**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: | June                30, 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)                        |                                                       |

| TITLE                                        | OUTSTANDING |
|----------------------------------------------|-------------|
| COMMON                STOCK, $5.00 PAR VALUE | 2,612,420   |

----

| TABLE                OF CONTENTS |
|----------------------------------|
|                             |   |   |
| PART                I.           | FINANCIAL                INFORMATION |   |
|                             |   |   |
| Item                1.           | Consolidated                Financial Statements |   |
|                             |   |   |
|                             | Consolidated                Statements of Condition | 1 |
|                             | June                30, 2006 and December 31, 2005 |   |
|                             |   |   |
|                             | Consolidated                Statements of Income | 2-3 |
|                             | Three                months and six months ended June 30, 2006 and 2005 |   |
|                             |   |   |
|                             | Consolidated                Statements of Comprehensive Income |  3 |
|                             | Three                months and six months ended June 30, 2006 and 2005 |   |
|                             |   |   |
|                        | Consolidated                Statements of Cash Flows | 4-5 |
|                             | Six                months ended June 30, 2006 and 2005 |   |
|                             |   |   |
|                             | Notes                to Consolidated Financial Statements |  5-6 |
|                             |   |   |
| Item                2.           | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations |  6-10 |
|                             |   |   |
| Item                3.           | Quantitative                and Qualitative Disclosures about Market Risk |  10 |
|                             |   |   |
| Item                4.           | Controls                and Procedures |  10 |
|                             |   |   |
|                             |   |   |
| PART                II.          | OTHER                INFORMATION |   |
|                             |   |   |
| Item                1.           | Legal                Proceedings |  11 |
|                             |   |   |
| Item                2.           | Changes                in Securities |  11 |
|                             |   |   |
| Item                3.           | Defaults                upon Senior Securities |  11 |
|                             |   |   |
| Item                4.           | Submission                of Matters to a Vote of Security Holders |  11 |
|                             |   |   |
| Item                5.           | Other                Information |  11 |
|                             |   |   |
| Item                6.           | Exhibits                and Reports on Form 8-K |  11 |

----

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

|                      SECURITY CAPITAL CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (dollar                amounts presented in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (Unaudited) |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | June                30, |   | Dec.                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2006 |   | 2005 |   |
|                                                                                                    ASSETS |   |
| Cash                and due from banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $ | 17,390 |   | $ | 19,138 |   |
| Interest-bearing                deposits with banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 142 |   |   | 539 |   |
| Total                cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 17,532 |   |   | 19,677 |   |
| Federal                funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 0 |   |   | 0 |   |
| Term                deposits with other banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 392 |   |   | 392 |   |
| Securities                available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 74,416 |   |   | 78,949 |   |
| Securities                held-to-maturity, estimated fair value of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2,046 |   |   | 2,047 |   |
| $2,045                in 2006 and $2,063 in 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| Securities,                other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 1,904 |   |   | 1,456 |   |
| Total                securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 78,366 |   |   | 82,452 |   |
| Loans,                less allowance for loan losses of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| $4,331                in 2006 and $3,899 in 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 314,704 |   |   | 294,046 |   |
| Interest                receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 4,395 |   |   | 4,015 |   |
| Premises                and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 20,921 |   |   | 18,706 |   |
| Intangible                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 3,874 |   |   | 3,874 |   |
| Cash                surrender value of life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 5,765 |   |   | 5,670 |   |
| Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 7,296 |   |   | 7,044 |   |
| Total                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $ | 453,245 |   | $ | 435,876 |   |
| LIABILITIES                AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| Noninterest-bearing                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $ | 54,412 |   | $ | 63,082 |   |
| Time                deposits of $100,000 or more                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 70,806 |   |   | 59,438 |   |
| Other                interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 236,419 |   |   | 232,246 |   |
| Total                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 361,637 |   |   | 354,766 |   |
| Interest                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 1,327 |   |   | 1,038 |   |
| Federal                Funds Purchased                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 12,000 |   |   | 15,000 |   |
| Other                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2,665 |   |   | 3,789 |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 403,050 |   |   | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 31,407 |   |   | 31,380 |   |
| Retained                Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 6,612 |   |   | 3,003 |   |
| Accumulated                other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (886 | ) |   | (255 | ) |
| Treasury                stock, at par, 10,458 shares and 11,058                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
| shares                in 2006 and 2005, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (52 | ) |   | (55 | ) |
| Total                Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 50,195 |   |   | 47,187 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| Total                Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 453,245 |   | $ | 435,876 |   |

