairment write-down of
     securities                          0          0          0          0
    Other                              182        153        151        148
      Total noninterest income         345        543        488        744

  Noninterest Expense:
    Salaries and employee
     benefits                        2,980      2,944      2,757      2,684
    Net occupancy expense              470        483        428        439
    Data processing                    377        284        271        286
    Legal and professional
     fees                              205        158        153        137
    FDIC deposit insurance
     premium                            31         31         28         25
    Other                            1,398        831        773        648
      Total noninterest expense      5,461      4,731      4,410      4,219

  Earnings (loss) before income
   taxes                             2,189      2,753      2,146      1,908
  Provision (benefit) for
   income taxes                        736        935        729        649
  Net earnings (loss)               $1,453     $1,818     $1,417     $1,259

  Basic earnings (loss) per
   share                             $0.12      $0.20      $0.20      $0.18
  Diluted earnings (loss) per
   share                              0.11       0.19       0.20       0.17

  Weighted average shares
   outstanding:
    Common stock                 9,752,284  6,456,156  3,974,575  3,767,320
    Class B stock                2,679,498  2,680,521  3,019,414  3,226,669
    Total                       12,431,782  9,136,677  6,993,989  6,993,989

   (A)  Net loss of $2,186 for the three months ended March 31, 2005
        includes the impairment write-down charge on securities of $4,055,
        net of tax.  Net earnings excluding this charge would have been
        $1,869.

   (B)  Basic loss per share of $0.18 for the three months ended March 31,
        2005 includes the impairment write-down charge on securities of
        $0.33 per share, net of tax.  Basic earnings per share excluding
        this charge would have been $0.15.

   (C)  Diluted loss per share of $0.17 for the three months ended March 31,
        2005 includes the impairment write-down charge of $0.32 per diluted
        share, net of tax.  Diluted earnings per share excluding this charge
        would have been $0.15.



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                          (Dollars in thousands)
                               (Unaudited)

                                                 Q1         Q1
                                                2005       2004    % chg

     BALANCE SHEET AVERAGES:
       Loans                                   $613,375  $436,066   40.7 %
       Allowance for loan losses                 (8,396)   (5,949)  41.1
         Loans, net                             604,979   430,117   40.7
       Investment securities                    486,885   412,277   18.1
       Federal funds sold                           838    25,269  (96.7)
       Interest-earning deposits in
        other financial institutions                986    17,607  (94.4)
       Cash and due from banks                   17,333    18,366   (5.6)
       Premises and equipment                    16,375    12,672   29.2
       Accrued interest receivable and
        other assets                             15,024     9,713   54.7
         Total assets                        $1,142,420  $926,021   23.4 %

       Demand deposits                         $105,280   $98,717    6.6 %
       NOW, savings, and money market
        accounts                                375,990   336,670   11.7
       Time deposits                            389,669   365,592    6.6
         Total deposits                         870,939   800,979    8.7
       Other borrowed funds                     142,167    51,683  175.1
       Junior subordinated debentures            38,250    38,250    0.0
       Accrued interest payable and
        other liabilities                         4,209     2,816   49.5
         Total liabilities                    1,055,565   893,728   18.1
       Shareholders' equity                      86,855    32,293  169.0
         Total liabilities and
          shareholders' equity               $1,142,420  $926,021   23.4 %


                                                    March 31,
                                                 2005       2004
     PERIOD END BALANCES:
       Loans                                   $630,048  $460,872    36.7 %
       Allowance for loan losses                 (8,738)   (6,181)   41.4
         Loans, net                             621,310   454,691    36.6
       Investment securities                    371,684   448,373   (17.1)
       Federal funds sold                         1,210    28,200   (95.7)
       Interest-earning deposits in
        other financial institutions             25,773       339  7502.7
       Cash and due from banks                   15,950    21,151   (24.6)
       Premises and equipment                    17,769    12,628    40.7
       Accrued interest receivable and
        other assets                             14,282     9,765    46.3
         Total assets                        $1,067,978  $975,147     9.5 %

       Demand deposits                         $111,408  $112,404    (0.9)%
       NOW, savings, and money market
        accounts                                368,949   328,232    12.4
       Time deposits                            387,012   403,267    (4.0)
         Total deposits                         867,369   843,903     2.8
       Other borrowed funds                      75,500    55,500    36.0
       Junior subordinated debentures            38,250    38,250     0.0
       Accrued interest payable and
        other liabilities                         3,489     3,118    11.9
         Total liabilities                      984,608   940,771     4.7
       Shareholders' equity                      83,370    34,376   142.5
         Total liabilities and
          shareholders' equity               $1,067,978  $975,147     9.5 %



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                          (Dollars in thousands
                               (Unaudited)

