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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q





(Mark One)

|x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2011



| ̈ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to

Commission file number 000-50357





FIRST COMMUNITY BANK CORPORATION

OF AMERICA

(Exact name of registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Florida                                                        |  | 65-0623023                          
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                              
|9001 Belcher Road Pinellas Park, Florida 33782                
|(Address of principal executive offices) (Zip Codes)          

(727) 520-0987

(Registrants telephone number, including area code)



(Former name, former address and former fiscal year, if changed since last report)





Indicated by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days:    Yes  x     No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈ * The registrant has not yet been phased into the
interactive data requirements.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer or a smaller reporting company. See the definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x

Indicate the number of shares outstanding of each of the registrants classes of common stock, as of the latest practicable date;



|                                       |  |                            
|-------------------------------------- |  | ---------------------------
|Common stock, par value $.05 per share |  | 8,592,143 shares           
|(class)                                |  | Outstanding at May 12, 2011









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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

INDEX



|                                                                                                                               |  |      |       | 
|------------------------------------------------------------------------------------------------------------------------------ |  | ---- | ----- | 
|                                                                                                                               |  | Page |      
|                                                                                                                              
|PART I. FINANCIAL INFORMATION                                                                                                  | 
|                                                                                                                               | 
|Item 1. Financial Statements                                                                                                   |  |      |       | 
|                                                                                                                               | 
|Condensed Consolidated Balance Sheets - At March 31, 2011 (unaudited) and At December 31,
2010                                 |  |      | 2     | 
|                                                                                                                               | 
|Condensed Consolidated Statements of Operations - Three Months Ended March 
31, 2011 and 2010 (unaudited)                      |  |      | 3     | 
|                                                                                                                               | 
|Condensed Consolidated Statements of Changes in Stockholders Equity - Three Months Ended March 
31, 2011 and 2010 (unaudited) |  |      | 4-5   | 
|                                                                                                                               | 
|Condensed Consolidated Statements of Cash Flows - Three Months Ended March 
31, 2011 and 2010 (unaudited)                      |  |      | 6-7   | 
|                                                                                                                               | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                               |  |      | 8-24  | 
|                                                                                                                               | 
|Review by Independent Registered Public Accounting Firm                                                                        |  |      | 25    | 
|                                                                                                                               | 
|Report of Independent Registered Public Accounting Firm                                                                        |  |      | 26    | 
|                                                                                                                               | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations                                  |  |      | 27-37 | 
|                                                                                                                               | 
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                             |  |      | 38    | 
|                                                                                                                               | 
|Item 4T. Controls and Procedures                                                                                               |  |      | 38    | 
|                                                                                                                               | 
|PART II. OTHER INFORMATION                                                                                                     |  |      |       | 
|                                                                                                                               | 
|Item 1. Legal Proceedings                                                                                                      |  |      | 38    | 
|                                                                                                                               | 
|Item 1A. Risk Factors                                                                                                          |  |      | 38    | 
|                                                                                                                               | 
|Item 6. Exhibits                                                                                                               |  |      | 39    | 
|                                                                                                                               | 
|SIGNATURES                                                                                                                     |  |      | 40    | 



1



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 
1. Financial Statements

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)



|                                                                                                                   |  |             |         |   |              |  |         |  
|------------------------------------------------------------------------------------------------------------------ |  | ----------- | ------- | - | ------------ |  | ------- | -
|                                                                                                                   |  | March 31,   |         |   | December 31, | 
|                                                                                                                   |  | 2011        |         |   | 2010         | 
|                                                                                                                   |  | (Unaudited) |         |   |              | 
|                                                                                                                   |  |            
|Assets                                                                                                             |  |             |         |   |              |  |         |  
|Cash and due from banks                                                                                            |  | $           | 5,234   |   |              |  | 3,513   |  
|Federal funds sold                                                                                                 |  |             | 98      |   |              |  |        |  
|Interest-bearing deposits with banks                                                                               |  |             | 35,902  |   |              |  | 44,802  |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Cash and cash equivalents                                                                                          |  |             | 41,234  |   |              |  | 48,315  |  
|                                                                                                                   |  |            
|Other interest-bearing deposits with banks                                                                         |  |             | 1,765   |   |              |  | 1,765   |  
|Securities available for sale                                                                                      |  |             | 44,170  |   |              |  | 45,761  |  
|Loans, net of allowance for loan losses of $11,461 and $11,717                                                     |  |             | 323,363 |   |              |  | 332,779 |  
|Federal Home Loan Bank stock, at cost                                                                              |  |             | 3,606   |   |              |  | 3,606   |  
|Premises and equipment, net                                                                                        |  |             | 12,317  |   |              |  | 12,424  |  
|Foreclosed real estate, net                                                                                        |  |             | 11,241  |   |              |  | 11,385  |  
|Accrued interest receivable                                                                                        |  |             | 1,282   |   |              |  | 1,378   |  
|Bank-owned life insurance                                                                                          |  |             | 8,208   |   |              |  | 8,157   |  
|Prepaid deposit insurance assessment                                                                               |  |             | 3,225   |   |              |  | 3,627   |  
|Other assets                                                                                                       |  |             | 1,895   |   |              |  | 1,490   |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|                                                                                                                   |  | $           | 452,306 |   |              |  | 470,687 |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Liabilities and Stockholders Equity                                                                               |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Liabilities:                                                                                                       |  |             |         |   |              |  |         |  
|Noninterest-bearing demand deposits                                                                                |  |             | 39,166  |   |              |  | 34,500  |  
|Savings, NOW and money-market deposits                                                                             |  |             | 198,143 |   |              |  | 216,179 |  
|Time deposits                                                                                                      |  |             | 123,866 |   |              |  | 123,975 |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Total deposits                                                                                                     |  |             | 361,175 |   |              |  | 374,654 |  
|                                                                                                                   |  |            
|Federal Home Loan Bank advances                                                                                    |  |             | 60,000  |   |              |  | 60,000  |  
|Other borrowings                                                                                                   |  |             | 505     |   |              |  | 1,764   |  
|Accrued expenses and other liabilities                                                                             |  |             | 5,040   |   |              |  | 5,511   |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Total liabilities                                                                                                  |  |             | 426,720 |   |              |  | 441,929 |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Stockholders equity:                                                                                              |  |             |         |   |              |  |         |  
|Preferred stock, $0.01 par value, 2,000,000 shares authorized:                                                     |  |             |         |   |              |  |         |  
|Series A, 10,685 shares designated, issued and outstanding                                                         |  |             | 10,685  |   |              |  | 10,685  |  
|Series A preferred stock discount                                                                                  |  |             | (18     | ) |              |  | (20     | )
|Series B, 720,000 shares designated, 0 and 313,497 shares issued and outstanding                                   |  |             |        |   |              |  | 7,837   |  
|Common stock, $0.05 par value, 40,000,000 shares authorized, 8,592,143 and 5,457,173 shares issued and
outstanding |  |             | 430     |   |              |  | 273     |  
|Additional paid-in capital                                                                                         |  |             | 40,071  |   |              |  | 32,390  |  
|Accumulated deficit                                                                                                |  |             | (25,420 | ) |              |  | (22,050 | )
|Accumulated other comprehensive loss                                                                               |  |             | (162    | ) |              |  | (357    | )
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|Total stockholders equity                                                                                         |  |             | 25,586  |   |              |  | 28,758  |  
|                                                                                                                   |  |             |         |   |              |  |         |  
|                                                                                                                   |  |            
|                                                                                                                   |  | $           | 452,306 |   |              |  | 470,687 |  
|                                                                                                                   |  |             |         |   |              |  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)



|                                                                                   |  |                             |        |   |      |  |        |  
|---------------------------------------------------------------------------------- |  | --------------------------- | ------ | - | ---- |  | ------ | -
|                                                                                   |  | Three Months EndedMarch 31, |       
|                                                                                   |  | 2011                        |        |   | 2010 | 
|Interest income:                                                                   |  |                             |        |   |      |  |        |  
|Loans                                                                              |  | $                           | 4,285  |   |      |  | 5,410  |  
|Securities                                                                         |  |                             | 348    |   |      |  | 557    |  
|Other interest earning assets                                                      |  |                             | 33     |   |      |  | 31     |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Total interest income                                                              |  |                             | 4,666  |   |      |  | 5,998  |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Interest expense:                                                                  |  |                             |        |   |      |  |        |  
|Deposits                                                                           |  |                             | 985    |   |      |  | 2,002  |  
|Other borrowings                                                                   |  |                             | 288    |   |      |  | 342    |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Total interest expense                                                             |  |                             | 1,273  |   |      |  | 2,344  |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Net interest income                                                                |  |                             | 3,393  |   |      |  | 3,654  |  
|                                                                                   |  |                            
|Provision for loan losses                                                          |  |                             | 3,060  |   |      |  | 3,941  |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Net interest income (loss) after provision for loan losses                         |  |                             | 333    |   |      |  | (287   | )
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Noninterest income:                                                                |  |                             |        |   |      |  |        |  
|Service charges on deposit accounts                                                |  |                             | 125    |   |      |  | 168    |  
|Other service charges and fees                                                     |  |                             | 72     |   |      |  | 48     |  
|Income from bank-owned life insurance                                              |  |                             | 51     |   |      |  | 44     |  
|Net gain on sale of securities                                                     |  |                             |       |   |      |  | 159    |  
|Other                                                                              |  |                             | 47     |   |      |  | 178    |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Total noninterest income                                                           |  |                             | 295    |   |      |  | 597    |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Noninterest expenses:                                                              |  |                             |        |   |      |  |        |  
|Employee compensation and benefits                                                 |  |                             | 1,261  |   |      |  | 1,604  |  
|Occupancy and equipment                                                            |  |                             | 384    |   |      |  | 421    |  
|Data processing                                                                    |  |                             | 266    |   |      |  | 387    |  
|Professional fees                                                                  |  |                             | 360    |   |      |  | 282    |  
|Office supplies                                                                    |  |                             | 31     |   |      |  | 34     |  
|Insurance                                                                          |  |                             | 464    |   |      |  | 314    |  
|Other                                                                              |  |                             | 1,230  |   |      |  | 340    |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Total noninterest expenses                                                         |  |                             | 3,996  |   |      |  | 3,382  |  
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Loss before income taxes                                                           |  |                             | (3,368 | ) |      |  | (3,072 | )
|                                                                                   |  |                            
|Income tax benefit                                                                 |  |                             |       |   |      |  | (1,200 | )
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Net loss                                                                           |  |                             | (3,368 | ) |      |  | (1,872 | )
|                                                                                   |  |                            
|Preferred stock dividend requirements and amortization of preferred stock discount |  |                             | (135   | ) |      |  | (331   | )
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Net loss available for common stockholders                                         |  | $                           | (3,503 | ) |      |  | (2,203 | )
|                                                                                   |  |                             |        |   |      |  |        |  
|                                                                                   |  |                            
|Loss per share:                                                                    |  |                             |        |   |      |  |        |  
|Basic and diluted loss per share                                                   |  | $                           | (.64   | ) |      |  | (.42   | )
|                                                                                   |  |                             |        |   |      |  |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity

Three Months Ended March 31, 2011 and 2010

(In thousands, except share amounts)



|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|----------------------------------------------------------------------------------------------------- |  | --------------- | ------ |  | -------- | - | ------ | ------------ |  |  | ------------------------- | ------------------ |  | ------ | ------- |  | ------ | - | ----- | ------ |  |  | --------- |  |  | - | --- |  | ------------------------------------ |  | ------ | ----- |  |  | ------ | - |  |  | --- |  |  |  | ------ | -
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  | AccumulatedOtherCompre-hensiveIncome |  |        | Total | 
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                     
|                                                                                                      |  | Preferred Stock |        |  |          |   |        |              |  |  | AdditionalPaid-In
Capital |                    |  |        |         |  |       
|                                                                                                      |  | Series A        |        |  | Series B |   |        | Common Stock |  |  |                           | AccumulatedDeficit |  |        |        
|                                                                                                      |  | Shares          |        |  | Amount   |   |        | Discount     |  |  | Shares                    |                    |  | Amount |         |  | Shares |   |       | Amount |  |  |           |  | 
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Balance at December 31, 2009                                                                          |  |                 | 10,685 |  |          | $ | 10,685 |              |  |  | (27                       | )                  |  |        | 189,018 |  |        | $ | 4,725 |        |  |  | 4,938,692 |  |  | $ | 247 |  |                                      |  | 32,154 |       |  |  | (2,618 | ) |  |  | 335 |  |  |  | 45,501 |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Comprehensive loss:                                                                                   |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|Net loss (unaudited)                                                                                  |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  |       |       |  |  | (1,872 | ) |  |  |    |  |  |  | (1,872 | )
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Net change in unrealized gain on securities available for sale, net of taxes of $62 (unaudited)       |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  |       |       |  |  |       |   |  |  | 103 |  |  |  | 103    |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Comprehensive loss (unaudited)                                                                        |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  | (1,769 | )
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Issuance of convertible perpetual preferred stock, Series B, net of offering costs of $72 (unaudited) |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        | 124,479 |  |        |   | 3,112 |        |  |  |          |  |  |   |    |  |                                      |  | 542    |       |  |  |       |   |  |  |    |  |  |  | 3,654  |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Issuance of common stock, net of offering costs of $217 (unaudited)                                   |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  | 518,481   |  |  |   | 26  |  |                                      |  | 180    |       |  |  |       |   |  |  |    |  |  |  | 206    |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Share-based compensation expense (unaudited)                                                          |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  | 9      |       |  |  |       |   |  |  |    |  |  |  | 9      |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Dividend on cumulative convertible perpetual preferred stock, Series B (unaudited)                    |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  |       |       |  |  | (196   | ) |  |  |    |  |  |  | (196   | )
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Dividend on preferred stock to U.S. Treasury, Series A (unaudited)                                    |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  |       |       |  |  | (133   | ) |  |  |    |  |  |  | (133   | )
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Amortization of common stock warrants issued to U.S. Treasury (unaudited)                             |  |                 |       |  |          |   |       |              |  |  | 2                         |                    |  |        |        |  |        |   |      |        |  |  |          |  |  |   |    |  |                                      |  |       |       |  |  | (2     | ) |  |  |    |  |  |  |       |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                          
|Balance at March 31, 2010 (unaudited)                                                                 |  |                 | 10,685 |  |          | $ | 10,685 |              |  |  | (25                       | )                  |  |        | 313,497 |  |        | $ | 7,837 |        |  |  | 5,457,173 |  |  | $ | 273 |  |                                      |  | 32,885 |       |  |  | (4,821 | ) |  |  | 438 |  |  |  | 47,272 |  
|                                                                                                      |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |         |  |        |   |       |        |  |  |           |  |  |   |     |  |                                      |  |        |       |  |  |        |   |  |  |     |  |  |  |        |  