----

| SECURITY                  CAPITAL CORPORATION            |   |
|----------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF INCOME       |   |
| (dollar                  amounts presented in thousands) |   |
|                                                     |   |
|                                                     |   | (Unaudited) |   | (Unaudited) |   |
|                                                     |   | For                  the three months |   | For                  the six months |   |
|                                                     |   | ended                  June 30, |   | ended                  June 30, |   |
|                                                     |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
| INTEREST                  INCOME                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  and fees on loans              |   | $ | 6,786 |   | $ | 4,881 |   | $ | 12,881 |   | $ | 9,133 |   |
| Interest                  and dividends on securities    |   |   | 842 |   |   | 950 |   |   | 1,661 |   |   | 1,912 |   |
| Federal                  funds sold                      |   |   | 8 |   |   | 48 |   |   | 42 |   |   | 97 |   |
| Other                                                    |   |   | 49 |   |   | 27 |   |   | 107 |   |   | 96 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  interest income                   |   |   | 7,685 |   |   | 5,906 |   |   | 14,691 |   |   | 11,238 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                  EXPENSE                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  on deposits                    |   |   | 2,406 |   |   | 1,478 |   |   | 4,542 |   |   | 2,670 |   |
| Interest                  on borrowings                  |   |   | 184 |   |   | 107 |   |   | 343 |   |   | 202 |   |
| Interest                  on federal funds purchased     |   |   | 79 |   |   | 10 |   |   | 103 |   |   | 10 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  interest expense                  |   |   | 2,669 |   |   | 1,595 |   |   | 4,988 |   |   | 2,882 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Interest Income                     |   |   | 5,016 |   |   | 4,311 |   |   | 9,703 |   |   | 8,356 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses               |   |   | 242 |   |   | 185 |   |   | 483 |   |   | 370 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income after provision     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                  loan losses                         |   |   | 4,774 |   |   | 4,126 |   |   | 9,220 |   |   | 7,986 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts     |   |   | 1,125 |   |   | 1,056 |   |   | 2,237 |   |   | 2,016 |   |
| Trust                  Department income                 |   |   | 243 |   |   | 256 |   |   | 501 |   |   | 517 |   |
| Securities                  net gain                     |   |   | 6 |   |   | - |   |   | - |   |   | 7 |   |
| Other                  income                            |   |   | 193 |   |   | 243 |   |   | 420 |   |   | 514 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  other income                      |   |   | 1,567 |   |   | 1,555 |   |   | 3,158 |   |   | 3,054 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  EXPENSES                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits          |   |   | 2,298 |   |   | 2,135 |   |   | 4,572 |   |   | 4,172 |   |
| Occupancy                  expense                       |   |   | 468 |   |   | 355 |   |   | 889 |   |   | 735 |   |
| Securities                  net loss                     |   |   | - |   |   | - |   |   | 7 |   |   |   |   |
| Other                  operating expense                 |   |   | 821 |   |   | 779 |   |   | 1,577 |   |   | 1,437 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  other expenses                    |   |   | 3,587 |   |   | 3,269 |   |   | 7,045 |   |   | 6,344 |   |

----

|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| INCOME                  BEFORE PROVISION    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR                  INCOME TAXES           |   |   | 2,754  |   |   | 2,412  |   |   | 5,333  |   |   | 4,696  |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES |   |   | 927    |   |   | 593    |   |   | 1,724  |   |   | 1,250  |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  INCOME                 |   | $      | 1,827  |   | $      | 1,819  |   | $      | 3,609  |   | $      | 3,446  |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                  NET INCOME PER SHARE |   | $      | 0.70   |   | $      | 0.70   |   | $      | 1.38   |   | $      | 1.32   |   |

