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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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(Mark One)

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

For the quarterly period ended June 30, 2006



| ̈ | 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



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FIRST
COMMUNITY BANK CORPORATION OF AMERICA

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|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)



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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 is a large accelerated filer, an accelerated filer or a non-accelerated filer (see
definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act). Check One:



|                         |  |                    |  |                         
|------------------------ |  | ------------------ |  | ------------------------
|Large accelerated filer ̈ |  | Accelerated filer ̈ |  | Non-accelerated filer  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 |  | 3,817,937 shares            
|(class)                                |  | Outstanding at July 20, 2006



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



INDEX



|                              |  |                                                                                                                          |  |      
|----------------------------- |  | ------------------------------------------------------------------------------------------------------------------------ |  | -----
|                              |  |                                                                                                                          |  | Page 
|PART I. FINANCIAL INFORMATION |  |                                                                                                                         
|                              |  |                                                                                                                         
|                              |  | Item 1. Financial Statements                                                                                             |  |      
|                              |  |                                                                                                                         
|                              |  | Condensed Consolidated Balance Sheets - At June 30, 2006 (unaudited) and At December 31, 2005                            |  | 2    
|                              |  |                                                                                                                         
|                              |  | Condensed Consolidated Statements of Earnings - Three and Six Months ended June 30, 2006 and 2005 (unaudited)            |  | 3    
|                              |  |                                                                                                                         
|                              |  | Condensed Consolidated Statements of Changes in Stockholders Equity Six Months Ended June 30, 2006 and 2005 (unaudited) |  | 4    
|                              |  |                                                                                                                         
|                              |  | Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2006 and 2005 (unaudited)                    |  | 5-6  
|                              |  |                                                                                                                         
|                              |  | Notes to Condensed Consolidated Financial Statements (unaudited)                                                         |  | 7-11 
|                              |  |                                                                                                                         
|                              |  | Review by Independent Registered Public Accounting Firm                                                                  |  | 12   
|                              |  |                                                                                                                         
|                              |  | Report of Independent Registered Public Accounting Firm                                                                  |  | 13   
|                              |  |                                                                                                                         
|                              |  | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations                            |  | 14-22
|                              |  |                                                                                                                         
|                              |  | Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                       |  | 23   
|                              |  |                                                                                                                         
|                              |  | Item 4. Controls and Procedures                                                                                          |  | 23   
|                              | 
|PART II. OTHER INFORMATION    |  |                                                                                                                         
|                              |  |                                                                                                                         
|                              |  | Item 1. Legal Proceedings                                                                                                |  | 23   
|                              |  |                                                                                                                         
|                              |  | Item 4. Submission of Matters to a Vote of Security Holders                                                              |  | 24   
|                              |  |                                                                                                                         
|                              |  | Item 6. Exhibits                                                                                                         |  | 25   
|                              | 
|SIGNATURES                    |  | 26                                                                                                                      



1



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)



