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

| FOR      THE QUARTERLY PERIOD ENDED: | September      30, 2009   |
|--------------------------------------|---------------------------|
|                                 | ------------------------- |

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

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

| 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 | 2,883,109   |

----

| TABLE      OF CONTENTS |
|------------------------|
|                   |   |   |
| PART      I.           | FINANCIAL      INFORMATION |   |
|                   |   |   |
| Item      1.           | Consolidated      Financial Statements |   |
|                   |   |   |
|                   | Consolidated      Balance Sheets |   |
|                   | September      30, 2009 (unaudited) and December 31, 2008 |   |
|                   |   |   |
|                   | Consolidated      Statements of Income |   |
|                   | Nine      months and three months ended September 30, 2009 and 2008      (unaudited) |   |
|                   |   |   |
|                   | Consolidated      Statements of Comprehensive Income |   |
|                   | Nine      months and three months ended September 30, 2009 and 2008      (unaudited) |   |
|                   |   |   |
|                   | Consolidated      Statements of Cash Flows |   |
|                   | Nine      months ended September 30, 2009 and 2008 (unaudited) |   |
|                   |   |   |
|                   | Notes      to Consolidated Financial Statements |   |
|                   |   |   |
| Item      2.           | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |   |
|                   |   |   |
| Item      3.           | Quantitative      and Qualitative Disclosures about Market Risk |   |
|                   |   |   |
| Item      4.           | Controls      and Procedures |   |
|                   |   |   |
|                   |   |   |
| PART      II.          | OTHER      INFORMATION |   |
|                   |   |   |
| Item      1.           | Legal      Proceedings |   |
|                   |   |   |
| Item      1A.          | Risk      Factors |   |
|                   |   |   |
| Item      2.           | Changes      in Securities |   |
|                   |   |   |
| Item      3.           | Defaults      upon Senior Securities |   |
|                   |   |   |
| Item      4.           | Submission      of Matters to a Vote of Security Holders |   |
|                   |   |   |
| Item      5.           | Other      Information |   |
|                   |   |   |
| Item      6.           | Exhibits      and Reports on Form 8-K |   |

