----

----

|   | Florida                                                                  |   | 84-1620092                                          |   |
|--------|--------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|   | (State      or Other Jurisdiction of      Incorporation or Organization) |   | (I.R.S. Employer      Identification      No.) |   |

----

| Large      accelerated filer   o | Accelerated      filer   o         |
|-------------------------------------------------|---------------------------------------------------|
| Non-accelerated      filer   o   | Smaller      reporting company   x |

| Common stock, par value $.01 per      share |   | 3,222,608 shares                   |
|---------------------------------------------|--------|------------------------------------|
| (class)                                     |   | Outstanding      at April 30, 2008 |

----

----

----

INDE

| PART      I. FINANCIAL INFORMATION                                                                                                 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   |
| Item 1. Financial Statements                                                                                                       | Page   |
|                                                                                                                                    |   |
| Condensed Consolidated Balance Sheets - At March 31, 2008      (unaudited) and at December 31, 2007                                     | 2      |
|                                                                                                                                    |   |
| Condensed Consolidated Statements of Operations - Three Months      ended March 31, 2008 and 2007 (unaudited)                           | 3      |
|                                                                                                                                    |   |
| Condensed Consolidated Statements of Changes in Stockholders'      Equity - Three Months ended March 31, 2008 and 2007      (unaudited) | 4      |
|                                                                                                                                    |   |
| Condensed Consolidated Statements of Cash Flows – Three Months      ended March 31, 2008 and 2007 (unaudited)                     | 5      |
|                                                                                                                                    |   |
| Notes to Condensed Consolidated Financial Statements      (unaudited)                                                                   | 6-12   |
|                                                                                                                                    |   |
| Review by Independent Registered Public Accounting      Firm                                                                            | 13     |
|                                                                                                                                    |   |
| Report of Independent Registered Public Accounting      Firm                                                                            | 14     |
|                                                                                                                                    |   |
| Item 2.  Management's Discussion and Analysis of      Financial Condition and Results of Operations                           | 15-18  |
|                                                                                                                                    |   |
| Item 4T.  Controls and Procedures                                                                                                  | 19     |
|                                                                                                                                    |   |
| PART      II. OTHER INFORMATION                                                                                                    |   |
|                                                                                                                                    |   |
| Item 1.  Legal Proceedings                                                                                                    | 20     |
|                                                                                                                                    |   |
| Item 5.  Other Information                                                                                                    | 20     |
|                                                                                                                                    |   |
| Item 6.  Exhibits                                                                                                             | 21     |
|                                                                                                                                    |   |
| SIGNATURES                                                                                                                              | 22     |

----

Index

MARC

|                                                                                                                          |   | March 31,   |    |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------|--------|
| Assets                                                                                                                        |   | 2008        |    |   | 2007         |   |
|                                                                                                                          |   | (Unaudited) |    |   |         |   |
|                                                                                                                          |   |        |    |   |         |   |
| Cash      and due from banks                                                                                                  |   | $           | 2,013   |   |         |   | 2,479 |   |
| Federal      funds sold                                                                                                       |   |        | 29,814  |   |         |   | 8,695 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      cash and cash equivalents                                                                                          |   |        | 31,827  |   |         |   | 11,174 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Security      available for sale                                                                                              |   |        | 1,015   |   |         |   | 1,009 |   |
| Securities      held to maturity (fair value of $5,440 and $5,606)                                                            |   |        | 5,379   |   |         |   | 5,561 |   |
| Loans,      net of allowance for loan losses of $3,759 in 2008 and $3,794 in      2007                                        |   |        | 112,959 |   |         |   | 119,876 |   |
| Other      real estate owned                                                                                                  |   |        | 2,874   |   |         |   | 2,857 |   |
| Premises      and equipment, net                                                                                              |   |        | 3,303   |   |         |   | 3,360 |   |
| Federal      Reserve Bank stock, at cost                                                                                      |   |        | 507     |   |         |   | 468 |   |
| Federal      Home Loan Bank stock, at cost                                                                                    |   |        | 262     |   |         |   | 293 |   |
| Accrued      interest receivable                                                                                              |   |        | 537     |   |         |   | 602 |   |
| Deferred      income taxes                                                                                                    |   |        | 1,613   |   |         |   | 2,020 |   |
| Other      assets                                                                                                             |   |        | 2,297   |   |         |   | 2,311 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      assets                                                                                                             |   | $           | 162,573 |   |         |   | 149,531 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Liabilities      and Stockholders' Equity                                                                                     |   |        |    |   |         |   |   |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Liabilities:                                                                                                                  |   |        |    |   |         |   |   |   |
| Noninterest-bearing      demand deposits                                                                                      |   |        | 4,169   |   |         |   | 4,068 |   |
| Savings,      NOW and money-market deposits                                                                                   |   |        | 42,148  |   |         |   | 38,342 |   |
| Time      deposits                                                                                                            |   |        | 90,503  |   |         |   | 81,303 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      deposits                                                                                                           |   |        | 136,820 |   |         |   | 123,713 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Repurchase      agreements                                                                                                    |   |        | 388     |   |         |   | 1,232 |   |
| Official      checks                                                                                                          |   |        | 2,059   |   |         |   | 797 |   |
| Dividends      payable                                                                                                        |   |        | 23      |   |         |   | 35 |   |
| Accrued      interest payable and other liabilities                                                                           |   |        | 815     |   |         |   | 936 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      liabilities                                                                                                        |   |        | 140,105 |   |         |   | 126,713 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Stockholders'      equity:                                                                                                    |   |        |    |   |         |   |   |   |
| Preferred      stock, no par value; 1,000,000 shares authorized, none issued or      outstanding                              |   |        | -       |   |         |   | - |   |
| Preferred      stock, series B, $51,000 liquidation value; 125 shares authorized, 96      shares outstanding                  |   |        | 4,896   |   |         |   | 4,896 |   |
| Common      stock, $.01 par value; 9,000,000 shares authorized, 3,222,421 shares      issued and outstanding in 2008 and 2007 |   |        | 32      |   |         |   | 32 |   |
| Additional      paid-in capital                                                                                               |   |        | 20,805  |   |         |   | 20,874 |   |
| Accumulated      deficit                                                                                                      |   |        | (3,275  | )      |         |   | (2,993 | ) |
| Accumulated      other comprehensive income                                                                                   |   |        | 10      |   |         |   | 9 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      stockholders' equity                                                                                               |   |        | 22,468  |   |         |   | 22,818 |   |
|                                                                                                                          |   |        |    |   |         |   |   |   |
| Total      liabilities and stockholders' equity                                                                               |   | $           | 162,573 |   |         |   | 149,531 |   |