|                                                                                                                   |  |              |         |   |                  |         |  
|------------------------------------------------------------------------------------------------------------------ |  | ------------ | ------- | - | ---------------- | ------- | -
|                                                                                                                   |  | June 30,2006 |         |   | December 31,2005 |        
|                                                                                                                   |  | (Unaudited)  |         |   |                  |        
|Assets                                                                                                             |  |              |         |   |                  |         |  
|Cash and due from banks                                                                                            |  | $            | 2,781   |   |                  | 2,273   |  
|Interest-bearing deposits with banks                                                                               |  |              | 8,492   |   |                  | 19,425  |  
|                                                                                                                   |  |              |         |   |                  |         |  
|Cash and cash equivalents                                                                                          |  |              | 11,273  |   |                  | 21,698  |  
|                                                                                                                   |  |             
|Other interest-bearing deposits with banks                                                                         |  |              | 255     |   |                  | 527     |  
|Securities available for sale                                                                                      |  |              | 7,759   |   |                  | 8,918   |  
|Securities held to maturity                                                                                        |  |              | 7,226   |   |                  | 5,278   |  
|Loans, net of allowance for loan losses of $3,474 and $3,416                                                       |  |              | 316,962 |   |                  | 272,534 |  
|Federal Home Loan Bank stock, at cost                                                                              |  |              | 1,855   |   |                  | 1,109   |  
|Premises and equipment, net                                                                                        |  |              | 5,582   |   |                  | 8,790   |  
|Accrued interest receivable                                                                                        |  |              | 1,489   |   |                  | 1,245   |  
|Deferred income taxes                                                                                              |  |              | 1,471   |   |                  | 1,471   |  
|Bank owned life insurance                                                                                          |  |              | 2,352   |   |                  | 2,310   |  
|Other assets                                                                                                       |  |              | 1,321   |   |                  | 874     |  
|                                                                                                                   |  |              |         |   |                  |         |  
|                                                                                                                   |  | $            | 357,545 |   |                  | 324,754 |  
|                                                                                                                   |  |              |         |   |                  |         |  
|Liabilities and Stockholders Equity                                                                               |  |              |         |   |                  |         |  
|Liabilities:                                                                                                       |  |              |         |   |                  |         |  
|Noninterest-bearing demand deposits                                                                                |  |              | 42,506  |   |                  | 37,010  |  
|Savings, NOW and money-market deposits                                                                             |  |              | 101,312 |   |                  | 115,286 |  
|Time deposits                                                                                                      |  |              | 142,318 |   |                  | 120,333 |  
|                                                                                                                   |  |              |         |   |                  |         |  
|Total deposits                                                                                                     |  |              | 286,136 |   |                  | 272,629 |  
|                                                                                                                   |  |             
|Federal Home Loan Bank advances                                                                                    |  |              | 27,000  |   |                  | 12,000  |  
|Other borrowings                                                                                                   |  |              | 5,466   |   |                  | 3,709   |  
|Accrued expenses and other liabilities                                                                             |  |              | 7,397   |   |                  | 7,269   |  
|                                                                                                                   |  |              |         |   |                  |         |  
|Total liabilities                                                                                                  |  |              | 325,999 |   |                  | 295,607 |  
|                                                                                                                   |  |              |         |   |                  |         |  
|Stockholders equity:                                                                                              |  |              |         |   |                  |         |  
|Preferred stock, $0.01 par value, 2,000,000 shares authorized, no shares issued or outstanding                     |  |              |        |   |                  |        |  
|Common stock, $0.05 par value, 20,000,000 shares authorized, 3,797,500 and 3,747,582 shares issued and outstanding |  |              | 190     |   |                  | 187     |  
|Additional paid-in capital                                                                                         |  |              | 25,280  |   |                  | 24,826  |  
|Retained earnings                                                                                                  |  |              | 6,118   |   |                  | 4,200   |  
|Accumulated other comprehensive loss                                                                               |  |              | (42     | ) |                  | (66     | )
|                                                                                                                   |  |              |         |   |                  |         |  
|Total stockholders equity                                                                                         |  |              | 31,546  |   |                  | 29,147  |  
|                                                                                                                   |  |              |         |   |                  |         |  
|                                                                                                                   |  | $            | 357,545 |   |                  | 324,754 |  
|                                                                                                                   |  |              |         |   |                  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings
(Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                            |       |                          |       |      |        |      |      
|--------------------------------------------------- |  | -------------------------- | ----- | ------------------------ | ----- | ---- | ------ | ---- | -----
|                                                    |  | Three Months EndedJune 30, |       | Six Months EndedJune 30,
|                                                    |  | 2006                       |       | 2005                     |       | 2006 |        | 2005
|Interest income:                                    |  |                            |       |                          |       |      |        |      |      
|Loans                                               |  | $                          | 5,735 |                          | 3,789 |      | 10,857 |      | 7,203
|Securities                                          |  |                            | 148   |                          | 98    |      | 280    |      | 194  
|Other interest earning assets                       |  |                            | 50    |                          | 43    |      | 120    |      | 89   
|                                                    |  |                            |       |                          |       |      |        |      |      
|Total interest income                               |  |                            | 5,933 |                          | 3,930 |      | 11,257 |      | 7,486
|                                                    |  |                            |       |                          |       |      |        |      |      
|Interest expense:                                   |  |                            |       |                          |       |      |        |      |      
|Deposits                                            |  |                            | 1,945 |                          | 940   |      | 3,569  |      | 1,778
|Other borrowings                                    |  |                            | 295   |                          | 135   |      | 530    |      | 239  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Total interest expense                              |  |                            | 2,240 |                          | 1,075 |      | 4,099  |      | 2,017
|                                                    |  |                            |       |                          |       |      |        |      |      
|Net interest income                                 |  |                            | 3,693 |                          | 2,855 |      | 7,158  |      | 5,469
|                                                    |  |                            |       |                         
|Provision for loan losses                           |  |                            |      |                          | 203   |      | 60     |      | 361  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Net interest income after provision for loan losses |  |                            | 3,693 |                          | 2,652 |      | 7,098  |      | 5,108
|                                                    |  |                            |       |                          |       |      |        |      |      
|Noninterest income:                                 |  |                            |       |                          |       |      |        |      |      
|Service charges on deposit accounts                 |  |                            | 175   |                          | 126   |      | 329    |      | 246  
|Other service charges and fees                      |  |                            | 45    |                          | 27    |      | 99     |      | 50   
|Income from bank owned life insurance               |  |                            | 21    |                          | 21    |      | 42     |      | 43   
|Gain on sale of loans held for sale                 |  |                            | 47    |                          | 15    |      | 95     |      | 28   
|Gain on sale of premises and equipment              |  |                            | 225   |                          |      |      | 225    |      |     
|Other                                               |  |                            | 32    |                          | 87    |      | 54     |      | 159  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Total noninterest income                            |  |                            | 545   |                          | 276   |      | 844    |      | 526  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Noninterest expenses:                               |  |                            |       |                          |       |      |        |      |      
|Employee compensation and benefits                  |  |                            | 1,717 |                          | 1,186 |      | 3,276  |      | 2,258
|Occupancy and equipment                             |  |                            | 259   |                          | 207   |      | 535    |      | 378  
|Data processing                                     |  |                            | 197   |                          | 207   |      | 404    |      | 375  
|Professional fees                                   |  |                            | 53    |                          | 58    |      | 108    |      | 119  
|Office supplies                                     |  |                            | 45    |                          | 44    |      | 98     |      | 87   
|Insurance                                           |  |                            | 43    |                          | 40    |      | 87     |      | 79   
|Other                                               |  |                            | 221   |                          | 180   |      | 394    |      | 332  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Total noninterest expenses                          |  |                            | 2,535 |                          | 1,922 |      | 4,902  |      | 3,628
|                                                    |  |                            |       |                          |       |      |        |      |      
|Earnings before income taxes                        |  |                            | 1,703 |                          | 1,006 |      | 3,040  |      | 2,006
|                                                    |  |                            |       |                         
|Income taxes                                        |  |                            | 632   |                          | 377   |      | 1,122  |      | 747  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Net earnings                                        |  | $                          | 1,071 |                          | 629   |      | 1,918  |      | 1,259
|                                                    |  |                            |       |                          |       |      |        |      |      
|Earnings per share:                                 |  |                            |       |                          |       |      |        |      |      
|Basic earnings per share                            |  | $                          | .28   |                          | .19   |      | .51    |      | .38  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Diluted earnings per share                          |  | $                          | .26   |                          | .17   |      | .47    |      | .33  
|                                                    |  |                            |       |                          |       |      |        |      |      
|Dividends per share                                 |  | $                          |      |                          |      |      |       |      |     
|                                                    |  |                            |       |                          |       |      |        |      |      

