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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED JUNE 30, 2003


Commission file number 000-33021

GREER BANCSHARES INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)

               South Carolina                                   57-1126200               
(State of Incorporation)     (I.R.S. Employer Identification Number)

1111 West Poinsett Street
P.O. Box 1029
Greer, SC 29650 		   

(864) 877-2000
(State of Incorporation)     (Issuer's Telephone Number)





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 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 reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   X   No    

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  X  

The number of outstanding shares of the issuer's $5.00 par value common stock as of August 12, 2003 was 1,610,817.

GREER BANCSHARES INCORPORATED

Index

PART 1

FINANCIAL INFORMATION

Item 1
Consolidated Financial Statements (Unaudited)

Consolidated Balance Sheets as of June 30, 2003 and December 31, 2002              3  
Consolidated Statements of Income for the Three and Six months Ended June 30, 2003 and 2002              4 
Consolidated Statements of Comprehensive Income for the Three and Six months ended June 30, 2003 and 2002               5 
Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended June 30, 2003 and Twelve Months Ended December 31, 2002              6 
Consolidated Statements of Cash Flows for the Six months ended June 30, 2003 and 2002              7 
Consolidated Financial Statements             8 
        
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations		              9 
        
Item 3.
Quantitative and Qualitative Disclolsures About Market Risk		           14 
        
Item 4.
Controls and Procedures		           15 
        
PART II 
        
OTHER INFORMATION 
        
Item 1.    Legal Proceedings           15 
        
Item 2.    Changes in Securities and Use of Proceeds           15 
        
Item 3.    Defaults Upon Senior Securities           15 
        
Item 4.    Submission of Matters to a Vote of Security Holders           15 
        
Item 5.    Other Information           15 
        
Item 6.    Exhibits and Report on 8-K           15 
        
Item 6.    Signatures           17 
        
Exhibits     18-23 


2

GREER BANCSHARES INCORPORATED
Consolidated Balance Sheets
(Unaudited)

June 30 December 31
(dollars in thousands except per share data) 2003
 2002
Assets:      
Cash and due from banks  $    9,453   $    7,368  
Investment Securities: 
     Held to maturity  20,784   14,607  
     Available for sale  50,183   52,163  
Net Loans  106,463   106,581  
Premises and Equipment, Net  4,070   4,247  
Federal Funds Sold  1,421   3,351  
Other Assets  4,345   4,214  
Total Assets  $196,719   $192,531  
Liabilities: 
Deposits 
     Non-interest bearing  $  18,169   $  18,711  
     Interest bearing  115,713   118,852  
Total Deposits  133,882   137,563  
Note payable to Federal Home Loan Bank  40,697   34,837  
Other liabilities  2,116   1,518  
Total Liabilities  176,695   173,918  
Stockholders' Equity 
Common stock - par value $5 per share, 10,000,000 shares 
Authorized, 1,610,717 and 1,606,018 shares issued and 
outstanding at June 30, 2003 and December 31, 2002, 
respectively  8,054   8,030  
Additional paid in capital  6,412   6,350  
Retained Earnings  3,939   3,440  
Accumulated other comprehensive income  1,619   793  
Total Stockholders' Equity  20,024   18,613  
Total Liabilities and Stockholders' Equity  $196,719   $192,531  

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

3

GREER BANCSHARES INCORPORATED
Consolidated Statements of Income
(Unaudited)

For Three Months For Six Months
06/30/03
 06/30/02
 06/30/03
 06/30/02
Interest Income:                    
Loans (including fees)   $ 1,789   $ 1,959   $ 3,607   $ 4,053  
Investment Securities  
     Taxable    323    407    693    835  
     Exempt from federal income tax    341    238    665    433  
Federal funds sold    12    17    21    39  
Other    26    34    56    56  
                Total interest income    2,491    2,655    5,042    5,416  
Interest Expense:  
Interest on deposit accounts    493    613    1,020    1,298  
Interest on other borrowings    446    399    875    792  
               Total interest expense    939    1,012    1,895    2,090  
               Net interest income    1,552    1,643    3,147    3,326  
Provision loan losses    0    113    10    158  
    Net interest income after provision for  
    loan losses    1,552    1,530    3,137    3,168  
Non-interest income:  
Service charges for deposit accounts    329    276    615    534  
Other service charges    78    45    140    83  
Gain (loss) on sale of investment securities    41    (10 )  41    20  
Other operating income    126    180    238    372  
               Total non-interest income    574    491    1,034    1,009  
Non-interest expenses  
Salaries and employee benefits    763    702    1,520    1,418  
Occupancy and equipment    210    223    422    442  
Postage and supplies    79    58    136    115  
Other operating expenses    414    399    773    763  
               Total non-interest expenses    1,466    1,382    2,851    2,738  
               Income before income taxes    660    639    1,320    1,439  
Provision for income taxes:    119    69    258    298  
               Net Income   $ 541   $ 570   $ 1,062   $ 1,141  
Basic net income per share of common stock   $ 0.34   $ 0.36   $ 0.66   $ 0.73  
Diluted net income per share of common stock   $ 0.33   $ 0.36   $ 0.65   $ 0.72  

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

4

GREER BANCSHARES INCORPORATED
Consolidated Statements of Comprehensive Income
(Unaudited)

For Three Months For Six Months
06/30/03
 06/30/02
 06/30/03
 06/30/02
Net Income     $ 541   $ 570   $ 1,062   $ 1,141  
Other comprehensive income (loss), net of tax  
     Unrealized Holding Gains (Losses) on  
Investment Securities    491    628    851    513  
     Less Reclassification Adjustments for  
(Gains)/Losses Included in Net Income    (25 )  6    (25 )  (12 )
                  Subtotal    466    634    826    501  
Comprehensive Income   $ 1,007   $ 1,204   $ 1,888   $ 1,642  

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

5

GREER BANCSHARES INCORPORATED
Consolidated Statements of Changes in Stockholders’ Equity
For the Six Months Ended June 30, 2003 and Twelve Months Ended December 31, 2002
(Unaudited)

Accumulated
Additional Other Total
(dollars in thousands except share data) Common Paid-In Retained Comprehensive Stockholders
Stock
 Capital
 Earnings
 Income
 Equity
Balances at 12/31/2001     $ 7,788   $ 5,345   $ 2,757   $ 35   $ 15,925  
  
Net Income            2,523        2,523  
Other Comprehensive Income, Net of Tax  
     Unrealized Gains/ (Losses) on investment portfolio                751    751  
      Less reclassification adjustments for  
(gains)/losses  
      included in net income                7    7  
Comprehensive Income                    3,281  
Cash in lieu of fractional shares (stock dividend)            (9 )  (9 )  (9 )
Stock exercised pursuant to stock option plan    48    144            192  
Tax benefit of stock option exercised        7            7  
Cash dividends ($.50 per share)            (783 )      (783 )
Issuance of Stock Dividend (2.5%)    194    854    (1,048 )      -  
Balances at 12/31/2002   $ 8,030   $ 6,350   $ 3,440   $ 793   $ 18,613  
  
Net Income            1,062        1,062  
Other Comprehensive Income, Net of Tax  
     Unrealized Gains/ (Losses) on investment portfolio                851    851  
     Less reclassification adjustments for (gains)/losses  
     included in net income                (25 )  (25 )
Comprehensive Income                    1,888  
Stock exercised pursuant to stock option plan    24    62            86  
Cash dividends ($.50 per share)            (563 )