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

----

| SECURITY CAPITAL CORPORATION                                             |   |
|--------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                         |   |
| (dollar      amounts presented in thousands)                             |   |
|                                                                     |   | (Unaudited) |   |   |   |   |
|                                                                     |   | Sept.      30, |   |   | Dec.      31, |   |
|                                                                     |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                   |   |   |   |   |   |   |
| Cash      and due from banks                                             |   | $ | 18,532 |   |   | $ | 16,953 |   |
| Interest-bearing      deposits with banks                                |   |   | 5,798 |   |   |   | 395 |   |
|    Total      cash and cash equivalents                   |   |   | 24,330 |   |   |   | 17,348 |   |
| Federal      funds sold                                                  |   |   | 19,000 |   |   |   | - |   |
| Term      deposits with other banks                                      |   |   | 296 |   |   |   | 198 |   |
| Securities      available-for-sale                                       |   |   | 92,758 |   |   |   | 69,890 |   |
| Securities      held-to-maturity, estimated fair value of                |   |   | 5,145 |   |   |   | 5,375 |   |
|    $5,597      in 2009 and $5,331 in 2008                 |   |   |   |   |   |   |   |   |
| Securities,      other                                                   |   |   | 2,222 |   |   |   | 2,218 |   |
|    Total      securities                                  |   |   | 100,125 |   |   |   | 77,483 |   |
| Loans,      less allowance for loan losses of                            |   |   |   |   |   |   |   |   |
|    $4,429      in 2009 and $3,675 in 2008                 |   |   | 274,370 |   |   |   | 306,678 |   |
| Interest      receivable                                                 |   |   | 3,267 |   |   |   | 3,733 |   |
| Premises      and equipment                                              |   |   | 24,186 |   |   |   | 24,548 |   |
| Other      Real Estate                                                   |   |   | 18,554 |   |   |   | 14,046 |   |
| Intangible      assets                                                   |   |   | 3,874 |   |   |   | 3,874 |   |
| Cash      surrender value of life insurance                              |   |   | 6,447 |   |   |   | 6,286 |   |
| Other      assets                                                        |   |   | 3,854 |   |   |   | 8,291 |   |
| Total      Assets                                                        |   | $ | 478,303 |   |   | $ | 462,485 |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                |   |   |   |   |   |   |   |   |
| Liabilities:                                                             |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      deposits                      |   | $ | 56,217 |   |   | $ | 59,670 |   |
|    Time      deposits of $100,000 or more                 |   |   | 67,417 |   |   |   | 57,598 |   |
|    Other      interest-bearing deposits                   |   |   | 243,949 |   |   |   | 240,215 |   |
|       Total      deposits                  |   |   | 367,583 |   |   |   | 357,483 |   |
|    Interest      payable                                  |   |   | 541 |   |   |   | 1,017 |   |
|    Federal      funds purchased                           |   |   | - |   |   |   | 8,000 |   |
|    Borrowed      funds                                    |   |   | 28,220 |   |   |   | 33,929 |   |
|    Other      liabilities                                 |   |   | 6,938 |   |   |   | 6,077 |   |
| Total      Liabilities                                                   |   |   | 403,282 |   |   |   | 406,506 |   |
| Shareholders'      equity:                                               |   |   |   |   |   |   |   |   |
|    Preferred      stock - $1,000 par value, 30,000 shares |   |   |   |   |   |   |   |   |
|    authorized,      17,910 shares issued in 2009 and zero |   |   |   |   |   |   |   |   |
|    shares      issued in 2008                             |   |   | 17,447 |   |   |   | - |   |
|    Common      stock - $5 par value, 10,000,000 shares    |   |   |   |   |   |   |   |   |
|    authorized,      2,890,811 shares issued in 2009       |   |   |   |   |   |   |   |   |
|    and      2008                                          |   |   | 14,454 |   |   |   | 14,454 |   |
| Surplus                                                                  |   |   | 40,732 |   |   |   | 40,723 |   |
| Retained      Earnings                                                   |   |   | 824 |   |   |   | 167 |   |
| Accumulated      other comprehensive income                              |   |   | 1,603 |   |   |   | 676 |   |
| Treasury      stock, at par, 7,702 shares and 8,152                      |   |   |   |   |   |   |   |   |
|    shares      in 2009 and 2008, respectively             |   |   | (39 | ) |   |   | (41 | ) |
| Total      Shareholders' Equity                                          |   |   | 75,021 |   |   |   | 55,979 |   |
| Total      Liabilities and Shareholders' Equity                          |   | $ | 478,303 |   |   | $ | 462,485 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |

----

| SECURITY CAPITAL CORPORATION                           |   |
|--------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF INCOME                 |   |
| (dollar      amounts presented in thousands)           |   |
|                                                   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                   |   | For      the three months |   |   | For      the nine months |   |
|                                                   |   | ended      September 30, |   |   | ended      September 30, |   |
|                                                   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| INTEREST      INCOME                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      and fees on loans                        |   | $ | 4,082 |   |   | $ | 5,574 |   |   | $ | 13,291 |   |   | $ | 18,065 |   |
| Interest      and dividends on securities              |   |   | 880 |   |   |   | 947 |   |   |   | 2,537 |   |   |   | 2,811 |   |
| Federal      funds sold                                |   |   | 15 |   |   |   | 10 |   |   |   | 33 |   |   |   | 89 |   |
| Other                                                  |   |   | 81 |   |   |   | 21 |   |   |   | 99 |   |   |   | 196 |   |
|    Total      interest income           |   |   | 5,058 |   |   |   | 6,552 |   |   |   | 15,960 |   |   |   | 21,161 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                              |   |   | 997 |   |   |   | 1,689 |   |   |   | 3,179 |   |   |   | 6,286 |   |
| Interest      on borrowings                            |   |   | 316 |   |   |   | 344 |   |   |   | 865 |   |   |   | 888 |   |
| Interest      on federal funds purchased               |   |   | - |   |   |   | 7 |   |   |   | 2 |   |   |   | 21 |   |
|     Total      interest expense    |   |   | 1,313 |   |   |   | 2,040 |   |   |   | 4,046 |   |   |   | 7,195 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                               |   |   | 3,745 |   |   |   | 4,512 |   |   |   | 11,914 |   |   |   | 13,966 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                         |   |   | 478 |   |   |   | 1,972 |   |   |   | 2,746 |   |   |   | 4,683 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income after provision               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for      loan losses                       |   |   | 3,267 |   |   |   | 2,540 |   |   |   | 9,168 |   |   |   | 9,283 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      charges on deposit accounts               |   |   | 1,222 |   |   |   | 1,333 |   |   |   | 3,692 |   |   |   | 3,896 |   |
| Trust      Department income                           |   |   | 201 |   |   |   | 166 |   |   |   | 622 |   |   |   | 645 |   |
| Securities      net gain                               |   |   | 9 |   |   |   | 11 |   |   |   | 20 |   |   |   | 13 |   |
| Other      income                                      |   |   | 296 |   |   |   | 753 |   |   |   | 1,067 |   |   |   | 1,478 |   |
|    Total      other income              |   |   | 1,728 |   |   |   | 2,263 |   |   |   | 5,401 |   |   |   | 6,032 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      EXPENSES                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                    |   |   | 2,656 |   |   |   | 2,623 |   |   |   | 7,927 |   |   |   | 8,043 |   |
| Occupancy      expense                                 |   |   | 676 |   |   |   | 604 |   |   |   | 2,041 |   |   |   | 1,792 |   |
| Other      operating expense                           |   |   | 1,048 |   |   |   | 977 |   |   |   | 3,656 |   |   |   | 2,783 |   |
|    Total      other expenses            |   |   | 4,380 |   |   |   | 4,204 |   |   |   | 13,624 |   |   |   | 12,618 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      BEFORE PROVISION                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FOR      INCOME TAXES                |   |   | 615 |   |   |   | 599 |   |   |   | 945 |   |   |   | 2,697 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION      (BENEFIT) FOR INCOME TAXES              |   |   | 14 |   |   |   | 64 |   |   |   | (10 | ) |   |   | 460 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                        |   |   | 601 |   |   |   | 535 |   |   |   | 955 |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      Dividends                               |   |   | (289 | ) |   |   | - |   |   |   | (299 | ) |   |   | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME APPLICABLE TO                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      COMMON      SHAREHOLDERS |   | $ | 312 |   |   | $ | 535 |   |   | $ | 656 |   |   | $ | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      NET INCOME PER COMMON SHARE                 |   | $ | 0.11 |   |   | $ | 0.19 |   |   | $ | 0.23 |   |   | $ | 0.78 |   |