See Accompanying Notes to Condensed Consolidated Financial Statements.



3



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in
Stockholders Equity

Six Months Ended June 30, 2006 and 2005

(In thousands, except share amounts)



|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|----------------------------------------------------------------------------------------------- |  | ------------ | - |  | ------------------------- | --- | - | ----------------- | ------ | - | ---------------------------------- | ----- | - | ----- | --- | - |  | ------ | -
|                                                                                                |  | Common Stock |   |  | AdditionalPaid-In Capital |     |   | Retained Earnings |        |   | AccumulatedOtherComprehensive Loss |       |   | Total |    
|                                                                                                |  | Shares       |   |  | Amount                    |     |   |                   |        |  
|Balance at December 31, 2004                                                                    |  | 2,115,497    |   |  | $                         | 169 |   |                   | 19,374 |   |                                    | 4,136 |   |       | (61 | ) |  | 23,618 |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|                                                                                                |  |              |   |  |                           |    
|Comprehensive income:                                                                           |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Net earnings (unaudited)                                                                        |  |             |   |  |                           |    |   |                   |       |   |                                    | 1,259 |   |       |    |   |  | 1,259  |  
|                                                                                                |  |              |   |  |                           |    
|Net change in unrealized loss on securities available for sale, net of taxes of $11 (unaudited) |  |             |   |  |                           |    |   |                   |       |   |                                    |      |   |       | (13 | ) |  | (13    | )
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  | 1,246  |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Exercise of common stock options (unaudited)                                                    |  | 6,563        |   |  |                           | 1   |   |                   | 50     |   |                                    |      |   |       |    |   |  | 51     |  
|                                                                                                |  |              |   |  |                           |    
|Tax benefit from common stock options exercised (unaudited)                                     |  |             |   |  |                           |    |   |                   | 49     |   |                                    |      |   |       |    |   |  | 49     |  
|                                                                                                |  |              |   |  |                           |    
|Repurchase of common stock (unaudited)                                                          |  | (11,500      | ) |  |                           | (1  | ) |                   | (287   | ) |                                    |      |   |       |    |   |  | (288   | )
|                                                                                                |  |              |   |  |                           |    
|5% stock dividend, fractional shares paid-in cash of $4 (unaudited)                             |  | 105,641      |   |  |                           | 9   |   |                   | (9     | ) |                                    | (4    | ) |       |    |   |  | (4     | )
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Balance at June 30, 2005 (unaudited)                                                            |  | 2,216,201    |   |  | $                         | 178 |   |                   | 19,177 |   |                                    | 5,391 |   |       | (74 | ) |  | 24,672 |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Balance at December 31, 2005                                                                    |  | 3,747,582    |   |  |                           | 187 |   |                   | 24,826 |   |                                    | 4,200 |   |       | (66 | ) |  | 29,147 |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Comprehensive income:                                                                           |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Net earnings (unaudited)                                                                        |  |             |   |  |                           |    |   |                   |       |   |                                    | 1,918 |   |       |    |   |  | 1,918  |  
|                                                                                                |  |              |   |  |                           |    
|Net change in unrealized loss on securities available for sale, net of taxes of $15 (unaudited) |  |             |   |  |                           |    |   |                   |       |   |                                    |      |   |       | 24  |   |  | 24     |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  | 1,942  |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Exercise of common stock options (unaudited)                                                    |  | 49,971       |   |  |                           | 3   |   |                   | 261    |   |                                    |      |   |       |    |   |  | 264    |  
|                                                                                                |  |              |   |  |                           |    
|Three-for-two stock split, fractional shares paid-in cash (unaudited)                           |  | (53          | ) |  |                           |    |   |                   |       |   |                                    |      |   |       |    |   |  |       |  
|                                                                                                |  |              |   |  |                           |    
|Tax benefit from common stock options exercised (unaudited)                                     |  |             |   |  |                           |    |   |                   | 188    |   |                                    |      |   |       |    |   |  | 188    |  
|                                                                                                |  |              |   |  |                           |    
|Share based compensation expense (unaudited)                                                    |  |             |   |  |                           |    |   |                   | 5      |   |                                    |      |   |       |    |   |  | 5      |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  
|Balance at June 30, 2006 (unaudited)                                                            |  | 3,797,500    |   |  | $                         | 190 |   |                   | 25,280 |   |                                    | 6,118 |   |       | (42 | ) |  | 31,546 |  
|                                                                                                |  |              |   |  |                           |     |   |                   |        |   |                                    |       |   |       |     |   |  |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



