----

**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,        D. C. 20549**

**FORM        10-Q**

| x | QUARTERLY                  REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT                  OF                  1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

| FOR                  THE QUARTERLY PERIOD ENDED: | September                  30, 2007 |
|--------------------------------------------------|-------------------------------------|
|                                             |                                |

| o | TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                  ACT OF                  1934 |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

| COMMISSION                  FILE NUMBER: | 000-50224 |
|------------------------------------------|-----------|
|                                     |           |

**SECURITY          CAPITAL CORPORATION**

| MISSISSIPPI                                        | 64-0681198                                              |
|----------------------------------------------------|---------------------------------------------------------|
|  (STATE                  OF INCORPORATION)    | (I.                  R. S. EMPLOYER IDENTIFICATION NO.) |
|                                               |                                                    |
| 295                  HIGHWAY 6 WEST/ P. O. BOX 690 |                                                    |
| BATESVILLE,                  MISSISSIPPI           | 38606                                                   |
|                                               |                                                    |
| (ADDRESS                  OF PRINCIPAL             | (ZIP                  CODE)                             |
| EXECUTIVE                  OFFICES)                |                                                    |

----

| TITLE                                          | OUTSTANDING |
|------------------------------------------------|-------------|
| COMMON                  STOCK, $5.00 PAR VALUE | 2,745,020   |

----

| TABLE                  OF CONTENTS |
|------------------------------------|
|                               |   |   |
| PART                  I.           | FINANCIAL                  INFORMATION |   |
|                               |   |   |
| Item                  1.           | Consolidated                  Financial Statements |   |
|                               |   |   |
|                               | Consolidated                  Balance Sheets |   |
|                               | September                  30, 2007 and December 31, 2006 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Income |   |
|                               | Nine                  months and three months ended September 30, 2007 and 2006 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Comprehensive Income |   |
|                               | Nine                  months and three months ended September 30, 2007 and 2006 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Cash Flows |   |
|                               | Nine                  months ended September 30, 2007 and 2006 |   |
|                               |   |   |
|                               | Notes                  to Consolidated Financial Statements |   |
|                               |   |   |
| Item                  2.           | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations |   |
|                               |   |   |
| Item                  3.           | Quantitative                  and Qualitative Disclosures about Market Risk |   |
|                               |   |   |
| Item                  4.           | Controls                  and Procedures |   |
|                               |   |   |
|                               |   |   |
| PART                  II.          | OTHER                  INFORMATION |   |
|                               |   |   |
| Item                  1.           | Legal                  Proceedings |   |
|                               |   |   |
| Item                  2.           | Changes                  in Securities |   |
|                               |   |   |
| Item                  3.           | Defaults                  upon Senior Securities |   |
|                               |   |   |
| Item                  4.           | Submission                  of Matters to a Vote of Security Holders |   |
|                               |   |   |
| Item                  5.           | Other                  Information |   |
|                               |   |   |
| Item                  6.           | Exhibits                  and Reports on Form 8-K |   |

----

| ITEM                  NO. 1 | FINANCIAL                  STATEMENTS |
|-----------------------------|---------------------------------------|