----

| SECURITY      CAPITAL CORPORATION                        |   |
|----------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF COMPREHENSIVE INCOME     |   |
| (dollar      amounts presented in thousands)             |   |
|                                                     |   | (Unaudited) |   |   |   |   |   |   |
|                                                     |   | (Unaudited) |   |
|                                                     |   | For      the three months |   | For      the nine months |   |
|                                                     |   | ended      Sept. 30, |   | ended      Sept. 30, |   |
|                                                     |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                   |   | $ | 601 |   |   | $ | 535 |   |   | $ | 955 |   |   | $ | 2,237 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income, net of tax:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unrealized      holding gains/(losses) |   |   | 909 |   |   |   | 251 |   |   |   | 926 |   |   |   | (156 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income (loss)                         |   | $ | 1,510 |   |   | $ | 786 |   |   | $ | 1,881 |   |   | $ | 2,081 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SECURITY      CAPITAL CORPORATION                                                        |   |
|------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                               |   |
| (dollar      amounts presented in thousands)                                             |   |
|                                                                                     |   | (Unaudited) |   |
|                                                                                     |   | Nine      months ended |   |
|                                                                                     |   | September      30, |   |
|                                                                                     |   | 2009 |   |   | 2008 |   |
|  CASH      FLOWS FROM OPERATING ACTIVITIES:                                         |   |   |   |   |   |   |
|  NET      INCOME                                                                    |   | $ | 955 |   |   | $ | 2,237 |   |
|  Adjustments      to reconcile net income to                                        |   |   |   |   |   |   |   |   |
|     net      cash provided by operating activities:                  |   |   |   |   |   |   |   |   |
|     Provision      for loan losses                                   |   |   | 2,746 |   |   |   | 4,683 |   |
|     Amortization      of premiums and discounts on securities, net   |   |   | 216 |   |   |   | 33 |   |
|     Depreciation      and amortization                               |   |   | 943 |   |   |   | 923 |   |
|     FHLB      stock dividend                                         |   |   | (4 | ) |   |   | (37 | ) |
|     Loss      (gain) on securities                                   |   |   | (20 | ) |   |   | (13 | ) |
|      Impairment      loss on securities                         |   |   | - |   |   |   | - |   |
|     Gain      on sale/disposal of other assets                       |   |   | (103 | ) |   |   | (516 | ) |
|  Changes      in:                                                                   |   |   |   |   |   |   |   |   |
|     Interest      receivable                                         |   |   | 466 |   |   |   | 1,467 |   |
|     Cash      value of life insurance, net                           |   |   | (161 | ) |   |   | (158 | ) |
|     Other      assets                                                |   |   | 2,086 |   |   |   | (2,397 | ) |
|     Interest      payable                                            |   |   | (476 | ) |   |   | (1,008 | ) |
|     Other      liabilities                                           |   |   | 861 |   |   |   | 3,957 |   |
|  Net      cash provided by operating activities                                     |   |   | 7,509 |   |   |   | 9,171 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
|  CASH      FLOWS FROM INVESTING ACTIVITIES                                          |   |   |   |   |   |   |   |   |
|  Decrease      in loans                                                             |   |   | 23,870 |   |   |   | 1,370 |   |
|  Purchase      of securities available for sale                                     |   |   | (37,411 | ) |   |   | (11,410 | ) |
|  Proceeds      of maturities and calls of securities available for sale             |   |   | 16,806 |   |   |   | 5,143 |   |
|  Proceeds      of maturities and calls of securities held to maturity               |   |   | 230 |   |   |   | 220 |   |
|  Additions      to premises and equipment                                           |   |   | (851 | ) |   |   | (1,747 | ) |
|  Proceeds      of sale of other assets                                              |   |   | 2,040 |   |   |   | 536 |   |
|  Changes      in:                                                                   |   |   |   |   |   |   |   |   |
|     Federal      funds sold                                          |   |   | (19,000 | ) |   |   | - |   |
|  Net      cash used in investing activities                                         |   |   | (14,316 | ) |   |   | (5,888 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |
|  CASH      FLOWS FROM FINANCING ACTIVITIES                                          |   |   |   |   |   |   |   |   |
|  Changes      in:                                                                   |   |   |   |   |   |   |   |   |
|     Deposits                                                         |   |   | 10,100 |   |   |   | (22,602 | ) |
|     Federal      funds purchased                                     |   |   | (8,000 | ) |   |   | 7,000 |   |
|  Reissuance      of treasury stock                                                  |   |   | 11 |   |   |   | 23 |   |
|  Issuance      of preferred stock and warrants                                      |   |   | 17,388 |   |   |   |   |   |
|  Repayment      of debt                                                             |   |   | (5,830 | ) |   |   | (13,889 | ) |
|  Proceeds      from issuance of debt                                                |   |   | 120 |   |   |   | 24,158 |   |
|  Net      cash provided by (used in) financing activities                           |   |   | 13,789 |   |   |   | (5,310 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |
|  Net      increase (decrease) in cash and cash equivalents                          |   |   | 6,982 |   |   |   | (2,027 | ) |
|  Cash      and cash equivalents at beginning of period                              |   |   | 17,348 |   |   |   | 19,806 |   |
|  Cash      and cash equivalents at end of period                                    |   | $ | 24,330 |   |   | $ | 17,779 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
|  Cash      paid during the nine months for:                                         |   |   |   |   |   |   |   |   |
|    Interest                                                               |   | $ | 4,523 |   |   | $ | 8,203 |   |
|    Income      taxes                                                      |   |   | 56 |   |   |   | 610 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
| Noncash      activities:                                                                 |   |   |   |   |   |   |   |   |
|    Transfers      of loans to other real estate and repossessed inventory |   |   | 7,684 |   |   |   | 2,693 |   |
|                                                                                     |   |   |   |   |   |   |   |   |