----

Index

MAR

|                                                               |   | Three      Months EndedMarch 31, |   |
|--------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                               |   | 2008                             |   |   | 2007 |   |
| Interest      income:                                              |   |                             |   |   |   |   |
| Loans                                                              |   | $                                | 2,016  |   |   |   | 2,676 |   |
| Securities                                                         |   |                             | 86     |   |   |   | 54 |   |
| Other      interest-earning assets                                 |   |                             | 147    |   |   |   | 379 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Total      interest income                                         |   |                             | 2,249  |   |   |   | 3,109 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Interest      expense:                                             |   |                             |   |   |   |   |   |   |
| Deposits                                                           |   |                             | 1,267  |   |   |   | 1,475 |   |
| Other      borrowings                                              |   |                             | 10     |   |   |   | - |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Total      interest expense                                        |   |                             | 1,277  |   |   |   | 1,475 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      interest income                                           |   |                             | 972    |   |   |   | 1,634 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Provision      for loan losses                                     |   |                             | 100    |   |   |   | - |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      interest income after provision for loan losses           |   |                             | 872    |   |   |   | 1,634 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Noninterest      income:                                           |   |                             |   |   |   |   |   |   |
| Service      charges on deposit accounts                           |   |                             | 6      |   |   |   | 7 |   |
| CLCC      loan brokerage fees                                      |   |                             | -      |   |   |   | 580 |   |
| Other      service charges and fees                                |   |                             | 41     |   |   |   | 49 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Total      noninterest income                                      |   |                             | 47     |   |   |   | 636 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Noninterest      expenses:                                         |   |                             |   |   |   |   |   |   |
| Salaries      and employee benefits                                |   |                             | 659    |   |   |   | 799 |   |
| Occupancy      and equipment                                       |   |                             | 159    |   |   |   | 162 |   |
| Advertising                                                        |   |                             | 42     |   |   |   | 56 |   |
| Insurance                                                          |   |                             | 24     |   |   |   | 15 |   |
| Data      processing                                               |   |                             | 67     |   |   |   | 67 |   |
| Telephone                                                          |   |                             | 19     |   |   |   | 22 |   |
| Regulatory      assessments                                        |   |                             | 98     |   |   |   | 13 |   |
| Professional      fees                                             |   |                             | 111    |   |   |   | 34 |   |
| Director      fees                                                 |   |                             | -      |   |   |   | 17 |   |
| Stationary      and supplies                                       |   |                             | 10     |   |   |   | 12 |   |
| Other      real estate owned                                       |   |                             | 43     |   |   |   | - |   |
| Other                                                              |   |                             | 140    |   |   |   | 105 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Total      noninterest expenses                                    |   |                             | 1,372  |   |   |   | 1,302 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| (Loss)      earnings before income taxes                           |   |                             | (453   | ) |   |   | 968 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Income      tax (benefit) provision                                |   |                             | (171   | ) |   |   | 380 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      (loss) earnings                                           |   |                             | (282   | ) |   |   | 588 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Dividends      on preferred stock                                  |   |                             | 69     |   |   |   | - |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      (loss) earnings available to common stockholders          |   | $                                | (351   | ) |   |   | 588 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      (loss) earnings per common share, basic                   |   | $                                | (0.11  | ) |   |   | 0.19 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Weighted-average      number of common shares outstanding, basic   |   |                             | 3,222  |   |   |   | 3,156 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Net      (loss) earnings per common share, diluted                 |   | $                                | (0.11  | ) |   |   | 0.18 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Weighted-average      number of common shares outstanding, diluted |   |                             | 3,222  |   |   |   | 3,240 |   |
|                                                               |   |                             |   |   |   |   |   |   |
| Dividends      per common share                                    |   | $                                | -      |   |   |   | 0.12 |   |

