**U.        S. 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: | March                  31, 2006 |
|--------------------------------------------------|---------------------------------|
|                                             | -------------------------       |

| 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)                      |                                                       |

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| TITLE                                          | OUTSTANDING |
|------------------------------------------------|-------------|
| COMMON                  STOCK, $5.00 PAR VALUE | 2,612,070   |

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| TABLE                  OF CONTENTS |
|------------------------------------|
|                               |   |   |
| PART                  I.           | FINANCIAL                  INFORMATION |  1 |
|                               |   |   |
| Item                  1.           | Consolidated                  Financial Statements |  1 |
|                               |   |   |
|                               | Consolidated                  Statements of Condition |  1 |
|                               | March                  31, 2006 and December 31, 2005 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Income |  2-3 |
|                               | Three                  months ended March 31, 2006 and 2005 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Comprehensive Income |  3 |
|                               | Three                  months ended March 31, 2006 and 2005 |   |
|                               |   |   |
|                               | Consolidated                  Statements of Cash Flows |  4-5 |
|                               | Three                  months ended March 31, 2006 and 2005 |   |
|                               |   |   |
|                               | Notes                  to Consolidated Financial Statements |  6-7 |
|                               |   |   |
| Item                  2.           | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations |  8-11 |
|                               |   |   |
| Item                  3.           | Quantitative                  and Qualitative Disclosures about Market Risk |  11 |
|                               |   |   |
| Item                  4.           | Controls                  and Procedures |  11 |
|                               |   |   |
|                               |   |   |
| PART                  II.          | OTHER                  INFORMATION |  12 |
|                               |   |   |
| Item                  1.           | Legal                  Proceedings |  12 |
|                               |   |   |
| Item                  2.           | Changes                  in Securities |  12 |
|                               |   |   |
| Item                  3.           | Defaults                  upon Senior Securities |  12 |
|                               |   |   |
| Item                  4.           | Submission                  of Matters to a Vote of Security Holders |  12 |
|                               |   |   |
| Item                  5.           | Other                  Information |  12 |
|                               |   |   |
| Item                  6.           | Exhibits                  and Reports on Form 8-K |  12 |

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

| SECURITY                  CAPITAL CORPORATION                         |   |
|-----------------------------------------------------------------------|--------|
| CONSOLIDATED                  BALANCE SHEETS                          |   |
| (dollar                  amounts presented in thousands)              |   |
|                                                                  |   |   |   |   |   |
|                                                                  |   | (Unaudited) |   |   |   |
|                                                                  |   |   | March                  31, 2006 |   |   | Dec.                31, 2005 |   |
| ASSETS                                                                |
| Cash                  and due from banks                              |   | $ | 14,570 |   | $ | 19,138 |   |
| Interest-bearing                  deposits with banks                 |   |   | 6,075 |   |   | 539 |   |
| Total                  cash and cash equivalents                      |   |   | 20,645 |   |   | 19,677 |   |
| Federal                  funds sold                                   |   |   | 1,000 |   |   | 0 |   |
| Term                  deposits with other banks                       |   |   | 392 |   |   | 392 |   |
| Securities                  available-for-sale                        |   |   | 76,651 |   |   | 78,949 |   |
| Securities                  held-to-maturity, estimated fair value of |   |   | 2,046 |   |   | 2,047 |   |
| $2,060                  in 2006 and $2,063 in 2005                    |   |   |   |   |   |   |   |
| Securities,                  other                                    |   |   | 1,469 |   |   | 1,456 |   |
| Total                  securities                                     |   |   | 80,166 |   |   | 82,452 |   |
| Loans,                  less allowance for loan losses of             |   |   |   |   |   |   |   |
| $4,175                  in 2006 and $3,899 in 2005                    |   |   | 301,482 |   |   | 294,046 |   |
| Interest                  receivable                                  |   |   | 4,154 |   |   | 4,015 |   |
| Premises                  and equipment                               |   |   | 19,416 |   |   | 18,706 |   |
| Intangible                  assets                                    |   |   | 3,874 |   |   | 3,874 |   |
| Cash                  surrender value of life insurance               |   |   | 5,722 |   |   | 5,670 |   |
| Other                  assets                                         |   |   | 7,839 |   |   | 7,044 |   |
| Total                  Assets                                         |   | $ | 444,690 |   | $ | 435,876 |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                 |
| Liabilities:                                                          |   |   |   |   |   |   |   |
| Noninterest-bearing                  deposits                         |   | $ | 60,221 |   | $ | 63,082 |   |
| Time                  deposits of $100,000 or more                    |   |   | 63,113 |   |   | 59,438 |   |
| Other                  interest-bearing deposits                      |   |   | 252,265 |   |   | 232,246 |   |
| Total                  deposits                                       |   |   | 375,599 |   |   | 354,766 |   |
| Interest                  payable                                     |   |   | 1,047 |   |   | 1,038 |   |
| Federal                  Funds Purchased                              |   |   | 0 |   |   | 15,000 |   |
| Borrowed                  funds                                       |   |   | 13,152 |   |   | 14,096 |   |
| Other                  liabilities                                    |   |   | 5,996 |   |   | 3,789 |   |
| Total                  Liabilities                                    |   |   | 395,794 |   |   | 388,689 |   |
| Shareholders'                  equity:                                |   |   |   |   |   |   |   |
| Common                  stock - $5 par value, 5,000,000 shares        |   |   |   |   |   |   |   |
| authorized,                  2,622,878 shares issued in 2006          |   |   |   |   |   |   |   |
| and                  2005                                             |   |   | 13,114 |   |   | 13,114 |   |
| Surplus                                                               |   |   | 31,391 |   |   | 31,380 |   |
| Retained                  Earnings                                    |   |   | 4,785 |   |   | 3,003 |   |
| Accumulated                  other comprehensive income               |   |   | (340 | ) |   | (255 | ) |
| Treasury                  stock, at par, 10,808 shares and 11,058     |   |   |   |   |   |   |   |
| shares                  in 2006 and 2005, respectively                |   |   | (54 | ) |   | (55 | ) |
| Total                  Shareholders' Equity                           |   |   | 48,896 |   |   | 47,187 |   |