| SECURITY                      CAPITAL CORPORATION                    |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED                      STATEMENTS OF COMPREHENSIVE INCOME |   |
| (dollar                      amounts presented in thousands)         |   |
|                                                                 |   |   |   |   |   |   |   |
|                                                                 |   | (Unaudited) |   | (Unaudited) |   |
|                                                                 |   | For                      the three months |   | For                      the six months |   |
|                                                                 |   | ended                      June 30, |   | ended                      June 30, |   |
|                                                                 |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
| Net                      income                                      |   | $ | 1,827 |   | $ | 1,819 |   | $ | 3,609 |   | $ | 3,446 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                      comprehensive income, net of tax:         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gains/(losses)               |   |   | (546 | ) |   | 321 |   |   | (631 | ) |   | (151 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                      income                            |   | $ | 1,281 |   | $ | 2,140 |   | $ | 2,978 |   | $ | 3,295 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SECURITY                CAPITAL CORPORATION                                                                                                                                                                        |                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                                                                                                               |                                                                                                                                                                                            |
| (dollar                amounts presented in thousands)                                                                                                                                                             |                                                                                                                                                                                            |
|                                     |                                    (Unaudited)                                                        |
|                                                                                                                                                                                                               |                                   Six months ended                                               |
|                                                                                                                                                                                                               |                                            June 30, |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   | 2006 |   |   | 2005 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| NET                INCOME                                                                                                                                                                                          |                                                                                                                                                                                            | $ | 3,609 |   | $ | 3,446 |   |
| Adjustments                to reconcile net income to                                                                                                                                                              |                                                                                                                                                                                            |   |   |   |   |   |   |
| net                cash provided by operating activities:                                                                                                                                                          |                                                                                                                                                                                            |   |   |   |   |   |   |
| Provision                for loan losses                                                                                                                                                                           |                                                                                                                                                                                            |   | 483 |   |   | 370 |   |
| Amortization                of premiums and discounts on securities, net                                                                                                                                           |                                                                                                                                                                                            |   | 162 |   |   | 345 |   |
| Depreciation                and amortization                                                                                                                                                                       |                                                                                                                                                                                            |   | 477 |   |   | 399 |   |
| FHLB                stock dividend                                                                                                                                                                                 |                                                                                                                                                                                            |   | (29 | ) |   | (16 | ) |
| Loss                (gain)on sale of securities                                                                                                                                                                    |                                                                                                                                                                                            |   | (7 | ) |   | (7 | ) |
| Loss                (gain) on sale/disposal of other assets                                                                                                                                                        |                                                                                                                                                                                            |   | (36 | ) |   | (11 | ) |
| Changes                in:                                                                                                                                                                                         |                                                                                                                                                                                            |   |   |   |   |   |   |
| Interest                receivable                                                                                                                                                                                 |                                                                                                                                                                                            |   | (380 | ) |   | (247 | ) |
| Other                assets                                                                                                                                                                                        |                                                                                                                                                                                            |   | (6,597 | ) |   | (2,933 | ) |
| Interest                payable                                                                                                                                                                                    |                                                                                                                                                                                            |   | 289 |   |   | (84 | ) |
| Other                liabilities                                                                                                                                                                                   |                                                                                                                                                                                            |   | (1,124 | ) |   | 2,504 |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| Net                cash provided by operating activities                                                                                                                                                           |                                                                                                                                                                                            |   |            (3,153) |   |   | 3,766 |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                |                                                                                                                                                                                            |   |   |   |   |   |   |
| Increase                in loans                                                                                                                                                                                   |                                                                                                                                                                                            |   | (20,658 | ) |   | (42,676 | ) |
| Purchase                of securities available for sale                                                                                                                                                           |                                                                                                                                                                                            |   | (6,500 | ) |   | (19,098 | ) |
| Proceeds                of maturities and calls of securities available for sale                                                                                                                                   |                                                                                                                                                                                            |   | 9,866 |   |   | 23,464 |   |
| Additions                to premises and equipment                                                                                                                                                                 |                                                                                                                                                                                            |   | 2,660 |   |   | (3,684 | ) |
| Proceeds                of sale of other assets                                                                                                                                                                    |                                                                                                                                                                                            |   | 510 |   |   | 152 |   |
| Increase                in life insurance                                                                                                                                                                          |                                                                                                                                                                                            |   | (95 | ) |   | (2,089 | ) |
| Changes                in:                                                                                                                                                                                         |                                                                                                                                                                                            |   |   |   |   |   |   |
| Federal                funds sold                                                                                                                                                                                  |                                                                                                                                                                                            |   | - |   |   | 14,000 |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| Net                cash used in investing activities                                                                                                                                                               |                                                                                                                                                                                            |   | (14,217 | ) |   | (29,931 | ) |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                |                                                                                                                                                                                            |   |   |   |   |   |   |
| Changes                in:                                                                                                                                                                                         |                                                                                                                                                                                            |   |   |   |   |   |   |
| Deposits                                                                                                                                                                                                           |                                                                                                                                                                                            |   | 6,871 |   |   | 13,337 |   |
| Federal                Funds purchased                                                                                                                                                                             |                                                                                                                                                                                            |   | (3,000 | ) |   | 10,000 |   |
| Reissuance                of treasury stock                                                                                                                                                                        |                                                                                                                                                                                            |   | 30 |   |   | 58 |   |
| Repayment                of debt                                                                                                                                                                                   |                                                                                                                                                                                            |   | (1,388 | ) |   | (990 | ) |
| Proceeds                from issuance of debt                                                                                                                                                                      |                                                                                                                                                                                            |   | 12,712 |   |   | 3,328 |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                            |   |   |   |   |   |   |
| Net                cash provided by financing activities                                                                                                                                                           |                                                                                                                                                                                            |   | 15,225 |   |   | 25,733 |   |