| SECURITY                  CAPITAL CORPORATION                                    |   |
|----------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  BALANCE SHEETS                                     |   |
| (dollar                  amounts presented in thousands)                         |   |
|                                                                             |   | (Unaudited) |   |   |   |   |
|                                                                             |   | Sept.                  30 |   |   | Dec.                  31, |   |
|                                                                             |   | 2007 |   |   | 2006 |   |
| ASSETS                                                                           |   |   |   |   |   |   |
| Cash                  and due from banks                                         |   | $ | 16,280 |   |   | $ | 23,073 |   |
| Interest-bearing                  deposits with banks                            |   |   | 474 |   |   |   | 374 |   |
|    Total                  cash and cash equivalents               |   |   | 16,754 |   |   |   | 23,447 |   |
| Term                  deposits with other banks                                  |   |   | 198 |   |   |   | 198 |   |
| Securities                  available-for-sale                                   |   |   | 67,667 |   |   |   | 61,028 |   |
| Securities                  held-to-maturity, estimated fair value of            |   |   | 7,235 |   |   |   | 7,850 |   |
|    $7,393                  in 2007 and $8,150 in 2006             |   |   |   |   |   |   |   |   |
| Securities,                  other                                               |   |   | 1,545 |   |   |   | 2,250 |   |
|    Total                  securities                              |   |   | 76,447 |   |   |   | 71,128 |   |
| Loans,                  less allowance for loan losses of                        |   |   |   |   |   |   |   |   |
|    $4,579                  in 2007 and $4,334 in 2006             |   |   | 342,505 |   |   |   | 322,324 |   |
| Interest                  receivable                                             |   |   | 6,388 |   |   |   | 5,091 |   |
| Premises                  and equipment                                          |   |   | 23,174 |   |   |   | 21,969 |   |
| Intangible                  assets                                               |   |   | 3,874 |   |   |   | 3,874 |   |
| Cash                  surrender value of life insurance                          |   |   | 6,023 |   |   |   | 5,869 |   |
| Other                  assets                                                    |   |   | 5,198 |   |   |   | 4,429 |   |
| Total                  Assets                                                    |   | $ | 480,561 |   |   | $ | 458,329 |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                            |   |   |   |   |   |   |   |   |
| Liabilities:                                                                     |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                  deposits                  |   | $ | 56,122 |   |   | $ | 59,380 |   |
|    Time                  deposits of $100,000 or more             |   |   | 82,168 |   |   |   | 77,169 |   |
|    Other                  interest-bearing deposits               |   |   | 245,236 |   |   |   | 230,150 |   |
|       Total                  deposits              |   |   | 383,526 |   |   |   | 366,699 |   |
|    Interest                  payable                              |   |   | 1,957 |   |   |   | 1,591 |   |
|    Federal                  Funds Purchased                       |   |   | 13,500 |   |   |   | 8,000 |   |
|    Borrowed                  funds                                |   |   | 19,744 |   |   |   | 27,380 |   |
|    Other                  liabilities                             |   |   | 4,248 |   |   |   | 2,675 |   |
| Total                  Liabilities                                               |   |   | 422,975 |   |   |   | 406,345 |   |
| Shareholders'                  equity:                                           |   |   |   |   |   |   |   |   |
|    Common                  stock - $5 par value, 5,000,000 shares |   |   |   |   |   |   |   |   |
|    authorized,                  2,753,557 shares issued in 2007   |   |   |   |   |   |   |   |   |
|    and                  2006                                      |   |   | 13,768 |   |   |   | 13,768 |   |
| Surplus                                                                          |   |   | 35,696 |   |   |   | 35,654 |   |
| Retained                  Earnings                                               |   |   | 8,379 |   |   |   | 2,651 |   |
| Accumulated                  other comprehensive income (loss)                   |   |   | (214 | ) |   |   | (41 | ) |
| Treasury                  stock, at par, 8,537 shares and 9,487                  |   |   |   |   |   |   |   |   |
|    shares                  in 2007 and 2006, respectively         |   |   | (43 | ) |   |   | (48 | ) |
| Total                  Shareholders' Equity                                      |   |   | 57,586 |   |   |   | 51,984 |   |
| Total                  Liabilities and Shareholders' Equity                      |   | $ | 480,561 |   |   | $ | 458,329 |   |