4



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(Unaudited)

(In thousands)



|                                                                                    |  |                          |         |   |      |         |  
|----------------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ---- | ------- | -
|                                                                                    |  | Six Months EndedJune 30, |        
|                                                                                    |  | 2006                     |         |   | 2005 |        
|Cash flows from operating activities:                                               |  |                          |         |   |      |         |  
|Net earnings                                                                        |  | $                        | 1,918   |   |      | 1,259   |  
|Adjustments to reconcile net earnings to net cash provided by operating activities: |  |                          |         |   |      |         |  
|Provision for loan losses                                                           |  |                          | 60      |   |      | 361     |  
|Depreciation and amortization                                                       |  |                          | 232     |   |      | 134     |  
|Net amortization of deferred loan fees and costs                                    |  |                          | 64      |   |      | 26      |  
|Deferred income taxes                                                               |  |                          |        |   |      | (136    | )
|Income from bank owned life insurance                                               |  |                          | (42     | ) |      | (43     | )
|Origination of loans held for sale                                                  |  |                          | (6,745  | ) |      | (2,367  | )
|Proceeds from sale of loans held for sale                                           |  |                          | 7,738   |   |      | 2,161   |  
|Gain on sale of loans held for sale                                                 |  |                          | (95     | ) |      | (28     | )
|Gain on sale of foreclosed real estate                                              |  |                          |        |   |      | (1      | )
|Gain on sale of premises and equipment                                              |  |                          | (225    | ) |      |        |  
|Increase in accrued interest receivable                                             |  |                          | (244    | ) |      | (102    | )
|(Increase) decrease in other assets                                                 |  |                          | (447    | ) |      | 10      |  
|Increase in accrued expenses and other liabilities                                  |  |                          | 113     |   |      | 1,206   |  
|Share based compensation expense                                                    |  |                          | 5       |   |      |        |  
|                                                                                    |  |                          |         |   |      |         |  
|Net cash provided by operating activities                                           |  |                          | 2,332   |   |      | 2,480   |  
|                                                                                    |  |                          |         |   |      |         |  
|Cash flows from investing activities:                                               |  |                          |         |   |      |         |  
|Net change in other interest-bearing deposits with banks                            |  |                          | 272     |   |      | 190     |  
|Purchase of securities available for sale                                           |  |                          | (2,000  | ) |      | (491    | )
|Principal payments on securities available for sale                                 |  |                          | 198     |   |      | 279     |  
|Proceeds from calls and maturities of securities available for sale                 |  |                          | 3,000   |   |      | 2,000   |  
|Purchase of securities held to maturity                                             |  |                          | (2,160  | ) |      | (999    | )
|Proceeds from calls of securities held to maturity                                  |  |                          |        |   |      | 500     |  
|Principal payments on securities held to maturity                                   |  |                          | 212     |   |      | 139     |  
|Net increase in loans                                                               |  |                          | (45,450 | ) |      | (31,427 | )
|Net sale (purchase) of premises and equipment, net                                  |  |                          | 3,201   |   |      | (2,167  | )
|Purchase of Federal Home Loan Bank stock                                            |  |                          | (746    | ) |      | (233    | )
|Proceeds from sale of foreclosed real estate                                        |  |                          |        |   |      | 50      |  
|                                                                                    |  |                          |         |   |      |         |  
|Net cash used in investing activities                                               |  |                          | (43,473 | ) |      | (32,159 | )
|                                                                                    |  |                          |         |   |      |         |  
|Cash flows from financing activities:                                               |  |                          |         |   |      |         |  
|Increase in deposits                                                                |  |                          | 13,507  |   |      | 27,854  |  
|Repayment of Federal Home Loan Bank advances                                        |  |                          | (47,500 | ) |      | (9,500  | )
|Proceeds from Federal Home Loan Bank advances                                       |  |                          | 62,500  |   |      | 12,000  |  
|Increase in other borrowings                                                        |  |                          | 1,757   |   |      | 1,895   |  
|Proceeds from exercise of stock options                                             |  |                          | 264     |   |      | 51      |  
|Fractional shares of stock dividend paid in cash                                    |  |                          |        |   |      | (4      | )
|Repurchase of common stock                                                          |  |                          |        |   |      | (288    | )
|Tax benefit from common stock options exercised                                     |  |                          | 188     |   |      |        |  
|                                                                                    |  |                          |         |   |      |         |  
|Net cash provided by financing activities                                           |  |                          | 30,716  |   |      | 32,008  |  
|                                                                                    |  |                          |         |   |      |         |  
|Net (decrease) increase in cash and cash equivalents                                |  |                          | (10,425 | ) |      | 2,329   |  
|                                                                                    |  |                         
|Cash and cash equivalents at beginning of period                                    |  |                          | 21,698  |   |      | 9,738   |  
|                                                                                    |  |                          |         |   |      |         |  
|Cash and cash equivalents at end of period                                          |  | $                        | 11,273  |   |      | 12,067  |  
|                                                                                    |  |                          |         |   |      |         |  

(continued)