----

Index

MAR

|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   | Accumulated |   |   |          |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|------------|--------|--------|--------------|--------|--------|-------------|--------|--------|---------------|--------|
|                                                                                                  |   |      |   |   |   |   |   |       |   |   | Retained     |   |   | Other       |   |   |          |   |
|                                                                                                  |   |      |   |   |   |   |   | Additional |   |   | Earnings     |   |   | Compre-     |   |   | Total         |   |
|                                                                                                  |   | Preferred |   |   | Common |   |   | Paid-In    |   |   | (Accumulated |   |   | hensive     |   |   | Stockholders' |   |
|                                                                                                  |   | Stock     |   |   | Stock  |   |   | Capital    |   |   | Deficit)     |   |   | Income      |   |   | Equity        |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |
| Balance      at December 31, 2006                                                                     |   | $         | -      |   |   |   | 32     |       |   |   | 20,165       |   |   |        | 2,481  |   |          |   | - |   |   |   | 22,678 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Exercise      of stock options (375 shares) (unaudited)                                               |   |      | -      |   |   |   | -      |       |   |   | 2            |   |   |        | -      |   |          |   | - |   |   |   | 2 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Share-based      compensation (unaudited)                                                             |   |      | -      |   |   |   | -      |       |   |   | 42           |   |   |        | -      |   |          |   | - |   |   |   | 42 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Dividends      payable – common (unaudited)                                                     |   |      | -      |   |   |   | -      |       |   |   | -            |   |   |        | (379   | )      |          |   | - |   |   |   | (379 | ) |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Net      earnings (unaudited)                                                                         |   |      | -      |   |   |   | -      |       |   |   | -            |   |   |        | 588    |   |          |   | - |   |   |   | 588 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Balance      at March 31, 2007 (unaudited)                                                            |   | $         | -      |   |   |   | 32     |       |   |   | 20,209       |   |   |        | 2,690  |   |          |   | - |   |   |   | 22,931 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                                                                     |   | $         | 4,896  |   |   |   | 32     |       |   |   | 20,874       |   |   |        | (2,993 | )      |          |   | 9 |   |   |   | 22,818 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                              |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Net      loss (unaudited)                                                                             |   |      | -      |   |   |   | -      |       |   |   | -            |   |   |        | (282   | )      |          |   | - |   |   |   | (282 | ) |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Net      change in unrealized gain on security available for sale, net of tax      effect (unaudited) |   |      | -      |   |   |   | -      |       |   |   | -            |   |   |        | -      |   |          |   | 1 |   |   |   | 1 |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Comprehensive      loss (unaudited)                                                                   |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   | (281 | ) |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Dividends      declared-preferred (unaudited)                                                         |   |      | -      |   |   |   | -      |       |   |   | (69          | )      |   |        | -      |   |          |   | - |   |   |   | (69 | ) |
|                                                                                                  |   |      |   |   |   |   |   |       |   |   |         |   |   |        |   |   |          |   |   |   |   |   |   |   |
| Balance      at March 31, 2008 (unaudited)                                                            |   | $         | 4,896  |   |   |   | 32     |       |   |   | 20,805       |   |   |        | (3,275 | )      |          |   | 10 |   |   |   | 22,468 |   |