(continued)



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity, Continued



Three Months Ended March 31, 2011 and 2010

(In thousands, except share amounts)



|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|----------------------------------------------------------------------------------------- |  | --------------- | ------ |  | -------- | - | ------ | ------------ |  |  | ------------------------- | ------------------ |  | ------ | -------- | - | ------ | - | ------ | ------ |  |  | --------- |  |  | ----- | --- |  | ---------------------------------- |  | ------ |  |  |  | ------- | - |  |  | ---- | - |  |  | ------ | -
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  | AccumulatedOtherCompre-hensiveLoss |  |        |  | 
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |       
|                                                                                          |  | Preferred Stock |        |  |          |   |        |              |  |  | AdditionalPaid-In
Capital |                    |  |        |          |   |        |   |       
|                                                                                          |  | Series A        |        |  | Series B |   |        | Common Stock |  |  |                           | AccumulatedDeficit |  |        |          |   |       
|                                                                                          |  | Shares          |        |  | Amount   |   |        | Discount     |  |  | Shares                    |                    |  | Amount |          |   | Shares |   |        | Amount |  |  |           |  |  | Total |    
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Balance at December 31, 2010                                                              |  |                 | 10,685 |  |          | $ | 10,685 |              |  |  | (20                       | )                  |  |        | 313,497  |   |        | $ | 7,837  |        |  |  | 5,457,173 |  |  | $     | 273 |  |                                    |  | 32,390 |  |  |  | (22,050 | ) |  |  | (357 | ) |  |  | 28,758 |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Comprehensive loss:                                                                       |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|Net loss (unaudited)                                                                      |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |         |   |        |   |       |        |  |  |          |  |  |       |    |  |                                    |  |       |  |  |  | (3,368  | ) |  |  |     |   |  |  | (3,368 | )
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Net change in unrealized gain on securities available for sale (unaudited)                |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |         |   |        |   |       |        |  |  |          |  |  |       |    |  |                                    |  |       |  |  |  |        |   |  |  | 195  |   |  |  | 195    |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Comprehensive loss (unaudited)                                                            |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  | (3,173 | )
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Conversion of convertible perpetual preferred stock, Series B to common stock (unaudited) |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        | (313,497 | ) |        |   | (7,837 | )      |  |  | 3,134,970 |  |  |       | 157 |  |                                    |  | 7,680  |  |  |  |        |   |  |  |     |   |  |  |       |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Share-based compensation expense (unaudited)                                              |  |                 |       |  |          |   |       |              |  |  |                          |                    |  |        |         |   |        |   |       |        |  |  |          |  |  |       |    |  |                                    |  | 1      |  |  |  |        |   |  |  |     |   |  |  | 1      |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Amortization of common stock warrants issued to U.S. Treasury, Series A (unaudited)       |  |                 |       |  |          |   |       |              |  |  | 2                         |                    |  |        |         |   |        |   |       |        |  |  |          |  |  |       |    |  |                                    |  |       |  |  |  | (2      | ) |  |  |     |   |  |  |       |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                          
|Balance at March 31, 2011 (unaudited)                                                     |  |                 | 10,685 |  |          | $ | 10,685 |              |  |  | (18                       | )                  |  |        |         |   |        | $ |       |        |  |  | 8,592,143 |  |  | $     | 430 |  |                                    |  | 40,071 |  |  |  | (25,420 | ) |  |  | (162 | ) |  |  | 25,586 |  
|                                                                                          |  |                 |        |  |          |   |        |              |  |  |                           |                    |  |        |          |   |        |   |        |        |  |  |           |  |  |       |     |  |                                    |  |        |  |  |  |         |   |  |  |      |   |  |  |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



5



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



|                                                                            |  |                    |         |   |      |  |         |  
|--------------------------------------------------------------------------- |  | ------------------ | ------- | - | ---- |  | ------- | -
|                                                                            |  | Three Months Ended |        
|                                                                            |  | March 31,          |        
|                                                                            |  | 2011               |         |   | 2010 | 
|Cash flows from operating activities:                                       |  |                    |         |   |      |  |         |  
|Net loss                                                                    |  | $                  | (3,368  | ) |      |  | (1,872  | )
|Adjustments to reconcile net loss to net cash used in operating activities: |  |                    |         |   |      |  |         |  
|Provision for loan losses                                                   |  |                    | 3,060   |   |      |  | 3,941   |  
|Depreciation and amortization                                               |  |                    | 112     |   |      |  | 141     |  
|Deferred income tax benefit                                                 |  |                    |        |   |      |  | 573     |  
|Share-based compensation                                                    |  |                    | 1       |   |      |  | 9       |  
|Net amortization of deferred loan fees and costs                            |  |                    | (9      | ) |      |  | (61     | )
|Net amortization of premium and discounts on securities                     |  |                    | 90      |   |      |  | 103     |  
|Income from bank-owned life insurance                                       |  |                    | (51     | ) |      |  | (43     | )
|Decrease in accrued interest receivable                                     |  |                    | 96      |   |      |  | 188     |  
|Increase in prepaid deposit insurance assessment and other assets           |  |                    | (3      | ) |      |  | (1,577  | )
|Decrease in accrued expenses and other liabilities                          |  |                    | (471    | ) |      |  | (1,698  | )
|Net gain on sale of securities                                              |  |                    |        |   |      |  | (159    | )
|Provision for losses on foreclosed real estate                              |  |                    | 115     |   |      |  |        |  
|Net (gain) loss on sale of foreclosed real estate                           |  |                    | (88     | ) |      |  | 36      |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Net cash used in operating activities                                       |  |                    | (516    | ) |      |  | (419    | )
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Cash flows from investing activities:                                       |  |                    |         |   |      |  |         |  
|Net change in other interest-bearing deposits with banks                    |  |                    |        |   |      |  | 220     |  
|Purchase of securities available for sale                                   |  |                    |        |   |      |  | (23,707 | )
|Principal payments on securities available for sale                         |  |                    | 1,696   |   |      |  | 1,581   |  
|Proceeds from calls and maturities of securities available for sale         |  |                    |        |   |      |  | 7,270   |  
|Proceeds on the sale of securities available for sale                       |  |                    |        |   |      |  | 14,980  |  
|Principal payments on securities held to maturity                           |  |                    |        |   |      |  | 32      |  
|Proceeds on the sale of securities held to maturity                         |  |                    |        |   |      |  | 7,521   |  
|Net decrease in loans                                                       |  |                    | 5,546   |   |      |  | 1,969   |  
|Purchase of premises and equipment, net                                     |  |                    | (5      | ) |      |  | (12     | )
|Proceeds from the sale of foreclosed real estate                            |  |                    | 936     |   |      |  | 1,062   |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Net cash provided by investing activities                                   |  |                    | 8,173   |   |      |  | 10,916  |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Cash flows from financing activities:                                       |  |                    |         |   |      |  |         |  
|Net decrease in deposits                                                    |  |                    | (13,479 | ) |      |  | (303    | )
|Net (decrease) increase in other borrowings                                 |  |                    | (1,259  | ) |      |  | 2,188   |  
|Dividend on preferred stock to U.S. Treasury, Series A                      |  |                    |        |   |      |  | (133    | )
|Dividend on cumulative convertible preferred perpetual stock, Series B      |  |                    |        |   |      |  | (196    | )
|Issuance of cumulative convertible preferred perpetual stock, Series B      |  |                    |        |   |      |  | 3,654   |  
|Issuance of common stock                                                    |  |                    |        |   |      |  | 206     |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Net cash (used in) provided by financing activities                         |  |                    | (14,738 | ) |      |  | 5,416   |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Net (decrease) increase in cash and cash equivalents                        |  |                    | (7,081  | ) |      |  | 15,913  |  
|                                                                            |  |                   
|Cash and cash equivalents at beginning of period                            |  |                    | 48,315  |   |      |  | 50,697  |  
|                                                                            |  |                    |         |   |      |  |         |  
|                                                                            |  |                   
|Cash and cash equivalents at end of period                                  |  | $                  | 41,234  |   |      |  | 66,610  |  
|                                                                            |  |                    |         |   |      |  |         |  



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)





|                                                                                                                            |  |                    |       |  |      |  |       | 
|--------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ----- |  | ---- |  | ----- | 
|                                                                                                                            |  | Three Months Ended |      
|                                                                                                                            |  | March 31,          |      
|                                                                                                                            |  | 2011               |       |  | 2010 | 
|Supplemental disclosure of cash flow information:                                                                           |  |                    |       |  |      |  |       | 
|Cash paid during the period for:                                                                                            |  |                    |       |  |      |  |       | 
|Interest, net of capitalized interest                                                                                       |  | $                  | 1,259 |  |      |  | 2,341 | 
|                                                                                                                            |  |                    |       |  |      |  |       | 
|                                                                                                                            |  |                   
|Noncash transactions:                                                                                                       |  |                    |       |  |      |  |       | 
|Accumulated other comprehensive income, net change in unrealized gain on securities available for sale, net of income
taxes |  | $                  | 195   |  |      |  | 103   | 
|                                                                                                                            |  |                    |       |  |      |  |       | 
|                                                                                                                            |  |                   
|Transfer from loans to foreclosed real estate                                                                               |  | $                  | 819   |  |      |  | 632   | 
|                                                                                                                            |  |                    |       |  |      |  |       | 
|                                                                                                                            |  |                   
|Amortization of common stock warrants issued to U.S. Treasury                                                               |  | $                  | 2     |  |      |  | 2     | 
|                                                                                                                            |  |                    |       |  |      |  |       | 

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. General.First Community Bank Corporation of America (the Holding Company or First
Community) owns all of the outstanding common stock of First Community Bank of America (the Bank or First Community Bank) and First Community Lender Services, Inc. (FCLS) (collectively, the
Company). The Holding Companys primary business activity is the operation of the Bank. The Bank is a federally-chartered stock savings bank providing a variety of banking services to small and middle market businesses and
individuals through its four banking offices located in Pinellas County, two banking offices in Pasco County, three banking offices located in Charlotte County, and two offices located in Hillsborough County, Florida. FCLS had minimal activity
during the three months ended March 31, 2011 and 2010.

In the opinion of the management of the Company, the accompanying
condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary to present fairly the financial position at March 31, 2011 and the results of operations and cash flows for the
three-month periods ended March 31, 2011 and 2010. The results of operations and other data for the three- month period ended March 31, 2011 are not necessarily indicative of results that may be expected for the year ending
December 31, 2011.

Going Concern. The Company has experienced recent and continuing
increases in nonperforming assets, increases in provisions for loan losses, declining net interest margin, continuing high levels of noninterest expenses related to the credit problems and eroding regulatory capital. These factors raise substantial
doubt about the Companys ability to continue as a going concern.

On February 10, 2011, the Holding Company and the
Bank entered into an Acquisition Agreement with CBM Florida Holding Company (CBM Holdings) and Community Bank & Company, under which the Bank will be merged with and into Community Bank & Company, and the Holding
Company will transfer to CBM Holdings all of the shares of FCLS. Under the terms of the Acquisition Agreement, the Holding Company will receive $10 million in cash at closing.

Our Board of Directors, in connection with entering into the Acquisition Agreement, approved a Plan of Complete Liquidation and Dissolution for the Holding Company (the Plan). The Plan was
approved by the holders of a majority of the outstanding shares of common stock of the Holding Company at a special shareholders meeting held for April 11, 2011. Final regulatory approvals were received on May 10, 2011. It is presently
anticipated the transactions will be consummated on May 31, 2011. Following the consummation of the transactions, the Holding Company will be required to wind up of all of its business and distribute thereafter to its common stockholders all of
its remaining cash, such distributions will take place towards the end of 2011.



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. General, Continued.

The completion of the transactions contemplated by the Acquisition Agreement is subject to certain conditions in addition to shareholder
approval, including, among others, (i) the receipt of all regulatory approvals; (ii) the absence of any material adverse change in the business of the Bank; (iii) the accuracy of the representations and warranties made by each of the
parties, and (iv) the compliance by each of the parties with their respective obligations under the Acquisition Agreement. In the event all conditions are not met and the transaction contemplated by the Acquisition Agreement is not completed,
there is no assurance that any other acceptable financing alternative or recapitalization plan would be successfully implemented, or receive regulatory approval.

2. Securities.Securities have been classified according to managements intent. The carrying amounts
of securities and their fair value were as follows (in thousands):



|                                  |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|--------------------------------- |  | --------- | ------ |  | ---------- |  | --- | ---------- |  |  | ----- | - |  |  | ------ | 
|                                  |  |           |        |  | Gross      |  |     | Gross      |  |  |       |  
|                                  |  | Amortized |        |  | Unrealized |  |     | Unrealized |  |  | Fair  |  
|                                  |  | Cost      |        |  | Gains      |  |     | Losses     |  |  | Value |  
|Available for Sale:               |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|At March 31, 2011:                |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|U.S. Government agency securities |  | $         | 7,758  |  |            |  |    |            |  |  | (242  | ) |  |  | 7,516  | 
|Mortgage-backed securities        |  |           | 36,574 |  |            |  | 265 |            |  |  | (185  | ) |  |  | 36,654 | 
|                                  |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|                                  |  |           |        | 
|                                  |  | $         | 44,332 |  |            |  | 265 |            |  |  | (427  | ) |  |  | 44,170 | 
|                                  |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|                                  |  |           |        | 
|At December 31, 2010:             |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|U.S. Government agency securities |  |           | 7,758  |  |            |  |    |            |  |  | (301  | ) |  |  | 7,457  | 
|Mortgage-backed securities        |  |           | 38,360 |  |            |  | 246 |            |  |  | (302  | ) |  |  | 38,304 | 
|                                  |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 
|                                  |  |           |        | 
|                                  |  | $         | 46,118 |  |            |  | 246 |            |  |  | (603  | ) |  |  | 45,761 | 
|                                  |  |           |        |  |            |  |     |            |  |  |       |   |  |  |        | 



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)



2. Securities, Continued.Available-for-sale securities at March 31, 2011
measured at fair value on a recurring basis are summarized below (in thousands):



|                                  |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|--------------------------------- |  | ----- | ------ |  | ------------- |  | - | ----------- |  |  | ------------ |  |  |  | - | 
|                                  |  |       |        |  | Quoted Prices |  |   |             |  |  |              | 
|                                  |  |       |        |  | In Active     |  |   | Significant |  |  |              | 
|                                  |  |       |        |  | Markets for   |  |   | Other       |  |  | Significant  | 
|                                  |  |       |        |  | Identical     |  |   | Observable  |  |  | Unobservable | 
|                                  |  | Fair  |        |  | Assets        |  |   | Inputs      |  |  | Inputs       | 
|                                  |  | Value |        |  | (Level 1)     |  |   | (Level 2)   |  |  | (Level 3)    | 
|At March 31, 2011:                |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|U.S. Government agency securities |  | $     | 7,516  |  |               |  |  |             |  |  | 7,516        |  |  |  |  | 
|Mortgage-backed securities        |  |       | 36,654 |  |               |  |  |             |  |  | 36,654       |  |  |  |  | 
|                                  |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|                                  |  |       |        | 
|Available-for-sale securities     |  | $     | 44,170 |  |               |  |  |             |  |  | 44,170       |  |  |  |  | 
|                                  |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|                                  |  |       |        | 
|At December 31, 2010:             |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|U.S. Government agency securities |  |       | 7,457  |  |               |  |  |             |  |  | 7,457        |  |  |  |  | 
|Mortgage-backed securities        |  |       | 38,304 |  |               |  |  |             |  |  | 38,304       |  |  |  |  | 
|                                  |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 
|                                  |  |       |        | 
|Available-for-sale securities     |  | $     | 45,761 |  |               |  |  |             |  |  | 45,761       |  |  |  |  | 
|                                  |  |       |        |  |               |  |   |             |  |  |              |  |  |  |   | 

There were no transfers of securities between levels of inputs for the three months ended March 31,
2011.