----

|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |
|-----------------------------------------------------------------|--------|---------------------------------------|----------|--------|--------------------------------------|--------|----------|--------|--------|--------|----------|--------|
| SECURITY                  CAPITAL CORPORATION                   |   |
| CONSOLIDATED                  STATEMENTS OF INCOME              |   |
| (dollar                  amounts presented in thousands)        |   |
|                                                            |   | (Unaudited)                           |     |   | (Unaudited)                          |   |
|                                                            |   | For                  the three months |     |   | For                  the nine months |   |
|                                                            |   | ended                  September 30,  |     |   | ended                  September 30, |   |
|                                                            |   | 2007                                  |     |   | 2006                                 |   |     | 2007   |   |   | 2006     |   |
| INTEREST                  INCOME                                |   |                                  |     |   |                                 |   |     |   |   |   |     |   |
| Interest                  and fees on loans                     |   | $                                     | 7,902    |   |                                 | $      | 7,211    |   |   | $      | 22,786   |   |   | $ | 20,092 |   |
| Interest                  and dividends on securities           |   |                                  | 873      |   |                                 |   | 823      |   |   |   | 2,569    |   |   |   | 2,484 |   |
| Federal                  funds sold                             |   |                                  | 14       |   |                                 |   | 5        |   |   |   | 111      |   |   |   | 47 |   |
| Other                                                           |   |                                  | 25       |   |                                 |   | 42       |   |   |   | 140      |   |   |   | 149 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|    Total                  interest income        |   |                                  | 8,814    |   |                                 |   | 8,081    |   |   |   | 25,606   |   |   |   | 22,772 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| INTEREST                  EXPENSE                               |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Interest                  on deposits                           |   |                                  | 3,208    |   |                                 |   | 2,744    |   |   |   | 9,299    |   |   |   | 7,286 |   |
| Interest                  on borrowings                         |   |                                  | 202      |   |                                 |   | 382      |   |   |   | 818      |   |   |   | 725 |   |
| Interest                  on federal funds purchased            |   |                                  | 49       |   |                                 |   | 72       |   |   |   | 97       |   |   |   | 175 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|     Total                  interest expense |   |                                  | 3,459    |   |                                 |   | 3,198    |   |   |   | 10,214   |   |   |   | 8,186 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Net                  Interest Income                            |   |                                  | 5,355    |   |                                 |   | 4,883    |   |   |   | 15,392   |   |   |   | 14,586 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Provision                  for loan losses                      |   |                                  | 273      |   |                                 |   | 241      |   |   |   | 707      |   |   |   | 724 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Net                  interest income after provision            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|   for                  loan losses                    |   |                                  | 5,082    |   |                                 |   | 4,642    |   |   |   | 14,685   |   |   |   | 13,862 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| OTHER                  INCOME                                   |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Service                  charges on deposit accounts            |   |                                  | 1,456    |   |                                 |   | 1,159    |   |   |   | 4,015    |   |   |   | 3,396 |   |
| Trust                  Department income                        |   |                                  | 235      |   |                                 |   | 271      |   |   |   | 733      |   |   |   | 772 |   |
| Impairment                  loss on securities                  |   |                                  | 0        |   |                                 |   | 28       |   |   |   | -448     |   |   |   | 21 |   |
| Other                  income                                   |   |                                  | 53       |   |                                 |   | 275      |   |   |   | 541      |   |   |   | 695 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|    Total                  other income           |   |                                  | 1,744    |   |                                 |   | 1,733    |   |   |   | 4,841    |   |   |   | 4,884 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| OTHER                  EXPENSES                                 |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| Salaries                  and employee benefits                 |   |                                  | 2,470    |   |                                 |   | 2,370    |   |   |   | 7,549    |   |   |   | 6,942 |   |
| Occupancy                  expense                              |   |                                  | 540      |   |                                 |   | 429      |   |   |   | 1,753    |   |   |   | 1,318 |   |
| Other                  operating expense                        |   |                                  | 695      |   |                                 |   | 738      |   |   |   | 2,160    |   |   |   | 2,315 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|    Total                  other expenses         |   |                                  | 3,705    |   |                                 |   | 3,537    |   |   |   | 11,462   |   |   |   | 10,575 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| INCOME                  BEFORE PROVISION                        |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
|    FOR                  INCOME TAXES             |   |                                  | 3,121    |   |                                 |   | 2,838    |   |   |   | 8,064    |   |   |   | 8,171 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES                     |   |                                  | 804      |   |                                 |   | 926      |   |   |   | 2,335    |   |   |   | 2,650 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| NET                  INCOME                                     |   | $                                     | 2,317.00 |   |                                 | $      | 1,912.00 |   |   | $      | 5,729.00 |   |   | $ | 5,521.00 |   |
|                                                            |   |                                  |     |   |                                 |   |     |   |   |   |     |   |   |   |   |   |
| BASIC                  NET INCOME PER SHARE                     |   | $                                     | 0.84     |   |                                 | $      | 0.70     |   |   | $      | 2.09     |   |   | $ | 2.01 |   |