----

Index

MARC

|                                                                                                 |   | Three      Months EndedMarch 31, |   |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                 |   | 2008                             |   |   | 2007 |   |
| Cash      flows from operating activities:                                                           |   |                             |   |   |   |   |
| Net      (loss) earnings                                                                             |   | $                                | (282   | ) |   |   | 588 |   |
| Adjustments      to reconcile net (loss) earnings to net cash provided by operating      activities: |   |                             |   |   |   |   |   |   |
| Depreciation                                                                                         |   |                             | 73     |   |   |   | 73 |   |
| Share-based      compensation                                                                        |   |                             | -      |   |   |   | 42 |   |
| Provision      for loan losses                                                                       |   |                             | 100    |   |   |   | - |   |
| Deferred      income taxes                                                                           |   |                             | 402    |   |   |   | - |   |
| Amortization      of loan fees and costs, net                                                        |   |                             | (4     | ) |   |   | 12 |   |
| Decrease      in accrued interest receivable                                                         |   |                             | 65     |   |   |   | 83 |   |
| Decrease      in other assets                                                                        |   |                             | 14     |   |   |   | 16 |   |
| Increase      in official checks, accrued interest payable and other      liabilities                |   |                             | 1,141  |   |   |   | 869 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Net      cash provided by operating activities                                                       |   |                             | 1,509  |   |   |   | 1,683 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                           |   |                             |   |   |   |   |   |   |
| Purchase      of security held to maturity                                                           |   |                             | -      |   |   |   | (3,924 | ) |
| Principal      payments security held to maturity                                                    |   |                             | 182    |   |   |   | 8 |   |
| Redemption      of Federal Home Loan Bank stock                                                      |   |                             | 31     |   |   |   | 52 |   |
| Purchase      of Federal Reserve Bank Stock                                                          |   |                             | (39    | ) |   |   | - |   |
| Net      decrease (increase) in loans                                                                |   |                             | 6,804  |   |   |   | (4,299 | ) |
| Purchase      of premises and equipment                                                              |   |                             | (16    | ) |   |   | (43 | ) |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Net      cash provided by (used in) investing activities                                             |   |                             | 6,962  |   |   |   | (8,206 | ) |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                           |   |                             |   |   |   |   |   |   |
| Net      increase in deposits                                                                        |   |                             | 13,107 |   |   |   | 2,287 |   |
| Net      decrease in repurchase agreements                                                           |   |                             | (844   | ) |   |   | - |   |
| Net      proceeds from exercise of common stock warrants andoptions                                  |   |                             | -      |   |   |   | 2 |   |
| Preferred      dividends paid                                                                        |   |                             | (81    | ) |   |   | - |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                       |   |                             | 12,182 |   |   |   | 2,289 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                            |   |                             | 20,653 |   |   |   | (4,234 | ) |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                |   |                             | 11,174 |   |   |   | 26,905 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                      |   | $                                | 31,827 |   |   |   | 22,671 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                               |   |                             |   |   |   |   |   |   |
| Cash      paid (received) during the period for:                                                     |   |                             |   |   |   |   |   |   |
| Interest                                                                                             |   | $                                | 1,214  |   |   |   | 1,215 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Income      taxes                                                                                    |   | $                                | (574   | ) |   |   | 35 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Noncash      transactions:                                                                           |   |                             |   |   |   |   |   |   |
| Preferred      dividends payable at beginning of period                                              |   | $                                | 35     |   |   |   | - |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Preferred      dividends payable at end of period                                                    |   | $                                | 23     |   |   |   | - |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Dividends      payable - common                                                                      |   | $                                | -      |   |   |   | 379 |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Transfer      of loans to other real estate owned                                                    |   | $                                | 17     |   |   |   | - |   |
|                                                                                                 |   |                             |   |   |   |   |   |   |
| Net      change in unrealized gain on security available for sale, net of tax      effect            |   | $                                | 1      |   |   |   | - |   |

----

Index

MARC

|                                              |   | Three      Months Ended |   |
|---------------------------------------------------|--------|-------------------------|--------|
|                                              |   | March 31,               |   |
|                                              |   | 2008                    |   |   | 2007 |   |
|                                              |   |                    |   |   |   |   |
| Balance      at end of period                     |   | $                       | 10,996 |   |   |   | 2,527 |   |
| Total      related allowance for losses           |   | $                       | 1,498  |   |   |   | 233 |   |
| Average      investment in impaired loans         |   | $                       | 10,580 |   |   |   | 2,382 |   |
| Interest      income recognized on impaired loans |   | $                       | -      |   |   |   | - |   |
| Interest      income received on impaired loans   |   | $                       | -      |   |   |   | - |   |

----

Index

|                           |   | Three      Months Ended |   |
|--------------------------------|--------|-------------------------|--------|
|                           |   | March 31,               |   |
|                           |   | 2008                    |   |   | 2007 |   |
|                           |   |                    |   |   |   |   |
| Beginning      balance         |   | $                       | 3,794  |   |   |   | 2,047 |   |
| Charge-offs                    |   |                    | 135    |   |   |   | - |   |
| Provision      for loan losses |   |                    | 100    |   |   |   | - |   |
|                           |   |                    |   |   |   |   |   |   |
| Ending      balance            |   | $                       | 3,759  |   |   |   | 2,047 |   |

|                                                       |   | Three Months Ended March31, |   |
|------------------------------------------------------------|--------|-----------------------------|--------|
|                                                       |   | 2008                        |   |   | 2007 |   |
|                                                       |   |                        |   |   | Weighted- |   |   | Per |   |   |   |   |   | Weighted- |   |   | Per |   |
|                                                       |   |                        |   |   | Average |   |   | Share |   |   |   |   |   | Average |   |   | Share |   |
|                                                       |   | Loss                        |   |   | Shares |   |   | Amount |   |   | Earnings |   |   | Shares |   |   | Amount |   |
| Basic      EPS-                                            |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) earnings available to common stockholders  |   | $                           | (351   | ) |   |   | 3,222 |   |   | $ | (0.11 | ) |   | $ | 588 |   |   |   | 3,156 |   |   | $ | 0.19 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities-                        |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Incremental      shares from assumed conversion of options |   |                        |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 84 |   |   |   |   |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      EPS-                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) earnings available to common stockholders  |   | $                           | (351   | ) |   |   | 3,222 |   |   | $ | (0.11 | ) |   | $ | 588 |   |   |   | 3,240 |   |   | $ | 0.18 |   |