                                                         Q1
                                                        2005
  QUARTERLY AVERAGE
  BALANCE SHEET HISTORY:
    Loans                                              $613,375
    Allowance for loan losses                            (8,396)
      Loans, net                                        604,979
    Investment securities                               486,885
    Federal funds sold                                      838
    Interest-earning deposits in other
     financial institutions                                 986
    Cash and due from banks                              17,333
    Premises and equipment                               16,375
    Accrued interest receivable and other assets         15,024
      Total assets                                   $1,142,420

    Demand deposits                                    $105,280
    NOW, savings, and money market accounts             375,990
    Time deposits                                       389,669
      Total deposits                                    870,939
    Other borrowed funds                                142,167
    Junior subordinated debentures                       38,250
    Accrued interest payable and
     other liabilities                                    4,209
      Total liabilities                               1,055,565
    Shareholders' equity                                 86,855
      Total liabilities and
       shareholders' equity                          $1,142,420

  PERIOD END BALANCES HISTORY:
    Loans                                              $630,048
    Allowance for loan losses                            (8,738)
      Loans, net                                        621,310
    Investment securities                               371,684
    Federal funds sold                                    1,210
    Interest-earning deposits in other
     financial institutions                              25,773
    Cash and due from banks                              15,950
    Premises and equipment                               17,769
    Accrued interest receivable and
     other assets                                        14,282
      Total assets                                   $1,067,978

    Demand deposits                                    $111,408
    NOW, savings, and money market accounts             368,949
    Time deposits                                       387,012
      Total deposits                                    867,369
    Other borrowed funds                                 75,500
    Junior subordinated debentures                       38,250
    Accrued interest payable and other
     liabilities                                          3,489
      Total liabilities                                 984,608
    Shareholders' equity                                 83,370
      Total liabilities and
       shareholders' equity                          $1,067,978


                                   Q4          Q3          Q2         Q1
                                  2004        2004        2004       2004
  QUARTERLY AVERAGE
  BALANCE SHEET HISTORY:
    Loans                       $579,459    $533,607    $486,394  $436,066
    Allowance for loan losses     (7,748)     (7,258)     (6,501)   (5,949)
    Loans, net                   571,711     526,349     479,893   430,117
    Investment securities        496,204     517,041     504,454   412,277
    Federal funds sold             1,496         816       8,371    25,269
    Interest-earning deposits
     in other financial
     institutions                  1,849       2,985         956    17,607
    Cash and due from banks       16,316      13,116      14,348    18,366
    Premises and equipment        15,453      13,061      12,661    12,672
    Accrued interest receivable
     and other assets             14,328      15,542      13,479     9,713
      Total assets            $1,117,357  $1,088,910  $1,034,162  $926,021

    Demand deposits             $103,502    $111,968    $104,646   $98,717
    NOW, savings, and money
     market accounts             325,857     334,347     342,693   336,670
    Time deposits                351,178     351,116     404,545   365,592
      Total deposits             780,537     797,431     851,884   800,979
    Other borrowed funds         207,593     199,093     110,287    51,683
    Junior subordinated
     debentures                   38,250      38,250      38,250    38,250
    Accrued interest payable
     and other liabilities         3,977       3,536       3,423     2,816
      Total liabilities        1,030,357   1,038,310   1,003,844   893,728
    Shareholders' equity          87,000      50,600      30,318    32,293
      Total liabilities and
       shareholders' equity   $1,117,357  $1,088,910  $1,034,162  $926,021


  PERIOD END BALANCES HISTORY:
    Loans                       $598,292    $553,185    $512,416  $460,872
    Allowance for loan losses     (8,121)     (7,473)     (6,929)   (6,181)
      Loans, net                 590,171     545,712     505,487   454,691
    Investment securities        488,523     503,584     533,477   448,373
    Federal funds sold               ---       1,735       6,100    28,200
    Interest-earning deposits
     in other financial
     institutions                    441       2,179          91       339
    Cash and due from banks       20,794      13,692      17,292    21,151
    Premises and equipment        16,137      13,837      12,825    12,628
    Accrued interest
     receivable and other
     assets                       14,022      13,797      16,624     9,765
      Total assets            $1,130,088  $1,094,536  $1,091,896  $975,147

    Demand deposits             $110,858    $103,007    $114,401  $112,404
    NOW, savings, and money
     market accounts             398,051     356,036     362,283   328,232
    Time deposits                359,477     356,154     379,572   403,267
      Total deposits             868,386     815,197     856,256   843,903
    Other borrowed funds         132,900     151,500     168,500    55,500
    Junior subordinated
     debentures                   38,250      38,250      38,250    38,250
    Accrued interest payable
     and other liabilities         4,151       3,536       3,101     3,118
      Total liabilities        1,043,687   1,008,483   1,066,107   940,771
    Shareholders' equity          86,401      86,053      25,789    34,376
      Total liabilities and
       shareholders' equity   $1,130,088  $1,094,536  $1,091,896  $975,147