The scheduled maturities of securities at March 31, 2011 were as follows (in thousands):



|                           |  |                    |        |  |       |  |        | 
|-------------------------- |  | ------------------ | ------ |  | ----- |  | ------ | 
|                           |  | Available for Sale |       
|                           |  | Amortized          |        |  | Fair  | 
|                           |  | Cost               |        |  | Value | 
|                           |  |                   
|After ten years            |  | $                  | 7,758  |  |       |  | 7,516  | 
|Mortgage-backed securities |  |                    | 36,574 |  |       |  | 36,654 | 
|                           |  |                    |        |  |       |  |        | 
|                           |  |                   
|                           |  | $                  | 44,332 |  |       |  | 44,170 | 
|                           |  |                    |        |  |       |  |        | 

No securities were sold during the three months ended March 31, 2011. Securities sold during the three
months ended March 31, 2010 are summarized as follows (in thousands):



|                              |  |   |        |  
|----------------------------- |  | - | ------ | -
|Principal received from sales |  | $ | 22,501 |  
|                              |  |   |        |  
|                              | 
|Gross gains                   |  |   | 293    |  
|Gross losses                  |  |   | (134   | )
|                              |  |   |        |  
|                              | 
|Net gain                      |  | $ | 159    |  
|                              |  |   |        |  

Due to a change in the Companys investment policy, in 2010, the Company sold securities with a book
value of $7,552,000 from the held to maturity category resulting in gross gains of $72,000 and gross losses of $103,000. Due to this sale, the Company is prohibited from classifying securities as held to maturity for a period of two years.



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



2. Securities, Continued.Securities with gross unrealized losses at March 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands):



|                                    |  |                         |      |   |       |  |        | 
|----------------------------------- |  | ----------------------- | ---- | - | ----- |  | ------ | 
|                                    |  | Less Than Twelve Months |     
|                                    |  | Gross                   |      |   |       | 
|                                    |  | Unrealized              |      |   | Fair  | 
|                                    |  | Losses                  |      |   | Value | 
|Securities Available for Sale:      |  |                         |      |   |       |  |        | 
|U.S. Government agency securities   |  | $                       | (242 | ) |       |  | 7,516  | 
|Mortgage-backed securities          |  |                         | (185 | ) |       |  | 19,659 | 
|                                    |  |                         |      |   |       |  |        | 
|                                    |  |                        
|Total securities available for sale |  | $                       | (427 | ) |       |  | 27,175 | 
|                                    |  |                         |      |   |       |  |        | 

The unrealized losses on fifteen investment securities were caused by interest rate changes. It is expected
that the securities would not be settled at a price less than the par value of the investments. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent
to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.

As of March 31, 2011 and December 31, 2010, securities with a carrying value of $35,377,000 and $37,872,000, respectively, were pledged for repurchase agreements with customers and for various
purposes.

3.Loans.The components of loans are summarized as follows (in thousands):



|                             |  |           |         |   |              |  |         |  
|---------------------------- |  | --------- | ------- | - | ------------ |  | ------- | -
|                             |  | March 31, |         |   | December 31, | 
|                             |  | 2011      |         |   | 2010         | 
|                             |  |          
|Commercial real estate loans |  | $         | 157,053 |   |              |  | 161,580 |  
|Residential mortgage loans   |  |           | 87,243  |   |              |  | 93,946  |  
|Commercial loans             |  |           | 17,754  |   |              |  | 17,706  |  
|Installment loans            |  |           | 73,307  |   |              |  | 71,846  |  
|                             |  |           |         |   |              |  |         |  
|                             |  |          
|Total loans                  |  |           | 335,357 |   |              |  | 345,078 |  
|                             |  |          
|Deduct:                      |  |           |         |   |              |  |         |  
|Allowance for loan losses    |  |           | (11,461 | ) |              |  | (11,717 | )
|Net deferred loan fees       |  |           | (533    | ) |              |  | (582    | )
|                             |  |           |         |   |              |  |         |  
|                             |  |          
|Loans, net                   |  | $         | 323,363 |   |              |  | 332,779 |  
|                             |  |           |         |   |              |  |         |  



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



3. Loans, Continued.An
analysis of the change in the allowance for loan losses follows (in thousands):



|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|-------------------------------------- |  | ---------------------------- | ------- | - | --------------------- |  | ------ | ---------- |  |  | ----------- | - |  | ----- | ------ | - | ---- |  | ------- | - |  |  | ------- | -
|                                       |  | Three Months Ended March 31, |        
|                                       |  | 2011                         |         |   |                       | 
|                                       |  | CommercialRealEstate         |         |   | ResidentialRealEstate |  |        | Commercial |  |  | Installment |   |  | Total |        |   | 2010 | 
|                                       |  |                              |         |   |                       | 
|Beginning balance                      |  | $                            | 5,939   |   |                       |  | 4,166  |            |  |  | 211         |   |  |       | 1,401  |   |      |  | 11,717  |   |  |  | 7,830   |  
|Provision for loan losses              |  |                              | 1,836   |   |                       |  | (511   | )          |  |  | 241         |   |  |       | 1,494  |   |      |  | 3,060   |   |  |  | 3,941   |  
|Charge-offs                            |  |                              | (1,665  | ) |                       |  | (836   | )          |  |  | (250        | ) |  |       | (680   | ) |      |  | (3,431  | ) |  |  | (3,755  | )
|Recoveries                             |  |                              | 31      |   |                       |  | 44     |            |  |  |            |   |  |       | 40     |   |      |  | 115     |   |  |  | 8       |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|                                       |  |                              |         |   |                       | 
|Ending balance                         |  | $                            | 6,141   |   |                       |  | 2,863  |            |  |  | 202         |   |  |       | 2,255  |   |      |  | 11,461  |   |  |  | 8,024   |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|                                       |  |                              |         |   |                       | 
|Individually evaluated for impairment: |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|Recorded investment                    |  | $                            | 30,296  |   |                       |  | 16,322 |            |  |  | 1,825       |   |  |       | 2,823  |   |      |  | 51,266  |   |  |  | 54,087  |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|Balance in allowance for loan losses   |  | $                            | 1,705   |   |                       |  | 1,863  |            |  |  | 34          |   |  |       | 350    |   |      |  | 3,952   |   |  |  | 690     |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|                                       |  |                              |         |   |                       | 
|Collectively evaluated for impairment: |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|Recorded investment                    |  | $                            | 126,757 |   |                       |  | 70,921 |            |  |  | 15,929      |   |  |       | 70,484 |   |      |  | 284,091 |   |  |  | 347,758 |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  
|Balance in allowance for loan losses   |  | $                            | 4,436   |   |                       |  | 1,000  |            |  |  | 168         |   |  |       | 1,905  |   |      |  | 7,509   |   |  |  | 7,334   |  
|                                       |  |                              |         |   |                       |  |        |            |  |  |             |   |  |       |        |   |      |  |         |   |  |  |         |  

The following summarizes the loan credit quality (in thousands):



|                                                  |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|------------------------------------------------- |  | ---------------------- | --- |  | ---------------------- |  | ------- | ---------- |  |  | ------------ |  |  | --------- | ------ |  | ------- |  | ------ | --------- |  |  | ---------- |  |  | -------- | --- |  | ----- |  | ------ |  |  |  | ------ |  |  |  | ------- | 
|                                                  |  | Commercial Real Estate |     |  | ResidentialReal Estate |  |         | Commercial |  |  | Installment  |  |  |           |       
|                                                  |  | Construction           |     |  | Non-Residential        |  |         | Land       |  |  | Multi-Family |  |  | 1-4Family |        |  | Secured |  |        | Unsecured |  |  | HomeEquity |  |  | Consumer |     |  | Total | 
|At March 31, 2011:                                |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Credit Risk Profile by Internally Assigned Grade: |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Grade:                                            |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Pass                                              |  | $                      | 268 |  |                        |  | 96,288  |            |  |  | 15,925       |  |  |           | 10,325 |  |         |  | 75,231 |           |  |  | 15,359     |  |  |          | 427 |  |       |  | 33,567 |  |  |  | 37,270 |  |  |  | 284,660 | 
|Special mention                                   |  |                        |    |  |                        |  | 9,438   |            |  |  | 1,314        |  |  |           | 1,940  |  |         |  |       |           |  |  | 144        |  |  |          |    |  |       |  |       |  |  |  | 15     |  |  |  | 12,851  | 
|Substandard                                       |  |                        |    |  |                        |  | 11,559  |            |  |  | 8,569        |  |  |           | 1,418  |  |         |  | 12,012 |           |  |  | 1,812      |  |  |          | 12  |  |       |  | 2,071  |  |  |  | 384    |  |  |  | 37,837  | 
|Doubtful                                          |  |                        |    |  |                        |  |        |            |  |  |             |  |  |           | 9      |  |         |  |       |           |  |  |           |  |  |          |    |  |       |  |       |  |  |  |       |  |  |  | 9       | 
|Loss                                              |  |                        |    |  |                        |  |        |            |  |  |             |  |  |           |       |  |         |  |       |           |  |  |           |  |  |          |    |  |       |  |       |  |  |  |       |  |  |  |        | 
|                                                  |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Total                                             |  | $                      | 268 |  |                        |  | 117,285 |            |  |  | 25,808       |  |  |           | 13,692 |  |         |  | 87,243 |           |  |  | 17,315     |  |  |          | 439 |  |       |  | 35,638 |  |  |  | 37,669 |  |  |  | 335,357 | 
|                                                  |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|                                                  |  |                        |     |  |                        |  |         |            |  | 
|At December 31, 2010:                             |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Credit Risk Profile by Internally Assigned Grade: |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Grade:                                            |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Pass                                              |  |                        | 189 |  |                        |  | 96,056  |            |  |  | 17,882       |  |  |           | 10,562 |  |         |  | 84,087 |           |  |  | 14,790     |  |  |          | 439 |  |       |  | 30,030 |  |  |  | 38,977 |  |  |  | 293,012 | 
|Special mention                                   |  |                        |    |  |                        |  | 9,369   |            |  |  | 1,314        |  |  |           | 1,940  |  |         |  | 9      |           |  |  | 139        |  |  |          | 12  |  |       |  | 480    |  |  |  | 17     |  |  |  | 13,280  | 
|Substandard                                       |  |                        |    |  |                        |  | 14,765  |            |  |  | 8,510        |  |  |           | 984    |  |         |  | 9,850  |           |  |  | 2,326      |  |  |          |    |  |       |  | 2,250  |  |  |  | 92     |  |  |  | 38,777  | 
|Doubtful                                          |  |                        |    |  |                        |  |        |            |  |  |             |  |  |           | 9      |  |         |  |       |           |  |  |           |  |  |          |    |  |       |  |       |  |  |  |       |  |  |  | 9       | 
|Loss                                              |  |                        |    |  |                        |  |        |            |  |  |             |  |  |           |       |  |         |  |       |           |  |  |           |  |  |          |    |  |       |  |       |  |  |  |       |  |  |  |        | 
|                                                  |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 
|Total                                             |  | $                      | 189 |  |                        |  | 120,190 |            |  |  | 27,706       |  |  |           | 13,495 |  |         |  | 93,946 |           |  |  | 17,255     |  |  |          | 451 |  |       |  | 32,760 |  |  |  | 39,086 |  |  |  | 345,078 | 
|                                                  |  |                        |     |  |                        |  |         |            |  |  |              |  |  |           |        |  |         |  |        |           |  |  |            |  |  |          |     |  |       |  |        |  |  |  |        |  |  |  |         | 



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



3. Loans, Continued.Internally assigned loan grades are defined as follows:

Pass  A Pass loans primary source of loan
repayment is satisfactory, with secondary sources very likely to be realized if necessary.

Special Mention  A
Special Mention loan has potential weaknesses that deserve managements close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Companys credit
position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard  A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a
well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful  A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added
characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss  A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not
warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in
the future.