----

Index

|                                                 |   |   |   |   | Regulatory  |   |
|------------------------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                                 |   | Actual |   |   | Requirement |   |
|                                                 |   |   |   |   |        |   |
| Total      capital to risk-weighted assets           |   |   | 16.42  | %      |        |   | 10.00 | % |
| Tier      I capital to risk-weighted assets          |   |   | 15.14  | %      |        |   | 6.00 | % |
| Tier      I capital to total assets - leverage ratio |   |   | 11.39  | %      |        |   | 5.00 | % |

|   | (continued) |
|--------|-------------|

----

Index

|                                                                          |   |   |    |   | Weighted-        |   |   | Weighted-   |   |   |      |   |
|-------------------------------------------------------------------------------|--------|--------|---------|--------|------------------|--------|--------|-------------|--------|--------|-----------|--------|
|                                                                          |   |   |    |   | Average      Per |   |   | Average     |   |   |      |   |
|                                                                          |   | Number |    |   | Share            |   |   | Remaining   |   |   | Aggregate |   |
|                                                                          |   | of     |    |   | Exercise         |   |   | Contractual |   |   | Intrinsic |   |
|                                                                          |   | Shares |    |   | Price            |   |   | Term        |   |   | Value     |   |
| The      Employees' Plan:                                                     |   |   |    |   |             |   |   |        |   |   |      |   |
| Options      outstanding at December 31, 2007                                 |   |   | 188,200 |   |             | $      | 9.35   |        |   |   |      |   |   |   |
| Options      granted                                                          |   |   | 1,000   |   |             |   | 7.80   |        |   |   |      |   |   |   |
| Options      forfeited                                                        |   |   | (40,500 | )      |             |   | 14.42  |        |   |   |      |   |   |   |
|                                                                          |   |   |    |   |             |   |   |        |   |   |      |   |   |   |
| Options      outstanding at March 31, 2008                                    |   |   | 148,700 |   |             | $      | 7.96   |        |   |   | 8.18      |   |   | $ | 86 |   |
| Options      exercisable at March 31, 2008                                    |   |   | 47,150  |   |             | $      | 6.92   |        |   |   | 6.60      |   |   | $ | 60 |   |
|                                                                          |   |   |    |   |             |   |   |        |   |   |      |   |   |   |   |   |
| The      Directors' Plan:                                                     |   |   |    |   |             |   |   |        |   |   |      |   |   |   |   |   |
| Options      outstanding at December 31, 2007and March 31, 2008               |   |   | 56,250  |   |             | $      | 7.78   |        |   |   | 6.43      |   |   | $ | 73 |   |
| Options      exercisable at March 31, 2008                                    |   |   | 48,750  |   |             | $      | 6.26   |        |   |   | 6.00      |   |   | $ | 73 |   |
|                                                                          |   |   |    |   |             |   |   |        |   |   |      |   |   |   |   |   |
| The      Advisory Directors' Plan:                                            |   |   |    |   |             |   |   |        |   |   |      |   |   |   |   |   |
| Options      outstanding at December 31, 2007and  March 31,    2008 |   |   | 20,251  |   |             | $      | 8.78   |        |   |   | 2.50      |   |   | $ | 21 |   |
| Options      exercisable at March 31, 2008                                    |   |   | 8,228   |   |             | $      | 6.00   |        |   |   | .50       |   |   | $ | 14 |   |

|   | (continued) |
|--------|-------------|

----

Index

| 5. | Share-Based      Compensation, Continued |
|----|------------------------------------------|

|   | There      were no options exercised during the three months ended March 31,      2008.  The total intrinsic value of options exercised during the      three months ended March 31, 2007 was $3,000 and there was no tax benefit      recognized.  At March 31, 2008, there was $335,000 of total      unrecognized compensation expense related to nonvested share-based      compensation arrangements granted under the plans.  The cost is      expected to be recognized over a weighted-average period of 3.8      years.  Due to the effect of forfeited options, there was no      compensation expense recognized during the three month period ended March      31, 2008.  The total fair value of shares vested and recognized      as compensation expense was $42,000 for the three month period ended March      31, 2007, and no income tax benefit was  recognized. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      fair value of each option granted for the three months ended March 31,      2008 and 2007 is estimated on the date of grant using the Black-Scholes      option-pricing model with the following assumptions ($ in      thousands): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                           |   | Three      Months Ended |   |
|------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                           |   | March 31,               |   |
|                                                                                           |   | 2008                    |   |   | 2007 |   |
| Weighted-average      risk-free interest rate                                                  |   |                    | 3.39   | % |   |   | 4.55 | % |
| Weighted-average      dividend yield                                                           |   |                    | -      | % |   |   | 1.48 | % |
| Weighted-average      expected stock volatility                                                |   |                    | 70.64  | % |   |   | 17.22 | % |
| Expected      life in years                                                                    |   | 6.5      years          |   |   | 6.5      years |   |
| Per      share weighted-average grant-date fair value of options issued during the      period |   | $                       | 1.76   |   |   |   | 2.45 |   |