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                          (Dollars in thousands)
                               (Unaudited)

   YIELD ANALYSIS:
                                        For the Three Months Ended March 31,
                                                        2005
                                           Average     Interest   Average
                                         Outstanding    Earned/    Yield/
                                           Balance       Paid       Rate
                                                (Dollars in thousands)
  Assets:
  Interest-earning assets:
    Loans                                  $613,375     $9,797     6.39 %
    Investment Securities                   486,885      4,059     3.39
    Federal funds sold                          838          5     2.40
    Interest-earning deposits in other
     financial institutions                     986          9     3.72
      Total interest-earning assets       1,102,084     13,870     5.06 %
    Less allowance for loan losses           (8,396)
      Total interest-earning assets,
       net of allowance                   1,093,688
  Non-earning assets:
    Cash and due from banks                  17,333
    Premises and equipment                   16,375
    Accrued interest receivable and
     other assets                            15,024
      Total noninterest-earning assets       48,732
        Total assets                     $1,142,420

  Liabilities and Shareholders' Equity:
  Interest-bearing liabilities:
    NOW, savings, and money market
     accounts                              $375,990     $1,786     1.93 %
    Time deposits                           389,669      2,668     2.78
    Other borrowed funds                    142,167        883     2.48
    Junior subordinated debentures           38,250        624     6.52
      Total interest-bearing liabilities    946,076      5,961     2.56 %
  Noninterest-bearing liabilities:
    Demand deposits                         105,280
    Accrued interest payable and other
     liabilities                              4,209
      Total noninterest-bearing
       liabilities                          109,489
        Total liabilities                 1,055,565
  Shareholders' equity                       86,855
        Total liabilities and
         shareholders' equity            $1,142,420
  Net interest income                                   $7,909
  Net interest spread                                              2.50
  Net interest margin (tax equivalent)                             2.91 %


                                        For the Three Months Ended March 31,
                                                        2004
                                           Average     Interest   Average
                                         Outstanding    Earned/    Yield/
                                           Balance       Paid       Rate
                                                (Dollars in thousands)

  Assets:
  Interest-earning assets:
    Loans                                  $436,066     $6,501     5.90 %
    Investment Securities                   412,277      3,343     3.24
    Federal funds sold                       25,269         59     0.92
    Interest-earning deposits in other
     financial institutions                  17,607         40     0.91
      Total interest-earning assets         891,219      9,943     4.43 %
    Less allowance for loan losses           (5,949)
      Total interest-earning assets,
       net of allowance                     885,270
  Non-earning assets:
    Cash and due from banks                  18,366
    Premises and equipment                   12,672
    Accrued interest receivable and
     other assets                             9,713
      Total noninterest-earning assets       40,751
        Total assets                       $926,021

  Liabilities and Shareholders' Equity:
  Interest-bearing liabilities:
    NOW, savings, and money market
     accounts                              $336,670       $951     1.14 %
    Time deposits                           365,592      2,193     2.41
    Other borrowed funds                     51,683        145     1.11
    Junior subordinated debentures           38,250        521     5.39
      Total interest-bearing liabilities    792,195      3,810     1.93 %
  Noninterest-bearing liabilities:
    Demand deposits                          98,717
    Accrued interest payable and other
     liabilities                              2,816
      Total noninterest-bearing
       liabilities                          101,533
        Total liabilities                   893,728
  Shareholders' equity                       32,293
        Total liabilities and
         shareholders' equity              $926,021
  Net interest income                                   $6,133
  Net interest spread                                              2.50
  Net interest margin (tax equivalent)                             2.77 %



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                          (Dollars in thousands)
                               (Unaudited)

   RATE VOLUME ANALYSIS:
                                   For the Three Months Ended March 31, 2005
                                     Compared with the Same Period in 2004

                                              Q1          Q1       Increase
                                             2005        2004     (Decrease)
                                                 (Dollars in thousands)
  Interest-earning assets:
    Loans                                   $9,797      $6,501      $3,296
    Investment securities                    4,059       3,343         716
    Federal funds sold                           5          59         (54)
    Interest-bearing deposits in other
     financial institutions                      9          40         (31)
  Total interest income                     13,870       9,943       3,927

  Interest-bearing liabilities:
    NOW, savings and money market
     accounts                                1,786         951         835
    Time deposits                            2,668       2,193         475
    Other borrowed funds                       883         145         738
    Junior subordinated debentures             624         521         103
  Total interest expense                     5,961       3,810       2,151

  Net interest income                       $7,909      $6,133      $1,776


                                   For the Three Months Ended March 31, 2005
                                     Compared with the Same Period in 2004