----

----

| Securities                                                          |   |
|---------------------------------------------------------------------|--------|
| Amortized      Cost and Fair Values                                 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
|                                                                |   | Cost |   |   | Gains |   |   | Losses |   |   | Fair      Value |   |
|                                                                |   | (In      thousands) |   |
| September      30, 2009:                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities      available-for-sale:               |   |   |   |   |   |   |   |   |   |   |   |   |
|       U.      S. Government agencies  |   | $ | 8,746 |   |   | $ | 103 |   |   | $ | 8 |   |   | $ | 8,841 |   |
|       Mortgage-backed      securities |   |   | 40,160 |   |   |   | 1,586 |   |   |   | 9 |   |   |   | 41,737 |   |
|       State      and local political  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          subdivisions  |   |   | 41,293 |   |   |   | 1,085 |   |   |   | 202 |   |   |   | 42,176 |   |
|       Other      equity securities    |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 4 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | $ | 90,203 |   |   | $ | 2,774 |   |   | $ | 219 |   |   | $ | 92,758 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities      held-to-maturity:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       State      and local political  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          subdivisions  |   | $ | 5,145 |   |   | $ | 452 |   |   | $ | - |   |   | $ | 5,597 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities      available-for-sale:               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       U.      S. Government agencies  |   | $ | 995 |   |   | $ | 80 |   |   | $ | - |   |   | $ | 1,075 |   |
|       Mortgage-backed      securities |   |   | 36,551 |   |   |   | 983 |   |   |   | - |   |   |   | 37,534 |   |
|       State      and local political  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          subdivisions  |   |   | 31,263 |   |   |   | 270 |   |   |   | 255 |   |   |   | 31,278 |   |
|       Other      equity securities    |   |   | 4 |   |   |   | - |   |   |   | 1 |   |   |   | 3 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | $ | 68,813 |   |   | $ | 1,333 |   |   | $ | 256 |   |   | $ | 69,890 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities      held-to-maturity:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       State      and local political  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          subdivisions  |   | $ | 5,375 |   |   | $ | 50 |   |   | $ | 94 |   |   | $ | 5,331 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Loans                                                |   |
|------------------------------------------------------|--------|
| Major      Classifications                           |   |
|                                                 |   |   |   |   |   |   |
| Major      classifications of loans were as follows: |   |   |   |   |   |   |
|                                                 |   | September      30, |   |   | December      31, |   |
|                                                 |   | 2009 |   |   | 2008 |   |
|                                                 |   | (In      thousands) |   |
|                                                 |   |   |   |   |   |   |
| Commercial,      financial and agricultural          |   | $ | 35,753 |   |   | $ | 44,752 |   |
| Real      estate - construction and development      |   |   | 73,072 |   |   |   | 96,049 |   |
| Real      estate - mortgage                          |   |   | 145,913 |   |   |   | 144,647 |   |
| Installment      loans to individuals                |   |   | 21,718 |   |   |   | 22,999 |   |
| Other                                                |   |   | 2,343 |   |   |   | 1,906 |   |
|                                                 |   |   | 278,799 |   |   |   | 310,353 |   |
| Less      allowance for loan losses                  |   |   | (4,429 | ) |   |   | (3,675 | ) |
|                                                 |   | $ | 274,370 |   |   | $ | 306,678 |   |
|                                                 |   |   |   |   |   |   |   |   |

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

|                 | For      the Three Months Ended                                                                    |
|----------------------|----------------------------------------------------------------------------------------------------|
|                 | September      30, 2009                                                                            |
|                 | Basic      income                                                                                  |   |   |   |   |
|                 | applicable      to                                                                                 |   |   |   |   |
|                 | common                                                                                             |   |   |   |   |
|                 |  stockholders                                                                                 |   | Shares |   | Per      Share |
|                 |  (Numerator)                                                                                  |   | (Denominator) |   | Data |
|                 |                                                                                               |   |   |   |   |
| Basic      per Share |  $              312,321 |   | 2,883,050 |   |  $     0.11 |
|                 |                                                                                               |   |   |   |   |
|                 | For      the Nine Months Ended                                                                     |
|                 | September      30, 2009                                                                            |
|                 | Basic      income                                                                                  |   |   |   |   |
|                 | applicable      to                                                                                 |   |   |   |   |
|                 | common                                                                                             |   |   |   |   |
|                 |  stockholders                                                                                 |   | Shares |   | Per      Share |
|                 |  (Numerator)                                                                                  |   | (Denominator) |   | Data |
|                 |                                                                                               |   |   |   |   |
| Basic      per Share |  $              656,936 |   | 2,882,899 |   |  $     0.23 |