|   | As      part of its adoption of SFAS 123(R), the Company examined its historical      pattern of option exercises in an effort to determine if there were any      pattern based on certain employee populations.  From this      analysis, the Company could not identify any patterns in the exercise of      options.  As such, the Company used the guidance in Staff      Accounting Bulletin No. 107 to determine the estimated life of options      issued subsequent to the adoption of SFAS 123(R).  Expected      volatility is based on historical volatility of the Company's      stock.  The risk –free rate for periods within the contractual      life of the option is based on the U.S. Treasury yield curve in effect at      the time of the grant.  The dividend yield assumption is based      on the Company's history and expectation of dividend    payments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | On      January 1, 2008, the Company adopted SFAS No. 157, Fair Value Measurements      for financial assets and liabilities.  This standard defines      fair value, provides guidance for measuring fair value and requires      certain disclosures.  This standard does not require any new      fair value measurements, but rather applies to all other accounting      pronouncements that require or permit fair value      measurements.  This standard does not apply to measurements      related to share-based payments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SFAS      157 defines fair value as the exchange price that would be received for an      asset or paid to transfer a liability (an exit price) in the principal or      most advantageous market for the asset or liability in an orderly      transaction between market participants on the measurement date. The      statement utilizes a fair value hierarchy that prioritizes the inputs to      valuation techniques used to measure fair value into three broad      levels.  The following is a brief description of those three      levels: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Level      1:  Observable inputs such as quoted prices (unadjusted) in      active markets for identical assets or  liabilities. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Level      2:  Inputs other than quoted prices that are observable for the      asset or liability, either directly or indirectly.  These      include quoted prices for similar assets or liabilities in active markets      and quoted prices for identical or similar assets or liabilities that are      not active.  Such inputs may include interest rates and yield      curves, volatilities, prepayment speeds, credit risks, and default      rates. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Level      3:  Unobservable inputs to measure fair value of assets and      liabilities for which there is little, if any market activity at the      measurement date, using reasonable inputs and assumptions based upon the      best information at the time, to the extent that inputs are available      without undue cost and effort. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Our      listing of financial assets and liabilities subject to fair value      measurements on a recurring basis are as follows (in      thousands): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   |            | Fair Value Measurements at Reporting Date      Using |   |
|----------------------------------|--------|-----------------|------------------------------------------------------|--------|
|                             |   |            |                                                 |   | Quoted      Prices |   |   |   |   |   |   |   |
|                             |   |            |                                                 |   | In      Active |   |   | Significant |   |   |   |   |
|                             |   | Fair      Value |                                                 |   | Markets      for |   |   | Other |   |   | Significant |   |
|                             |   | as      of      |                                                 |   | Identical |   |   | Observable |   |   | Unobservable |   |
|                             |   | March      31,  |                                                 |   | Assets |   |   | Inputs |   |   | Inputs |   |
|                             |   | 2008            |                                                 |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                             |   |            |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale security |   | $               | 1,015                                                |   |   |   | - |   |   |   | 1,015 |   |   |   | - |   |

----

Index

|   | The      fair value of the Company's security available for sale is determined by      third party service providers utilizing various methods dependent upon the      specific type of investment.  Where quoted prices are available      in an active market, securities are classified within level 1 of the      valuation hierarchy. Level 1 securities include highly liquid government      bonds, certain mortgage products and exchange-traded equities. If quoted      market prices are not available, then fair values are estimated by using      pricing models, quoted prices of securities with similar characteristics,      or discounted cash flows. Examples of such instruments, which would      generally be classified within level 2 of the valuation hierarchy, include      certain collateralized mortgage and debt obligations and certain      high-yield debt securities. In certain cases where there is limited      activity or less transparency around inputs to the valuation, securities      are classified within level 3 of the valuation hierarchy. Securities      classified within level 3 include certain residual interests in      securitizations and other less liquid  securities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Revie

----

Index

Repo

| /s/      Hacker, Johnson & Smith PA |
|-----------------------------------------|
|                                    |
|                                    |
| HACKER,      JOHNSON & SMITH PA     |
| Tampa,      Florida                     |
| May      6, 2008                        |

----

Index

MAR

|   | The      Company is 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 unused lines of      credit.  These instruments involve, to varying degrees, elements      of credit and interest-rate risk in excess of the amounts recognized in      the condensed consolidated balance sheet.  The contract or      notional amounts of those instruments reflect the extent of the Company's      involvement in particular classes of financial  instruments. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company's exposure to credit loss in the event of nonperformance by the      other party to the financial instruments for unused lines of credit is      represented by the contractual amount of those instruments.  The      Company uses the same credit policies in making commitments as it does for      on-balance-sheet instruments. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Commitments      to extend credit are agreements to lend to a customer as long as there is      no violation of any condition established in the      contract.  Commitments generally have fixed expiration dates or      other termination clauses and may require payment of a      fee.  Since many of the commitments are expected to expire      without being drawn upon, the total committed amounts do not necessarily      represent future cash requirements.  The Company evaluates each      customer's credit worthiness on a case-by-case basis.  The      amount of collateral obtained, if it is deemed necessary by the Company      upon extension of credit, is based on management's credit evaluation of      the counterparty. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | A      summary of the Company's financial instruments with off-balance sheet risk      at March 31, 2008 follows (inthousands): |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