The following summarizes the amount of impaired loans (in thousands):



|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|------------------------ |  | --------------------------------- | ------ |  | -------------------------- |  | ------ | ---------------- |  |  | ------------------ |  |  | ---------------------- | ------ |  | ---------------- |  | ------ | ------------------ |  |  | ---------------------- |  |  | ---------------- | ------ |  |  |  | ------ |  |  |  | ----- | 
|                         |  | With No RelatedAllowance
Recorded |        |  | With an Allowance Recorded |  |        | Total            | 
|                         |  | RecordedInvestment                |        |  | UnpaidPrincipalBalance     |  |        | RelatedAllowance |  |  | RecordedInvestment |  |  | UnpaidPrincipalBalance |        |  | RelatedAllowance |  |        | RecordedInvestment |  |  | UnpaidPrincipalBalance |  |  | RelatedAllowance |       
|At March 31, 2011:       |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Commercial real estate:  |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Nonresidential           |  | $                                 | 12,752 |  |                            |  | 13,615 |                  |  |  |                   |  |  |                        | 6,254  |  |                  |  | 6,368  |                    |  |  | 312                    |  |  |                  | 19,006 |  |  |  | 19,983 |  |  |  | 312   | 
|Land                     |  |                                   | 5,020  |  |                            |  | 7,783  |                  |  |  |                   |  |  |                        | 4,174  |  |                  |  | 4,796  |                    |  |  | 1,208                  |  |  |                  | 9,194  |  |  |  | 12,579 |  |  |  | 1,208 | 
|Multi-family             |  |                                   | 697    |  |                            |  | 723    |                  |  |  |                   |  |  |                        | 1,399  |  |                  |  | 2,091  |                    |  |  | 185                    |  |  |                  | 2,096  |  |  |  | 2,814  |  |  |  | 185   | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Residential real estate- |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|1-4 family               |  |                                   | 9,449  |  |                            |  | 10,500 |                  |  |  |                   |  |  |                        | 6,873  |  |                  |  | 7,506  |                    |  |  | 1,863                  |  |  |                  | 16,322 |  |  |  | 18,006 |  |  |  | 1,863 | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Commercial:              |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Secured                  |  |                                   | 949    |  |                            |  | 949    |                  |  |  |                   |  |  |                        | 864    |  |                  |  | 864    |                    |  |  | 33                     |  |  |                  | 1,813  |  |  |  | 1,813  |  |  |  | 33    | 
|Unsecured                |  |                                   |       |  |                            |  |       |                  |  |  |                   |  |  |                        | 12     |  |                  |  | 12     |                    |  |  | 1                      |  |  |                  | 12     |  |  |  | 12     |  |  |  | 1     | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Installment:             |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Home Equity              |  |                                   | 1,183  |  |                            |  | 1,183  |                  |  |  |                   |  |  |                        | 1,253  |  |                  |  | 1,253  |                    |  |  | 302                    |  |  |                  | 2,436  |  |  |  | 2,436  |  |  |  | 302   | 
|Consumer                 |  |                                   | 4      |  |                            |  | 4      |                  |  |  |                   |  |  |                        | 383    |  |                  |  | 383    |                    |  |  | 48                     |  |  |                  | 387    |  |  |  | 387    |  |  |  | 48    | 
|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|                         |  | $                                 | 30,054 |  |                            |  | 34,757 |                  |  |  |                   |  |  |                        | 21,212 |  |                  |  | 23,273 |                    |  |  | 3,952                  |  |  |                  | 51,266 |  |  |  | 58,030 |  |  |  | 3,952 | 
|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



3. Loans, Continued.



|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|------------------------ |  | --------------------------------- | ------ |  | -------------------------- |  | ------ | ---------------- |  |  | ------------------ |  |  | ---------------------- | ------ |  | ---------------- |  | ------ | ------------------ |  |  | ---------------------- |  |  | ---------------- | ------ |  |  |  | ------ |  |  |  | ----- | 
|                         |  | With No RelatedAllowance
Recorded |        |  | With an Allowance Recorded |  |        | Total            | 
|                         |  | RecordedInvestment                |        |  | UnpaidPrincipalBalance     |  |        | RelatedAllowance |  |  | RecordedInvestment |  |  | UnpaidPrincipalBalance |        |  | RelatedAllowance |  |        | RecordedInvestment |  |  | UnpaidPrincipalBalance |  |  | RelatedAllowance |       
|                         |  |                                   |        |  |                            |  |        |                  | 
|At December 31, 2010:    |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Commercial real estate:  |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Nonresidential           |  | $                                 | 14,214 |  |                            |  | 15,479 |                  |  |  |                   |  |  |                        | 7,649  |  |                  |  | 8,342  |                    |  |  | 538                    |  |  |                  | 21,863 |  |  |  | 23,821 |  |  |  | 538   | 
|Land                     |  |                                   | 4,529  |  |                            |  | 5,604  |                  |  |  |                   |  |  |                        | 4,148  |  |                  |  | 6,230  |                    |  |  | 1,517                  |  |  |                  | 8,677  |  |  |  | 11,834 |  |  |  | 1,517 | 
|Multi-family             |  |                                   | 698    |  |                            |  | 709    |                  |  |  |                   |  |  |                        | 680    |  |                  |  | 680    |                    |  |  | 14                     |  |  |                  | 1,378  |  |  |  | 1,389  |  |  |  | 14    | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Residential real estate- |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|1-4 family               |  |                                   | 6,668  |  |                            |  | 7,055  |                  |  |  |                   |  |  |                        | 9,070  |  |                  |  | 10,547 |                    |  |  | 1,707                  |  |  |                  | 15,738 |  |  |  | 17,602 |  |  |  | 1,707 | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Commercial-              |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Secured                  |  |                                   | 781    |  |                            |  | 781    |                  |  |  |                   |  |  |                        | 1,545  |  |                  |  | 1,545  |                    |  |  | 198                    |  |  |                  | 2,326  |  |  |  | 2,326  |  |  |  | 198   | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|Consumer:                |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|Home Equity              |  |                                   | 2,024  |  |                            |  | 2,024  |                  |  |  |                   |  |  |                        | 743    |  |                  |  | 756    |                    |  |  | 109                    |  |  |                  | 2,767  |  |  |  | 2,780  |  |  |  | 109   | 
|Installment              |  |                                   | 11     |  |                            |  | 11     |                  |  |  |                   |  |  |                        | 208    |  |                  |  | 208    |                    |  |  | 25                     |  |  |                  | 219    |  |  |  | 219    |  |  |  | 25    | 
|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 
|                         |  |                                   |        |  |                            |  |        |                  | 
|                         |  | $                                 | 28,925 |  |                            |  | 31,663 |                  |  |  |                   |  |  |                        | 24,043 |  |                  |  | 28,308 |                    |  |  | 4,108                  |  |  |                  | 52,968 |  |  |  | 59,971 |  |  |  | 4,108 | 
|                         |  |                                   |        |  |                            |  |        |                  |  |  |                    |  |  |                        |        |  |                  |  |        |                    |  |  |                        |  |  |                  |        |  |  |  |        |  |  |  |       | 



|                                                         |  |                           |        |  |                          |  |     |                        |  |  |     | 
|-------------------------------------------------------- |  | ------------------------- | ------ |  | ------------------------ |  | --- | ---------------------- |  |  | --- | 
|                                                         |  | AverageRecordedInvestment |        |  | InterestIncomeRecognized |  |     | InterestIncomeReceived | 
|Three Months Ended March 31, 2011:                       |  |                           |        |  |                          |  |     |                        |  |  |     | 
|Commercial real estate:                                  |  |                           |        |  |                          |  |     |                        |  |  |     | 
|Nonresidential                                           |  | $                         | 19,138 |  |                          |  | 93  |                        |  |  | 137 | 
|Land                                                     |  |                           | 9,382  |  |                          |  | 24  |                        |  |  | 32  | 
|Multi-family                                             |  |                           | 1,188  |  |                          |  | 6   |                        |  |  | 6   | 
|Residential real estate-                                 |  |                           |        |  |                          |  |     |                        |  |  |     | 
|1-4 family                                               |  |                           | 15,343 |  |                          |  | 68  |                        |  |  | 83  | 
|Commercial:                                              |  |                           |        |  |                          |  |     |                        |  |  |     | 
|Secured                                                  |  |                           | 1,843  |  |                          |  |    |                        |  |  | 2   | 
|Unsecured                                                |  |                           | 12     |  |                          |  |    |                        |  |  |    | 
|Installment:                                             |  |                           |        |  |                          |  |     |                        |  |  |     | 
|Home equity                                              |  |                           | 2,426  |  |                          |  | 9   |                        |  |  | 15  | 
|Consumer                                                 |  |                           | 257    |  |                          |  |    |                        |  |  |    | 
|                                                         |  |                           |        |  |                          |  |     |                        |  |  |     | 
|                                                         |  |                           |       
|Total                                                    |  | $                         | 49,589 |  |                          |  | 200 |                        |  |  | 275 | 
|                                                         |  |                           |        |  |                          |  |     |                        |  |  |     | 
|                                                         |  |                           |       
|Comparative totals for three months ended March 31, 2010 |  | $                         | 49,463 |  |                          |  | 212 |                        |  |  | 254 | 
|                                                         |  |                           |        |  |                          |  |     |                        |  |  |     | 



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



3.Loans, Continued.Impaired collateral-dependent loans carried at fair value when the current collateral value is lower than the carrying value of the loan. Those impaired collateral-dependent loans which are measured at fair value on a nonrecurring basis are
as follows (in thousands):



|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|------------------------ |  | --------- | ------ |  | ------- |  | - | ------- |  |  | ------- |  |  | ----------- | ------ |  | ------------------------------------------------------------------- |  | ------ |  |  |  | ----- | 
|                         |  | FairValue |        |  | Level 1 |  |   | Level 2 |  |  | Level 3 |  |  | TotalLosses |        |  | LossesRecorded inOperationsfor the ThreeMonths EndedMarch 
31, 2011 | 
|At March 31, 2011:       |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|Commercial real estate:  |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|Nonresidential           |  | $         | 8,392  |  |         |  |  |         |  |  |        |  |  |             | 8,392  |  |                                                                     |  | 1,289  |  |  |  | 116   | 
|Land                     |  |           | 5,621  |  |         |  |  |         |  |  |        |  |  |             | 5,621  |  |                                                                     |  | 4,593  |  |  |  | 396   | 
|Multi-family             |  |           | 2,097  |  |         |  |  |         |  |  |        |  |  |             | 2,097  |  |                                                                     |  | 902    |  |  |  | 37    | 
|Residential real estate- |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|1-4 family               |  |           | 8,340  |  |         |  |  |         |  |  |        |  |  |             | 8,340  |  |                                                                     |  | 3,548  |  |  |  | 567   | 
|Commercial-              |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|Secured                  |  |           | 864    |  |         |  |  |         |  |  |        |  |  |             | 864    |  |                                                                     |  | 33     |  |  |  |      | 
|Unsecured                |  |           | 12     |  |         |  |  |         |  |  |        |  |  |             | 12     |  |                                                                     |  | 1      |  |  |  |      | 
|Installment:             |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|Home equity              |  |           | 1,253  |  |         |  |  |         |  |  |        |  |  |             | 1,253  |  |                                                                     |  | 302    |  |  |  | 165   | 
|Consumer                 |  |           | 383    |  |         |  |  |         |  |  |        |  |  |             | 383    |  |                                                                     |  | 48     |  |  |  |      | 
|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 
|                         |  |           |        |  |         | 
|                         |  | $         | 26,962 |  |         |  |  |         |  |  |        |  |  |             | 26,962 |  |                                                                     |  | 10,716 |  |  |  | 1,281 | 
|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                                                     |  |        |  |  |  |       | 

Loans with a carrying value of $24,304,000 at March 31, 2011, were measured for impairment using Level
3 inputs and had a fair value in excess of carrying value.



|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|------------------------ |  | --------- | ------ |  | ------- |  | - | ------- |  |  | ------- |  |  | ----------- | ------ |  | ----------------------------------------- |  | ------ |  |  |  | ----- | 
|                         |  | FairValue |        |  | Level 1 |  |   | Level 2 |  |  | Level 3 |  |  | TotalLosses |        |  | LossesRecorded inOperationsDuring theYear | 
|At December 31, 2010:    |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|Commercial real estate:  |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|Nonresidential           |  | $         | 12,881 |  |         |  |  |         |  |  |        |  |  |             | 12,881 |  |                                           |  | 2,609  |  |  |  | 2,065 | 
|Land                     |  |           | 5,666  |  |         |  |  |         |  |  |        |  |  |             | 5,666  |  |                                           |  | 4,737  |  |  |  | 3,688 | 
|Multi-family             |  |           | 1,378  |  |         |  |  |         |  |  |        |  |  |             | 1,378  |  |                                           |  | 63     |  |  |  | 57    | 
|Residential real estate- |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|1-4 family               |  |           | 12,398 |  |         |  |  |         |  |  |        |  |  |             | 12,398 |  |                                           |  | 3,727  |  |  |  | 2,935 | 
|Commercial-              |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|Secured                  |  |           | 1,545  |  |         |  |  |         |  |  |        |  |  |             | 1,545  |  |                                           |  | 198    |  |  |  | 198   | 
|Installment:             |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|Home equity              |  |           | 743    |  |         |  |  |         |  |  |        |  |  |             | 743    |  |                                           |  | 122    |  |  |  | 122   | 
|Consumer                 |  |           | 207    |  |         |  |  |         |  |  |        |  |  |             | 207    |  |                                           |  | 25     |  |  |  | 25    | 
|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 
|                         |  |           |        |  |         | 
|                         |  | $         | 34,818 |  |         |  |  |         |  |  |        |  |  |             | 34,818 |  |                                           |  | 11,481 |  |  |  | 9,090 | 
|                         |  |           |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                                           |  |        |  |  |  |       | 

Loans with a carrying value of $18,150,000 at December 31, 2010, were measured for impairment using
Level 3 inputs and had a fair value in excess of carrying value.