5



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)



|                                                                                                                          |  |                          |       |      |       |  
|------------------------------------------------------------------------------------------------------------------------- |  | ------------------------ | ----- | ---- | ----- | -
|                                                                                                                          |  | Six Months EndedJune 30, |      
|                                                                                                                          |  | 2006                     |       | 2005 |      
|Supplemental disclosure of cash flow information:                                                                         |  |                          |       |      |       |  
|Cash paid during the period for:                                                                                          |  |                          |       |      |       |  
|Interest                                                                                                                  |  | $                        | 3,952 |      | 1,978 |  
|                                                                                                                          |  |                          |       |      |       |  
|Income taxes                                                                                                              |  | $                        | 1,122 |      | 1,110 |  
|                                                                                                                          |  |                          |       |      |       |  
|Noncash transactions:                                                                                                     |  |                          |       |      |       |  
|Accumulated other comprehensive loss, net change in unrealized loss on securities available for sale, net of income taxes |  | $                        | 24    |      | (13   | )
|                                                                                                                          |  |                          |       |      |       |  
|Tax benefit from common stock options exercised                                                                           |  | $                        |      |      | 49    |  
|                                                                                                                          |  |                          |       |      |       |  
|Stock dividend                                                                                                            |  | $                        |      |      | 9     |  
|                                                                                                                          |  |                          |       |      |       |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



6



---

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 operations of the Bank. The Bank is a federally-chartered stock
savings bank that provides a variety of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, one banking office located in Charlotte County, and two offices located in
Hillsborough County, Florida. FCLS had minimal activity during the six months ended June 30, 2006 and 2005.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 June 30,
2006, the results of operations for the three- and six-month periods ended June 30, 2006 and 2005 and cash flows for the six-month periods ended June 30, 2006 and 2005. The results of operations and other data for the three- and six-month
periods ended June 30, 2006 are not necessarily indicative of results that may be expected for the year ending December 31, 2006.



|2. | Loan Impairment and Loan Losses.There were no loans identified as impaired during the six months ended June 30, 2006 or 2005.
|-- | -----------------------------------------------------------------------------------------------------------------------------

The activity in the allowance for loan losses is as follows (in thousands):



|                               |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|------------------------------ |  | -------------------------- | ----- | - | ------------------------ | ----- | - | ---- | ----- | - | ---- | ----- | -
|                               |  | Three Months EndedJune 30, |       |   | Six Months EndedJune 30, |      
|                               |  | 2006                       |       |   | 2005                     |       |   | 2006 |       |   | 2005 |      
|Balance at beginning of period |  | $                          | 3,476 |   |                          | 2,785 |   |      | 3,416 |   |      | 2,640 |  
|Provision for loan losses      |  |                            |      |   |                          | 203   |   |      | 60    |   |      | 361   |  
|Charge-offs                    |  |                            | (4    | ) |                          | (4    | ) |      | (4    | ) |      | (18   | )
|Recoveries                     |  |                            | 2     |   |                          | 1     |   |      | 2     |   |      | 2     |  
|                               |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Balance at end of period       |  | $                          | 3,474 |   |                          | 2,985 |   |      | 3,474 |   |      | 2,985 |  
|                               |  |                            |       |   |                          |       |   |      |       |   |      |       |  

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



|                                             |  |             |     |      |  
|-------------------------------------------- |  | ----------- | --- | ---- | -
|                                             |  | At June 30,
|                                             |  | 2006        |     | 2005
|Nonaccrual loans                             |  | $           | 157 |      | 9
|Past due ninety days or more, still accruing |  |             |    |      | 
|                                             |  |             |     |      |  
|                                             |  | $           | 157 |      | 9
|                                             |  |             |     |      |  

At June 30, 2006 and December 31, 2005 loans held for sale approximated $488,000 and
$1,386,000, respectively and are included in net loans on the condensed consolidated balance sheets.

(continued)



7



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|3. | Earnings Per Share (EPS).Earnings 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. All per share amounts have been adjusted to reflect the
three-for-two stock split declared in December 2005. At June 30, 2006, there were no warrants outstanding. The following tables present the calculations of EPS (dollars in thousands, except per share amounts).
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|--------------------------------------------------------------------- |  | -------- | ----- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | ----- | -------------- | --------- |  | - | ---
|                                                                      |  | 2006     |       | 2005                  
|                                                                      |  | Earnings |       | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |       | PerShareAmount
|Three Months Ended June 30:                                           |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Basic EPS:                                                            |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 1,071 |                        | 3,796,758 |                | $ | .28      |  | $                      | 629   |                | 3,331,734 |  | $ | .19
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Incremental shares from assumed conversion of options                 |  |          |       |                        | 309,075   |                |   |          |  |                        |       |                | 446,558   |  |   |    
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|                                                                      |  |          |       |                        |           |               
|Diluted EPS:                                                          |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 1,071 |                        | 4,105,833 |                | $ | .26      |  | $                      | 629   |                | 3,778,292 |  | $ | .17
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Six Months Ended June 30:                                             |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Basic EPS:                                                            |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 1,918 |                        | 3,796,754 |                | $ | .51      |  | $                      | 1,259 |                | 3,331,761 |  | $ | .38
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Incremental shares from assumed conversion of options and warrants    |  |          |       |                        | 302,059   |                |   |          |  |                        |       |                | 451,043   |  |   |    
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|                                                                      |  |          |       |                        |           |               
|Diluted EPS:                                                          |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 1,918 |                        | 4,098,813 |                | $ | .47      |  | $                      | 1,259 |                | 3,782,804 |  | $ | .33
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    