|                        |   | Contract |   |
|-----------------------------|--------|----------|--------|
|                        |   | Amount   |   |
|                        |   |     |   |
| Unused      lines of credit |   | $        | 21,716 |   |

|                                                  |   | Three      Months |   |              |   | Three      Months |
|-------------------------------------------------------|--------|-------------------|--------|-------------------|--------|-------------------|
|                                                  |   | Ended             |   | Year      Ended   |   | Ended             |
|                                                  |   | March      31,    |   | December      31, |   | March      31,    |
|                                                  |   | 2008              |   | 2007              |   | 2007              |
| Average      equity as a percentage of average assets |   | 14.31%            |   | 13.53%            |   | 13.51%            |
|                                                  |   |              |   |              |   |              |
| Total      equity to total assets at end of period    |   | 13.82%            |   | 15.26%            |   | 13.51%            |
|                                                  |   |              |   |              |   |              |
| Return      on average assets (1)                     |   | (0.72)%           |   | (3.08)%           |   | 1.39%             |
|                                                  |   |              |   |              |   |              |
| Return      on average common stockholders equity (1) |   | (6.40)%           |   | (24.12)%          |   | 10.32%            |
|                                                  |   |              |   |              |   |              |
| Noninterest      expense to average assets (1)        |   | 3.49%             |   | 3.90%             |   | 3.09%             |

----

----

Index

|                                                                  |   | Three Months Ended March31, |    |
|-----------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                  |   | 2008                        |    |   | 2007 |   |
|                                                                  |   |                        |    |   | Interest |   |   | Average |   |   |   |   |   | Interest |   |   | Average |   |
|                                                                  |   | Average                     |    |   | and |   |   | Yield/ |   |   | Average |   |   | and |   |   | Yield/ |   |
|                                                                  |   | Balance                     |    |   | Dividends |   |   | Cost |   |   | Balance |   |   | Dividends |   |   | Cost |   |
|                                                                  |   | ($      in thousands)       |    |
| Interest-earning      assets:                                         |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                 |   | $                           | 123,493 |   |   |   | 2,016 |   |   |   | 6.55 | % |   | $ | 131,948 |   |   |   | 2,676 |   |   |   | 8.22 | % |
| Investment      securities                                            |   |                        | 6,510   |   |   |   | 86 |   |   |   | 5.30 |   |   |   | 3,986 |   |   |   | 54 |   |   |   | 5.49 |   |
| Other      interest-earning assets (1)                                |   |                        | 17,537  |   |   |   | 147 |   |   |   | 3.36 |   |   |   | 28,646 |   |   |   | 379 |   |   |   | 5.37 |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      interest-earning assets                                    |   |                        | 147,540 |   |   |   | 2,249 |   |   |   | 6.11 |   |   |   | 164,580 |   |   |   | 3,109 |   |   |   | 7.66 |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                       |   |                        | 10,500  |   |   |   |   |   |   |   |   |   |   |   | 6,422 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                     |   | $                           | 158,040 |   |   |   |   |   |   |   |   |   |   | $ | 171,002 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                    |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                                               |   |                        | 10,146  |   |   |   | 56 |   |   |   | 2.21 |   |   |   | 15,481 |   |   |   | 95 |   |   |   | 2.49 |   |
| Money      market and NOW deposits                                    |   |                        | 30,069  |   |   |   | 145 |   |   |   | 1.93 |   |   |   | 35,265 |   |   |   | 242 |   |   |   | 2.78 |   |
| Time      deposits                                                    |   |                        | 88,740  |   |   |   | 1,066 |   |   |   | 4.82 |   |   |   | 91,226 |   |   |   | 1,138 |   |   |   | 5.06 |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      interest-bearing deposits                                  |   |                        | 128,955 |   |   |   | 1,267 |   |   |   | 3.94 |   |   |   | 141,972 |   |   |   | 1,475 |   |   |   | 4.21 |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase      agreements                                            |   |                        | 826     |   |   |   | 10 |   |   |   | 4.86 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      interest-bearing liabilities                               |   |                        | 129,781 |   |   |   | 1,277 |   |   |   | 3.95 |   |   |   | 141,972 |   |   |   | 1,475 |   |   |   | 4.21 |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing      liabilities                                  |   |                        | 5,642   |   |   |   |   |   |   |   |   |   |   |   | 5,929 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity                                             |   |                        | 22,617  |   |   |   |   |   |   |   |   |   |   |   | 23,101 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity                       |   | $                           | 158,040 |   |   |   |   |   |   |   |   |   |   | $ | 171,002 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                              |   |                        |    |   |   | $ | 972 |   |   |   |   |   |   |   |   |   |   | $ | 1,634 |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-rate      spread (2)                                         |   |                        |    |   |   |   |   |   |   |   | 2.17 | % |   |   |   |   |   |   |   |   |   |   | 3.45 | % |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest-earning assets, net margin (3)                      |   | $                           | 17,759  |   |   |   |   |   |   |   | 2.64 | % |   | $ | 22,608 |   |   |   |   |   |   |   | 4.03 | % |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of interest-earning assets to interest-bearing liabilities |   |                        | 1.14    |   |   |   |   |   |   |   |   |   |   |   | 1.16 |   |   |   |   |   |   |   |   |   |