----

|   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| SECURITY                  CAPITAL CORPORATION                        |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF COMPREHENSIVE INCOME     |   |
| (dollar                  amounts presented in thousands)             |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   | Unaudited |   |   | Unaudited |   |
|                                                                 |   | For                  the three months |   |   | For                  the nine months |   |
|                                                                 |   | ended                  September 30, |   |   | ended                  September 30, |   |
|                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                          |   | $ | 2,317 |   |   | $ | 1,912 |   |   | $ | 5,729 |   |   | $ | 5,521 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income, net of tax:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unrealized                  holding gains/(losses) |   |   | 385 |   |   |   | 563 |   |   |   | (445 | ) |   |   | (68 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income                                |   | $ | 2,702 |   |   | $ | 2,475 |   |   | $ | 5,284 |   |   | $ | 5,453 |   |

----

|                                                                                         |   |                               |    |   |   |   |
|----------------------------------------------------------------------------------------------|--------|------------------------------------|---------|--------|--------|--------|
| SECURITY                  CAPITAL CORPORATION                                                |   |
| CONSOLIDATED                  STATEMENTS OF CASH FLOWS                                       |   |
| (dollar                  amounts presented in thousands)                                     |   |
|                                                                                         |   | (Unaudited)                        |    |
|                                                                                         |   | Nine                  months ended |    |
|                                                                                         |   | September                  30,     |    |
|                                                                                         |   | 2007                               |    |   | 2006   |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                       |   |                               |    |   |   |   |
| NET                  INCOME                                                                  |   | $                                  | 5,729   |   |   | $      | 5,521 |   |
| Adjustments                  to reconcile net income to                                      |   |                               |    |   |   |   |   |   |
|    net                  cash provided by operating activities:                |   |                               |    |   |   |   |   |   |
|    Provision                  for loan losses                                 |   |                               | 707     |   |   |   | 724 |   |
|    Amortization                  of premiums and discounts on securities, net |   |                               | 79      |   |   |   | 223 |   |
|    Depreciation                  and amortization                             |   |                               | 796     |   |   |   | 709 |   |
|    FHLB                  stock dividend                                       |   |                               | (62     | )      |   |   | (45 | ) |
|    Loss                  (gain) on sale of securities                         |   |                               | 0       |   |   |   | (22 | ) |
|    Impairment                  loss on securities                             |   |                               | 448     |   |   |   | 0 |   |
|    Loss                  (gain) on sale/disposal of other assets              |   |                               | 1       |   |   |   | (58 | ) |
| Changes                  in:                                                                 |   |                               |    |   |   |   |   |   |
|    Interest                  receivable                                       |   |                               | (1,297  | )      |   |   | (870 | ) |
|    Other                  assets                                              |   |                               | (1,239  | )      |   |   | (8,382 | ) |
|    Interest                  payable                                          |   |                               | 366     |   |   |   | 605 |   |
|    Other                  liabilities                                         |   |                               | 1,573   |   |   |   | 28 |   |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Net                  cash provided by operating activities                                   |   |                               | 7,101   |   |   |   | (1,567 | ) |
|                                                                                         |   |                               |    |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                                        |   |                               |    |   |   |   |   |   |
| Increase                  in loans                                                           |   |                               | (20,426 | )      |   |   | (26,276 | ) |
| Purchase                  of securities available for sale                                   |   |                               | (33,194 | )      |   |   | (1,574 | ) |
| Purchase                  of securities held to maturity                                     |   |                               | 0       |   |   |   | (5,804 | ) |
| Proceeds                  of maturities and calls of securities available for sale           |   |                               | 26,231  |   |   |   | 12,572 |   |
| Proceeds                  of maturities and calls of securities held to maturity             |   |                               | 210     |   |   |   |   |   |
| Additions                  to premises and equipment                                         |   |                               | (1,618  | )      |   |   | 3,789 |   |
| Proceeds                  of sale of other assets                                            |   |                               | 421     |   |   |   | 577 |   |
| Increase                  in life insurance                                                  |   |                               | (155    | )      |   |   | (157 | ) |
| Changes                  in:                                                                 |   |                               |    |   |   |   |   |   |
|    Federal                  funds sold                                        |   |                               | 0       |   |   |   | (8,000 | ) |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Net                  cash used in investing activities                                       |   |                               | (28,531 | )      |   |   | (24,873 | ) |
|                                                                                         |   |                               |    |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                                        |   |                               |    |   |   |   |   |   |
| Changes                  in:                                                                 |   |                               |    |   |   |   |   |   |
|    Deposits                                                                   |   |                               | 16,827  |   |   |   | 17,858 |   |
|    Federal                  Funds purchased                                   |   |                               | 5,500   |   |   |   | (15,000 | ) |
| Reissuance                  of treasury stock                                                |   |                               | 46      |   |   |   | 59 |   |
| Repayment                  of debt                                                           |   |                               | (42,174 | )      |   |   | (13,538 | ) |
| Proceeds                  from issuance of debt                                              |   |                               | 34,538  |   |   |   | 33,952 |   |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Net                  cash provided by financing activities                                   |   |                               | 14,737  |   |   |   | 23,331 |   |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents                        |   |                               | (6,693  | )      |   |   | (3,109 | ) |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of year                              |   |                               | 23,447  |   |   |   | 19,677 |   |
|                                                                                         |   |                               |    |   |   |   |   |   |
| Cash                  and cash equivalents at end of period                                  |   | $                                  | 16,754  |   |   | $      | 16,568 |   |
|                                                                                         |   |                               |    |   |   |   |   |   |