The following options were excluded from the calculation of EPS due to the exercise price being above the average
market price:



|                                                  |  |                   |  |               |       |        |          
|------------------------------------------------- |  | ----------------- |  | ------------- | ----- | ------ | ---------
|                                                  |  | NumberOutstanding |  | ExercisePrice |       | Expire
|For the three and six months ended June 30, 2006: |  |                   |  |               |       |        |          
|Options                                           |  | 6,000             |  | $             | 20.19 |        | 2012-2016
|                                                  |  | 5,000             |  |               | 20.50 |        | 2012-2016
|                                                  |  | 10,000            |  |               | 21.00 |        | 2012-2016
|                                                  |  |                   | 
|For the three and six months ended June 30, 2005: |  |                   |  |               |       |        |          
|Options                                           |  | 3,150             |  | $             | 18.41 |        | 2005     

(continued)



8



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|4. | Stock-Based Compensation. Prior to January 1, 2006, the Companys stock option plans were accounted for under the recognition and measurement
provisions of APB Opinion No. 25 (Opinion 25), Accounting for Stock Issued to Employees, and related Interpretations, as permitted by FASB Statement No. 123, Accounting for Stock-Based Compensation (as amended by SFAS
No. 148, Accounting for Stock-Based Compensation Transition and Disclosure) (collectively SFAS 123). No stock-based employee compensation cost was recognized in the Companys consolidated statements of earnings through
December 31, 2005, as all options granted under the plans had an exercise price equal to the market value of the underlying common stock on the date of grant. Effective January 1, 2006, the Company adopted the fair value recognition
provisions of FASB Statement No. 123(R), Share-Based Payment(SFAS 123R), using the modified-prospective-transition method. Under that transition method, compensation cost recognized in 2006 includes: (a) compensation cost
for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value calculated in accordance with the original provisions of SFAS 123, and (b) compensation cost for all share-based
payments granted subsequent to December 31, 2005, based on the grant-date fair value estimated in accordance with the provisions of SFAS 123(R). At December 31, 2005, all outstanding options had vested.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, prior to the adoption of SFAS 123(R), the tax benefits of stock options exercised were classified as operating cash flows. Since the adoption
of SFAS 123(R), tax benefits resulting from tax deductions in excess of the compensation cost recognized for options are classified as financing cash flows. As the Company adopted the modified-prospective- transition method, the prior period
condensed consolidated cash flow statement was not adjusted to reflect current period presentation.

The following table illustrates the
effect on net earnings and earnings per share if the Company had applied the fair value recognition provisions of SFAS 123 to options granted under the Companys stock option plan for the three and six months ended June 30, 2005. All per
share amounts have been adjusted to reflect the three-for-two stock split declared in December 2005. For purposes of this pro forma disclosure, the value of the options is estimated using the Black-Scholes option-pricing model and is being amortized
to expense as the options vest (in thousands, except per share data).



|                                                                                                                |  |                            |     |   |                          |   |       |  
|--------------------------------------------------------------------------------------------------------------- |  | -------------------------- | --- | - | ------------------------ | - | ----- | -
|                                                                                                                |  | Three Months EndedJune 30, |     |   | Six Months EndedJune 30, |  
|                                                                                                                |  | 2005                       |     |   | 2005                     |  
|Net earnings, as reported                                                                                       |  | $                          | 629 |   |                          |   | 1,259 |  
|Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards |  |                            | (73 | ) |                          |   | (92   | )
|                                                                                                                |  |                            |     |   |                          |   |       |  
|Proforma net earnings                                                                                           |  | $                          | 556 |   |                          |   | 1,167 |  
|                                                                                                                |  |                            |     |   |                          |   |       |  
|Basic earnings per share:                                                                                       |  |                            |     |   |                          |   |       |  
|As reported                                                                                                     |  | $                          | .19 |   |                          | $ | .38   |  
|                                                                                                                |  |                            |     |   |                          |   |       |  
|Proforma                                                                                                        |  | $                          | .17 |   |                          | $ | .35   |  
|                                                                                                                |  |                            |     |   |                          |   |       |  
|Diluted earnings per share:                                                                                     |  |                            |     |   |                          |   |       |  
|As reported                                                                                                     |  | $                          | .17 |   |                          | $ | .33   |  
|                                                                                                                |  |                            |     |   |                          |   |       |  
|Proforma                                                                                                        |  | $                          | .15 |   |                          | $ | .31   |  
|                                                                                                                |  |                            |     |   |                          |   |       |  

(continued)



9



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|4. | Stock-Based Compensation, Continued. The Company has three stock option plans for directors and employees of the Company. Under the first two plans, the total
number of options which may be granted to purchase common stock is 492,188 (amended) for employees and 590,625 (amended) for directors. At June 30, 2006, no options remain available for grant under the directors plan and 84,851 options
remain available for grant under the employees plan. The total number of options which may be granted to purchase common stock under the third plan is 225,000 (amended) for either directors or employees. At June 30, 2006, 15,000 options
remain available for grant under the third plan. The directors options vest immediately and have a life of five years. The employees options vest over a range from grant date to eight years and expire six years after vesting is complete,
however no employee option exceeds 10 years.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A summary of the activity in the Companys stock option plan is as follows.
All amounts reflect the three-for-two stock split paid in January 2006 (dollars in thousands, except per share amounts):