(continued)



15



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



3.Loans, Continued.Age analysis of nonaccrual and past due loans were as follows (in thousands):



|                         |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|------------------------ |  | ----------------- | ----- |  | ----------------- |  | ----- | -------------------------- |  |  | ------------ |  |  | ------- | ------ |  | --------------- |  | ------- | ---------- |  |  | ------ |  |  |  | ------- | 
|                         |  | Accruing Loans    |       |  |                   |  |       |                            | 
|                         |  | 30-59DaysPast Due |       |  | 60-89DaysPast Due |  |       | GreaterThan 90DaysPast Due |  |  | TotalPastDue |  |  | Current |        |  | NonaccrualLoans |  |         | TotalLoans | 
|At March 31, 2011:       |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Commercial real estate:  |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Construction             |  | $                 |      |  |                   |  |      |                            |  |  |             |  |  |         |       |  |                 |  | 268     |            |  |  |       |  |  |  | 268     | 
|Nonresidential           |  |                   | 3,578 |  |                   |  | 83    |                            |  |  |             |  |  |         | 3,661  |  |                 |  | 102,452 |            |  |  | 11,172 |  |  |  | 117,285 | 
|Land                     |  |                   |      |  |                   |  |      |                            |  |  | 294          |  |  |         | 294    |  |                 |  | 18,582  |            |  |  | 6,932  |  |  |  | 25,808  | 
|Multi-family             |  |                   |      |  |                   |  | 306   |                            |  |  |             |  |  |         | 306    |  |                 |  | 11,959  |            |  |  | 1,427  |  |  |  | 13,692  | 
|Residential real estate- |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|1-4 family               |  |                   | 2,422 |  |                   |  | 1,338 |                            |  |  |             |  |  |         | 3,760  |  |                 |  | 74,854  |            |  |  | 8,629  |  |  |  | 87,243  | 
|Commercial:              |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Secured                  |  |                   | 1,057 |  |                   |  |      |                            |  |  |             |  |  |         | 1,057  |  |                 |  | 14,446  |            |  |  | 1,812  |  |  |  | 17,315  | 
|Unsecured                |  |                   |      |  |                   |  |      |                            |  |  |             |  |  |         |       |  |                 |  | 439     |            |  |  |       |  |  |  | 439     | 
|Installment:             |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Home equity              |  |                   | 163   |  |                   |  | 90    |                            |  |  |             |  |  |         | 253    |  |                 |  | 33,789  |            |  |  | 1,596  |  |  |  | 35,638  | 
|Consumer                 |  |                   | 802   |  |                   |  | 22    |                            |  |  |             |  |  |         | 824    |  |                 |  | 36,461  |            |  |  | 384    |  |  |  | 37,669  | 
|                         |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|                         |  |                   |       |  |                   |  |      
|Total                    |  | $                 | 8,022 |  |                   |  | 1,839 |                            |  |  | 294          |  |  |         | 10,155 |  |                 |  | 293,250 |            |  |  | 31,952 |  |  |  | 335,357 | 
|                         |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|                         |  |                   |       |  |                   |  |      
|At December 31, 2010:    |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Commercial real estate:  |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Construction             |  |                   |      |  |                   |  |      |                            |  |  |             |  |  |         |       |  |                 |  | 189     |            |  |  |       |  |  |  | 189     | 
|Nonresidential           |  |                   | 4,088 |  |                   |  |      |                            |  |  |             |  |  |         | 4,088  |  |                 |  | 101,591 |            |  |  | 14,511 |  |  |  | 120,190 | 
|Land                     |  |                   | 1,977 |  |                   |  | 599   |                            |  |  |             |  |  |         | 2,576  |  |                 |  | 18,487  |            |  |  | 6,643  |  |  |  | 27,706  | 
|Multi-family             |  |                   | 423   |  |                   |  |      |                            |  |  |             |  |  |         | 423    |  |                 |  | 12,365  |            |  |  | 707    |  |  |  | 13,495  | 
|Residential real estate- |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|1-4 family               |  |                   | 1,316 |  |                   |  | 2,583 |                            |  |  |             |  |  |         | 3,899  |  |                 |  | 82,938  |            |  |  | 7,109  |  |  |  | 93,946  | 
|Commercial:              |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Equipment                |  |                   | 28    |  |                   |  |      |                            |  |  |             |  |  |         | 28     |  |                 |  | 14,748  |            |  |  | 2,479  |  |  |  | 17,255  | 
|Unsecured                |  |                   |      |  |                   |  |      |                            |  |  |             |  |  |         |       |  |                 |  | 451     |            |  |  |       |  |  |  | 451     | 
|Consumer:                |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|Home equity              |  |                   | 145   |  |                   |  | 400   |                            |  |  |             |  |  |         | 545    |  |                 |  | 29,405  |            |  |  | 2,810  |  |  |  | 32,760  | 
|Consumer                 |  |                   | 254   |  |                   |  | 192   |                            |  |  |             |  |  |         | 446    |  |                 |  | 38,421  |            |  |  | 219    |  |  |  | 39,086  | 
|                         |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 
|                         |  |                   |       |  |                   |  |      
|Total                    |  | $                 | 8,231 |  |                   |  | 3,774 |                            |  |  |             |  |  |         | 12,005 |  |                 |  | 298,595 |            |  |  | 34,478 |  |  |  | 345,078 | 
|                         |  |                   |       |  |                   |  |       |                            |  |  |              |  |  |         |        |  |                 |  |         |            |  |  |        |  |  |  |         | 



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



4. Loss Per Share.Loss per
share (LPS) of common stock has been computed on the basis of the weighted-average number of shares of common stock outstanding. Outstanding stock options and warrants are considered anti dilutive securities for purposes of calculating
diluted LPS. There were 5,492,006 and 5,287,025 weighted-average shares outstanding for the three months ended March 31, 2011 and 2010, respectively.

5. Share-Based Compensation. The Company currently has one stock option plan for employees of the Company. Under the plan, the total number of options which may be granted to purchase
common stock is 516,797 (amended). At March 31, 2011, 313,873 options have been granted, 190,344 options have been exercised and 202,924 options remain available for grant under the employees plan. The employees options vest over
periods up to four years and have terms up to ten years.

A summary of the activity in the Companys stock option plans is
as follows (dollars in thousands, except per share amounts):



|                                 |  |                  |         |  |                               |   |      |                                          |  |  |                         |  |  |   |   | 
|-------------------------------- |  | ---------------- | ------- |  | ----------------------------- | - | ---- | ---------------------------------------- |  |  | ----------------------- |  |  | - | - | 
|                                 |  | Number ofOptions |         |  | Weighted-AverageExercisePrice |   |      | Weighted-AverageRemainingContractualTerm |  |  | AggregateIntrinsicValue | 
|                                 |  |                  |         | 
|Outstanding at December 31, 2010 |  |                  | 172,157 |  |                               | $ | 8.31 |                                          |  |  |                         |  |  |   |   | 
|Options forfeited and expired    |  |                  | 48,628  |  |                               |   | 9.18 |                                          |  |  |                         |  |  |   |   | 
|                                 |  |                  |         |  |                               |   |      |                                          |  |  |                         |  |  |   |   | 
|                                 |  |                  |         | 
|Outstanding at March 31, 2011    |  |                  | 123,529 |  |                               | $ | 7.98 |                                          |  |  | 3.32 years              |  |  | $ |  | 
|                                 |  |                  |         |  |                               |   |      |                                          |  |  |                         |  |  |   |   | 
|                                 |  |                  |         | 
|Exercisable at March 31, 2011    |  |                  | 120,529 |  |                               | $ | 7.93 |                                          |  |  | 3.22 years              |  |  | $ |  | 
|                                 |  |                  |         |  |                               |   |      |                                          |  |  |                         |  |  |   |   | 

At March 31, 2011, there was approximately $1,000 of total unrecognized compensation expense related to
nonvested share-based compensation arrangements granted under the plans. The cost is expected to be recognized over a weighted-average period of three months. The total fair value of shares vesting and recognized as compensation expense was
approximately $1,000 and $9,000 for the three months ended March 31, 2011 and 2010, respectively. There was no associated tax benefit recognized for both the three months ended March 31, 2011 and 2010.



(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



6. Regulatory Capital.The
Bank is required to maintain certain minimum regulatory capital requirements to be considered Well Capitalized. At March 31, 2011, the Bank was considered Adequately Capitalized. Regulatory capital ratios were as follows:



|                                       |  |           |      |  |              |  |      |                    |  |  |       | 
|-------------------------------------- |  | --------- | ---- |  | ------------ |  | ---- | ------------------ |  |  | ----- | 
|                                       |  | March 31, |      |  | December 31, |  |      | Required toBe Well | 
|                                       |  | 2011      |      |  | 2010         |  |      | Capitalized        | 
|                                       |  |           |     
|Total capital to risk weighted assets  |  |           | 8.90 |  |              |  | 9.65 |                    |  |  | 10.00 | 
|Tier 1 capital to risk weighted assets |  |           | 7.63 |  |              |  | 8.37 |                    |  |  | 6.00  | 
|Tier 1 capital to total assets         |  |           | 5.38 |  |              |  | 5.81 |                    |  |  | 5.00  | 

7.
Foreclosed Real Estate.Expenses applicable to foreclosed assets follow (in thousands):



|                                              |  |                             |     |   |      |  |    | 
|--------------------------------------------- |  | --------------------------- | --- | - | ---- |  | -- | 
|                                              |  | Three Months EndedMarch 31, |    
|                                              |  | 2011                        |     |   | 2010 | 
|                                              |  |                            
|Net (gain) loss on sales of foreclosed assets |  | $                           | (88 | ) |      |  | 36 | 
|Provision for losses                          |  |                             | 115 |   |      |  |   | 
|Operating expenses                            |  |                             | 98  |   |      |  | 10 | 
|                                              |  |                             |     |   |      |  |    | 
|                                              |  |                            
|Total included in other noninterest expenses  |  | $                           | 125 |   |      |  | 46 | 
|                                              |  |                             |     |   |      |  |    | 

Foreclosed assets are recorded at fair value less estimated selling costs. Foreclosed assets which are
measured at fair value on a nonrecurring basis are as follows (in thousands):



|                            |  |       |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                          |  |     |  |  |  |     | 
|--------------------------- |  | ----- | ------ |  | ------- |  | - | ------- |  |  | ------- |  |  | ----------- | ------ |  | ------------------------ |  | --- |  |  |  | --- | 
|                            |  | Total |        |  | Level 1 |  |   | Level 2 |  |  | Level 3 |  |  | TotalLosses |        |  | LossesRecordedDuring2011 | 
|                            |  |       |        |  |         | 
|March 31, 2011-             |  |       |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                          |  |     |  |  |  |     | 
|Foreclosed real estate, net |  | $     | 11,241 |  |         |  |  |         |  |  |        |  |  |             | 11,241 |  |                          |  | 533 |  |  |  | 115 | 
|                            |  |       |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                          |  |     |  |  |  |     | 
|                            |  |       |        |  |         | 
|December 31, 2010-          |  |       |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                          |  |     |  |  |  |     | 
|Foreclosed real estate, net |  | $     | 11,385 |  |         |  |  |         |  |  |        |  |  |             | 11,385 |  |                          |  | 418 |  |  |  | 418 | 
|                            |  |       |        |  |         |  |   |         |  |  |         |  |  |             |        |  |                          |  |     |  |  |  |     | 



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



8. Fair Value of Financial
Instruments.The estimated fair values of the Companys financial instruments were as follows (in thousands):



|                                           |  |                   |         |  |                      |  |         |          |  |  |         |  |  |  |         | 
|------------------------------------------ |  | ----------------- | ------- |  | -------------------- |  | ------- | -------- |  |  | ------- |  |  |  | ------- | 
|                                           |  | At March 31, 2011 |         |  | At December 31, 2010 | 
|                                           |  | Carrying          |         |  | Fair                 |  |         | Carrying |  |  | Fair    | 
|                                           |  | Amount            |         |  | Value                |  |         | Amount   |  |  | Value   | 
|Financial assets:                          |  |                   |         |  |                      |  |         |          |  |  |         |  |  |  |         | 
|Cash and cash equivalents                  |  | $                 | 41,234  |  |                      |  | 41,234  |          |  |  | 48,315  |  |  |  | 48,315  | 
|Other interest-bearing deposits with banks |  |                   | 1,765   |  |                      |  | 1,765   |          |  |  | 1,765   |  |  |  | 1,765   | 
|Securities                                 |  |                   | 44,170  |  |                      |  | 44,170  |          |  |  | 45,761  |  |  |  | 45,761  | 
|Loans                                      |  |                   | 323,363 |  |                      |  | 316,964 |          |  |  | 332,779 |  |  |  | 326,723 | 
|Federal Home Loan Bank stock               |  |                   | 3,606   |  |                      |  | 3,606   |          |  |  | 3,606   |  |  |  | 3,606   | 
|Accrued interest receivable                |  |                   | 1,282   |  |                      |  | 1,282   |          |  |  | 1,378   |  |  |  | 1,378   | 
|                                           |  |                   |         | 
|Financial liabilities:                     |  |                   |         |  |                      |  |         |          |  |  |         |  |  |  |         | 
|Deposits                                   |  |                   | 361,175 |  |                      |  | 353,445 |          |  |  | 374,654 |  |  |  | 368,097 | 
|Federal Home Loan Bank advances            |  |                   | 60,000  |  |                      |  | 59,876  |          |  |  | 60,000  |  |  |  | 60,036  | 
|Other borrowings                           |  |                   | 505     |  |                      |  | 505     |          |  |  | 1,764   |  |  |  | 1,764   | 
|Off-balance sheet financial instruments    |  |                   |        |  |                      |  |        |          |  |  |        |  |  |  |        | 

9.
Deferred Tax Asset.The Company established an allowance against its deferred tax asset as of June 30, 2010, as it became apparent that the extended deterioration of credit markets would result in the Company recording its fourth
consecutive annual loss in 2010.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



10.Acquisitions and Winding Up of the Company

Acquisition Agreement with CBM Florida Holding Company and
Community Bank & Company

As previously announced, on February 10, 2011, First Community and First Community
Bank entered into an Acquisition Agreement (referred to in the Companys December 31, 2010 Form 10-K as the Acquisition Agreement) with CBM Florida Holding Company (CBM Holdings) and Community Bank &
Company (formerly, Community Bank of Manatee), under which First Community Bank will be merged with and into Community Bank & Company, and First Community will transfer to CBM Holdings all of the shares of First Community Lender (these two
transactions are referred to in the Form 10-K as the Disposition). Under the terms of the Acquisition Agreement, First Community will receive $10 million in cash at the closing of the Disposition.

Our Board of Directors, in connection with entering into the Acquisition Agreement, approved a Plan of Complete Liquidation and
Dissolution for First Community (the Plan). The Plan was approved by the holders of a majority of the outstanding shares of common stock of First Community at the special shareholders meeting held on April 11, 2011. Following the
consummation of the Disposition, First Community will be required to wind up of all of its business and distribute thereafter to its common stockholders all of its remaining cash. It is presently anticipated that, if the Disposition is consummated
in May or June 2011, such distributions will take place towards the end of 2011.

The completion of the transactions
contemplated by the Acquisition Agreement is subject to certain conditions in addition to shareholder approval, including, among others, (i) the receipt of all regulatory approvals; (ii) the absence of any material adverse change in the
business of First Community Bank; (iii) the accuracy of the representations and warranties made by each of the parties, and (iv) the compliance by each of the parties with their respective obligations under the Acquisition Agreement.

