**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: | September                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 | 2,613,570   |

----

| TABLE                OF CONTENTS |
|----------------------------------|
|                             |   |   |
| PART                I.           | FINANCIAL                INFORMATION |   |
|                             |   |   |
| Item                1.           | Consolidated                Financial Statements |  1 |
|                             |   |   |
|                             | Consolidated                Statements of Condition |  1 |
|                             | September                30, 2006 and December 31, 2005 |   |
|                             |   |   |
|                             | Consolidated                Statements of Income |  2 |
|                             | Three                months and nine months ended September 30, 2006 and 2005 |   |
|                             |   |   |
|                             | Consolidated                Statements of Comprehensive Income |  3 |
|                             | Three                months and nine months ended September 30, 2006 and 2005 |   |
|                             |   |   |
|                             | Consolidated                Statements of Cash Flows |  4 |
|                             | Nine                months ended September 30, 2006 and 2005 |   |
|                             |   |   |
|                             | Notes                to Consolidated Financial Statements | 5 |
|                             |   |   |
| Item                2.           | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 7 |
|                             |   |   |
| 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)                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | September                30, |   | Dec.                31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2006                         |   | 2005 |   |
|                                                                                                                    ASSETS |                         |
| Cash                and due from banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                         | $ | 16,133 |   | $ | 19,138 |   |
| Interest-bearing                deposits with banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                         |   | 435 |   |   | 539 |   |
| Total                cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                         |   | 16,568 |   |   | 19,677 |   |
| Federal                funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                         |   | 8,000 |   |   | 0 |   |
| Term                deposits with other banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                         |   | 392 |   |   | 392 |   |
| Securities                available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                         |   | 67,719 |   |   | 78,949 |   |
| Securities                held-to-maturity, estimated fair value of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                         |   | 7,850 |   |   | 2,047 |   |
| $8,115                in 2006 and $2,063 in 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   |   |   |   |   |   |
| Securities,                other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 2,228 |   |   | 1,456 |   |
| Total                securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                         |   | 77,797 |   |   | 82,452 |   |
| Loans,                less allowance for loan losses of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                         |   |   |   |   |   |   |
| $4,440                in 2006 and $3,899 in 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 319,881 |   |   | 294,046 |   |
| Interest                receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                         |   | 4,885 |   |   | 4,015 |   |
| Premises                and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         |   | 21,941 |   |   | 18,706 |   |
| Intangible                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 3,874 |   |   | 3,874 |   |
| Cash                surrender value of life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         |   | 5,827 |   |   | 5,670 |   |
| Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                         |   | 6,159 |   |   | 7,044 |   |
| Total                Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                         | $ | 465,324 |   | $ | 435,876 |   |
| LIABILITIES                AND SHAREHOLDER'S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                         |   |   |   |   |   |   |
| Noninterest-bearing                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                         | $ | 60,860 |   | $ | 63,082 |   |
| Time                deposits of $100,000 or more                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 76,043 |   |   | 59,438 |   |
| Other                interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                         |   | 235,721 |   |   | 232,246 |   |
| Total                deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                         |   | 372,624 |   |   | 354,766 |   |
| Interest                payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                         |   | 1,643 |   |   | 1,038 |   |
| Federal                Funds Purchased                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                         |   | 0 |   |   | 15,000 |   |
| Borrowed                funds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                         |   | 34,510 |   |   | 14,096 |   |
| Other                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 3,817 |   |   | 3,789 |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 412,594 |   |   | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                         |   | 31,461 |   |   | 31,380 |   |
| Retained                Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |   | 8,525 |   |   | 3,003 |   |
| Accumulated                other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         |   | (323 | ) |   | (255 | ) |
| Treasury                stock, at par, 9,308 shares and 11,058                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                         |   |   |   |   |   |   |
| shares                in 2006 and 2005, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                         |   | (47 | ) |   | (55 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                         |   | 52,730 |   |   | 47,187 |   |
| Total                Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         | $ | 465,324 |   | $ | 435,876 |   |

