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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 September 30, 2010



| ̈ | 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 |  | 5,457,173 shares                
|(class)                                |  | Outstanding at November 15, 2010









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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 September 30, 2010 (unaudited) and At December 31,
2009                                |  |      | 2     | 
|                                                                                                                                 | 
|Condensed Consolidated Statements of Operations -Three and Nine Months Ended September 30, 2010 and 2009 (unaudited)             |  |      | 3     | 
|                                                                                                                                 | 
|Condensed Consolidated Statements of Changes in Stockholders Equity -Nine Months Ended September 30,
 2010 and 2009 (unaudited) |  |      | 4-5   | 
|                                                                                                                                 | 
|Condensed Consolidated Statements of Cash Flows -Nine Months Ended September 30, 2010 and 2009 (unaudited)                       |  |      | 6-7   | 
|                                                                                                                                 | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                                 |  |      | 8-17  | 
|                                                                                                                                 | 
|Review by Independent Registered Public Accounting Firm                                                                          |  |      | 18    | 
|                                                                                                                                 | 
|Report of Independent Registered Public Accounting Firm                                                                          |  |      | 19    | 
|                                                                                                                                 | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations                                    |  |      | 20-33 | 
|                                                                                                                                 | 
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                               |  |      | 34    | 
|                                                                                                                                 | 
|Item 4T. Controls and Procedures                                                                                                 |  |      | 34    | 
|                                                                                                                                 | 
|PART II. OTHER INFORMATION                                                                                                       |  |      |       | 
|                                                                                                                                 | 
|Item 1. Legal Proceedings                                                                                                        |  |      | 34    | 
|                                                                                                                                 | 
|Item 1A.Risk Factors                                                                                                             |  |      | 34    | 
|                                                                                                                                 | 
|Item 6. Exhibits                                                                                                                 |  |      | 35    | 
|                                                                                                                                 | 
|SIGNATURES                                                                                                                       |  |      | 36    | 



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)



|                                                                                                                   |  |                   |         |   |                  |  |         |  
|------------------------------------------------------------------------------------------------------------------ |  | ----------------- | ------- | - | ---------------- |  | ------- | -
|                                                                                                                   |  | September 30,2010 |         |   | December 31,2009 | 
|                                                                                                                   |  | (Unaudited)       |         |   |                  | 
|Assets                                                                                                             |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Cash and due from banks                                                                                            |  | $                 | 4,857   |   |                  |  | 5,623   |  
|Interest-bearing deposits with banks                                                                               |  |                   | 56,817  |   |                  |  | 45,074  |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Cash and cash equivalents                                                                                          |  |                   | 61,674  |   |                  |  | 50,697  |  
|                                                                                                                   |  |                  
|Other interest-bearing deposits with banks                                                                         |  |                   | 1,765   |   |                  |  | 491     |  
|Securities available for sale                                                                                      |  |                   | 56,024  |   |                  |  | 50,850  |  
|Securities held to maturity (market value of $0 and $7,554)                                                        |  |                   |        |   |                  |  | 7,583   |  
|Loans, net of allowance for loan losses of $14,042 in 2010 and $7,830 in 2009                                      |  |                   | 347,324 |   |                  |  | 399,265 |  
|Federal Home Loan Bank stock, at cost                                                                              |  |                   | 2,526   |   |                  |  | 2,549   |  
|Premises and equipment, net                                                                                        |  |                   | 12,484  |   |                  |  | 12,834  |  
|Foreclosed real estate                                                                                             |  |                   | 7,925   |   |                  |  | 2,892   |  
|Accrued interest receivable                                                                                        |  |                   | 1,512   |   |                  |  | 2,016   |  
|Deferred income taxes                                                                                              |  |                   |        |   |                  |  | 4,912   |  
|Bank-owned life insurance                                                                                          |  |                   | 8,093   |   |                  |  | 7,940   |  
|Prepaid FDIC assessment                                                                                            |  |                   | 3,866   |   |                  |  | 4,661   |  
|Other assets                                                                                                       |  |                   | 2,380   |   |                  |  | 1,228   |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|                                                                                                                   |  | $                 | 505,573 |   |                  |  | 547,918 |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|Liabilities and Stockholders Equity                                                                               |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Liabilities:                                                                                                       |  |                   |         |   |                  |  |         |  
|Noninterest-bearing demand deposits                                                                                |  |                   | 37,150  |   |                  |  | 36,293  |  
|Savings, NOW and money-market deposits                                                                             |  |                   | 231,148 |   |                  |  | 205,553 |  
|Time deposits                                                                                                      |  |                   | 157,894 |   |                  |  | 216,671 |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Total deposits                                                                                                     |  |                   | 426,192 |   |                  |  | 458,517 |  
|                                                                                                                   |  |                  
|Federal Home Loan Bank advances                                                                                    |  |                   | 35,875  |   |                  |  | 36,000  |  
|Other borrowings                                                                                                   |  |                   | 6,668   |   |                  |  | 2,767   |  
|Accrued expenses and other liabilities                                                                             |  |                   | 6,435   |   |                  |  | 5,133   |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Total liabilities                                                                                                  |  |                   | 475,170 |   |                  |  | 502,417 |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|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                                                                                  |  |                   | (22     | ) |                  |  | (27     | )
|Series B, 720,000 shares designated, 313,497 and 189,018 shares issued and outstanding                             |  |                   | 7,837   |   |                  |  | 4,725   |  
|Common stock, $0.05 par value, 40,000,000 shares authorized, 5,457,173 and 4,938,692 shares issued and
outstanding |  |                   | 273     |   |                  |  | 247     |  
|Additional paid-in capital                                                                                         |  |                   | 32,389  |   |                  |  | 32,154  |  
|Accumulated deficit                                                                                                |  |                   | (21,371 | ) |                  |  | (2,618  | )
|Accumulated other comprehensive income                                                                             |  |                   | 612     |   |                  |  | 335     |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|Total stockholders equity                                                                                         |  |                   | 30,403  |   |                  |  | 45,501  |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  
|                                                                                                                   |  |                  
|                                                                                                                   |  | $                 | 505,573 |   |                  |  | 547,918 |  
|                                                                                                                   |  |                   |         |   |                  |  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



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##### Table of Contents



FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)



|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|---------------------------------------------------------------------------- |  | ------------------------------- | ------ | - | ------------------------------ |  | ------ | ---- |  |  | ------- | - |  |  | ------ | -
|                                                                             |  | Three Months EndedSeptember 30, |        |   | Nine Months EndedSeptember 30, | 
|                                                                             |  | 2010                            |        |   | 2009                           |  |        | 2010 |  |  | 2009    |  
|Interest income:                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|Loans                                                                        |  | $                               | 4,843  |   |                                |  | 5,796  |      |  |  | 15,414  |   |  |  | 17,779 |  
|Securities                                                                   |  |                                 | 387    |   |                                |  | 566    |      |  |  | 1,367   |   |  |  | 1,596  |  
|Other interest earning assets                                                |  |                                 | 46     |   |                                |  | 38     |      |  |  | 114     |   |  |  | 60     |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Total interest income                                                        |  |                                 | 5,276  |   |                                |  | 6,400  |      |  |  | 16,895  |   |  |  | 19,435 |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Interest expense:                                                            |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|Deposits                                                                     |  |                                 | 1,537  |   |                                |  | 2,491  |      |  |  | 5,261   |   |  |  | 7,700  |  
|Other borrowings                                                             |  |                                 | 347    |   |                                |  | 349    |      |  |  | 1,035   |   |  |  | 1,065  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Total interest expense                                                       |  |                                 | 1,884  |   |                                |  | 2,840  |      |  |  | 6,296   |   |  |  | 8,765  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Net interest income                                                          |  |                                 | 3,392  |   |                                |  | 3,560  |      |  |  | 10,599  |   |  |  | 10,670 |  
|                                                                             |  |                                 |        |  
|Provision for loan losses                                                    |  |                                 | 8,359  |   |                                |  | 4,670  |      |  |  | 16,149  |   |  |  | 6,702  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Net interest (expense) income after provision for loan losses                |  |                                 | (4,967 | ) |                                |  | (1,110 | )    |  |  | (5,550  | ) |  |  | 3,968  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Noninterest income:                                                          |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|Service charges on deposit accounts                                          |  |                                 | 178    |   |                                |  | 200    |      |  |  | 526     |   |  |  | 612    |  
|Other service charges and fees                                               |  |                                 | 57     |   |                                |  | 74     |      |  |  | 174     |   |  |  | 241    |  
|Income from bank owned life insurance                                        |  |                                 | 57     |   |                                |  | 45     |      |  |  | 153     |   |  |  | 130    |  
|Gain on sale of securities                                                   |  |                                 | 479    |   |                                |  | 398    |      |  |  | 1,015   |   |  |  | 440    |  
|Other                                                                        |  |                                 | 99     |   |                                |  | 40     |      |  |  | 373     |   |  |  | 192    |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Total noninterest income                                                     |  |                                 | 870    |   |                                |  | 757    |      |  |  | 2,241   |   |  |  | 1,615  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Noninterest expenses:                                                        |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|Employee compensation and benefits                                           |  |                                 | 1,434  |   |                                |  | 1,632  |      |  |  | 4,454   |   |  |  | 4,753  |  
|Occupancy and equipment                                                      |  |                                 | 422    |   |                                |  | 452    |      |  |  | 1,260   |   |  |  | 1,322  |  
|Data processing                                                              |  |                                 | 275    |   |                                |  | 374    |      |  |  | 997     |   |  |  | 1,085  |  
|Professional fees                                                            |  |                                 | 313    |   |                                |  | 86     |      |  |  | 955     |   |  |  | 407    |  
|Office supplies                                                              |  |                                 | 33     |   |                                |  | 63     |      |  |  | 95      |   |  |  | 164    |  
|Insurance                                                                    |  |                                 | 309    |   |                                |  | 346    |      |  |  | 956     |   |  |  | 937    |  
|Other                                                                        |  |                                 | 319    |   |                                |  | 505    |      |  |  | 1,097   |   |  |  | 1,174  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Total noninterest expenses                                                   |  |                                 | 3,105  |   |                                |  | 3,458  |      |  |  | 9,814   |   |  |  | 9,842  |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Loss before income taxes (benefit)                                           |  |                                 | (7,202 | ) |                                |  | (3,811 | )    |  |  | (13,123 | ) |  |  | (4,259 | )
|                                                                             |  |                                 |        |  
|Income taxes (benefit)                                                       |  |                                 |       |   |                                |  | (1,477 | )    |  |  | 5,228   |   |  |  | (1,713 | )
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Net loss                                                                     |  |                                 | (7,202 | ) |                                |  | (2,334 | )    |  |  | (18,351 | ) |  |  | (2,546 | )
|                                                                             |  |                                 |        |  
|Preferred stock dividend requirements and amortization of preferred discount |  |                                 | (135   | ) |                                |  | (132   | )    |  |  | (602    | ) |  |  | (416   | )
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Net loss applicable to common stock holders                                  |  | $                               | (7,337 | ) |                                |  | (2,466 | )    |  |  | (18,953 | ) |  |  | (2,962 | )
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Loss per share:                                                              |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|Basic earnings per share                                                     |  | $                               | (1.34  | ) |                                |  | (.59   | )    |  |  | (3.51   | ) |  |  | (.71   | )
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Diluted earnings per share                                                   |  | $                               | (1.34  | ) |                                |  | (.59   | )    |  |  | (3.51   | ) |  |  | (.71   | )
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                                                                             |  |                                 |        |  
|Common stock dividends per share                                             |  | $                               |       |   |                                |  |       |      |  |  |        |   |  |  |       |  
|                                                                             |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