Agreement with the U.S. Department of the Treasury Regarding Repurchase of TARP Stock

First Community currently has outstanding 10,685 shares of Fixed-Rate Cumulative Perpetual Preferred Stock, Series A (the Series A
Stock) that were issued to the U.S. Department of the Treasury under the TARP program on December 23, 2008. The liquidation value of the Series A Stock, including accrued but unpaid dividends, is approximately $11.15 million. While First
Community was negotiating the Acquisition Agreement, it began negotiating with the Treasury to repurchase the Series A Stock at a discount. As previously announced, on March 11, 2011, First Community entered into a definitive Securities
Purchase Agreement with the U.S. Department of the Treasury relating to the repurchase by First Community of the Series A Stock, as well as a Warrant to purchase 228,312 shares of First Community common stock (the Warrant), which was
issued by First Community to the Treasury in connection with the issuance of the Series A Stock.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



10.Acquisitions and Winding Up of the Company, Continued

Subject to, and on the terms and conditions of, the
Treasury agreement, effective at the closing of the Disposition, First Community will purchase from the Treasury all of the Series A Stock and the Warrant. The aggregate purchase price for the Series A Stock and the Warrant will be an amount in cash
equal to (i) $7,200,000.00 (or 72% of the proceeds to be received from Community Bank & Company upon the closing of the Disposition) plus (ii) seventy-two percent (72%) of all cash assets of First Community at the closing of
the Disposition after giving effect to (x) the payment by First Community of any expenses relating to the Disposition (the Disposition Expenses), (y) the payment of its debts and liabilities (the Debt and Liabilities
Payment) and (z) a future distribution to (1) holders of First Community common stock outstanding as of the date of the Agreement plus (2) holders of the 3,132,970 shares of common stock to be issued upon the conversion of First
Communitys 10% Cumulative Convertible Perpetual Preferred Stock, Series B, of up to Thirty-Five Cents ($0.35) per share of common stock (the Distribution), provided that the sum of the Disposition Expenses, the Debt and Liabilities
Payment and the Distribution shall not exceed Three Million Five Hundred Twenty Seven Thousand Two Hundred Fifty Dollars ($3,527,250) in the aggregate.

11. Regulatory Matters

Cease and Desist Orders of the OTS

As previously announced, on February 24, 2011, First Community and First Community Bank each entered into a Stipulation
and Consent to the Issuance of Order to Cease and Desist with the Office of Thrift Supervision (OTS), and the OTS issued Orders to Cease and Desist to each of First Community and First Community Bank.

Under the terms of the OTS Orders, First Community Bank and First Community are required to, among other things:

within sixty (60) days, submit a written plan for First Community Bank to achieve by June 30, 2011, and thereafter maintain, a
Tier 1 Capital Ratio equal to or greater than eight percent (8%) and a Total Risk-Based Capital Ratio equal to or greater than thirteen percent (13%) (the Bank Capital Plan);

within sixty (60) days, submit for review and non-objection a written plan for First Community to achieve by June 30, 2011, and
thereafter maintain, the capital requirements imposed by the OTS on First Community Bank;

within sixty (60) days, submit
for review and non-objection a written business plan for First Community Bank for 2011 and 2012 that addresses all corrective actions in the 2010 OTS examination relating to First Community Banks business operations, including First Community
Banks plans to improve its core earnings and achieve profitability on a consistent basis throughout the term of the Business Plan (the Bank Business Plan);



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



11.Regulatory Matters,
Continued

within sixty (60) days, submit for review and non-objection a written business plan for First Community
for 2011 and 2012 that addresses, among other things, the capital needs and requirements of First Community Bank, the capital necessary to support operations and debt service at First Community, and plans to improve First Communitys core
earnings, reduce expenses, and achieve profitability on a consistent basis throughout the term of the Business Plan;

within
sixty (60) days, revise First Community Banks policies, procedures and methodology relating to the timely establishment and maintenance of an adequate allowance for loan and lease losses (ALLL) level (ALLL Policy) to address all
corrective actions set forth in the 2010 OTS Examination relating to ALLL;

within sixty (60) days, submit an updated
comprehensive written plan with specific strategies, targets and timeframes to reduce First Community Banks level of problem assets;

within sixty (60) days, develop, implement and adhere to a formal written Risk Management Function and Plan for First Community Bank that addresses all corrective actions discussed in the 2010 OTS
Examination related to risk management at First Community Bank;

within sixty (60) days, develop, implement and adhere to
a formal written Enterprise Risk Management Function and Plan for First Community that addresses all corrective actions discussed in the 2010 OTS Examination related to enterprise risk management;

within sixty (60) days, revise First Community Banks liquidity and funds management policies and procedures to address all
corrective actions set forth in the 2010 OTS Examination relating to liquidity and funds management;

prepare and provide to
the OTS various reports, including progress reports; and

ensure First Community Banks compliance with applicable laws,
rules, regulations and agency guidelines, including the terms of the Orders.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



11.Regulatory Matters,
Continued

Under the terms of the OTS Orders, First Community Bank and First Community may not:

increase First Community Banks total assets during any quarter in excess of an amount equal to net interest credited on deposit
liabilities during the prior quarter without the prior written notice of non-objection by the OTS;

incur, issue, renew, or
rollover any debt, increase any current lines of credit, or otherwise incur any additional debt without receiving the prior written non-objection of the OTS;

originate or purchase any new nonresidential real estate loans until the OTS approves First Community Bank Capital Plan notifies First Community Bank that it does not object to First Community Bank
Business Plan;

appoint any new director or senior executive officer or change the responsibilities of any current senior
executive officers without prior notice to the OTS;

enter into, renew, extend or revise any compensation or benefit agreements
for directors or senior executive officers without prior notice to the OTS;

pay dividends or make any capital distributions
without the prior approval of the OTS;

make any golden parachute payments or prohibited indemnification payments unless they
comply with applicable regulations; or

make any incentive compensation payments to any senior executive officers who are
directors of First Community Bank without prior approval of the OTS.

All requirements of the OTS orders were met by First
Community Bank and First Community as of April 25, 2011. The OTS orders will remain in effect until modified or terminated by the OTS.

All customer deposits remain fully insured to the fullest extent permitted by the FDIC. The Bank expects to continue to serve its customers in all areas including making loans (other than nonresidential
real estate loans), establishing lines of credit, accepting deposits and processing banking transactions. Neither First Community nor First Community Bank admitted any wrongdoing in entering into the respective Stipulation and Consent to the
Issuance of a Cease and Desist Order. The OTS did not impose or recommend any monetary penalties.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



12.Suspension of Preferred
Stock Dividends.The Board of Directors has suspended dividend payments on both the Preferred Stock Series A (TARP) and the Preferred Stock Series B shares.

The Office of Thrift Supervision, the Banks primary regulator, under the Cease and Desist Order, must approve quarterly dividends.

13.Conversion of Series B Preferred Stock into Common Stock.On March 31, 2011, each
outstanding share of 10% Cumulative Convertible Perpetual Preferred Stock, Series B (the Series B Stock), of First Community was mandatorily converted into ten (10) shares of common stock, pursuant to the terms of Section 4 of
the Companys Amended and Restated Articles of Incorporation designating and governing the Series B Stock (which Amended and Restated Articles were filed with the Secretary of State of Florida on December 39, 2009), as a result of First
Communitys inability to declare and pay dividends on the Series B Stock for the four (4) consecutive quarters ending March 31, 2011. Following the conversion, there are 8,592,143 shares outstanding of First Communitys common
stock.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Review by Independent Registered
Public Accounting Firm

Hacker, Johnson & Smith PA, the Companys independent registered public accounting
firm, have made a limited review of the financial data as of March 31, 2011, and for the three-month periods ended March 31, 2011 and 2010 presented in this document, in accordance with standards established by the Public Company
Accounting Oversight Board.

Their report furnished pursuant to Article 10 of Regulation S-X is included herein.



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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

First Community Bank Corporation of America

Pinellas Park, Florida:

We have reviewed the accompanying condensed consolidated balance sheet of First Community Bank Corporation of America and Subsidiaries
(the Company) as of March 31, 2011 and the related condensed consolidated statements of operations, changes in stockholders equity and cash flows for the three-month periods ended March 31, 2011 and 2010. These interim
financial statements are the responsibility of the Companys management.

We conducted our reviews in accordance with the
standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as
a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material
modifications that should be made to the accompanying condensed consolidated financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance
sheet of the Company as of December 31, 2010, and the related consolidated statements of operations, changes in stockholders equity and cash flows for the year then ended (not presented herein); and in our report dated March 30,
2011, we expressed a qualified opinion on those consolidated financial statements. Those consolidated financial statements had been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated
financial statements, the Companys recent and continuing increases in nonperforming assets, increases in provisions for loan losses, declining net interest margin, continuing high levels of noninterest expenses related to the credit problems
and eroding regulatory capital raise substantial doubt about the Companys ability to continue as a going concern. Managements plans are described in Note 1. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2010, is fairly stated, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.

/s/ Hacker, Johnson & Smith PA

HACKER, JOHNSON & SMITH PA

Tampa, Florida

May 12, 2011



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Item 2. Managements Discussion and Analysis of

Financial Condition and Results of Operations

Forward Looking Statements

This document contains forward-looking
statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve substantial risks and uncertainties. When used in this document, or in the
documents incorporated by reference, the words anticipate, believe, estimate, may, intend and expect and similar expressions are some of the forward-looking statements used in
these documents. Actual results, performance, or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. Factors which may cause results to change materially include competition,
inflation, general economic conditions, changes in interest rates, and changes in the value of collateral securing loans First Community Bank Corporation of America has made, among other things.

General

First Community
Bank Corporation of America (the Holding Company) owns all of the outstanding common stock of First Community Bank of America (the Bank) and First Community Lender Services, Inc. (FCLS) (collectively, the
Company). The Holding Companys primary business activity is the operation of the Bank. The Bank is a federally-chartered stock savings bank providing a variety of banking services to small and middle market businesses and
individuals through its four banking offices located in Pinellas County, two banking offices located in Pasco County, three banking offices located in Charlotte County and two offices located in Hillsborough County, Florida. FCLS had minimal
activity during the three months ended March 31, 2011 and 2010.

Liquidity and Capital Resources

The Companys primary source of cash during the three months ended March 31, 2011 was core deposits. The Bank considers savings,
NOW, money-market, and noninterest-bearing demand deposits as core deposits. There was a $13 million decrease in deposits resulting from the implementation of the Dodd-Frank Act and the Banks strategy of lowering levels of brokered and high
costs certificates of deposit. The Bank maintained a $24.6 million balance deposited at the Federal Reserve Bank on March 31, 2011.

Off-Balance Sheet Arrangements

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments
to extend credit, unused lines of credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amounts recognized in the condensed consolidated balance sheet. The
contract amounts of these instruments reflect the extent of the Companys involvement in particular classes of financial instruments.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



The Companys exposure to credit loss in the event of
nonperformance by the other party to the financial instrument for commitments to extend credit, unused lines of credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit
policies in making commitments as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to
lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are
expected to expire without being drawn upon, the total committed amounts do not necessarily represent future cash requirements. The Company evaluates each customers credit worthiness on a case-by-case basis. The amount of collateral obtained,
if it is deemed necessary by the Company upon extension of credit, is based on managements credit evaluation of the counter party.

Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party and to support public and private borrowing arrangements.
Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters-of-credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds
collateral supporting these commitments.

Unused lines of credit and commitments to extend credit typically result in loans
with a market interest rate.

A summary of the amounts of the Companys financial instruments, with off-balance sheet risk
at March 31, 2011, follows (in thousands):



|                             |  |                |        | 
|---------------------------- |  | -------------- | ------ | 
|                             |  | ContractAmount |       
|                             | 
|Commitments to extend credit |  | $              | 823    | 
|                             |  |                |        | 
|                             | 
|Unused lines of credit       |  | $              | 19,675 | 
|                             |  |                |        | 
|                             | 
|Standby letters of credit    |  | $              | 548    | 
|                             |  |                |        | 

Management believes that the Company has adequate resources to fund all of its commitments and that
substantially all its existing commitments will be funded within the next twelve months.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Selected Financial Information

The following rates are presented for the dates and periods indicated:



|                                                                      |  |                                |         |    |                            |  |        |                                |  |  |        |   
|--------------------------------------------------------------------- |  | ------------------------------ | ------- | -- | -------------------------- |  | ------ | ------------------------------ |  |  | ------ | --
|                                                                      |  | Three MonthsEndedMarch 31,2011 |         |    | Year EndedDecember 31,2010 |  |        | Three MonthsEndedMarch 31,2010 | 
|Average equity as a percentage of average assets                      |  |                                | 5.85    | %  |                            |  | 7.43   | %                              |  |  | 8.55   | % 
|                                                                      |  |                                |        
|Equity to total assets at end of period                               |  |                                | 5.66    | %  |                            |  | 6.11   | %                              |  |  | 8.60   | % 
|                                                                      |  |                                |        
|Return on average assets (1)                                          |  |                                | (2.98   | )% |                            |  | (3.62  | )%                             |  |  | (1.62  | )%
|                                                                      |  |                                |        
|Return on common average equity (1)                                   |  |                                | (124.02 | )% |                            |  | (92.20 | )%                             |  |  | (30.47 | )%
|                                                                      |  |                                |        
|Noninterest expenses to average assets                                |  |                                | 3.62    | %  |                            |  | 2.65   | %                              |  |  | 2.48   | % 
|                                                                      |  |                                |        
|Nonperforming assets as a percentage of total assets at end of period |  |                                | 9.55    | %  |                            |  | 9.74   | %                              |  |  | 6.11   | % 



|(1) | Annualized for the three months ended March 31.
|--- | -----------------------------------------------

Local Economic Conditions

The Bank operates in two distinct geographic markets on the West
Coast of Florida, the Tampa Bay region in West Central Florida and the Port Charlotte Region in southwest Florida. Three of the Banks markets are located around Tampa Bay (Pinellas County, Pasco County and Hillsborough County). The fourth
market is located in Charlotte County. The economy in Florida has been hard hit by the decline in real estate values resulting from an over supply of residential housing units, a significant reduction in development activity and reductions in sales
activity. The lack of absorption of vacant land, lots and certain single family and condominium product has continued to feed the decline in values. The Tampa Bay region is more diversified with other service and manufacturing industry than the Port
Charlotte region which had been primarily dependent on residential real estate development and the retiree industry. Although the Tampa Market has shown decreased values in single family homes and condominiums it has not suffered as severely as the
Port Charlotte market. Housing values have dropped approximately 40-50% from the height of activity in 2005  2006.Similarly vacant land and lot values have fallen 60-70%. The drop in values continues to contribute to the delinquency or
default of borrowers in that market. Correspondently the Tampa market has seen a drop in values for single family of 25-35%, however condominiums and luxury homes have experienced larger decreases. Land and lot values have diminished by 30-40%. The
Bank has experienced continued losses in vacant residential lot loans and single family homes. A predominant portion of these losses are in the Port Charlotte market. Unemployment in Port Charlotte is purported to be in the 10-15% range, thus many
borrowers struggle to maintain a positive payment history.