----

|                                                                |   |    |   |    |   |
|---------------------------------------------------------------------|--------|--------------|--------|--------------|--------|
| Net                increase (decrease) in cash and cash equivalents |   |         | (2,145 | )            |   | (432 | ) |
|                                                                |   |         |   |         |   |   |   |
| Cash                and cash equivalents at beginning of year       |   |         | 19,677 |         |   | 16,088 |   |
|                                                                |   |         |   |         |   |   |   |
| Cash                and cash equivalents at end of period           |   | $            | 17,532 |         | $      | 15,656 |   |

----

|                                            |   | For                the Three Months Ended |      |
|-------------------------------------------------|--------|-------------------------------------------|-----------|
|                                            |   | June                30, 2006              |      |
| Net                Income                       |   |                                      |      |   |   | Shares |   |   | Per                Share |   |
| (Numerator)                                     |   |                                      |      |   |   | (Denominator | ) |   | Data |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| Basic                per Share                  |   | $                                         | 1,826,550 |   |   | 2,612,271 |   | $ | 0.70 |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| For                the Six Months Ended         |   |                                      |
| June                30, 2006                    |   |                                      |
| Net                Income                       |   |                                      |      |   |   | Shares |   |   | Per                Share |   |
| (Numerator)                                     |   |                                      |      |   |   | (Denominator | ) |   | Data |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| Basic                per Share                  |   | $                                         | 3,608,873 |   |   | 2,612,118 |   | $ | 1.38 |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| For                the Three Months Ended       |   |                                      |
| June                30, 2005                    |   |                                      |
| (as                restated for stock dividend) |   |                                      |
| Net                Income                       |   |                                      |      |   |   | Shares |   |   | Per                Share |   |
| (Numerator)                                     |   |                                      |      |   |   | (Denominator | ) |   | Data |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| Basic                per Share                  |   | $                                         | 1,818,406 |   |   | 2,611,023 |   | $ | 0.70 |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| For                the Six Months Ended         |   |                                      |
| June                30, 2005                    |   |                                      |
| (as                restated for stock dividend) |   |                                      |
| Net                Income                       |   |                                      |      |   |   | Shares |   |   | Per                Share |   |
| (Numerator)                                     |   |                                      |      |   |   | (Denominator | ) |   | Data |   |
|                                            |   |                                      |      |   |   |   |   |   |   |   |
| Basic                per Share                  |   | $                                         | 3,445,694 |   |   | 2,610,640 |   | $ | 1.32 |   |

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

----

----

|                                                       | (in                thousands) |
|------------------------------------------------------------|-------------------------------|
| Past                due 30 days through 89 days            | $3,702                        |
| Past                due 90 days or more and still accruing | $1,482                        |

----

|                                    | Corporation | Bank   |         |
|-----------------------------------------|-------------|--------|--------------|
| Risk-Based                Capital Ratio | Ratio       | Ratio  | Requirements |
| Total                Capital            | 14.68%      | 14.20% | 8%           |
| Tier                1 Capital           | 13.45%      | 12.96% | 4%           |
| Leverage                Capital         | 10.67%      | 10.27% | 3%           |
|                                    |        |   |         |

----

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

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

| 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                June                30, 2006. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 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:                August 11, 2006            | DATE:                August 11, 2006                 |