3



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##### Table of Contents



FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity

Nine Months Ended September 30, 2010 and 2009

(In thousands, except share amounts)



|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|----------------------------------------------------------------------------------------------- |  | --------------- | ------ |  | ------------ | - | ------ | ------------------ |  |  | -------- | - |  | ----------------------------- | --------- |  | ------- | - | --- | -------- |  |  | ------ |  |  | ----- | ------ | - |  |  | --- |  |  |  | ------ | -
|                                                                                                |  | Preferred Stock |        |  | Common Stock |   |        | Additional Paid-In |  |  | Retained |   |  | AccumulatedOtherComprehensive |           |  |         |  
|                                                                                                |  | Shares          |        |  | Amount       |   |        | Discount           |  |  | Shares   |   |  | Amount                        |           |  | Capital |   |     | Earnings |  |  | Income |  |  | Total |       
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Balance at December 31, 2008                                                                    |  |                 | 10,685 |  |              | $ | 10,685 |                    |  |  | (33      | ) |  |                               | 4,111,121 |  |         | $ | 205 |          |  |  | 30,388 |  |  |       | 2,843  |   |  |  | 386 |  |  |  | 44,474 |  
|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Comprehensive loss:                                                                             |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Net loss (unaudited)                                                                            |  |                 |       |  |              |   |       |                    |  |  |         |   |  |                               |          |  |         |   |    |          |  |  |       |  |  |       | (2,546 | ) |  |  |    |  |  |  | (2,546 | )
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Net change in unrealized gain on securities available for sale, net of taxes of $59 (unaudited) |  |                 |       |  |              |   |       |                    |  |  |         |   |  |                               |          |  |         |   |    |          |  |  |       |  |  |       |       |   |  |  | 99  |  |  |  | 99     |  
|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Comprehensive loss (unaudited)                                                                  |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  | (2,447 | )
|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Exercise of stock options (unaudited)                                                           |  |                 |       |  |              |   |       |                    |  |  |         |   |  |                               | 40,310    |  |         |   | 3   |          |  |  | 192    |  |  |       |       |   |  |  |    |  |  |  | 195    |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Share-based compensation expense (unaudited)                                                    |  |                 |       |  |              |   |       |                    |  |  |         |   |  |                               |          |  |         |   |    |          |  |  | 30     |  |  |       |       |   |  |  |    |  |  |  | 30     |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Dividend on preferred stock to U.S. Treasury, Series A (unaudited)                              |  |                 |       |  |              |   |       |                    |  |  |         |   |  |                               |          |  |         |   |    |          |  |  |       |  |  |       | (411   | ) |  |  |    |  |  |  | (411   | )
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Amortization of common stock warrants issued to U.S. Treasury, Series A (unaudited)             |  |                 |       |  |              |   |       |                    |  |  | 5        |   |  |                               |          |  |         |   |    |          |  |  |       |  |  |       | (5     | ) |  |  |    |  |  |  |       |  
|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  
|                                                                                                |  |                 |        |  |              |   |        |                    | 
|Balance at September 30, 2009 (unaudited)                                                       |  |                 | 10,685 |  |              | $ | 10,685 |                    |  |  | (28      | ) |  |                               | 4,151,431 |  |         | $ | 208 |          |  |  | 30,610 |  |  |       | (119   | ) |  |  | 485 |  |  |  | 41,841 |  
|                                                                                                |  |                 |        |  |              |   |        |                    |  |  |          |   |  |                               |           |  |         |   |     |          |  |  |        |  |  |       |        |   |  |  |     |  |  |  |        |  

(continued)



4



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity, Continued

Nine Months Ended September 30, 2010 and 2009

(In thousands, except share amounts)





|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  |         |  
|------------------------------------------------------------------------------------------------------ |  | --------------- | ------ |  | -------- | - | ------ | ------------ |  |  | ------- | - |  | ---------------- | ------- |  | ------------- | - | ----- | ------ |  |  | --------- |  |  | ------- | --- |  | ------ |  | ------ | ----- |  |  | ------- | - |  |  | --- |  |  |  | ------- | -
|                                                                                                       |  | Preferred Stock |        |  |          |   |        | Additional   |  |  |         |   |  | AccumulatedOther |         |  |               |  
|                                                                                                       |  | Series A        |        |  | Series B |   |        | Common Stock |  |  | Paid-In |   |  | Accumulated      |         |  | Comprehensive |   |       |        | 
|                                                                                                       |  | Shares          |        |  | Amount   |   |        | Discount     |  |  | Shares  |   |  | Amount           |         |  | Shares        |   |       | Amount |  |  | Capital   |  |  | Deficit |     |  | Income |  |        | Total | 
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|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)                                                                                   |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  |       |       |  |  | (18,351 | ) |  |  |    |  |  |  | (18,351 | )
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Net change in unrealized gain on securities available for sale (unaudited)                             |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  |       |       |  |  |        |   |  |  | 277 |  |  |  | 277     |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  |         |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Comprehensive loss (unaudited)                                                                         |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  | (18,074 | )
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  |         |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Issuance of convertible perpetual preferred stock, Series B, net of offering costs of $597 (unaudited) |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  | 124,479 |  |               |   | 3,112 |        |  |  |          |  |  |         |    |  |        |  | 163    |       |  |  |        |   |  |  |    |  |  |  | 3,275   |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Issuance of common stock, net of offering costs of $199 (unaudited)                                    |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  | 518,481   |  |  |         | 26  |  |        |  | 53     |       |  |  |        |   |  |  |    |  |  |  | 79      |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Share-based compensation expense (unaudited)                                                           |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  | 19     |       |  |  |        |   |  |  |    |  |  |  | 19      |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Dividend on cumulative convertible perpetual preferred stock, Series B (unaudited)                     |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  |       |       |  |  | (196    | ) |  |  |    |  |  |  | (196    | )
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Dividend on preferred stock to U.S. Treasury, Series A (unaudited)                                     |  |                 |       |  |          |   |       |              |  |  |        |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  |       |       |  |  | (201    | ) |  |  |    |  |  |  | (201    | )
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Amortization of common stock warrants issued to U.S. Treasury, Series A (unaudited)                    |  |                 |       |  |          |   |       |              |  |  | 5       |   |  |                  |        |  |               |   |      |        |  |  |          |  |  |         |    |  |        |  |       |       |  |  | (5      | ) |  |  |    |  |  |  |        |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  |         |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |        
|Balance at September 30, 2010 (unaudited)                                                              |  |                 | 10,685 |  |          | $ | 10,685 |              |  |  | (22     | ) |  |                  | 313,497 |  |               | $ | 7,837 |        |  |  | 5,457,173 |  |  | $       | 273 |  |        |  | 32,389 |       |  |  | (21,371 | ) |  |  | 612 |  |  |  | 30,403  |  
|                                                                                                       |  |                 |        |  |          |   |        |              |  |  |         |   |  |                  |         |  |               |   |       |        |  |  |           |  |  |         |     |  |        |  |        |       |  |  |         |   |  |  |     |  |  |  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