----

|                 | For      the Three Months Ended                                                                    |
|----------------------|----------------------------------------------------------------------------------------------------|
|                 | September      30, 2008                                                                            |
|                 | Basic      income                                                                                  |   |   |   |   |
|                 | applicable      to                                                                                 |   |   |   |   |
|                 | common                                                                                             |   |   |   |   |
|                 |  stockholders                                                                                 |   | Shares |   | Per      Share |
|                 |  (Numerator)                                                                                  |   | (Denominator) |   | Data |
|                 |                                                                                               |   |   |   |   |
| Basic      per Share |  $              534,766 |   | 2,882,465 |   |  $     0.19 |
|                 |                                                                                               |   |   |   |   |
|                 | For      the Nine Months Ended                                                                     |
|                 | September      30, 2008                                                                            |
|                 | Basic      income                                                                                  |   |   |   |   |
|                 | applicable      to                                                                                 |   |   |   |   |
|                 | common                                                                                             |   |   |   |   |
|                 |  stockholders                                                                                 |   | Shares |   | Per      Share |
|                 |  (Numerator)                                                                                  |   | (Denominator) |   | Data |
|                 |                                                                                               |   |   |   |   |
| Basic      per Share |  $           2,236,754                 |   | 2,882,235 |   |  $     0.78 |

|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level      1 | Valuations      for assets and liabilities traded in active exchange markets, such as the      New York Stock Exchange. Valuations are obtained from readily available      pricing sources for market transactions involving identical assets or      liabilities.                                                                                                                                                                                                                                                                                     |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Level      2 | Valuations      for assets and liabilities traded in less active dealer or broker markets.      Valuations are obtained from third party pricing services for identical or      comparable assets or liabilities which use observable inputs other than      Level 1 prices, such as quoted prices for similar assets or liabilities;      quoted prices in markets that are not active; or other inputs that are      observable or can be corroborated by observable market data for      substantially the full term of the assets and  liabilities. |
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Level      3 | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or  liabilities.                                                                                                                                                                                                                                                                                                                                                                                              |

----

| September 30, 2009                 |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|------------------------------------|----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|                               | Quoted                                                                                 |   | Models      with                                                    |   | Models      with                                                                                                                                   |   | Carrying                  |
|                               | market                                                                                 |   | significant                                                         |   | significant                                                                                                                                        |   | value                     |
|                               | prices      in                                                                         |   | observable                                                          |   | unobservable                                                                                                                                       |   | in      the               |
|                               | active                                                                                 |   | market                                                              |   | market                                                                                                                                             |   | Balance                   |
|                               | markets                                                                                |   | parameters                                                          |   | parameters                                                                                                                                         |   | Sheet                     |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|                               | Level 1                                                                                |   | Level 2                                                             |   | Level 3                                                                                                                                            |   | Total                     |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
| Description                        |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
| Available-for-sale      securities |  $             - |   |  $         92,758 |   |  $                       - |   |  $  92,758 |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
| December 31, 2008                  |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|                               | Quoted                                                                                 |   | Models      with                                                    |   | Models      with                                                                                                                                   |   | Carrying                  |
|                               | market                                                                                 |   | significant                                                         |   | significant                                                                                                                                        |   | value                     |
|                               | prices      in                                                                         |   | observable                                                          |   | unobservable                                                                                                                                       |   | in      the               |
|                               | active                                                                                 |   | market                                                              |   | market                                                                                                                                             |   | Balance                   |
|                               | markets                                                                                |   | parameters                                                          |   | parameters                                                                                                                                         |   | Sheet                     |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
|                               | Level 1                                                                                |   | Level 2                                                             |   | Level 3                                                                                                                                            |   | Total                     |
|                               |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
| Description                        |                                                                                   |   |                                                                |   |                                                                                                                                               |   |                      |
| Available-for-sale      securities |  $             - |   |  $         69,890 |   |  $                       - |   |  $  69,890 |