----

** **

----

|   |                             | For                  the Three Months Ended |
|--------|----------------------------------|---------------------------------------------|
|   |                             | September                  30, 2007         |
|   |                             |  Net                  Income           |   | Shares |   | Per                  Share |
|   |                             |  (Numerator)                           |   | (Denominator) |   | Data |
|   |                             |                                        |   |   |   |   |
|   | Basic                  per Share | $2,316,972                                  |   | 2,745,020 |   | $0.84 |
|   |                             |                                        |   |   |   |   |
|   |                             |                                        |   |   |   |   |
|   |                             | For                  the Nine Months Ended  |
|   |                             | September                  30, 2007         |
|   |                             |  Net                  Income           |   | Shares |   | Per                  Share |
|   |                             |  (Numerator)                           |   | (Denominator) |   | Data |
|   |                             |                                        |   |   |   |   |
|   | Basic                  per Share | $5,728,579                                  |   | 2,744,680 |   | $2.09 |

|   |                             | For                  the Three Months Ended             |
|--------|----------------------------------|---------------------------------------------------------|
|   |                             | September                  30, 2006                     |
|   |                             |  (as                  restated for stock dividend) |
|   |                             |  Net                  Income                       |   | Shares |   | Per                  Share |
|   |                             |  (Numerator)                                       |   | (Denominator) |   | Data |
|   |                             |                                                    |   |   |   |   |
|   | Basic                  per Share | $1,912,766                                              |   | 2,743,357 |   | $0.70 |
|   |                             |                                                    |   |   |   |   |
|   |                             |                                                    |   |   |   |   |
|   |                             | For                  the Nine Months Ended              |
|   |                             | September                  30, 2006                     |
|   |                             |  (as                  restated for stock dividend) |
|   |                             |  Net                  Income                       |   | Shares |   | Per                  Share |
|   |                             |  (Numerator)                                       |   | (Denominator) |   | Data |
|   |                             |                                                    |   |   |   |   |
|   | Basic                  per Share | $5,521,639                                              |   | 2,742,986 |   | $2.01 |

|   | ITEM                  NO. 1A     RISK                  FACTORS |
|--------|-----------------------------------------------------------------------------------------|

----

| ITEM                  NO. 2 | MANAGEMENT’S                  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                  OPERATIONS |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         | (in                  thousands) |
|--------------------------------------------------------------|---------------------------------|
| Past                  due 30 days through 89 days            | $9,249                          |
| Past                  due 90 days or more and still accruing | $   808          |

|                                      | Company | Bank   |         |
|-------------------------------------------|---------|--------|--------------|
| Risk-Based                  Capital Ratio | Ratio   | Ratio  | Requirements |
| Total                  Capital            | 15.33%  | 14.97% | 8%           |
| Tier                  1 Capital           | 14.12%  | 13.76% | 4%           |
| Leverage                  Capital         | 11.25%  | 11.04% | 3%           |