|                                                                                |  |                                |         |   |      |  |         |  
|------------------------------------------------------------------------------- |  | ------------------------------ | ------- | - | ---- |  | ------- | -
|                                                                                |  | Nine Months EndedSeptember 30, |        
|                                                                                |  | 2010                           |         |   | 2009 | 
|Cash flows from operating activities:                                           |  |                                |         |   |      |  |         |  
|Net loss                                                                        |  | $                              | (18,351 | ) |      |  | (2,546  | )
|Adjustments to reconcile net loss to net cash provided by operating activities: |  |                                |         |   |      |  |         |  
|Provision for loan losses                                                       |  |                                | 16,149  |   |      |  | 6,702   |  
|Deferred tax provision                                                          |  |                                | 5,113   |   |      |  | (1,713  | )
|Depreciation and amortization                                                   |  |                                | 392     |   |      |  | 467     |  
|Share-based compensation                                                        |  |                                | 19      |   |      |  | 30      |  
|Net amortization of deferred loan fees and costs                                |  |                                | (146    | ) |      |  | (183    | )
|Net amortization of premium and discounts on securities                         |  |                                | 347     |   |      |  | (46     | )
|Income from bank owned life insurance                                           |  |                                | (153    | ) |      |  | (130    | )
|Decrease (increase) in accrued interest receivable                              |  |                                | 504     |   |      |  | (204    | )
|Write down of foreclosed real estate                                            |  |                                |        |   |      |  | 140     |  
|Net (gain) loss on sale of foreclosed real estate                               |  |                                | (46     | ) |      |  | 42      |  
|Increase in prepaid FDIC assessments and other assets                           |  |                                | (357    | ) |      |  | (634    | )
|Increase in accrued expenses and other liabilities                              |  |                                | 1,302   |   |      |  | 441     |  
|Gain on sale of securities available for sale                                   |  |                                | (1,015  | ) |      |  | (440    | )
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Net cash provided by operating activities                                       |  |                                | 3,758   |   |      |  | 1,926   |  
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Cash flows from investing activities:                                           |  |                                |         |   |      |  |         |  
|Net change in other interest-bearing deposits with banks                        |  |                                | (1,274  | ) |      |  | (191    | )
|Purchase of securities available for sale                                       |  |                                | (77,887 | ) |      |  | (47,195 | )
|Principal payments on securities available for sale                             |  |                                | 5,573   |   |      |  | 5,711   |  
|Proceeds from calls and maturities of securities available for sale             |  |                                | 21,370  |   |      |  | 1,500   |  
|Proceeds from the sale of securities available for sale                         |  |                                | 46,544  |   |      |  | 14,599  |  
|Proceeds from maturities of securities held to maturity                         |  |                                |        |   |      |  | 500     |  
|Principal payments on securities held to maturity                               |  |                                | 32      |   |      |  | 156     |  
|Proceeds from the sale of securities held to maturity                           |  |                                | 7,521   |   |      |  |        |  
|Net decrease (increase) in loans                                                |  |                                | 28,269  |   |      |  | (13,821 | )
|Purchase of premises and equipment, net                                         |  |                                | (42     | ) |      |  | (540    | )
|Redemption of Federal Home Loan Bank stock                                      |  |                                | 23      |   |      |  | 6       |  
|Proceeds from sale of foreclosed real estate                                    |  |                                | 2,682   |   |      |  | 1,342   |  
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Net cash provided by (used in) investing activities                             |  |                                | 32,811  |   |      |  | (37,933 | )
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Cash flows from financing activities:                                           |  |                                |         |   |      |  |         |  
|(Decrease) increase in deposits                                                 |  |                                | (32,325 | ) |      |  | 69,426  |  
|Repayment of Federal Home Loan Bank advances                                    |  |                                | (125    | ) |      |  | (2,000  | )
|Net increase (decrease) in other borrowings                                     |  |                                | 3,901   |   |      |  | (6,151  | )
|Proceeds from exercise of stock options                                         |  |                                |        |   |      |  | 195     |  
|Issuance of cumulative convertible preferred stock, Series B                    |  |                                | 3,275   |   |      |  |        |  
|Issuance of common stock                                                        |  |                                | 79      |   |      |  |        |  
|Dividend on cumulative convertible preferred stock, Series B                    |  |                                | (196    | ) |      |  |        |  
|Dividend on preferred stock to U.S. Treasury, Series A                          |  |                                | (201    | ) |      |  | (411    | )
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Net cash (used in) provided by financing activities                             |  |                                | (25,592 | ) |      |  | 61,059  |  
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Net increase in cash and cash equivalents                                       |  |                                | 10,977  |   |      |  | 25,052  |  
|                                                                                |  |                               
|Cash and cash equivalents at beginning of period                                |  |                                | 50,697  |   |      |  | 32,458  |  
|                                                                                |  |                                |         |   |      |  |         |  
|                                                                                |  |                               
|Cash and cash equivalents at end of period                                      |  | $                              | 61,674  |   |      |  | 57,510  |  
|                                                                                |  |                                |         |   |      |  |         |  

(continued)



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)





|                                                                                                                            |  |                                |        |   |      |  |       |  
|--------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ------ | - | ---- |  | ----- | -
|                                                                                                                            |  | Nine Months EndedSeptember 30, |       
|                                                                                                                            |  | 2010                           |        |   | 2009 | 
|Supplemental disclosure of cash flow information:                                                                           |  |                                |        |   |      |  |       |  
|Cash paid during the period for:                                                                                            |  |                                |        |   |      |  |       |  
|Interest, net of capitalized interest of $0 and $22                                                                         |  | $                              | 6,444  |   |      |  | 8,709 |  
|                                                                                                                            |  |                                |        |   |      |  |       |  
|                                                                                                                            |  |                               
|Income taxes refund                                                                                                         |  | $                              | (1,711 | ) |      |  | (671  | )
|                                                                                                                            |  |                                |        |   |      |  |       |  
|                                                                                                                            |  |                               
|Noncash transactions:                                                                                                       |  |                                |        |   |      |  |       |  
|Accumulated other comprehensive income, net change in unrealized gain on securities available for sale, net of income
taxes |  | $                              | 277    |   |      |  | 99    |  
|                                                                                                                            |  |                                |        |   |      |  |       |  
|                                                                                                                            |  |                               
|Transfer from loans to foreclosed real estate                                                                               |  | $                              | 7,669  |   |      |  | 2,241 |  
|                                                                                                                            |  |                                |        |   |      |  |       |  
|                                                                                                                            |  |                               
|Amortization of common stock warrants issued to U.S. Treasury                                                               |  | $                              | (5     | ) |      |  | (5    | )
|                                                                                                                            |  |                                |        |   |      |  |       |  

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) 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 in Pasco County, three banking offices located in Charlotte County, and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the nine months ended September 30, 2010 and 2009.

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 September 30, 2010, the results of operations for the three- and nine-month periods ended September 30, 2010 and 2009 and cash
flows for the nine-month periods ended September 30, 2010 and 2009. The results of operations and other data for the three- and nine-month periods ended September 30, 2010 are not necessarily indicative of results that may be expected for
the year ending December 31, 2010.

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):



|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|--------------------------------- |  | ------------- | ------ |  | -------------------- |  | --- | --------------------- |  |  | --------- | - |  |  | ------ | 
|                                  |  | AmortizedCost |        |  | GrossUnrealizedGains |  |     | GrossUnrealizedLosses |  |  | FairValue |  
|Available for Sale:               |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|At September 30, 2010:            |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|U.S. Government agency securities |  | $             | 8,758  |  |                      |  | 94  |                       |  |  |          |   |  |  | 8,852  | 
|Mortgage-backed securities        |  |               | 46,654 |  |                      |  | 613 |                       |  |  | (95       | ) |  |  | 47,172 | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|                                  |  |               |        | 
|                                  |  | $             | 55,412 |  |                      |  | 707 |                       |  |  | (95       | ) |  |  | 56,024 | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|                                  |  |               |        | 
|At December 31, 2009:             |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|U.S. Government agency securities |  |               | 17,451 |  |                      |  | 21  |                       |  |  | (260      | ) |  |  | 17,212 | 
|Mortgage-backed securities        |  |               | 26,413 |  |                      |  | 561 |                       |  |  | (38       | ) |  |  | 26,936 | 
|Municipal securities              |  |               | 6,450  |  |                      |  | 306 |                       |  |  | (54       | ) |  |  | 6,702  | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|                                  |  |               |        | 
|                                  |  | $             | 50,314 |  |                      |  | 888 |                       |  |  | (352      | ) |  |  | 50,850 | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|                                  |  |               |        | 
|Held to Maturity:                 |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|At December 31, 2009:             |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|Mortgage-backed securities        |  |               | 568    |  |                      |  | 8   |                       |  |  |          |   |  |  | 576    | 
|Municipal securities              |  |               | 7,015  |  |                      |  | 88  |                       |  |  | (125      | ) |  |  | 6,978  | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 
|                                  |  |               |        | 
|                                  |  | $             | 7,583  |  |                      |  | 96  |                       |  |  | (125      | ) |  |  | 7,554  | 
|                                  |  |               |        |  |                      |  |     |                       |  |  |           |   |  |  |        | 

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued





2. Securities, Continued.Available-for-sale securities at September 30, 2010 measured at fair value
on a recurring basis are summarized below (in thousands):



|                                  |  |           |        |  |                                                           |  |   |                                           |  |  |                                         |  |  |  |   | 
|--------------------------------- |  | --------- | ------ |  | --------------------------------------------------------- |  | - | ----------------------------------------- |  |  | --------------------------------------- |  |  |  | - | 
|                                  |  | FairValue |        |  | Quoted PricesIn ActiveMarkets forIdenticalAssets(Level 1) |  |   | SignificantOtherObservableInputs(Level 2) |  |  | SignificantUnobservableInputs(Level
 3) | 
|                                  |  |           |        | 
|U.S. Government agency securities |  | $         | 8,852  |  |                                                           |  |  |                                           |  |  | 8,852                                   |  |  |  |  | 
|Mortgage-backed securities        |  |           | 47,172 |  |                                                           |  |  |                                           |  |  | 47,172                                  |  |  |  |  | 
|                                  |  |           |        |  |                                                           |  |   |                                           |  |  |                                         |  |  |  |   | 
|                                  |  |           |        | 
|Available-for-sale securities     |  | $         | 56,024 |  |                                                           |  |  |                                           |  |  | 56,024                                  |  |  |  |  | 
|                                  |  |           |        |  |                                                           |  |   |                                           |  |  |                                         |  |  |  |   | 

There were no transfers of securities between levels of inputs for the nine months ended September 30,
2010.