----

| (1) | Includes      interest-earning deposits, federal funds sold, Federal Reserve Bank stock      and Federal Home Loan Bank stock. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest-rate      spread represents the difference between the average yield on      interest-earning assets and the average cost of interest-bearing      liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net      interest margin is annualized net interest income divided by average      interest-earning assets. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

Index

|   | General.  Net      losses for the three months ended March 31, 2008 were $282,000 or $0.11      per basic and diluted common share compared to net earnings of $588,000 or      $0.19 basic and $0.18 diluted earnings per common share for the three      months ended March 31, 2007.  The net loss is primarily due to a      decrease in loan brokerage fees. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest      Income and Expense.  Interest income decreased to $2.2      million for the three months ended March 31, 2008 from $3.1 million for      the three months ended March 31, 2007.  Interest income on loans      decreased $660,000 due to lower yields in the portfolio as a result of      higher levels of nonaccrual loans. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Noninterest      Income.  Noninterest income decreased to $47,000 during      the three month period ended March 31, 2008 compared $636,000 for the same      period in 2007.  There was no fee income from Commercial Lending      Capital Corp. compared to $580,000 for the same period in      2007. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Noninterest      Expenses.  Noninterest expenses increased to $1.4 million      during the three-month period ended March 31, 2008 compared to $1.3      million for the same period in 2007.  Noninterest expense      increased primarily due to an increase in other real estate owned expenses      and an increase in professional fees and regulatory assessments, somewhat      offset by a decrease in salaries and employee  benefits. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income      Taxes.  The Company recorded an income tax benefit of      $171,000 for the three-month period ended March 31, 2008 (an effective      rate of 37.7%) compared to an income tax provision of $380,000 for the      2007 period (an effective rate of39.7%). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Item

| (a) | Evaluation      of Disclosure Controls andProcedures |
|-----|------------------------------------------------------|

| (b) | Changes      in Internal Controls |
|-----|-----------------------------------|

| (c) | Limitations      on the Effectiveness of Controls |
|-----|---------------------------------------------------|

----

Index

Item

Item

----

Index

MAR

| (a) | Exhibits |
|-----|----------|

| Exhibit      No. |   | Description of      Exhibit |
|------------------|--------|-----------------------------|
|             |   |                        |   |
| (a)              | 3.1    |                        | Articles      of Incorporation of Marco Community Bancorp, Inc. as filed with the      Florida Department of State |
| (a)              | 3.2    |                        | Bylaws      of Marco Community Bancorp, Inc. |
| (a)              | 4.1    |                        | Specimen      Common Stock Certificate |
| (d)              | 10.1   |                        | Employees'      Stock Option Plan, as amended |
| (d)              | 10.2   |                        | Directors'      Stock Option Plan, as amended |
| (d)              | 10.3   |                        | Advisory      Directors' Stock Option Plan, as amended |
| (c)              | 10.4   |                        | Employee      Severance Agreement with Paul Nidasso |
| (c)              | 10.5   |                        | Employee      Severance Agreement with Anthony Iannotte |
| (c)              | 10.6   |                        | Employee      Severance Agreement with David Klein |
| (b)              | 10.8   |                        | Written      Agreement with the Federal Reserve Bank of Atlanta and the Florida Office      of Financial Regulation |
|             | 31.1   |                        | Certification      of Chief Executive Officer required by Rule 13a-14(a)/15d-14(a) under the      Exchange Act |
|             | 31.2   |                        | Certification      of Chief Financial Officer required by Rule 13a-14(a)/15d-14(a) under the      Exchange Act |
|             | 32.1   |                        | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of Sarbanes-Oxley Act of 2002 |
|             | 32.2   |                        | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of Sarbanes-Oxley Act of  2002 |

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Index

MARCO 

|   |        |   | MARCO      COMMUNITY BANCORP, INC. |
|--------|-------------|--------|------------------------------------|
|   |        |   | (Registrant)                       |
|   |        |   |                               |   |
|   |        |   |                               |   |
| Date:  | May 9, 2008 |   | By:                                | /s/Richard Storm, Jr. |
|   |        |   |                               | Richard      Storm, Jr., Chief Executive Officer |
|   |        |   |                               |   |
|   |        |   |                               |   |
| Date:  | May 9, 2008 |   | By:                                | /s/Thomas M. Whelan |
|   |        |   |                               | Thomas      M. Whelan, Senior Vice President and |
|   |        |   |                               | Chief      Financial Officer |

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