                                                 Increase (Decrease)
                                             Due to Change in
                                            Volume       Rate       Total
                                                 (Dollars in thousands)
  Interest-earning assets:
    Loans                                   $2,578       $718      $3,296
    Investment securities                      597        119         716
    Federal funds sold                         (55)         1         (54)
    Interest-bearing deposits in other
     financial institutions                    (37)         6         (31)
  Total interest income                      3,083        844       3,927

  Interest-bearing liabilities:
    NOW, savings and money market
     accounts                                  110        725         835
    Time deposits                              143        332         475
    Other borrowed funds                       248        490         738
    Junior subordinated debentures             ---        103         103
  Total interest expense                       501      1,650       2,151

  Net interest income                       $2,582      $(806)     $1,776



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                          (Dollars in thousands)
                               (Unaudited)

   LOAN PORTFOLIO:
                                As of March 31,        As of March 31,
                                     2005                   2004
                               Amount    Percent      Amount     Percent

  Business and industrial      $71,463     11.3 %     $64,811      14.1 %
  Real estate:
    Construction and land
     development               130,543     20.7       105,015      22.8
    Residential mortgages      134,495     21.4        98,142      21.3
    Commercial mortgages       282,548     44.9       182,047      39.4
  Consumer and other            12,648      2.0        11,978       2.6
    Gross loans                631,697    100.3       461,993     100.2
  Less unearned discounts
   and fees                     (1,649)    (0.3)       (1,121)     (0.2)
      Total loans             $630,048    100.0 %    $460,872     100.0 %


     NONPERFORMING ASSETS:
                                                       As of March 31,
                                                        2005     2004
     Nonaccrual loans                                $4,677     $2,293
     Accruing loans past due 90 days or more            ---        ---
     Restructured loans                               1,891      1,991
     Other real estate                                  425      2,255
       Total nonperforming assets                    $6,993     $6,539
     Nonperforming assets to total loans and
      other real estate                                1.11%      1.41%



   ALLOWANCE FOR LOAN LOSSES:
                                                     As of and for the
                                                    Three Months Ended
                                                    March 31,  March 31,
                                                      2005       2004

  Allowance for loan losses at
   beginning of period                               $8,121     $5,650
  Provision for loan losses                             600        750
  Charge-Offs:
    Business and industrial                             ---       (121)
    Real estate                                         ---        (94)
    Consumer                                            (23)       (28)
      Total charge-offs                                 (23)      (243)
  Recoveries:
    Business and industrial                              26         20
    Real estate                                          12        ---
    Consumer                                              2          4
      Total recoveries                                   40         24
  Net recoveries (charge-offs)                           17       (219)
  Allowance for loan losses at end
   of period                                         $8,738     $6,181

  Allowance for loan losses to end
   of period loans                                     1.39 %     1.34 %
  Net (recoveries) charge-offs to
   average loans                                      (0.01)      0.20
  Allowance for loans losses to end
   of period nonperforming loans                     133.04     144.28



                           SNB BANCSHARES, INC.
                      AND CONSOLIDATED SUBSIDIARIES
                         SELECTED FINANCIAL DATA
                               (Unaudited)

   SELECTED RATIOS AND OTHER DATA:
                                                      Q1           Q1
                                                     2005         2004

  Return on average assets                           (0.78)%       0.55 %
  Return on average equity                          (10.20)       15.68
  Leverage ratio                                     10.29         4.85
  Tier 1 Capital to RWA ratio                        17.00         8.24
  Total Capital (Tier 1 + Tier 2) to RWA ratio       19.32        14.10
  Average equity to average total assets              7.60         3.49
  Tax equivalent yield on earning assets              5.06         4.43
  Cost of funds with demand account                   2.30         1.72
  Net interest margin, tax equivalent                 2.91         2.77
  Non-interest expense to average total assets        1.74         1.83
  Efficiency ratio                                   58.83        64.73

  End of period book value per share                 $6.70        $4.92
  Full time equivalent employees                       155          146



   Common Stock Performance (A):
                                          First quarter   For the period of
                                              2005       08/18/04 - 12/31/04

  Market value of common stock -
   End of period                             $11.31            $14.75
  Market value of common stock - High         15.00             15.49
  Market value of common stock - Low          10.25             10.00


                                         As of March 31,
                                              2005

  Book value of common stock                 $6.70
  Market/book value of common stock         168.69 %
  Price/12 month trailing earnings ratio     45.24 X

   (A)  The common stock began trading on the Nasdaq Stock Market National
        Market System on August 18, 2004


DATASOURCE: SNB Bancshares, Inc.



CONTACT:  R. Darrell Brewer, CFO, [phone], or  ,

or Whitney Rowe, Investor Relations & Corp. Secretary, [phone], or

 , both of SNB Bancshares, Inc.



Web site:  http://www.snbtx.com/ 

Copyright