|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      
|-------------------------------- |  | ---------------- | - |  | ----------------------------- | ----- | ---------------------------------------- | --------- | ----------------------- | - | -----
|                                 |  | Number ofOptions |   |  | Weighted-AverageExercisePrice |       | Weighted-AverageRemainingContractualTerm |           | AggregateIntrinsicValue
|Outstanding at December 31, 2005 |  | 744,744          |   |  | $                             | 9.87  |                                          |           |                         |   |      
|Granted                          |  | 21,000           |   |  |                               | 20.65 |                                          |           |                         |   |      
|Exercised                        |  | (49,971          | ) |  |                               | 5.26  |                                          |           |                         |   |      
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Outstanding at June 30, 2006     |  | 715,773          |   |  | $                             | 10.51 |                                          | 4.4 years |                         | $ | 7,472
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Exercisable at June 30, 2006     |  | 698,973          |   |  | $                             | 10.27 |                                          | 4.3 years |                         | $ | 7,465
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      

The total intrinsic value of options exercised during the three and six months ended June 30,
2006 was $3,000 and $656,000, respectively and the tax benefit relating to the stock options exercised was $0 and $188,000, respectively. At June 30, 2006, there was approximately $91,000 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 45 months. The total fair value of shares vesting and recognized as compensation expense was
approximately $5,000 for both the three and six months ended June 30, 2006, respectively, and the associated income tax benefit recognized was $0 for both the three and six months ended June 30, 2006.

(continued)



10



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|4. | Stock-Based Compensation, Continued.No options were granted during the three months ended June 30, 2005. The fair value of each option granted for the three and
six months ended June 30, 2006 and 2005 is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions ($ in thousands):
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                  |  |                            |      |   |                          |      |   |      |      |  
|----------------------------------------------------------------- |  | -------------------------- | ---- | - | ------------------------ | ---- | - | ---- | ---- | -
|                                                                  |  | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |     
|                                                                  |  | 2006                       |      |   | 2006                     |      |   | 2005 |     
|Risk-free interest rate                                           |  |                            | 5.00 | % |                          | 4.89 | % |      | 4.05 | %
|Dividend yield                                                    |  |                            |     |   |                          |     |   |      |     |  
|Expected volatility                                               |  |                            | 9    | % |                          | 9    | % |      | 10   | %
|Expected life in years                                            |  |                            | 5    |   |                          | 5    |   |      | 4    |  
|                                                                  |  |                            |     
|Per share grant-date fair value of options issued during the year |  | $                          | 4.69 |   |                          | 4.58 |   |      | 4.03 |  
|                                                                  |  |                            |      |   |                          |      |   |      |      |  



|5. | Regulatory Capital. The Bank is required to maintain certain minimum regulatory capital requirements. At June 30, 2006, the Bank was in compliance with its
regulatory capital requirements.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6. | Reclassifications. Certain reclassification of prior period amounts have been made to conform to the current period presentation.
|-- | ---------------------------------------------------------------------------------------------------------------------------------



|7. | Sale-Leaseback Transaction. The Bank sold its properties in St. Petersburg and Pinellas Park, Florida on May 17, 2006, and simultaneously leased both properties
with favorable long-term leases. An immediate gain of approximately $225,000 was recognized on one of the properties because of the excess gain over the present value of the lease payments. The remaining gain of approximately $2.6 million is being
deferred using the straight-line method over the ten year lease life. The lease expense is being straight-lined over the ten year lease life due to yearly 2% CPI increases.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



11



---

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 June 30, 2006, and for the three- and six- month periods ended June 30, 2006 and 2005 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.



12



---

Report of Independent Registered Public Accounting Firm

First Community Bank Corporation of America

Pinellas Park, Florida:

We have reviewed the accompanying
interim condensed consolidated balance sheet of First Community Bank Corporation of America and Subsidiaries (the Company) as of June 30, 2006, the related interim condensed consolidated statements of earnings for the three- and
six-month periods ended June 30, 2006 and 2005 and the related interim condensed consolidated statements of changes in stockholders equity and cash flows for the six-month periods ended June 30, 2006 and 2005. 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 interim 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, 2005, and the related consolidated
statements of earnings, changes in stockholders equity and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2006, 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, 2005, 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

August 1, 2006



13



---

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
operations of the Bank. The Bank is a federally-chartered stock savings bank that provides a variety of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, one banking
office located in Charlotte County and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the three months ended June 30, 2006 and 2005.

Liquidity and Capital Resources

The Companys primary source of cash during the six months
ended June 30, 2006, was from net deposit inflows of approximately $13.5 million, proceeds from Federal Home Loan Bank advances of $62.5 million, principal repayments and maturities of securities of approximately $3.2 million and cash flows
provided by operations of $2.3 million. Cash was used primarily to originate net loans of approximately $45.5 million to repay Federal Home Loan Bank advance of $47.5 million and purchase securities of approximately $4.2 million.

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.



14



---

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 June 30, 2006, follows (in thousands):



|                             |  |                |       
|---------------------------- |  | -------------- | ------
|                             |  | ContractAmount
|Commitments to extend credit |  | $              | 417   
|                             |  |                |       
|Unused lines of credit       |  | $              | 31,632
|                             |  |                |       
|Standby letters of credit    |  | $              | 3,009 
|                             |  |                |       

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.