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The commercial real estate market in the Tampa Bay area is showing signs of
weakness especially in the multifamily, office rental and retail rental market. The Bank does not have a large concentration in these areas, however, is experiencing increased delinquency trends in that market. Commercial real estate in Port
Charlotte is also experiencing significant weakness, however, the Bank has minimal holdings in that product type.

In light of these real
estate trends the Bank has experienced an increase in its problem assets specifically in vacant residential lots and single family which has comprised 70% of charge-off activity. Commercial related charge-offs to date are 26% of total
charge-offs. The remaining charge-offs have been consumer loans.

Determining Loan Losses

A loan is classified impaired when, based on current information and events; it is probable the Bank will be unable to collect all amounts due according
to the contractual terms of the loan agreement. All amounts due according to the contractual terms means both the contractual interest payments and contractual principal payments will be collected as scheduled in the loan agreement. Once a loan is
considered impaired and is collateral dependent, an analysis of the loan will be performed to determine a fair value estimate. Fair value will be determined by a current appraisal or using a reasonable discount of the appraisal using comparable data
given the existing economic conditions. If the loan is collateral dependent, the loss will be determined by deducting selling costs from the fair value of the collateral. The difference between the loan balance and the fair value less selling cost
is the loss. The loss will be charged-off when it has been determined. A loan that is impaired and non-collateral dependent will be treated in accordance with regulatory guidelines for retail loans. Closed end retail loans will be charged off when
delinquent 120 days and open end loans will be charged off when 180 days delinquent. Commercial loans that are noncollateral dependent will be charged off between 90 and 120 days delinquent. If the loan is considered impaired as a Troubled Debt
Restructure, it is treated as required under FASB 114. The discounted cash flow of revised payment stream is discounted at the original loan rate and the difference is determined to be the loss.

The Bank obtains external appraisals on commercial real estate loans considered collateral dependent and on commercial foreclosed real estate on an
annual basis. Once the appraisal is in hand, the Bank will evaluate and if required will write-down the loan. The Bank obtains a brokers price opinion or other valuation service estimate every six months on any impaired collateral dependent single
family, residential or vacant lot loans, and foreclosed real estate and a write-down is made as required. A formal appraisal is ordered to evaluate the fair value when the foreclosure process is completed and the property title is being transferred
to the Bank as foreclosed real estate. The foreclosed real estate is initially valued at the appraised value less estimated selling costs. Once the property is in foreclosed real estate, after six months a brokers price opinion or valuation
service model will be used to evaluate the current value. An allowance is established for any additional losses. In addition, management continuously evaluates its impaired loan portfolio.



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The chart below summarizes the 30+ days delinquency by loan category for
the dates indicated ($ in thousands):



|                       |  |   |        |  |   |  |      | 
|---------------------- |  | - | ------ |  | - |  | ---- | 
|                       |  | $ |        |  | % | 
|March 31, 2010:        |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 13,966 |  |   |  | 3.48 | 
|Commercial real estate |  |   | 21,459 |  |   |  | 5.34 | 
|Land and lots          |  |   | 8,455  |  |   |  | 2.10 | 
|Commercial loans       |  |   | 1,326  |  |   |  | 0.33 | 
|Installments           |  |   | 605    |  |   |  | 0.15 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 45,811 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|June 30, 2010:         |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 13,719 |  |   |  | 3.71 | 
|Commercial real estate |  |   | 17,621 |  |   |  | 4.76 | 
|Land and lots          |  |   | 9,024  |  |   |  | 2.44 | 
|Commercial loans       |  |   | 796    |  |   |  | 0.22 | 
|Installments           |  |   | 212    |  |   |  | 0.06 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 41,372 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|September 30, 2010:    |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 12,187 |  |   |  | 3.44 | 
|Commercial real estate |  |   | 16,651 |  |   |  | 4.70 | 
|Land and lots          |  |   | 7,594  |  |   |  | 2.14 | 
|Commercial loans       |  |   | 1,702  |  |   |  | 0.48 | 
|Installments           |  |   | 433    |  |   |  | 0.12 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 38,567 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|December 31, 2010:     |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 13,118 |  |   |  | 3.79 | 
|Commercial real estate |  |   | 16,351 |  |   |  | 4.73 | 
|Land and lots          |  |   | 8,438  |  |   |  | 2.44 | 
|Commercial loans       |  |   | 2,466  |  |   |  | 0.71 | 
|Installments           |  |   | 659    |  |   |  | 0.19 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 41,032 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|March 31, 2011:        |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 12,111 |  |   |  | 3.61 | 
|Commercial real estate |  |   | 15,451 |  |   |  | 4.61 | 
|Land and lots          |  |   | 6,659  |  |   |  | 1.99 | 
|Commercial loans       |  |   | 2,675  |  |   |  | 0.80 | 
|Installments           |  |   | 2,601  |  |   |  | 0.78 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 39,497 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 



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The Banks nonaccrual loans and Foreclosed Real Estate (REO)
is comprised of the following ($ in thousands):



|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|---------------------- |  | ---------- | --- |  | --- |  | ------ | - |  |  | -- |  |  |  | ------ | 
|                       |  | Nonaccrual |     |  | REO | 
|                       |  | #          |     |  | $   |  |        | # |  |  | $  | 
|March 31, 2010:        |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|Residential mortgages  |  |            | 42  |  |     |  | 9,208  |   |  |  | 7  |  |  |  | 875    | 
|Commercial real estate |  |            | 20  |  |     |  | 13,599 |   |  |  | 3  |  |  |  | 535    | 
|Land and lots          |  |            | 29  |  |     |  | 7,653  |   |  |  | 10 |  |  |  | 942    | 
|Commercial loans       |  |            | 5   |  |     |  | 584    |   |  |  |   |  |  |  |       | 
|Installments           |  |            | 5   |  |     |  | 128    |   |  |  | 2  |  |  |  | 74     | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|Total                  |  |            | 101 |  |     |  | 31,172 |   |  |  | 22 |  |  |  | 2,426  | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|June 30, 2010:         |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|Residential mortgages  |  |            | 48  |  |     |  | 10,528 |   |  |  | 10 |  |  |  | 1,356  | 
|Commercial real estate |  |            | 19  |  |     |  | 11,283 |   |  |  | 10 |  |  |  | 4,619  | 
|Land and lots          |  |            | 26  |  |     |  | 5,226  |   |  |  | 14 |  |  |  | 1,610  | 
|Commercial loans       |  |            | 5   |  |     |  | 495    |   |  |  |   |  |  |  |       | 
|Installments           |  |            | 5   |  |     |  | 112    |   |  |  | 3  |  |  |  | 105    | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|Total                  |  |            | 103 |  |     |  | 27,644 |   |  |  | 37 |  |  |  | 7,690  | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|September 30, 2010:    |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|Residential mortgages  |  |            | 44  |  |     |  | 10,857 |   |  |  | 19 |  |  |  | 1,749  | 
|Commercial real estate |  |            | 20  |  |     |  | 11,846 |   |  |  | 9  |  |  |  | 4,374  | 
|Land and lots          |  |            | 24  |  |     |  | 6,250  |   |  |  | 20 |  |  |  | 1,710  | 
|Commercial loans       |  |            | 8   |  |     |  | 814    |   |  |  |   |  |  |  |       | 
|Installments           |  |            | 4   |  |     |  | 144    |   |  |  | 2  |  |  |  | 92     | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|Total                  |  |            | 100 |  |     |  | 29,911 |   |  |  | 50 |  |  |  | 7,925  | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|December 31, 2010:     |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|Residential mortgages  |  |            | 44  |  |     |  | 9,919  |   |  |  | 24 |  |  |  | 3,793  | 
|Commercial real estate |  |            | 29  |  |     |  | 15,218 |   |  |  | 13 |  |  |  | 5,140  | 
|Land and lots          |  |            | 26  |  |     |  | 6,643  |   |  |  | 23 |  |  |  | 2,282  | 
|Commercial loans       |  |            | 9   |  |     |  | 2,479  |   |  |  |   |  |  |  |       | 
|Installments           |  |            | 4   |  |     |  | 219    |   |  |  | 4  |  |  |  | 170    | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|Total                  |  |            | 112 |  |     |  | 34,478 |   |  |  | 64 |  |  |  | 11,385 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|March 31, 2011:        |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|Residential mortgages  |  |            | 40  |  |     |  | 8,629  |   |  |  | 21 |  |  |  | 3,640  | 
|Commercial real estate |  |            | 27  |  |     |  | 12,599 |   |  |  | 14 |  |  |  | 5,322  | 
|Land and lots          |  |            | 28  |  |     |  | 6,932  |   |  |  | 23 |  |  |  | 2,051  | 
|Commercial loans       |  |            | 6   |  |     |  | 1,812  |   |  |  |   |  |  |  |       | 
|Installments           |  |            | 15  |  |     |  | 1,980  |   |  |  | 5  |  |  |  | 228    | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 
|                       |  |            |     | 
|Total                  |  |            | 116 |  |     |  | 31,952 |   |  |  | 63 |  |  |  | 11,241 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |        | 



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The following chart illustrates the combination of allowance and charge-off
compared to related loans at March 31, 2011 and for the three months then ended (in thousands):



|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|-------------------------------------------------------------------------------------- |  | ---------------- | ------- | - | ------------- |  | ------ | ----- |  |  | ------- | -
|                                                                                       |  | NonimpairedLoans |         |   | ImpairedLoans |  |        | Total | 
|Allowance for loan losses:                                                             |  |                  |         |   |               |  |        |       |  |  |         |  
|Beginning balance                                                                      |  | $                | 7,609   |   |               |  | 4,108  |       |  |  | 11,717  |  
|Provision                                                                              |  |                  | 1,250   |   |               |  | 1,810  |       |  |  | 3,060   |  
|Charge-offs                                                                            |  |                  | (1,465  | ) |               |  | (1,966 | )     |  |  | (3,431  | )
|Recoveries                                                                             |  |                  | 115     |   |               |  |       |       |  |  | 115     |  
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Ending balance                                                                         |  | $                | 7,509   |   |               |  | 3,952  |       |  |  | 11,461  |  
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Loss allowance                                                                         |  |                  | 7,509   |   |               |  | 3,952  |       |  |  | 11,461  |  
|Partial charge-offs of loans currently in portfolio                                    |  |                  |        |   |               |  | 6,764  |       |  |  | 6,764   |  
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Total                                                                                  |  | $                | 7,509   |   |               |  | 10,716 |       |  |  | 18,225  |  
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Total loans                                                                            |  | $                | 284,091 |   |               |  | 51,266 |       |  |  | 335,357 |  
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Allowance for loss and charge-offs as a percentage of total loans at March 31, 2011    |  |                  | 2.64    | % |               |  | 20.90  | %     |  |  | 5.43    | %
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                       |  |                  |        
|Allowance for loss and charge-offs as a percentage of total loans at December 31, 2010 |  |                  | 2.60    | % |               |  | 20.98  | %     |  |  | 5.43    | %
|                                                                                       |  |                  |         |   |               |  |        |       |  |  |         |  



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|                                                                                      |  |              |        |  
|------------------------------------------------------------------------------------- |  | ------------ | ------ | -
|                                                                                      |  | At March 31, |       
|                                                                                      |  | 2011         |       
|Collateral dependent impaired loans with partial charge-offs or specific reserves:    |  |              |        |  
|Fair value of collateral                                                              |  | $            | 26,226 |  
|Estimated selling costs                                                               |  |              | (3,216 | )
|                                                                                      |  |              |        |  
|Fair value less selling costs                                                         |  |              | 23,010 |  
|                                                                                      |  |              |        |  
|                                                                                      | 
|Gross impaired loans prior to charge-offs                                             |  |              | 33,726 |  
|Partial charge-offs of impaired loans                                                 |  |              | (6,764 | )
|Loss allowance                                                                        |  |              | (3,952 | )
|                                                                                      |  |              |        |  
|Book value of impaired loans with partial charge-offs                                 |  |              | 23,010 |  
|                                                                                      |  |              |        |  
|                                                                                      | 
|Fair value less selling costs in excess of book value                                 |  | $            |       |  
|                                                                                      |  |              |        |  
|                                                                                      | 
|Collateral dependent impaired loans without partial charge-offs or specific reserves: |  |              |        |  
|Fair value of collateral                                                              |  |              | 32,486 |  
|Estimated selling costs                                                               |  |              | (3,249 | )
|                                                                                      |  |              |        |  
|Fair value less selling costs                                                         |  |              | 29,237 |  
|                                                                                      |  |              |        |  
|                                                                                      | 
|Impaired loans                                                                        |  |              | 24,288 |  
|Loss allowance                                                                        |  |              |       |  
|Book value of impaired loans                                                          |  |              | 24,288 |  
|                                                                                      |  |              |        |  
|                                                                                      | 
|Fair value less selling costs in excess of book value                                 |  | $            | 4,949  |  
|                                                                                      |  |              |        |  

The increase in nonperforming assets correlates with the real estate related delinquencies being experienced by the Bank in
the Port Charlotte market, and the Tampa Bay market. Predominantly the nonperforming assets are vacant residential lots, single family homes, multifamily and small office properties.

Retail credit is the primary reason for the build up in impaired loans. The subsequent move to charge-off is rapid and is not reflected as a specific reserve. The Bank recognizes these losses as they
become apparent.

The Bank initially will try and work with any borrower with an impaired loan. Should negotiations fail, then legal action
occurs. The foreclosure process in Florida has continued to lengthen given the large number of cases in process. This delay has inhibited the Banks ability to get back real estate in a timely manner; the average is now between twelve and
eighteen months. The Bank currently has two special assets officers, one devoted to retail and one devoted to commercial. In addition, we have a person who assists in handling other real estate owned by the Bank.