----

|                                                        |   |   |    |   |   |    |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Total                  Liabilities and Shareholders' Equity |   | $      | 444,690 |   | $      | 435,876 |   |

| SECURITY                  CAPITAL CORPORATION            |   |
|----------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF INCOME       |   |
| (dollar                  amounts presented in thousands) |   |
|                                                     |   | (Unaudited) |   |
|                                                     |   | For                  the three months |   |
|                                                     |   | ended                  March 31, |   |
|                                                     |   | 2006 |   | 2005 |   |
| INTEREST                  INCOME                         |   |   |   |   |   |   |   |
| Interest                  and fees on loans              |   | $ | 6,095 |   | $ | 4,252 |   |
| Interest                  and dividends on securities    |   |   | 819 |   |   | 962 |   |
| Federal                  funds sold                      |   |   | 34 |   |   | 49 |   |
| Other                                                    |   |   | 58 |   |   | 69 |   |
|                                                     |   |   |   |   |   |   |   |
| Total                  interest income                   |   |   | 7,006 |   |   | 5,332 |   |
|                                                     |   |   |   |   |   |   |   |
| INTEREST                  EXPENSE                        |   |   |   |   |   |   |   |
| Interest                  on deposits                    |   |   | 2,136 |   |   | 1,192 |   |
| Interest                  on borrowings                  |   |   | 159 |   |   | 95 |   |
| Interest                  on federal funds purchased     |   |   | 24 |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |
| Total                  interest expense                  |   |   | 2,319 |   |   | 1,287 |   |
|                                                     |   |   |   |   |   |   |   |
| Net                  Interest Income                     |   |   | 4,687 |   |   | 4,045 |   |
|                                                     |   |   |   |   |   |   |   |
| Provision                  for loan losses               |   |   | 241 |   |   | 185 |   |
|                                                     |   |   |   |   |   |   |   |
| Net                  interest income after provision     |   |   |   |   |   |   |   |
| for                  loan losses                         |   |   | 4,446 |   |   | 3,860 |   |
|                                                     |   |   |   |   |   |   |   |
| OTHER                  INCOME                            |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts     |   |   | 1,112 |   |   | 960 |   |
| Trust                  Department income                 |   |   | 258 |   |   | 261 |   |
| Securities                  net gain                     |   |   | - |   |   | 7 |   |
| Other                  income                            |   |   | 227 |   |   | 271 |   |
|                                                     |   |   |   |   |   |   |   |
| Total                  other income                      |   |   | 1,597 |   |   | 1,499 |   |
|                                                     |   |   |   |   |   |   |   |
| OTHER                  EXPENSES                          |   |   |   |   |   |   |   |
| Salaries                  and employee benefits          |   |   | 2,274 |   |   | 2,037 |   |
| Occupancy                  expense                       |   |   | 421 |   |   | 380 |   |
| Securities                  net loss                     |   |   | 13 |   |   | - |   |
| Other                  operating expense                 |   |   | 756 |   |   | 658 |   |
| Total                  other expenses                    |   |   | 3,464 |   |   | 3,075 |   |