The scheduled maturities of securities at September 30, 2010 were as follows (in thousands):



|                           |  |                    |        |  |           |  |        | 
|-------------------------- |  | ------------------ | ------ |  | --------- |  | ------ | 
|                           |  | Available for Sale |       
|                           |  | AmortizedCost      |        |  | FairValue | 
|                           |  |                   
|Five to ten years          |  | $                  | 1,000  |  |           |  | 1,004  | 
|After ten years            |  |                    | 7,758  |  |           |  | 7,848  | 
|Mortgage-backed securities |  |                    | 46,654 |  |           |  | 47,172 | 
|                           |  |                    |        |  |           |  |        | 
|                           |  |                   
|                           |  | $                  | 55,412 |  |           |  | 56,024 | 
|                           |  |                    |        |  |           |  |        | 

Securities sold are summarized as follows (in thousands):



|                              |  |                                |        |   |      |  |        | 
|----------------------------- |  | ------------------------------ | ------ | - | ---- |  | ------ | 
|                              |  | Nine Months EndedSeptember 30, |       
|                              |  | 2010                           |        |   | 2009 | 
|                              |  |                               
|Principal received from sales |  | $                              | 54,065 |   |      |  | 14,524 | 
|                              |  |                                |        |   |      |  |        | 
|                              |  |                               
|Gross gains                   |  |                                | 1,149  |   |      |  | 440    | 
|Gross losses                  |  |                                | (134   | ) |      |  |       | 
|                              |  |                                |        |   |      |  |        | 
|                              |  |                               
|Net gain                      |  | $                              | 1,015  |   |      |  | 440    | 
|                              |  |                                |        |   |      |  |        | 

Due to a change in the Companys investment policy, in 2010, the Company sold securities with a book
value of $7,551,000 from the held to maturity category resulting in losses of $30,000. Due to this sale, the Company is prohibited from classifying securities as held to maturity for a period of two years.



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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 September 30, 2010, 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 |   
|                               |  | GrossUnrealizedLosses   |    |  | FairValue | 
|Securities Available for Sale- |  |                         |    |  |           |  |        | 
|Mortgage-backed securities     |  | $                       | 95 |  |           |  | 15,901 | 
|                               |  |                         |    |  |           |  |        | 

The unrealized losses on eighteen 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 September 30, 2010 and December 31, 2009, securities with a carrying value of $48,358,000 and $42,715,000, respectively, were pledged for repurchase agreements with customers and for
various purposes required or permitted by law.

3. Loan Impairment and Loan Losses.The
activity in the allowance for loan losses is as follows (in thousands):



|                               |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|------------------------------ |  | ------------------------------- | ------ | - | ------------------------------ |  | ------ | ---- |  |  | ------- | - |  |  | ------ | -
|                               |  | Three Months EndedSeptember 30, |        |   | Nine Months EndedSeptember 30, | 
|                               |  | 2010                            |        |   | 2009                           |  |        | 2010 |  |  | 2009    |  
|                               |  |                                 |        |  
|Balance at beginning of period |  | $                               | 7,393  |   |                                |  | 7,844  |      |  |  | 7,830   |   |  |  | 8,230  |  
|Provision for loan losses      |  |                                 | 8,359  |   |                                |  | 4,670  |      |  |  | 16,149  |   |  |  | 6,702  |  
|Charge-offs                    |  |                                 | (1,915 | ) |                                |  | (3,746 | )    |  |  | (10,177 | ) |  |  | (6,215 | )
|Recoveries                     |  |                                 | 205    |   |                                |  | 30     |      |  |  | 240     |   |  |  | 81     |  
|                               |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  
|                               |  |                                 |        |  
|Balance at end of period       |  | $                               | 14,042 |   |                                |  | 8,798  |      |  |  | 14,042  |   |  |  | 8,798  |  
|                               |  |                                 |        |   |                                |  |        |      |  |  |         |   |  |  |        |  



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued





3. Loan Impairment and Loan Losses, Continued.The following summarizes the amount of impaired loans (in
thousands):



|                                                          |  |                   |        |   |                  |  |        |  
|--------------------------------------------------------- |  | ----------------- | ------ | - | ---------------- |  | ------ | -
|                                                          |  | September 30,2010 |        |   | December 31,2009 | 
|Collateral dependent loans identified as impaired:        |  |                   |        |   |                  |  |        |  
|Gross loans with no related allowance for losses(1)       |  | $                 | 29,101 |   |                  |  | 23,938 |  
|                                                          |  |                  
|Gross loans with related allowance for losses             |  |                   | 3,460  |   |                  |  | 2,172  |  
|Less allowances on these loans                            |  |                   | (1,847 | ) |                  |  | (547   | )
|                                                          |  |                   |        |   |                  |  |        |  
|                                                          |  |                  
|Net investment in collateral dependent impaired loans     |  |                   | 30,714 |   |                  |  | 25,563 |  
|                                                          |  |                   |        |   |                  |  |        |  
|                                                          |  |                  
|Noncollateral dependent loans identified as impaired:     |  |                   |        |   |                  |  |        |  
|Gross loans with no related allowance for losses(2)       |  |                   | 6,226  |   |                  |  | 3,781  |  
|                                                          |  |                  
|Gross loans with related allowance for losses recorded(3) |  |                   | 12,576 |   |                  |  | 16,252 |  
|Less allowance on these loans                             |  |                   | (195   | ) |                  |  | (291   | )
|                                                          |  |                   |        |   |                  |  |        |  
|                                                          |  |                  
|Net investment in noncollateral dependent impaired loans  |  |                   | 18,607 |   |                  |  | 19,742 |  
|                                                          |  |                   |        |   |                  |  |        |  
|                                                          |  |                  
|Net investment in impaired loans                          |  | $                 | 49,321 |   |                  |  | 45,305 |  
|                                                          |  |                   |        |   |                  |  |        |  



|(1) | Charge-offs related to these loans were $5,055 and $6,349, respectively.
|--- | ------------------------------------------------------------------------

|(2) | Troubled debt restructure balances with no allowance for losses were $6,219 and $3,720, respectively.
|--- | -----------------------------------------------------------------------------------------------------

|(3) | Troubled debt restructure balances with allowance for losses were $12,576 and $16,252, respectively.
|--- | ----------------------------------------------------------------------------------------------------



|                                             |  |                   |        |  |                  |  |        | 
|-------------------------------------------- |  | ----------------- | ------ |  | ---------------- |  | ------ | 
|                                             |  | September 30,2010 |        |  | December 31,2009 | 
|                                             |  |                  
|Average investment in impaired loans         |  | $                 | 49,952 |  |                  |  | 32,963 | 
|                                             |  |                   |        |  |                  |  |        | 
|Interest income recognized on impaired loans |  | $                 | 661    |  |                  |  | 665    | 
|                                             |  |                   |        |  |                  |  |        | 
|Interest income received on impaired loans   |  | $                 | 958    |  |                  |  | 842    | 
|                                             |  |                   |        |  |                  |  |        | 



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued





3. Loan Impairment and Loan Losses, 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):



|               |           |                       |        |         |                                                |  |         |  |  |         |   |  |             |  |        |                   |  |  |       |  |  |  |       | 
|-------------- | --------- | --------------------- | ------ | ------- | ---------------------------------------------- |  | ------- |  |  | ------- | - |  | ----------- |  | ------ | ----------------- |  |  | ----- |  |  |  | ----- | 
|               |           | At September 30, 2010 |        |         | LossesRecorded inOperationsFor thePeriod Ended | 
|               | FairValue |                       |        | Level 1 |                                                |  | Level 2 |  |  | Level 3 |   |  | TotalLosses |  |        | September 30,2010 | 
|               |           |                       |        |         |                                                | 
|Impaired loans |           | $                     | 13,188 | (1)     |                                                |  |        |  |  |         |  |  |             |  | 13,188 |                   |  |  | 9,181 |  |  |  | 6,924 | 
|               |           |                       |        |         |                                                |  |         |  |  |         |   |  |             |  |        |                   |  |  |       |  |  |  |       | 



|(1) | Loans with a
carrying value of $17,526 at September 30, 2010 were measured for impairment using Level 3 inputs and had a fair value in excess of carrying value.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Nonaccrual and past due loans were as follows (in thousands):



|                                             |  |                  |        |  |      |  |        | 
|-------------------------------------------- |  | ---------------- | ------ |  | ---- |  | ------ | 
|                                             |  | At September 30, |       
|                                             |  | 2010             |        |  | 2009 | 
|                                             |  |                 
|Nonaccrual loans                             |  | $                | 29,911 |  |      |  | 29,262 | 
|Past due ninety days or more, still accruing |  |                  |       |  |      |  |       | 
|                                             |  |                  |        |  |      |  |        | 
|                                             |  |                 
|                                             |  | $                | 29,911 |  |      |  | 29,262 | 
|                                             |  |                  |        |  |      |  |        | 