----

| 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, |   |
|                                                   |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
| INTEREST                INCOME                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                and fees on loans              |   | $ | 7,211 |   | $ | 5,588 |   | $ | 20,092 |   | $ | 14,721 |   |
| Interest                and dividends on securities    |   |   | 823 |   |   | 883 |   |   | 2,484 |   |   | 2,795 |   |
| Federal                funds sold                      |   |   | 5 |   |   | - |   |   | 47 |   |   | 97 |   |
| Other                                                  |   |   | 42 |   |   | 22 |   |   | 149 |   |   | 118 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                   |   |   | 8,081 |   |   | 6,493 |   |   | 22,772 |   |   | 17,731 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST                EXPENSE                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                on deposits                    |   |   | 2,744 |   |   | 1,637 |   |   | 7,286 |   |   | 4,307 |   |
| Interest                on borrowings                  |   |   | 382 |   |   | 184 |   |   | 725 |   |   | 386 |   |
| Interest                on federal funds purchased     |   |   | 72 |   |   | 72 |   |   | 175 |   |   | 82 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest expense                  |   |   | 3,198 |   |   | 1,893 |   |   | 8,186 |   |   | 4,775 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Interest Income                     |   |   | 4,883 |   |   | 4,600 |   |   | 14,586 |   |   | 12,956 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses               |   |   | 241 |   |   | 465 |   |   | 724 |   |   | 835 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income after provision     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                loan losses                         |   |   | 4,642 |   |   | 4,135 |   |   | 13,862 |   |   | 12,121 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts     |   |   | 1,159 |   |   | 1,163 |   |   | 3,396 |   |   | 3,179 |   |
| Trust                Department income                 |   |   | 271 |   |   | 210 |   |   | 772 |   |   | 727 |   |
| Securities                net gain                     |   |   | 28 |   |   | - |   |   | 21 |   |   | - |   |
| Other                income                            |   |   | 275 |   |   | 243 |   |   | 695 |   |   | 757 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                other income                      |   |   | 1,733 |   |   | 1,616 |   |   | 4,884 |   |   | 4,663 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                EXPENSES                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits          |   |   | 2,370 |   |   | 2,159 |   |   | 6,942 |   |   | 6,331 |   |
| Occupancy                expense                       |   |   | 429 |   |   | 387 |   |   | 1,318 |   |   | 1,122 |   |
| Securities                net loss                     |   |   | - |   |   | 16 |   |   | - |   |   | 9 |   |
| Other                operating expense                 |   |   | 738 |   |   | 779 |   |   | 2,315 |   |   | 2,216 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                other expenses                    |   |   | 3,537 |   |   | 3,341 |   |   | 10,575 |   |   | 9,678 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE PROVISION                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR                INCOME TAXES                        |   |   | 2,838 |   |   | 2,410 |   |   | 8,171 |   |   | 7,106 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                FOR INCOME TAXES              |   |   | 926 |   |   | 754 |   |   | 2,650 |   |   | 2,004 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME                              |   | $ | 1,912 |   | $ | 1,656 |   | $ | 5,521 |   | $ | 5,102 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| BASIC                NET INCOME PER SHARE |   | $ | 0.73 |   | $ | 0.63 |   | $ | 2.11 |   | $ | 1.95 |   |
|-------------------------------------------|--------|---|------|--------|---|------|--------|---|------|--------|---|------|--------|

|                                                                                SECURITY              CAPITAL CORPORATION            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                              CONSOLIDATED              STATEMENTS OF COMPREHENSIVE INCOME                                                                                                |   |
|                                                                                (dollar              amounts presented in thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | (Unaudited) |   | (Unaudited) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | For                the three months |   | For                the nine months |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | ended                September 30, |   | ended                September 30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $ | 1,912 |   | $ | 1,656 |   | $ | 5,521 |   | $ | 5,102 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income, net of tax:                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains/(losses)                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 563 |   |   | (68 | ) |   | (68 | ) |   | (224 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 2,475 |   | $ | 1,588 |   | $ | 5,453 |   | $ | 4,878 |   |