----

| September 30, 2009           |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|------------------------------|------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         | Carrying                                                                     |   | Quoted                                                                                                  |   | Models      with                                                                                                                                  |   | Models      with                                                                                                       |
|                         | value                                                                        |   | market                                                                                                  |   | significant                                                                                                                                       |   | significant                                                                                                            |
|                         | in      the                                                                  |   | prices      in                                                                                          |   | observable                                                                                                                                        |   | unobservable                                                                                                           |
|                         | Balance                                                                      |   | active                                                                                                  |   | market                                                                                                                                            |   | market                                                                                                                 |
|                         | Sheet                                                                        |   | markets                                                                                                 |   | parameters                                                                                                                                        |   | parameters                                                                                                             |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         | Fair Value                                                                   |   | Level 1                                                                                                 |   | Level 2                                                                                                                                           |   | Level 3                                                                                                                |
| Impaired      Loans          |  $           273 |   |  $              -            |   |  $                    -                  |   |  $                  273 |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
| Other      real estate owned |            1,468      |   |                  - |   |                         - |   |                   1,468      |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
| December 31, 2008            |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         | Carrying                                                                     |   | Quoted                                                                                                  |   | Models      with                                                                                                                                  |   | Models      with                                                                                                       |
|                         | value                                                                        |   | market                                                                                                  |   | significant                                                                                                                                       |   | significant                                                                                                            |
|                         | in      the                                                                  |   | prices      in                                                                                          |   | observable                                                                                                                                        |   | unobservable                                                                                                           |
|                         | Balance                                                                      |   | active                                                                                                  |   | market                                                                                                                                            |   | market                                                                                                                 |
|                         | Sheet                                                                        |   | markets                                                                                                 |   | parameters                                                                                                                                        |   | parameters                                                                                                             |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
|                         | Fair Value                                                                   |   | Level 1                                                                                                 |   | Level 2                                                                                                                                           |   | Level 3                                                                                                                |
| Impaired      Loans          |  $        2,343                 |   |  $              -            |   |  $                    -                  |   |  $              2,343                       |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |
| Other      real estate owned |            1,442      |   |                  - |   |                         - |   |                   1,442      |
|                         |                                                                         |   |                                                                                                    |   |                                                                                                                                              |   |                                                                                                                   |

----

| Fair      Value of Financial Instruments             |   |
|------------------------------------------------------|--------|
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | September 30, 2009 |   |   | December 31, 2008 |   |
|                                                 |   | Carrying |   |   | Estimated |   |   | Carrying |   |   | Estimated |   |
|                                                 |   | Amount |   |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
|                                                 |   | (In      thousands) |   |   | (In      thousands) |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      assets:                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash      and cash equivalents     |   |   | 24,330 |   |   |   | 24,330 |   |   |   | 17,348 |   |   |   | 17,348 |   |
|    Federal      funds sold            |   |   | 19,000 |   |   |   | 19,000 |   |   |   | - |   |   |   | - |   |
|    Certificates      of deposit with  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       other      banks |   |   | 296 |   |   |   | 296 |   |   |   | 198 |   |   |   | 198 |   |
|    Securities      available-for-sale |   |   | 92,758 |   |   |   | 92,758 |   |   |   | 69,890 |   |   |   | 69,890 |   |
|    Securities      held-to-maturity   |   |   | 5,145 |   |   |   | 5,597 |   |   |   | 5,375 |   |   |   | 5,331 |   |
|    Securities,      other             |   |   | 2,222 |   |   |   | 2,222 |   |   |   | 2,218 |   |   |   | 2,218 |   |
|    Loans                              |   |   | 278,799 |   |   |   | 281,984 |   |   |   | 310,353 |   |   |   | 314,459 |   |
| Financial      liabilities:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      deposits  |   |   | 56,217 |   |   |   | 56,127 |   |   |   | 59,670 |   |   |   | 59,670 |   |
|    Interest-bearing      deposits     |   |   | 311,366 |   |   |   | 286,839 |   |   |   | 297,813 |   |   |   | 298,212 |   |
|    FHLB      and other borrowings     |   |   | 28,220 |   |   |   | 30,564 |   |   |   | 41,929 |   |   |   | 42,811 |   |