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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 (EPS) 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 dilutive securities for purposes of calculating diluted EPS which is computed using the treasury stock method. The outstanding
cumulative convertible perpetual preferred stock, Series B is considered dilutive using the converted method. For three and nine months ended September 30, 2010 and 2009, outstanding stock options warrants and preferred stock were not
considered dilutive because of the Companys loss applicable to common shareholders. The following tables present the calculations of loss per share (dollars in thousands, except per share amounts):



|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|------------------------------------------------------------------ |  | -------------- | ------- | - | ---------------------- |  | --------- | -------------- |  | - | -------------- | - |  | ---------------------- | ------ | - | -------------- |  | --------- |  |  | - | ----- | -
|                                                                   |  | 2010           |         |   | 2009                   | 
|                                                                   |  | Earnings(Loss) |         |   | Weighted-AverageShares |  |           | PerShareAmount |  |   | Earnings(Loss) |   |  | Weighted-AverageShares |        |   | PerShareAmount | 
|Three Months Ended September 30:                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Basic EPS-                                                         |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Net loss available to common stockholders                          |  | $              | (7,337  | ) |                        |  | 5,457,173 |                |  | $ | (1.34          | ) |  | $                      | (2,466 | ) |                |  | 4,151,431 |  |  | $ | (0.59 | )
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|                                                                   |  |                |         |   |                        | 
|Effect of dilutive securities-                                     |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Incremental shares from assumed conversion of options and warrants |  |                |         |   |                        |  |          |                |  |   |                |   |  |                        |        |   |                |  |          |  |  |   |       |  
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|                                                                   |  |                |         |   |                        | 
|Diluted EPS-                                                       |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Net loss available to common stockholders and assumed conversions  |  | $              | (7,337  | ) |                        |  | 5,457,173 |                |  | $ | (1.34          | ) |  | $                      | (2,466 | ) |                |  | 4,151,431 |  |  | $ | (0.59 | )
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|                                                                   |  |                |         |   |                        | 
|Nine Months Ended September 30:                                    |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Basic EPS-                                                         |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Net loss available to common stockholders                          |  | $              | (18,953 | ) |                        |  | 5,400,664 |                |  | $ | (3.51          | ) |  | $                      | (2,962 | ) |                |  | 4,152,012 |  |  | $ | (0.71 | )
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|                                                                   |  |                |         |   |                        | 
|Effect of dilutive securities-                                     |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Incremental shares from assumed conversion of options and warrants |  |                |         |   |                        |  |          |                |  |   |                |   |  |                        |        |   |                |  |          |  |  |   |       |  
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|                                                                   |  |                |         |   |                        | 
|Diluted EPS-                                                       |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  
|Net loss available to common stockholders and assumed conversions  |  | $              | (18,953 | ) |                        |  | 5,400,664 |                |  | $ | (3.51          | ) |  | $                      | (2,962 | ) |                |  | 4,152,012 |  |  | $ | (0.71 | )
|                                                                   |  |                |         |   |                        |  |           |                |  |   |                |   |  |                        |        |   |                |  |           |  |  |   |       |  



(continued)

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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued





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 September 30, 2010, 124,895 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.

The Nonemployee Director Stock Option Plan approved
by shareholders in April 2000 expired in May 2009. Outstanding Director options covering 103,358 shares expired unexercised on January 1, 2010. At September 30, 2010, there are no outstanding options under the Nonemployee Director Stock
Option Plan.

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, 2009  |  |                  | 355,148  |   |                               | $ | 7.92 |                                          |  |  |                         |  |  |   |   | 
|Options forfeited and expired     |  |                  | (153,591 | ) |                               |   | 5.99 |                                          |  |  |                         |  |  |   |   | 
|                                  |  |                  |          |   |                               |   |      |                                          |  |  |                         |  |  |   |   | 
|                                  |  |                  |          |  
|Outstanding at September 30, 2010 |  |                  | 201,557  |   |                               | $ | 9.40 |                                          |  |  | 3.33 years              |  |  | $ |  | 
|                                  |  |                  |          |   |                               |   |      |                                          |  |  |                         |  |  |   |   | 
|                                  |  |                  |          |  
|Exercisable at September 30, 2010 |  |                  | 195,457  |   |                               | $ | 9.29 |                                          |  |  | 2.95 years              |  |  | $ |  | 
|                                  |  |                  |          |   |                               |   |      |                                          |  |  |                         |  |  |   |   | 

At September 30, 2010, there was approximately $6,000 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 seven months. The total fair value of shares vesting and recognized as compensation expense was
approximately $19,000 and $30,000 for the nine months ended September 30, 2010 and 2009, respectively. There was no associated tax benefit recognized for both the nine months ended September 30, 2010 and 2009.



(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 September 30, 2010, the Bank was considered Adequately Capitalized. Regulatory capital ratios were as follows:



|                                       |  |                   |      |  |                  |  |       |                               |  |  |       | 
|-------------------------------------- |  | ----------------- | ---- |  | ---------------- |  | ----- | ----------------------------- |  |  | ----- | 
|                                       |  | September 30,2010 |      |  | December 31,2009 |  |       | Required toBe WellCapitalized | 
|                                       |  |                   |     
|Total capital to risk weighted assets  |  |                   | 9.49 |  |                  |  | 11.24 |                               |  |  | 10.00 | 
|Tier 1 capital to risk weighted assets |  |                   | 8.21 |  |                  |  | 9.99  |                               |  |  | 6.00  | 
|Tier 1 capital to total assets         |  |                   | 5.55 |  |                  |  | 7.30  |                               |  |  | 5.00  | 

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



|                                              |  |                                |     |   |      |  |     | 
|--------------------------------------------- |  | ------------------------------ | --- | - | ---- |  | --- | 
|                                              |  | Nine Months EndedSeptember 30, |    
|                                              |  | 2010                           |     |   | 2009 | 
|                                              |  |                               
|Net (gain) loss on sales of foreclosed assets |  | $                              | (46 | ) |      |  | 42  | 
|Provision for losses                          |  |                                |    |   |      |  |    | 
|Operating expenses                            |  |                                | 206 |   |      |  | 238 | 
|                                              |  |                                |     |   |      |  |     | 
|                                              |  |                               
|Total included in other noninterest expenses  |  | $                              | 160 |   |      |  | 280 | 
|                                              |  |                                |     |   |      |  |     | 

Foreclosed assets are recorded at fair value less estimated selling costs. At September 30, 2010, those
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 |       |  | LossesRecorded inOperationsDuring2010 | 
|                       |  |       |       |  |         | 
|Foreclosed real estate |  | $     | 7,925 |  |         |  |  |         |  |  |        |  |  |             | 7,925 |  |                                       |  |  |  |  |  |  | 
|                       |  |       |       |  |         |  |   |         |  |  |         |  |  |             |       |  |                                       |  |   |  |  |  |   | 



(continued)

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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 September 30, 2010 |         |  | At December 31, 2009 | 
|                                           |  | CarryingAmount        |         |  | FairValue            |  |         | CarryingAmount |  |  | FairValue | 
|Financial assets:                          |  |                       |         |  |                      |  |         |                |  |  |           |  |  |  |         | 
|Cash and cash equivalents                  |  | $                     | 61,674  |  |                      |  | 61,674  |                |  |  | 50,697    |  |  |  | 50,697  | 
|Other interest-bearing deposits with banks |  |                       | 1,765   |  |                      |  | 1,765   |                |  |  | 491       |  |  |  | 491     | 
|Securities                                 |  |                       | 56,024  |  |                      |  | 56,024  |                |  |  | 58,433    |  |  |  | 58,404  | 
|Loans                                      |  |                       | 347,324 |  |                      |  | 342,648 |                |  |  | 399,265   |  |  |  | 399,723 | 
|Federal Home Loan Bank stock               |  |                       | 2,526   |  |                      |  | 2,526   |                |  |  | 2,549     |  |  |  | 2,549   | 
|Accrued interest receivable                |  |                       | 1,512   |  |                      |  | 1,512   |                |  |  | 2,016     |  |  |  | 2,016   | 
|                                           |  |                       |         | 
|Financial liabilities:                     |  |                       |         |  |                      |  |         |                |  |  |           |  |  |  |         | 
|Deposits                                   |  |                       | 426,192 |  |                      |  | 425,856 |                |  |  | 458,517   |  |  |  | 452,280 | 
|Federal Home Loan Bank advances            |  |                       | 35,875  |  |                      |  | 36,911  |                |  |  | 36,000    |  |  |  | 37,828  | 
|Other borrowings                           |  |                       | 6,668   |  |                      |  | 6,668   |                |  |  | 2,767     |  |  |  | 2,767   | 
|Off-balance sheet financial instruments    |  |                       |        |  |                      |  |        |                |  |  |          |  |  |  |        | 

9.
Deferred Tax Asset.The Company established an allowance against its deferred tax asset of $9,535,000, as of September 30, 2010, as it became apparent that the extended deterioration of credit markets would result in the Company
recording its third consecutive annual loss in 2010. The Company continues to feel that the base earnings are sufficient to recover all or part of this tax benefit when the credit conditions improve. Management believes the magnitude of these loan
losses occurred because of the current economic downturn and the situation is unusual and infrequent and an aberration rather than a continuing condition.