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|   |   |   |   |
|--------|--------|--------|--------|

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**The        following accounting standards, issued recently have been        considered:**

**Financial        Accounting Standards Board Statement (FASB) No. 159, Fair Value Option for        Financial Assets and Financial Liabilities; FASB No. 158, Employers’ Accounting        for Defined Benefit Pension and Other Retirement Plans; FASB No. 157, Fair        Value        Measurements; FASB No. 48, Accounting for Uncertainty in Income Taxes; FASB        No.        156, Accounting for Servicing of Financial Assets; FASB No. 155, Accounting        for        Certain Hybrid Financial Instruments; and Staff Accounting Bulletin (SAB)        No.        108, Considering the Effects of Prior Year Misstatements when Quantifying        Misstatements in Current Year Financial Statements.**

**Of        these standards, FASB No. 159, Fair Value Option for Financial Assets and        Financial Liabilities, and FASB No. 157, Fair Value Measurements, were adopted        but due to the adoption not being in substantive compliance with the intent        and        spirit of FASB No. 159, the identification of selected financial assets and        financial liabilities has been reversed.**

**In        September 2006, the consensus reached in EITF Issue No. 06-4, “Accounting for        Deferred Compensation and Postretirement Benefit Aspects of Endorsement        Split-Dollar Life Insurance Arrangements” (EITF 06-4) was ratified by the        FASB.  EITF 06-4 requires that a liability be recognized for contracts        written to employees which provide future postretirement benefits that are        covered by endorsement split-dollar life insurance arrangements because such        obligations are not considered to be effectively settled upon entering into        the        related insurance arrangements.  EITF 06-4 is effective for fiscal        years beginning after December 15, 2007, with the guidance applied using        either        a retrospective approach or through a cumulative-effect adjustment to beginning        undivided profits.  The Company is currently assessing the financial        impact of adopting EITF 06-4.**

| ITEM                  NO. 3 | QUANTITIVE                  AND QUALITATIVE DISCLOSURE ABOUT MARKET                  RISK |
|-----------------------------|-------------------------------------------------------------------------------------------|

| ITEM                  NO. 4 | CONTROLS                  AND PROCEDURES |
|-----------------------------|------------------------------------------|

| PART                  II-- | OTHER                  INFORMATION |
|----------------------------|------------------------------------|

| ITEM                  1. | LEGAL                  PROCEEDINGS |
|--------------------------|------------------------------------|

**Out        of the normal course of business, First Security Bank may be defendant in        a        lawsuit.  In regard to any legal proceedings, which occurred during        the reporting period, management expects no material impact on the Company’s        consolidated financial position or results of        operation.**

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|   | ITEM                  NO. 1A     RISK                  FACTORS |
|--------|-----------------------------------------------------------------------------------------|

| ITEM                  2. | CHANGES                  IN SECURITIES |
|--------------------------|----------------------------------------|

| ITEM                  3. | DEFAULT                  UPON SENIOR SECURITIES |
|--------------------------|-------------------------------------------------|

| ITEM                  4. | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY                  HOLDERS |
|--------------------------|---------------------------------------------------------------------------------------|

| ITEM                  5. | OTHER                  INFORMATION |
|--------------------------|------------------------------------|

| ITEM                  6. | EXHIBITS                  AND REPORTS ON FORM 8-K |
|--------------------------|---------------------------------------------------|

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

|   | (b) | The                  Company did not file any reports on Form 8-K during the quarter                  ended                  September 30, 2007. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| BY                  /s/ Frank West                     | BY                  /s/ Connie Woods Hawkins       |
|--------------------------------------------------------|----------------------------------------------------|
| Frank                  West                            | Connie                  Woods Hawkins              |
| President                  and Chief Executive Officer | Executive                  Vice-President, Cashier |
|                                                   | and                  Chief Financial Officer       |
|                                                   |                                               |
|                                                   |                                               |
|                                                   |                                               |
| DATE:  November                  8, 2007     | DATE:  November                  8, 2007 |

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