----

|                                          |   | September      30, |   |   | June      30, |   |   | March      31, |   |   | December      31, |   |
|-----------------------------------------------|--------|--------------------|--------|--------|---------------|--------|--------|----------------|--------|--------|-------------------|--------|
|                                          |   | 2009               |   |   | 2009          |   |   | 2009           |   |   | 2008              |   |
| Loans      on non-accrual status              |   |               | 9,863  |   |          |   | 4,349  |           |   |   | 5,690             |   |   |   | 3,271 |   |
| Loans      past due 90 days or more but       |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
|    not      non-accrual status |   |               | 5,143  |   |          |   | 3,220  |           |   |   | 756               |   |   |   | 3,616 |   |
| OREO      - Non-performing                    |   |               | 15,220 |   |          |   | 14,160 |           |   |   | 12,567            |   |   |   | 10,667 |   |
| Total      NPAs                               |   |               | 30,226 |   |          |   | 21,729 |           |   |   | 19,013            |   |   |   | 17,554 |   |
|                                          |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Operating      commercial real                |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
|    estate      OREO            |   |               | 3,334  |   |          |   | 3,320  |           |   |   | 3,585             |   |   |   | 3,379 |   |
| OREO      - non-performing                    |   |               | 15,220 |   |          |   | 14,160 |           |   |   | 12,832            |   |   |   | 10,667 |   |
| Total      OREO                               |   |               | 18,554 |   |          |   | 17,480 |           |   |   | 16,417            |   |   |   | 14,046 |   |
|                                          |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Selected      ratios:                         |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| NPLs      to total gross loans                |   |               | 5.405  |   |          |   | 2.638  |           |   |   | 2.164             |   |   |   | 2.219 |   |
| NPAs      to total gross loans and OREO       |   |               | 10.205 |   |          |   | 7.138  |           |   |   | 6.048             |   |   |   | 5.411 |   |
| NPAs      to total assets                     |   |               | 6.319  |   |          |   | 4.572  |           |   |   | 3.964             |   |   |   | 3.796 |   |
|                                          |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
|                                          |   |               |   |   |          |   |   |           |   |   |              |   |   |   |   |   |

----

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

----

|                                             | (in      thousands)            |
|--------------------------------------------------|--------------------------------|
| Past      due 30 days through 89 days            | $10,046                        |
| Past      due 90 days or more and still accruing |    $5,143  |

----

----

|                     | Company | Bank   |         |
|--------------------------|---------|--------|--------------|
| Risk-Based Capital Ratio | Ratio   | Ratio  | Requirements |
| Total      Capital       | 22.98%  | 17.62% | 8%           |
| Tier      1 Capital      | 21.78%  | 16.36% | 4%           |
| Leverage      Capital    | 15.17%  | 11.22% | 4%           |
|                     |    |   |         |

----

| ITEM      NO. 3 | QUANTITIVE      AND QUALITATIVE DISCLOSURE ABOUT MARKETRISK |
|-----------------|-------------------------------------------------------------|

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

----

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

| ITEM      NO 1. | LEGAL      PROCEEDINGS |
|-----------------|------------------------|

|   | ITEM      NO. 1A     RISKFACTORS |
|--------|-----------------------------------------------------------|

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

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

| ITEM      4. | SUBMISSION      OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|--------------|---------------------------------------------------------|

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

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

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

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

|   | September      30, 2009. |
|--------|--------------------------|

| BY      /s/ Frank West                     | BY      /s/ Connie Woods    Hawkins    |
|--------------------------------------------|----------------------------------------|
| Frank      West                            | Connie      Woods Hawkins              |
| President      and Chief Executive Officer | Executive      Vice-President, Cashier |
|                                       | and      Chief Financial Officer       |
|                                       |                                   |
|                                       |                                   |
|                                       |                                   |
| DATE:  November      9, 2009     | DATE:  November      9, 2009 |

----