(continued)

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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued





10.Regulatory Matters.As a result of an examination by the Office of Thrift Supervision (the
OTS), the Bank and the Holding Company entered into separate memorandums of understanding (the Memorandums) with the OTS in October 2009 with the intent to protect the interests of the Companys depositors, customers and
shareholders. The Memorandums provided, among other things, that the Boards of Directors will or will cause the Company to 1) Prepare and monitor comprehensive business plans, 2) Adopt detailed capital plans, 3) Not negotiate, purchase or commit to
any land acquisition, development or construction loans until the comprehensive business plan has been approved by the OTS, 4) Take steps to identify, evaluate and reduce the level of problem assets, 5) Limit asset growth until it obtains OTS
approval of the Banks comprehensive business plan, 6) Not pay or declare dividends without OTS approval, 7) Not continue to roll or accept brokered deposits without OTS approval and must submit plan to OTS to reduce brokered deposits, 8)
Prepare and adopt a written plan detailing the Companys obligations with receipt of funds under Troubled Asset Relief Program, and 9) Submit variance reports on the Companys compliance with various plans required by the Memorandums.

Management plans to vigorously seek compliance with the Memorandums. At this time, the financial impact, if any, of regulatory
sanctions that may result if the Company fails to comply with the Memorandums requirements described above is not known. The OTS has provided a temporary extension of the Banks use of customer driven CDARs deposits which technically fall under
the brokered deposit classification. The Bank has received approval of its plan that was submitted to the OTS and believes it to be in substantial compliance with the memorandum of understanding except with regard to risk-based capital.

11.Equity Offering.Pursuant to a prospectus dated December 30, 2009, the Company offered to
sell a maximum of 600,000 units at a price of $33.33 per unit. Each unit consisted of 4.165 shares of common stock, par value $.05 per share, and one share of 10% Cumulative Convertible Perpetual Preferred Stock, Series B, with an initial
liquidation preference of $25.00. The Series B preferred stock has parity with the Series A preferred stock issued to the Treasury. Each of the shares of Series B preferred stock is currently convertible into ten shares of common stock. At
December 31, 2009, the Company had issued 189,018 shares of Series B preferred stock and 787,261 shares of common stock, for net proceeds of $6,300,000. During 2010, an additional 518,481 shares of common stock and 124,479 shares of Series B
preferred stock were issued, for net proceeds of $3,354,000. The offering terminated on February 12, 2010.

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 Memorandum of Understanding (MOU) must
approve quarterly dividends. If we are unable to pay dividends on the Convertible Preferred Series B shares for four consecutive quarters, the shares will automatically convert to ten shares of 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 September 30, 2010, and for the three-
and nine-month periods ended September 30, 2010 and 2009 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 September 30, 2010, the related
condensed consolidated statements of operations for the three- and nine-month periods ended September 30, 2010 and 2009 and the related condensed consolidated statements of changes in stockholders equity and cash flows for the nine-month
periods ended September 30, 2010 and 2009. 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, 2009, and the related consolidated statements of operations, changes in stockholders equity and cash flow for the year then ended (not presented herein);
and in our report dated March 31, 2010, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of
December 31, 2009, 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

November 15, 2010



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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 nine months ended September 30, 2010 and 2009.

Liquidity and Capital Resources

The Companys primary source of cash during the nine months ended September 30, 2010, was an increase in core deposits of $26
million. The Bank considers savings, NOW, money-market and noninterest-bearing demand deposits as core deposits. This inflow was offset by a $58 million decrease in time deposits resulting from a Bank strategy of lowering levels of brokered and high
costs certificates of deposit. The Company netted $3.3 million in preferred capital and $.1 million in common capital as it completed its stock offering. The Bank maintained a $56 million balance deposited at the Federal Reserve Bank on
September 30, 2010.

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 September 30, 2010, follows (in thousands):



|                             |  |                |        | 
|---------------------------- |  | -------------- | ------ | 
|                             |  | ContractAmount |       
|Commitments to extend credit |  | $              | 1,661  | 
|                             |  |                |        | 
|Unused lines of credit       |  | $              | 27,763 | 
|                             |  |                |        | 
|Standby letters of credit    |  | $              | 818    | 
|                             |  |                |        | 

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:



|                                                                      |  |                                   |         |    |                            |  |        |                                   |  |  |        |   
|--------------------------------------------------------------------- |  | --------------------------------- | ------- | -- | -------------------------- |  | ------ | --------------------------------- |  |  | ------ | --
|                                                                      |  | Nine MonthsEndedSeptember 30,2010 |         |    | Year EndedDecember 31,2009 |  |        | Nine MonthsEndedSeptember 30,2009 | 
|Average equity as a percentage of average assets                      |  |                                   | 7.88    | %  |                            |  | 8.08   | %                                 |  |  | 8.11   | % 
|Equity to total assets at end of period                               |  |                                   | 6.01    | %  |                            |  | 8.30   | %                                 |  |  | 7.46   | % 
|Return on average assets (1)                                          |  |                                   | (4.61   | )% |                            |  | (.90   | )%                                |  |  | (1.74  | )%
|Return on common average equity (1)                                   |  |                                   | (103.70 | )% |                            |  | (14.70 | )%                                |  |  | (28.35 | )%
|Noninterest expenses to average assets                                |  |                                   | 2.46    | %  |                            |  | 2.46   | %                                 |  |  | 2.58   | % 
|Nonperforming assets as a percentage of total assets at end of period |  |                                   | 7.48    | %  |                            |  | 5.47   | %                                 |  |  | 5.62   | % 



|(1) | Annualized for the nine months ended September 30.
|--- | --------------------------------------------------

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):



|                       |  |   |        |  |   |  |      | 
|---------------------- |  | - | ------ |  | - |  | ---- | 
|                       |  | $ |        |  | % | 
|June 30, 2009:         |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 7,961  |  |   |  | 1.88 | 
|Commercial real estate |  |   | 15,081 |  |   |  | 3.56 | 
|Land and lots          |  |   | 8,319  |  |   |  | 1.96 | 
|Commercial loans       |  |   | 407    |  |   |  | 0.10 | 
|Installments           |  |   | 150    |  |   |  | 0.04 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 31,918 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|September 30, 2009:    |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 15,654 |  |   |  | 3.73 | 
|Commercial real estate |  |   | 15,452 |  |   |  | 3.69 | 
|Land and lots          |  |   | 6,295  |  |   |  | 1.50 | 
|Commercial loans       |  |   | 698    |  |   |  | 0.17 | 
|Installments           |  |   | 412    |  |   |  | 0.10 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 38,511 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|December 31, 2009:     |  |   |        |  |   |  |      | 
|Residential mortgages  |  | $ | 12,138 |  |   |  | 2.97 | 
|Commercial real estate |  |   | 17,158 |  |   |  | 4.20 | 
|Land and lots          |  |   | 7,989  |  |   |  | 1.96 | 
|Commercial loans       |  |   | 740    |  |   |  | 0.18 | 
|Installments           |  |   | 555    |  |   |  | 0.14 | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|Total                  |  | $ | 38,580 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 
|                       |  |  
|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 |  |   |  |      | 
|                       |  |   |        |  |   |  |      | 



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



|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|---------------------- |  | ---------- | --- |  | --- |  | ------ | - |  |  | -- |  |  |  | ----- | 
|                       |  | Nonaccrual |     |  | REO | 
|                       |  | #          |     |  | $   |  |        | # |  |  | $  | 
|June 30, 2009:         |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|Residential mortgages  |  |            | 26  |  |     |  | 5,378  |   |  |  | 3  |  |  |  | 1,481 | 
|Commercial real estate |  |            | 12  |  |     |  | 10,935 |   |  |  | 1  |  |  |  | 391   | 
|Land and lots          |  |            | 33  |  |     |  | 7,663  |   |  |  | 14 |  |  |  | 822   | 
|Commercial loans       |  |            | 2   |  |     |  | 700    |   |  |  |   |  |  |  |      | 
|Installments           |  |            | 2   |  |     |  | 12     |   |  |  | 3  |  |  |  | 194   | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|Total                  |  |            | 75  |  |     |  | 24,688 |   |  |  | 21 |  |  |  | 2,888 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|September 30, 2009:    |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|Residential mortgages  |  |            | 32  |  |     |  | 7,724  |   |  |  | 2  |  |  |  | 1,283 | 
|Commercial real estate |  |            | 17  |  |     |  | 14,193 |   |  |  |   |  |  |  |      | 
|Land and lots          |  |            | 29  |  |     |  | 6,926  |   |  |  | 19 |  |  |  | 877   | 
|Commercial loans       |  |            | 3   |  |     |  | 408    |   |  |  |   |  |  |  |      | 
|Installments           |  |            | 2   |  |     |  | 11     |   |  |  | 2  |  |  |  | 80    | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|Total                  |  |            | 83  |  |     |  | 29,262 |   |  |  | 23 |  |  |  | 2,240 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|December 31, 2009:     |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|Residential mortgages  |  |            | 35  |  |     |  | 8,863  |   |  |  | 8  |  |  |  | 1,434 | 
|Commercial real estate |  |            | 18  |  |     |  | 12,610 |   |  |  | 2  |  |  |  | 447   | 
|Land and lots          |  |            | 29  |  |     |  | 4,899  |   |  |  | 11 |  |  |  | 931   | 
|Commercial loans       |  |            | 5   |  |     |  | 623    |   |  |  |   |  |  |  |      | 
|Installments           |  |            | 3   |  |     |  | 109    |   |  |  | 2  |  |  |  | 80    | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|Total                  |  |            | 90  |  |     |  | 27,104 |   |  |  | 23 |  |  |  | 2,892 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 
|                       |  |            |     | 
|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 | 
|                       |  |            |     |  |     |  |        |   |  |  |    |  |  |  |       | 