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|                                        |   |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| INCOME                  BEFORE PROVISION    |   |   |   |   |   |   |   |
| FOR                  INCOME TAXES           |   |   | 2,579  |   |   | 2,284  |   |
|                                        |   |   |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES |   |   | 797    |   |   | 657    |   |
|                                        |   |   |   |   |   |   |   |
| NET                  INCOME                 |   | $      | 1,782  |   | $      | 1,627  |   |
|                                        |   |   |   |   |   |   |   |
| BASIC                  NET INCOME PER SHARE |   | $      | 0.68   |   | $      | 0.62   |   |

|   | SECURITY                  CAPITAL CORPORATION                    |
|--------|------------------------------------------------------------------|
|   | CONSOLIDATED                  STATEMENTS OF COMPREHENSIVE INCOME |
|   | (dollar                  amounts presented in thousands)         |
|   |                                                             | (Unaudited) |
|   |                                                             |
|   |                                                             | For                  the three months |
|   |                                                             | ended                  March 31, |
|   |                                                             | 2006 |   |   | 2005 |
|   |                                                             |   |   |   |   |
|   | Net                  income                                      | $                  1,782 |   |   | $                  1,627 |
|   |                                                             |   |   |   |   |
|   | Other                  comprehensive income, net of tax:         |   |   |   |   |
|   |                                                             |   |   |   |   |
|   | Unrealized                  holding gains/(losses)               | (85) |   |   | (477) |
|   |                                                             |   |   |   |   |
|   | Comprehensive                  income                            | $                  1,697 |   |   | $                  1,150 |
|   |                                                             |   |   |   |   |
|   |                                                             |   |   |   |   |

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| SECURITY                  CAPITAL CORPORATION                                      |   |
|------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF CASH FLOWS                             |   |
| (dollar                  amounts presented in thousands)                           |   |
|                                                                               |   | (Unaudited) |   |
|                                                                               |   | Three                  months ended |   |
|                                                                               |   | March                  31, |   |
|                                                                               |   | 2006 |   | 2005 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                             |   |   |   |   |   |
| NET                  INCOME                                                        |   | $ | 1,782 |   | $ | 1,627 |   |
| Adjustments                  to reconcile net income to                            |   |   |   |   |   |   |   |
| net                  cash provided by operating activities:                        |   |   |   |   |   |   |   |
| Provision                  for loan losses                                         |   |   | 241 |   |   | 185 |   |
| Amortization                  of premiums and discounts on securities, net         |   |   | 94 |   |   | 186 |   |
| Depreciation                  and amortization                                     |   |   | 237 |   |   | 214 |   |
| FHLB                  stock dividend                                               |   |   | (13 | ) |   | (7 | ) |
| Loss                  (gain)on sale of securities                                  |   |   | 13 |   |   | (7 | ) |
| Gain                  on sale/disposal of other assets                             |   |   | (18 | ) |   | (30 | ) |
| Changes                  in:                                                       |   |   |   |   |   |   |   |
| Interest                  receivable                                               |   |   | (139 | ) |   | 109 |   |
| Other                  assets                                                      |   |   | (1,428 | ) |   | 658 |   |
| Interest                  payable                                                  |   |   | (9 | ) |   | (114 | ) |
| Other                  liabilities                                                 |   |   | 2,207 |   |   | 1,494 |   |
|                                                                               |   |   |   |   |   |   |   |
| Net                  cash provided by operating activities                         |   |   | 2,967 |   |   | 4,315 |   |
|                                                                               |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                              |   |   |   |   |   |   |   |
| Increase                  in loans                                                 |   |   | (7,712 | ) |   | (19,185 | ) |
| Purchase                  of securities available for sale                         |   |   | (3,839 | ) |   | (15,390 | ) |
| Proceeds                  of maturities and calls of securities available for sale |   |   | 5,907 |   |   | 15,184 |   |
| Additions                  to premises and equipment                               |   |   | (710 | ) |   | (2,430 | ) |
| Proceeds                  of sale of other assets                                  |   |   | 506 |   |   | 30 |   |
| Increase                  in life insurance                                        |   |   | (52 | ) |   | (2,033 | ) |
| Changes                  in:                                                       |   |   |   |   |   |   |   |
| Federal                  funds sold                                                |   |   | (1,000 | ) |   | - |   |
|                                                                               |   |   |   |   |   |   |   |
| Net                  cash used in investing activities                             |   |   | (6,900 | ) |   | (23,824 | ) |
|                                                                               |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                              |   |   |   |   |   |   |   |
| Changes                  in:                                                       |   |   |   |   |   |   |   |
| Deposits                                                                           |   |   | 20,833 |   |   | 26,156 |   |
| Federal                  Funds purchased                                           |   |   | (15,000 | ) |   | - |   |
| Reissuance                  of treasury stock                                      |   |   | 12 |   |   | 33 |   |
| Repayment                  of debt                                                 |   |   | (1,244 | ) |   | (1,218 | ) |
| Proceeds                  from issuance of debt                                    |   |   | 300 |   |   | - |   |
|                                                                               |   |   |   |   |   |   |   |
| Net                  cash provided by financing activities                         |   |   | 4,901 |   |   | 24,971 |   |