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Results of Operations

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the
Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate
spread; and (v) net interest margin.



|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|-------------------------------------------------------------------------------- |  | ---------------------------- | ------- |  | ------------------- | - | ----- | ---------- |  |  | ---------------------- | - |  | ------------------- | ------- |  | ---------- | - | ----- |  |  |  | ---- | -
|                                                                                 |  | Three Months Ended March 31, |        
|                                                                                 |  | 2011                         |         |  | 2010                |  
|                                                                                 |  | InterestAverageBalance       |         |  | AverageandDividends |   |       | Yield/Rate |  |  | InterestAverageBalance |   |  | AverageandDividends |         |  | Yield/Rate |  
|                                                                                 |  | (Dollars in thousands)       |        
|Interest-earning assets:                                                         |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|Loans (1)                                                                        |  | $                            | 328,744 |  |                     |   | 4,285 |            |  |  | 5.21                   | % |  | $                   | 397,711 |  |            |   | 5,410 |  |  |  | 5.44 | %
|Securities                                                                       |  |                              | 44,826  |  |                     |   | 348   |            |  |  | 3.11                   |   |  |                     | 62,265  |  |            |   | 557   |  |  |  | 3.58 |  
|Other interest-earning assets (2)                                                |  |                              | 39,199  |  |                     |   | 33    |            |  |  | 0.34                   |   |  |                     | 46,006  |  |            |   | 31    |  |  |  | 0.27 |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Total interest-earning assets                                                    |  |                              | 412,769 |  |                     |   | 4,666 |            |  |  | 4.52                   |   |  |                     | 505,982 |  |            |   | 5,998 |  |  |  | 4.74 |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Noninterest-earning assets                                                       |  |                              | 45,692  |  |                     |   |       |            |  |  |                        |   |  |                     | 47,039  |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Total assets                                                                     |  | $                            | 458,461 |  |                     |   |       |            |  |  |                        |   |  | $                   | 553,021 |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Interest-bearing liabilities:                                                    |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                              | 202,380 |  |                     |   | 395   |            |  |  | 0.78                   |   |  |                     | 217,807 |  |            |   | 736   |  |  |  | 1.35 |  
|Time deposits                                                                    |  |                              | 126,857 |  |                     |   | 590   |            |  |  | 1.86                   |   |  |                     | 208,748 |  |            |   | 1,266 |  |  |  | 2.43 |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Total interest-bearing deposits                                                  |  |                              | 329,237 |  |                     |   | 985   |            |  |  | 1.20                   |   |  |                     | 426,555 |  |            |   | 2,002 |  |  |  | 1.88 |  
|                                                                                 |  |                              |         |  |                     |  
|Other interest-bearing liabilities (3)                                           |  |                              | 61,027  |  |                     |   | 288   |            |  |  | 1.89                   |   |  |                     | 40,066  |  |            |   | 342   |  |  |  | 3.41 |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Total interest-bearing liabilities                                               |  |                              | 390,264 |  |                     |   | 1,273 |            |  |  | 1.30                   |   |  |                     | 466,621 |  |            |   | 2,344 |  |  |  | 2.01 |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Noninterest-bearing liabilities                                                  |  |                              | 41,379  |  |                     |   |       |            |  |  |                        |   |  |                     | 39,130  |  |            |   |       |  |  |  |      |  
|Stockholders common equity                                                      |  |                              | 26,818  |  |                     |   |       |            |  |  |                        |   |  |                     | 47,270  |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Total liabilities and stockholders equity                                       |  | $                            | 458,461 |  |                     |   |       |            |  |  |                        |   |  | $                   | 553,021 |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Net interest income                                                              |  |                              |         |  |                     | $ | 3,393 |            |  |  |                        |   |  |                     |         |  |            | $ | 3,654 |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Interest-rate spread (4)                                                         |  |                              |         |  |                     |   |       |            |  |  | 3.22                   | % |  |                     |         |  |            |   |       |  |  |  | 2.73 | %
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Net interest margin (5)                                                          |  |                              |         |  |                     |   |       |            |  |  | 3.29                   | % |  |                     |         |  |            |   |       |  |  |  | 2.89 | %
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                              | 1.06    |  |                     |   |       |            |  |  |                        |   |  |                     | 1.08    |  |            |   |       |  |  |  |      |  
|                                                                                 |  |                              |         |  |                     |   |       |            |  |  |                        |   |  |                     |         |  |            |   |       |  |  |  |      |  



|(1) | Includes nonperforming loans.
|--- | -----------------------------

|(2) | Includes Federal Home Loan Bank stock and interest-bearing deposits with banks.
|--- | -------------------------------------------------------------------------------

|(3) | Includes Federal Home Loan Bank advances and other borrowings.
|--- | --------------------------------------------------------------

|(4) | Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Net interest margin is net interest income divided by average interest-earning assets.
|--- | --------------------------------------------------------------------------------------



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Comparison of the Three-Month Periods Ended March 31,
2011 and 2010

General.First Community Bank Corporation of America recorded a net loss for
the first quarter ended March 31, 2011 of $3.4 million compared to a net loss of $1.9 million for the same period in 2010. The increase in losses was due to a decrease in net interest income to increased expenses related to problem assets.

The company recorded a net loss available to common stockholders, after preferred stock dividends requirements and
amortization of preferred discount, for the three-months ended March 31, 2011 of $3.5 million or $(0.64) per basic share compared to a net loss of $2.2 million or $(0.42) per basic share for the three-months ended march 31, 2010.

The first quarter 2011 reflected a $984,000 increase in other non-interest expenses related to problem assets.

Net Interest Income.Interest income decreased to $4.7 million during the three-months ended March 31,
2011 compared to $6.0 million during the three-months ended March 31, 2010. Interest on loans for the three-months ended March 31, 2011 decreased to $4.3 million from $5.4 million for the three-months ended March 31, 2010. The
decrease in interest income on loans was attributable to a decline in the average balance on loans to $329 million for the three-months ended March 31, 2011 from $398 million for the three-months ended March 31, 2010 combined with a
decrease in the rate earned on the loan portfolio. Interest on securities decreased to $348,000 for the three-months ended March 31, 2011 from $557,000 for the three-months ended March 31, 2010. The decrease in interest income on
securities was due to a decrease in the average balance to $44.8 million for the three-months ended March 31, 2011 from $62.3 for the three-months ended March 31, 2010 along with a decrease in the rate earned on the portfolio.

Interest expense on interest-bearing deposit accounts decreased to $1.0 million for the three-months ended March 31, 2011, compared
to $2.0 million for the three-months ended March 31, 2010. The decrease was due to a decrease in the rate paid to 1.20% for the three-months ended March 31, 2011, from 1.88% for the three-months ended March 31, 2010 along with a
decrease in the average deposit balance. Interest expense on other borrowings decreased to $288,000 for the three-months ended March 31, 2011, compared to $342,000 for the three-months ended March 31, 2010. The decrease in interest
expenses on other borrowings was due to a decrease in the average yield to 1.89% for the three-months ended March 31, 2011 from 3.41% for the three-months ended March 31, 2010.

Provision for Loan Losses.Provisions for loan losses are based on our review of the historical loan loss
experience and such factors which, in managements judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The allowance is based on ongoing assessments of the estimated losses inherent in the
loan portfolio. Our methodology for assessing the appropriate allowance level consists of several key elements described below.

Our methodology incorporated the calculation of loans considered impaired and allocations for performing portfolio categories based on
applying historical charge off data for loans categorized by similar risk characteristics based on our experience. The methodology includes an unallocated portion (qualitative factors) justified by current general market conditions, trends in
performance (delinquency), economic and political trends.



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Comparison of the Three-Month Periods Ended March 31,
2011 and 2010, Continued

Larger commercial loans that exhibit probable or observed credit weaknesses are subject to
individual review. Where appropriate, the allowance is allocated to individual loans based on our estimate of the borrowers ability to repay the loan given the availability of collateral, other sources of cash flows and available legal
options. Included in the review of individual loans are those that are impaired. Any specific reserves for impaired loans are measured based on the fair value of the underlying collateral. The collectability of both principal and interest is
evaluated when assessing the allowance. Historical loss rates are applied to other commercial loans not subject to specific allocations.

Homogenous loans, such as installment and residential mortgage loans, are not individually reviewed by management. The allowance is established for each pool of loans based on the expected net
charge-offs. Loss rates are based on the average net charge-off history by loan category.

Historical loss rates for commercial
and consumer loans may be adjusted for significant factors that, in managements judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the local
economy, trends in the nature and volume of loans (delinquencies, charge-offs, nonaccrual and problem loans), changes in the internal lending policies and credit standards, collection practices, and examination results from bank regulatory agencies
and our internal credit review function. The allowance relating to individual loans and historical loss rates are reviewed throughout the year and adjusted as necessary based on changing borrower and collateral conditions and actual collection and
charge-off experience.

The provision for loan losses was $3.1 million for the three-months ended March 31, 2011, compared
to $3.9 million for the three-months ended March 31, 2010. Economic weakness has continued to stress the loan portfolio which has attributed to the augmented level of nonperforming loans which has continued to result in declining home values
and higher unemployment rates in the four markets that the Company serves.

The allowance for loan losses was $11.5 million at
March 31, 2011. While management believes that its allowance for loan losses is adequate as of March 31, 2011, future adjustments to the allowance for loan losses may be necessary as economic conditions dictate.

Noninterest Income.Noninterest income decreased to $389,000 for the three-months ended March 31,
2011, from $597,000 for the three-months ended March 31, 2010. The decrease was primarily due to $159,000 in security gains recorded for the three-months ended March 31, 2010 with no corresponding amount in 2011.

Noninterest Expenses.Total noninterest expenses for the three-months ended March 31, 2011 were $4.0
million compared to $3.4 million for the three-months ended March 31, 2010. The increase was primarily due to expenses related to impaired loans and foreclosed real estate.

Income Taxes (Benefit).Income taxes for the three-months ended March 31, 2011, were $0.0 compared to
a benefit of $(1.2) million for the three-months ended March 31, 2010.



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Item 3. Quantitative and
Qualitative Disclosures about Market Risk

Market risk is the risk of loss from adverse changes in market prices and
rates. The Companys market risk arises primarily from interest-rate risk inherent in its lending, investment and deposit taking activities. The Company has little or no risk related to trading accounts, commodities or foreign exchange.

Management actively monitors and manages its interest-rate risk exposure. The primary objective in managing interest-rate risk
is to limit, within established guidelines, the adverse impact of changes in interest rates on the Companys net interest income and capital, while adjusting the Companys asset-liability structure to obtain the maximum yield-cost spread
on that structure. Management relies primarily on its asset-liability structure to control interest rate risk. However, a sudden and substantial increase in interest rates could adversely impact the Companys earnings, to the extent that the
interest rates borne by assets and liabilities do not change at the same speed, to the same extent, or on the same basis. The Company is managing through the impact of recent declining interest rates and the subsequent pressure on spreads.

Item 4T. Controls and Procedures



|a. | Evaluation of disclosure controls and procedures. The Company maintains controls and procedures designed to ensure that information required to be disclosed in
the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon
their evaluation of those controls and procedures performed within 90 days of the filing date of this report, the Chief Executive and Principal Financial officers of the Company concluded that the Companys disclosure controls and procedures
were effective to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified
in the U.S. Securities and Exchange Commissions rules and forms.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b. | Changes in internal controls. The Company made no significant changes in its internal controls or in other factors that could significantly affect these controls
subsequent to the date of the evaluation of those controls by the Chief Executive and Principal Financial officers.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There are no materials pending legal proceeding to which First Community Bank Corporation of America
and Subsidiaries, is a party or to which any of their property is subject.

Item 1A. Risk
Factors

There have been no material changes to the risk factors disclosed in Item 1A Risk Factors in our Annual
Report on Form 10-K for the year ended December 31, 2010.



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PART II. OTHER INFORMATION, CONTINUED

Item 6. Exhibits

Exhibits. The following exhibits were filed with the Securities and Exchange Commission.



|             |  |                                                                                                                                              
|------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNo.   |  | Description of Exhibit                                                                                                                       
|             | 
|*****3.1     |  | Amended and Restated Articles of Incorporation                                                                                               
|             | 
|*        3.2 |  | Bylaws                                                                                                                                       
|             | 
|*        4.1 |  | Specimen Common Stock Certificate                                                                                                            
|             | 
|*        4.3 |  | Warrant Certificate                                                                                                                          
|             | 
|**    10.1   |  | Employment Agreement of Kenneth P. Cherven dated June 16, 2002                                                                               
|             | 
|*      10.2  |  | First Amended and Restated Non-Employee Director Stock Option Plan                                                                           
|             | 
|*      10.3  |  | Long-Term Incentive Plan                                                                                                                     
|             | 
|*      10.4  |  | Incentive Compensation Plan                                                                                                                  
|             | 
|***  10.5    |  | Employment Agreement of Kenneth P. Cherven dated November 29, 2004                                                                           
|             | 
|****10.6     |  | Deferred Compensation Plan of Kenneth P. Cherven dated January 1, 2005.                                                                      
|             | 
|31.1         |  | Certification of Chief Executive Officer required by Rule 13a- 14(a)/15d-14(a) under the Exchange Act                                        
|             | 
|31.2         |  | Certification of Chief Financial Officer required by Rule 13a- 14(a)/15d-14(a) under the Exchange Act                                        
|             | 
|32.1         |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
|             | 
|32.2         |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
|             | 
|**    99.5   |  | Audit Committee Charter                                                                                                                      



|* | Exhibits marked with an asterisk were submitted with the Companys original filing of Form SB-2 on April 7, 2003.
|- | -----------------------------------------------------------------------------------------------------------------

|** | Exhibits marked with a double asterisk were submitted with the Companys filing of its Amendment One to Form SB-2 on May 8, 2003.
|-- | ---------------------------------------------------------------------------------------------------------------------------------

|*** | Exhibits marked with triple asterisk were submitted with the Companys filing of Form 10-QSB on May 13, 2005.
|--- | -------------------------------------------------------------------------------------------------------------

|**** | Exhibits marked with quadruple asterisk were submitted with the Companys filing of Form 10-QSB on August 12, 2005.
|---- | -------------------------------------------------------------------------------------------------------------------

|***** | Exhibits marked with quintuple asterisk are filed with the Companys filing Form 10-Q on August 12, 2010.
|----- | ---------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



|      |  |              |  |  |  |                                             |  |                                         
|----- |  | ------------ |  |  |  | ------------------------------------------- |  | ----------------------------------------
|      |  |              |  |  |  | FIRST COMMUNITY BANK CORPORATION OF AMERICA
|      |  |              |  |  |  | (Registrant)                               
|      |  |              |  | 
|Date: |  | May 12, 2011 |  |  |  | By:                                         |  | /s/ Kenneth P. Cherven                  
|      |  |              |  |  |  |                                             |  | Kenneth P. Cherven, President and Chief 
|      |  |              |  |  |  |                                             |  | Executive Officer                       
|      |  |              |  | 
|Date: |  | May 12, 2011 |  |  |  | By:                                         |  | /s/ Cheryl R. Bryan                     
|      |  |              |  |  |  |                                             |  | Cheryl R. Bryan, Principal Financial and
|      |  |              |  |  |  |                                             |  | Principal Accounting Officer            



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