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The following chart illustrates
the combination of allowance and charge-off compared to related loans at September 30, 2010 and for the nine months then ended (in thousands):



|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|--------------------------------------------------------------------------------------- |  | ---------------- | ------- | - | ------------- |  | ------ | ----- |  |  | ------- | -
|                                                                                        |  | NonimpairedLoans |         |   | ImpairedLoans |  |        | Total | 
|Allowance for loan losses:                                                              |  |                  |         |   |               |  |        |       |  |  |         |  
|Beginning balance                                                                       |  | $                | 7,283   |   |               |  | 547    |       |  |  | 7,830   |  
|Provision                                                                               |  |                  | 9,402   |   |               |  | 6,747  |       |  |  | 16,149  |  
|Charge-offs                                                                             |  |                  | (4,925  | ) |               |  | (5,252 | )     |  |  | (10,177 | )
|Recoveries                                                                              |  |                  | 240     |   |               |  |       |       |  |  | 240     |  
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Ending balance                                                                          |  | $                | 12,000  |   |               |  | 2,042  |       |  |  | 14,042  |  
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Loss allowance                                                                          |  |                  | 12,000  |   |               |  | 2,042  |       |  |  | 14,042  |  
|Partial charge-offs of loans currently in portfolio                                     |  |                  |        |   |               |  | 7,313  |       |  |  | 7,313   |  
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Total                                                                                   |  | $                | 12,000  |   |               |  | 9,355  |       |  |  | 21,355  |  
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Total loans                                                                             |  | $                | 301,741 |   |               |  | 59,265 |       |  |  | 361,006 |  
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Allowance for loss and charge-offs as a percentage of total loans at September 30, 2010 |  |                  | 3.98    | % |               |  | 15.79  | %     |  |  | 5.92    | %
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  
|                                                                                        |  |                  |        
|Allowance for loss and charge-offs as a percentage of total loans at December 31, 2009  |  |                  | 2.07    | % |               |  | 17.03  | %     |  |  | 3.61    | %
|                                                                                        |  |                  |         |   |               |  |        |       |  |  |         |  



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES





|                                                                                      |  |                       |        |  
|------------------------------------------------------------------------------------- |  | --------------------- | ------ | -
|                                                                                      |  | At September 
30,2010 |       
|Collateral dependent impaired loans with partial charge-offs or specific reserves:    |  |                       |        |  
|Fair value of collateral                                                              |  | $                     | 14,852 |  
|Estimated selling costs                                                               |  |                       | (1,664 | )
|                                                                                      |  |                       |        |  
|Fair value less selling costs                                                         |  |                       | 13,188 |  
|                                                                                      |  |                       |        |  
|                                                                                      | 
|Gross impaired loans prior to charge-offs                                             |  |                       | 22,348 |  
|Partial charge-offs of impaired loans                                                 |  |                       | (7,313 | )
|Loss allowance                                                                        |  |                       | (1,847 | )
|                                                                                      |  |                       |        |  
|Book value of impaired loans with partial charge-offs                                 |  |                       | 13,188 |  
|                                                                                      |  |                       |        |  
|                                                                                      | 
|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                                                              |  |                       | 30,547 |  
|Estimated selling costs                                                               |  |                       | (3,055 | )
|                                                                                      |  |                       |        |  
|Fair value less selling costs                                                         |  |                       | 27,492 |  
|                                                                                      |  |                       |        |  
|                                                                                      | 
|Book value of impaired loans                                                          |  |                       | 17,526 |  
|                                                                                      |  |                       |        |  
|                                                                                      | 
|Fair value less selling costs in excess of book value                                 |  | $                     | 9,966  |  
|                                                                                      |  |                       |        |  
|                                                                                      | 
|Troubled debt restructuring:                                                          |  |                       |        |  
|Carrying value                                                                        |  | $                     | 18,795 |  
|                                                                                      |  |                       |        |  

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 September 30, |        
|                                                                                 |  | 2010                             |         |  | 2009                 |  
|                                                                                 |  | AverageBalance                   |         |  | InterestandDividends |   |       | AverageYield/Rate |  |  | AverageBalance |   |  | InterestandDividends |         |  | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)           |        
|Interest-earning assets:                                                         |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|Loans (1)                                                                        |  | $                                | 368,326 |  |                      |   | 4,843 |                   |  |  | 5.26           | % |  | $                    | 414,331 |  |                   |   | 5,796 |  |  |  | 5.60 | %
|Securities                                                                       |  |                                  | 56,508  |  |                      |   | 387   |                   |  |  | 2.74           |   |  |                      | 57,325  |  |                   |   | 566   |  |  |  | 3.95 |  
|Other interest-earning assets (2)                                                |  |                                  | 55,711  |  |                      |   | 46    |                   |  |  | 0.33           |   |  |                      | 59,640  |  |                   |   | 38    |  |  |  | 0.25 |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Total interest-earning assets                                                    |  |                                  | 480,545 |  |                      |   | 5,276 |                   |  |  | 4.39           |   |  |                      | 531,296 |  |                   |   | 6,400 |  |  |  | 4.82 |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Noninterest-earning assets                                                       |  |                                  | 42,410  |  |                      |   |       |                   |  |  |                |   |  |                      | 31,150  |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Total assets                                                                     |  | $                                | 522,955 |  |                      |   |       |                   |  |  |                |   |  | $                    | 562,446 |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|Interest-bearing liabilities:                                                    |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                  | 229,593 |  |                      |   | 586   |                   |  |  | 1.02           |   |  |                      | 183,622 |  |                   |   | 757   |  |  |  | 1.65 |  
|Time deposits                                                                    |  |                                  | 173,794 |  |                      |   | 951   |                   |  |  | 2.19           |   |  |                      | 252,161 |  |                   |   | 1,734 |  |  |  | 2.75 |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Total interest-bearing deposits                                                  |  |                                  | 403,387 |  |                      |   | 1,537 |                   |  |  | 1.52           |   |  |                      | 435,783 |  |                   |   | 2,491 |  |  |  | 2.29 |  
|                                                                                 |  |                                  |         |  |                      |  
|Other borrowings (3)                                                             |  |                                  | 40,256  |  |                      |   | 347   |                   |  |  | 3.45           |   |  |                      | 39,613  |  |                   |   | 349   |  |  |  | 3.52 |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Total interest-bearing liabilities                                               |  |                                  | 443,643 |  |                      |   | 1,884 |                   |  |  | 1.70           |   |  |                      | 475,396 |  |                   |   | 2,840 |  |  |  | 2.39 |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Noninterest-bearing liabilities                                                  |  |                                  | 40,551  |  |                      |   |       |                   |  |  |                |   |  |                      | 44,334  |  |                   |   |       |  |  |  |      |  
|Stockholders equity                                                             |  |                                  | 38,761  |  |                      |   |       |                   |  |  |                |   |  |                      | 42,716  |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Total liabilities and stockholders equity                                       |  | $                                | 522,955 |  |                      |   |       |                   |  |  |                |   |  | $                    | 562,446 |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Net interest income                                                              |  |                                  |         |  |                      | $ | 3,392 |                   |  |  |                |   |  |                      |         |  |                   | $ | 3,560 |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Interest-rate spread (4)                                                         |  |                                  |         |  |                      |   |       |                   |  |  | 2.69           | % |  |                      |         |  |                   |   |       |  |  |  | 2.43 | %
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Net interest margin (5)                                                          |  |                                  |         |  |                      |   |       |                   |  |  | 2.82           | % |  |                      |         |  |                   |   |       |  |  |  | 2.68 | %
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                  | 1.08    |  |                      |   |       |                   |  |  |                |   |  |                      | 1.12    |  |                   |   |       |  |  |  |      |  
|                                                                                 |  |                                  |         |  |                      |   |       |                   |  |  |                |   |  |                      |         |  |                   |   |       |  |  |  |      |  



|(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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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES





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.