----

|                                                            |   |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Net                  increase in cash and cash equivalents      |   |   | 968    |   |   | 5,462  |   |
|                                                            |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of year |   |   | 19,677 |   |   | 16,088 |   |
|                                                            |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of period     |   |   | 20,645 |   |   | 21,550 |   |

----

----

|                             | For                  the Three Months Ended       |
|----------------------------------|---------------------------------------------------|
|                             | March                  30, 2006                   |
|                             | Net                  Income                       |   | Shares |   | Per                  Share |
|                             | (Numerator)                                       |   | (Denominator) |   | Data |
|                             |                                              |   |   |   |   |
| Basic                  per Share | $                  1,782,323                      |   | 2,611,963 |   | $                  0.68 |
|                             |                                              |   |   |   |   |
|                             |                                              |   |   |   |   |
|                             | For                  the Three Months Ended       |
|                             | March                  30, 2005                   |
|                             | (as                  restated for stock dividend) |
|                             | Net                  Income                       |   | Shares |   | Per                  Share |
|                             | (Numerator)                                       |   | (Denominator) |   | Data |
|                             |                                              |   |   |   |   |
| Basic                  per Share | $                  1,627,288                      |   | 2,610,254 |   | $                  0.62 |
|                             |                                              |   |   |   |   |

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

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|                                                         | (in                  thousands) |
|--------------------------------------------------------------|---------------------------------|
| Past                  due 30 days through 89 days            | $5,240                          |
| Past                  due 90 days or more and still accruing | $                  804          |

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|                                      | Corporation | Bank   |         |
|-------------------------------------------|-------------|--------|--------------|
| Risk-Based                  Capital Ratio | Ratio       | Ratio  | Requirements |
| Total                  Capital            | 14.57%      | 14.06% | 8%           |
| Tier                  1 Capital           | 13.34%      | 12.82% | 4%           |
| Leverage                  Capital         | 10.38%      | 9.96%  | 3%           |
|                                      |        |   |         |

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

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

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

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

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

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

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

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

|   | (b) | The                  Company did not file any reports on Form 8-K during the quarter                  ended                  March 31, 2006. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                             |   |                                    |                                                                                                                                                                                                                   |
|------------------------------------------------------------------|--------|-----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| By:                   /s/ Frank West                        |   |       By: | /s/ Connie                  Woods Hawkins                                                                                                                                                                         |
|                                                                  |   |                                    |                                                                                                                                                                                                                        |
| Frank                  WestPresident and Chief Executive Officer |   |                                    | Connie                    Woods HawkinsExecutive Vice-President, Cashier                and                    Chief Financial Officer |

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