----

| SECURITY                  CAPITAL CORPORATION                                      |
|------------------------------------------------------------------------------------|
| CONSOLIDATED                  STATEMENTS OF CASH FLOWS                             |
| (dollar                  amounts presented in thousands)                           |
|                                                                               |   | (Unaudited) |
|                                                                               |   | Nine                  months ended |
|                                                                               |   | September                  30, |
|                                                                               |   | 2006 |   | 2005 |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                             |   |   |   |   |
| NET                  INCOME                                                        |   | $                  5,521 |   | $                  5,102 |
| Adjustments                  to reconcile net income to                            |   |   |   |   |
| net                  cash provided by operating activities:                        |   |   |   |   |
| Provision                  for loan losses                                         |   | 724 |   | 835 |
| Amortization                  of premiums and discounts on securities, net         |   | 223 |   | 487 |
| Depreciation                  and amortization                                     |   | 709 |   | 608 |
| FHLB                  stock dividend                                               |   | (45) |   | (27) |
| Loss                  (gain)on sale of securities                                  |   | (21) |   | 9 |
| Loss                  (gain) on sale/disposal of other assets                      |   | (58) |   | (29) |
| Changes                  in:                                                       |   |   |   |   |
| Interest                  receivable                                               |   | (870) |   | (601) |
| Other                  assets                                                      |   | 221 |   | (2,939) |
| Interest                  payable                                                  |   | 605 |   | (155) |
| Other                  liabilities                                                 |   |  28 |   | 1,960 |
|                                                                               |   |   |   |   |
| Net                  cash provided by operating activities                         |   | 7,037 |   | 5,250 |
|                                                                               |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                              |   |   |   |   |
| Increase                  in loans                                                 |   | (26,559) |   | (57,300) |
| Purchase                  of securities available for sale                         |   | (1,574) |   | (19,098) |
| Purchase                  of securities held to maturity                           |   | (5,804) |   | - |
| Purchase                  of equity securities                                     |   | (727) |   | - |
| Proceeds                  of maturities and calls of securities available for sale |   | 12,495 |   | 29,003 |
| Additions                  to premises and equipment                               |   | (3,789) |   | (4,010) |
| Proceeds                  of sale of other assets                                  |   | 608 |   | 173 |
| Increase                  in life insurance                                        |   | (157) |   | (2,142) |
| Changes                  in:                                                       |   |   |   |   |
| Federal                  funds sold                                                |   | (8,000) |   | 14,000 |
|                                                                               |   |   |   |   |
| Net                  cash used in investing activities                             |   | (33,507) |   | (39,374) |
|                                                                               |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                              |   |   |   |   |
| Changes                  in:                                                       |   |   |   |   |
| Deposits                                                                           |   | 17,858 |   | 17,530 |
| Federal                  Funds purchased                                           |   | (15,000) |   | 10,000 |
| Reissuance                  of treasury stock                                      |   | 89 |   | 83 |
| Repayment                  of debt                                                 |   | (13,538) |   | (6,549) |
| Proceeds                  from issuance of debt                                    |   | 33,952 |   | 16,578 |
|                                                                               |   |   |   |   |
| Net                  cash provided by financing activities                         |   | 23,361 |   | 37,642 |

----

|                                                                  |   |                      |   |                      |
|-----------------------------------------------------------------------|--------|---------------------------|--------|---------------------------|
| Net                  increase (decrease) in cash and cash equivalents |   | (3,109)                   |   | 3,518                     |
|                                                                  |   |                      |   |                      |
| Cash                  and cash equivalents at beginning of year       |   | 19,677                    |   | 16,088                    |
|                                                                  |   |                      |   |                      |
| Cash                  and cash equivalents at end of period           |   | $                  16,568 |   | $                  19,606 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | For                the Three Months Ended |                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | September                30, 2006         |                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Net                Income                 |                          | Shares |   | Per                Share |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (Numerator)                               |                          | (Denominator) |   | Data |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |
| Basic                per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                         | 1,912,766                     |   |   | 2,612,678 |   | $ | 0.73 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                                      For the Nine Months Ended                                  |
|                                                                                                                                                       September 30, 2006                                   |
|                                                                                                                                                              Net Income |   |                                      | Shares                        |   |   | Per                Share |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | (Numerator)              |   |   | (Denominator) |   |   | Data |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
| Basic                per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                         | 5,521,639                     |   |   | 2,612,307 |   | $ | 2.11 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                          For                the Three Months Ended          |
|                                                                                                                                                       September 30, 2005                                   |
|                                                                                                                                                        (as restated for stock dividend)                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | Net              Income  |   |   | Shares |   |   | Per                Share |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | (Numerator)              |   |   | (Denominator) |   |   | Data |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
| Basic                per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                         | 1,656,480                     |   |   | 2,611,587 |   | $ | 0.63 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
|                                                                                                                                                       For the Nine Months Ended                            |
|                                                                                                                                                    September 30, 2005                                                     |
|                                                                                                                                                       (as restated for stock dividend)                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                      | Net              Income  |   |   | Shares |   |   | Per                Share |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | (Numerator)              |   |   | (Denominator) |   |   | Data |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |
| Basic                per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                         | 5,102,174                     |   |   | 2,610,959 |   | $ | 1.95 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      |                          |   |   |   |   |   |   |   |

----

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

----

|                                                       |   | (in                thousands) |   |
|------------------------------------------------------------|--------|-------------------------------|--------|
| Past                due 30 days through 89 days            |   | $                             | 5,576  |   |
| Past                due 90 days or more and still accruing |   | $                             | 1,213  |   |

----

|                                    |   | Corporation |   | Bank   |   |         |   |
|-----------------------------------------|--------|-------------|--------|--------|--------|--------------|--------|
| Risk-Based                Capital Ratio |   | Ratio       |   | Ratio  |   | Requirements |   |
| Total                Capital            |   |        | 14.97  | %      |   | 14.50        | %      |   | 8 | % |
| Tier                1 Capital           |   |        | 13.73  | %      |   | 13.25        | %      |   | 4 | % |
| Leverage                Capital         |   |        | 10.89  | %      |   | 10.49        | %      |   | 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                September 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:                November 14, 2006          | DATE:                November 14, 2006               |