|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------------- | ------- |  | -------------------- | - | ------ | ----------------- |  |  | -------------- | - |  | -------------------- | ------- |  | ----------------- | - | ------ |  |  |  | ---- | -
|                                                                                 |  | Nine Months Ended September 30, |        
|                                                                                 |  | 2010                            |         |  | 2009                 |  
|                                                                                 |  | AverageBalance                  |         |  | InterestandDividends |   |        | AverageYield/Rate |  |  | AverageBalance |   |  | InterestandDividends |         |  | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)          |        
|Interest-earning assets:                                                         |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|Loans (1)                                                                        |  | $                               | 379,023 |  |                      |   | 15,414 |                   |  |  | 5.42           | % |  | $                    | 413,831 |  |                   |   | 17,779 |  |  |  | 5.73 | %
|Securities                                                                       |  |                                 | 57,140  |  |                      |   | 1,367  |                   |  |  | 3.19           |   |  |                      | 50,970  |  |                   |   | 1,596  |  |  |  | 4.18 |  
|Other interest-earning assets (2)                                                |  |                                 | 53,128  |  |                      |   | 114    |                   |  |  | 0.29           |   |  |                      | 38,454  |  |                   |   | 60     |  |  |  | 0.21 |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Total interest-earning assets                                                    |  |                                 | 489,291 |  |                      |   | 16,895 |                   |  |  | 4.60           |   |  |                      | 503,255 |  |                   |   | 19,435 |  |  |  | 5.15 |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Noninterest-earning assets                                                       |  |                                 | 43,097  |  |                      |   |        |                   |  |  |                |   |  |                      | 39,503  |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Total assets                                                                     |  | $                               | 532,388 |  |                      |   |        |                   |  |  |                |   |  | $                    | 542,758 |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Interest-bearing liabilities:                                                    |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                 | 227,087 |  |                      |   | 1,981  |                   |  |  | 1.16           |   |  |                      | 161,066 |  |                   |   | 2,048  |  |  |  | 1.70 |  
|Time deposits                                                                    |  |                                 | 183,449 |  |                      |   | 3,280  |                   |  |  | 2.38           |   |  |                      | 253,768 |  |                   |   | 5,652  |  |  |  | 2.97 |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Total interest-bearing deposits                                                  |  |                                 | 410,536 |  |                      |   | 5,261  |                   |  |  | 1.71           |   |  |                      | 414,834 |  |                   |   | 7,700  |  |  |  | 2.47 |  
|                                                                                 |  |                                 |         |  |                      |  
|Other borrowings (3)                                                             |  |                                 | 40,244  |  |                      |   | 1,035  |                   |  |  | 3.43           |   |  |                      | 41,852  |  |                   |   | 1,065  |  |  |  | 3.39 |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Total interest-bearing liabilities                                               |  |                                 | 450,780 |  |                      |   | 6,296  |                   |  |  | 1.86           |   |  |                      | 456,686 |  |                   |   | 8,765  |  |  |  | 2.56 |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Noninterest-bearing liabilities                                                  |  |                                 | 39,630  |  |                      |   |        |                   |  |  |                |   |  |                      | 42,028  |  |                   |   |        |  |  |  |      |  
|Stockholders equity                                                             |  |                                 | 41,978  |  |                      |   |        |                   |  |  |                |   |  |                      | 44,044  |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Total liabilities and stockholders equity                                       |  | $                               | 532,388 |  |                      |   |        |                   |  |  |                |   |  | $                    | 542,758 |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Net interest income                                                              |  |                                 |         |  |                      | $ | 10,599 |                   |  |  |                |   |  |                      |         |  |                   | $ | 10,670 |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Interest-rate spread (4)                                                         |  |                                 |         |  |                      |   |        |                   |  |  | 2.74           | % |  |                      |         |  |                   |   |        |  |  |  | 2.59 | %
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Net interest margin (5)                                                          |  |                                 |         |  |                      |   |        |                   |  |  | 2.89           | % |  |                      |         |  |                   |   |        |  |  |  | 2.83 | %
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                 | 1.09    |  |                      |   |        |                   |  |  |                |   |  |                      | 1.10    |  |                   |   |        |  |  |  |      |  
|                                                                                 |  |                                 |         |  |                      |   |        |                   |  |  |                |   |  |                      |         |  |                   |   |        |  |  |  |      |  



|(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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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES





Comparison of
the Three-Month Periods Ended September 30, 2010 and 2009

General. First Community
Bank Corporation of America recorded a net loss for the third quarter ended September 30, 2010 of $7,202,000 compared to net loss of $2,334,000 for the same period in 2009. The decline in earnings was due to increased credit losses.

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 September 30, 2010 of $7,337,000 or $(1.34) per basic share and diluted share compared to $2,466,000 or $(.59) per basic share and diluted share for the three-months ended September 30, 2009.

The third quarter 2010 results included an $8,359,000 charge to provision for loan losses compared to $4,670,000 for the
period in 2009. The continuing high loan loss provision was due to a high level of delinquencies resulting from a continued weakness in the local economy.

Net Interest Income. Interest income decreased to $5.3 million during the three-months ended September 30, 2010, from $6.4 million in 2009. Interest on loans for the three-months ended
September 30, 2010 decreased to $4.8 million from $5.8 million for the three-months ended September 30, 2009. This decrease was also due to a decrease in the average yield earned to 5.26% for the three-months ended September 30, 2010
from 5.60% for the three-months ended September 30, 2009. Interest on securities decreased to $387,000 during the three-months ended September 30, 2010 from $566,000 for the three-months ended September 30, 2009. The decrease in
interest income on securities was due to a decrease in the average yield of securities from 3.95% in 2009 to 2.74% in 2010.

Interest expense on interest-bearing deposit accounts decreased to $1.5 million during the three-months ended September 30, 2010,
compared to $2.5 million during the three-months ended September 30, 2009. The decrease was due to a decrease in the rate paid to 1.52% during the three-months ended September 30, 2010 from 2.29% during the three-months ended
September 30, 2009. Interest expense on other borrowings decreased to $347,000 during the three-months ended September 30, 2010, compared to $349,000 during the three-months ended September 30, 2009. The decrease was due to a decrease
in the average yield from 3.52% in 2009 to 3.45% in 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.

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.



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Comparison of
the Three-Month Periods Ended September 30, 2010 and 2009, Continued

Provision for Loan
Losses, Continued. 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 $8,359,000 for the three-months ended September 30, 2010 compared to $4,670,000 for the
three-months ended September 30, 2009. On September 30, 2010, an additional $6.7 million was added to the provision due to the augmented level of nonperforming loans as a result of deteriorating economic conditions; primarily declining
home values and higher unemployment rates in the four markets that the Company serves.

The allowance for loan losses is
$14,042,000 at September 30, 2010. While management believes that its allowance for loan losses is adequate as of September 30, 2010, future adjustments may be necessary as economic conditions dictate.

Noninterest Income. Noninterest income increased to $870,000 in 2010 from $757,000 for the three-months
ended September 30, 2009. The increase was primarily due to $479,000 in security gains recorded during the third quarter of 2010.

Noninterest Expense. Total noninterest expenses decreased to $3.1 million for the three-months ended September 30, 2010 from $3.5 million for the comparable period ended
September 30, 2009, resulting from a $198,000 decrease in employee compensation and benefit.

Income Taxes (Benefit). Income taxes benefit for the three-months ended September 30, 2010 was $0
compared to $(1,477,000) for the period ended September 30, 2009.



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Comparison of
the Nine-Month Periods Ended September 30, 2010 and 2009

General. First Community
Bank Corporation of America recorded a net loss for the nine-months ended September 30, 2010 of $18,351,000 compared to a net loss of $2,546,000 for the same period in 2009. The increase in losses was due to increased credit losses.

The Company recorded a net loss available to common stockholders, after preferred stock dividends requirements and amortization of
preferred discount, for the nine-months ended September 30, 2010 of $18,953,000 or $(3.51) per basic share and diluted share compared to $2,962,000 or $(.71) per basic share and diluted share for the nine-months ended September 30, 2009.

The first nine months of 2010 included a $16,149,000 charge to provision for loan losses compared to $6,702,000 in 2009. The
continuing high loan loss provision was due to a high level of delinquencies resulting from a continued weakness in the local economy.

Net Interest Income. Interest income decreased to $16.9 million during the nine-months ended September 30, 2010, from $19.4 million in 2009. Interest on loans for the nine-months ended
September 30, 2010 decreased to $15.4 million from $17.8 million for the nine-months ended September 30, 2009. The decrease was also due to a decrease in the average yield earned on loans declined to 5.42% from 5.73% for the same period in
2009. Interest on securities decreased to $1.4 million during the nine-months ended September 30, 2010 from $1.6 million for the nine-months ended September 30, 2009. The decrease in interest income on securities was due to a decrease in
the average yield on securities from 4.18% in 2009 to 3.19% in 2010.

Interest expense on interest-bearing deposit accounts
decreased to $5.3 million during the nine-months ended September 30, 2010, compared to $7.7 million during the nine-months ended September 30, 2009. The decrease was due to a decrease in the rate paid to 1.71% during the nine-months ended
September 30, 2010 from 2.47% during the nine-months ended September 30, 2009. Interest expense on other borrowings decreased to $1.0 million during the nine-months ended September 30, 2010, compared to $1.1 million during the
nine-months ended September 30, 2009. The decrease was due to a decrease in the average balance of other borrowings to $40.2 million in 2010 from $41.8 million in 2009.

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.

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.



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Comparison of
the Nine-Month Periods Ended September 30, 2010 and 2009, Continued

Provision for Loan
Losses, Continued.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 $16,149,000 for the nine-months ended September 30, 2010 compared to $6,702,000 for the
nine-months ended September 30, 2009. On September 30, 2010, an additional $6.7 million was added to the provision due to he augmented level of nonperforming loans as a result of deteriorating economic conditions; primarily declining home
values and higher unemployment rates in the four markets that the Company serves.

The allowance for loan losses is $14,042,000
at September 30, 2010. While management believes that its allowance for loan losses is adequate as of September 30, 2010, future adjustments may be necessary as economic conditions dictate.

Noninterest Income. Noninterest income increased to $2,241,000 in 2010 from $1,615,000 for the nine-months
ended September 30, 2009. The increase was primarily due to $1,015,000 in security gains recorded during the nine-months ended September 30, 2010.

Noninterest Expenses. Total noninterest expenses for the nine-months ended September 30, 2010 were $9.8 million compared to $9.8 million for the period ended September 30, 2009.

Income Taxes (Benefit). Income taxes (expense) for the nine-months ended September 30,
2010, were $5,228,000 compared to a benefit of $(1,713,000) for the period ended September 30, 2009.



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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 Chief 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 Chief 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, 2009.



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PART II. OTHER
INFORMATION, CONTINUED

Item 6. Exhibits

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



|              |  |                                                                                                                                              
|------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No.   |  | 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: |  | November 15, 2010 |  |  |  | By:                                         |  | /s/ Kenneth P. Cherven                                               
|      |  |                   |  |  |  |                                             |  | Kenneth P. Cherven, President and Chief Executive Officer            
|      |  |                   |  | 
|Date: |  | November 15, 2010 |  |  |  | By:                                         |  | /s/ Cheryl R. Bryan                                                  
|      |  |                   |  |  |  |                                             |  | Cheryl R. Bryan, Principal Financial and Principal Accounting Officer



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