15



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Selected Financial Information

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



|                                                                      |  |                             |   |  |                            |   |  |                             |  
|--------------------------------------------------------------------- |  | --------------------------- | - |  | -------------------------- | - |  | --------------------------- | -
|                                                                      |  | Six MonthsEndedJune 30,2006 |   |  | Year EndedDecember 31,2005 |   |  | Six MonthsEndedJune 30,2005 |  
|Average equity as a percentage of average assets                      |  | 9.08                        | % |  | 9.03                       | % |  | 9.29                        | %
|Equity to total assets at end of period                               |  | 8.82                        | % |  | 8.98                       | % |  | 8.93                        | %
|Return on average assets (1)                                          |  | 1.14                        | % |  | 1.02                       | % |  | .96                         | %
|Return on average equity (1)                                          |  | 12.51                       | % |  | 11.34                      | % |  | 10.38                       | %
|Noninterest expenses to average assets (1)                            |  | 2.93                        | % |  | 2.79                       | % |  | 2.78                        | %
|Nonperforming assets as a percentage of total assets at end of period |  | .04                         | % |  |                           | % |  |                            | %

---

|(1) | Annualized for the six months ended June 30.
|--- | --------------------------------------------



16



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



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 June 30, |        
|                                                                                 |  | 2006                        |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance              |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)      |        
|Interest-earning assets:                                                         |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans (1)                                                                        |  | $                           | 305,499 |                      |      | 5,735             |  | 7.51 | %              |  | $                    | 226,235 |                   |   | 3,789 |  | 6.70 | %
|Securities                                                                       |  |                             | 15,704  |                      |      | 148               |  | 3.77 |                |  |                      | 14,776  |                   |   | 98    |  | 2.66 |  
|Other interest-earning assets (2)                                                |  |                             | 9,076   |                      |      | 50                |  | 2.20 |                |  |                      | 10,429  |                   |   | 43    |  | 1.65 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                             | 330,279 |                      |      | 5,933             |  | 7.19 |                |  |                      | 251,440 |                   |   | 3,930 |  | 6.25 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                             | 16,241  |                      |      |                   |  |      |                |  |                      | 15,178  |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                           | 346,520 |                      |      |                   |  |      |                |  | $                    | 266,618 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                             | 93,603  |                      |      | 474               |  | 2.03 |                |  |                      | 84,636  |                   |   | 230   |  | 1.09 |  
|Time deposits                                                                    |  |                             | 138,139 |                      |      | 1,471             |  | 4.26 |                |  |                      | 98,477  |                   |   | 710   |  | 2.88 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                             | 231,742 |                      |      | 1,945             |  | 3.36 |                |  |                      | 183,113 |                   |   | 940   |  | 2.05 |  
|Other interest-bearing liabilities (3)                                           |  |                             | 26,548  |                      |      | 295               |  | 4.43 |                |  |                      | 16,312  |                   |   | 135   |  | 3.31 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                             | 258,290 |                      |      | 2,240             |  | 3.47 |                |  |                      | 199,425 |                   |   | 1,075 |  | 2.16 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                             | 57,063  |                      |      |                   |  |      |                |  |                      | 42,647  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                             | 31,167  |                      |      |                   |  |      |                |  |                      | 24,546  |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                           | 346,520 |                      |      |                   |  |      |                |  | $                    | 266,618 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                             |         |                      | $    | 3,693             |  |      |                |  |                      |         |                   | $ | 2,855 |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (4)                                                         |  |                             |         |                      |      |                   |  | 3.72 | %              |  |                      |         |                   |   |       |  | 4.09 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (5)                                                          |  |                             |         |                      |      |                   |  | 4.47 | %              |  |                      |         |                   |   |       |  | 4.54 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                             | 1.28    |                      |      |                   |  |      |                |  |                      | 1.26    |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  

---

|(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.
|--- | --------------------------------------------------------------------------------------



17



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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.



|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ----- |  | ---- | -
|                                                                                 |  | Six Months Ended June 30, |        
|                                                                                 |  | 2006                      |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance            |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)    |        
|Interest-earning assets:                                                         |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans (1)                                                                        |  | $                         | 295,097 |                      |      | 10,857            |  | 7.36 | %              |  | $                    | 218,793 |                   |   | 7,203 |  | 6.58 | %
|Securities                                                                       |  |                           | 15,612  |                      |      | 280               |  | 3.59 |                |  |                      | 15,096  |                   |   | 194   |  | 2.57 |  
|Other interest-earning assets (2)                                                |  |                           | 10,238  |                      |      | 120               |  | 2.34 |                |  |                      | 11,323  |                   |   | 89    |  | 1.57 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                           | 320,947 |                      |      | 11,257            |  | 7.02 |                |  |                      | 245,212 |                   |   | 7,486 |  | 6.11 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                           | 16,680  |                      |      |                   |  |      |                |  |                      | 15,935  |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                         | 337,627 |                      |      |                   |  |      |                |  | $                    | 261,147 |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                           | 93,810  |                      |      | 914               |  | 1.95 |                |  |                      | 83,756  |                   |   | 408   |  | 0.97 |  
|Time deposits                                                                    |  |                           | 130,336 |                      |      | 2,655             |  | 4.07 |                |  |                      | 98,102  |                   |   | 1,370 |  | 2.79 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                           | 224,146 |                      |      | 3,569             |  | 3.19 |                |  |                      | 181,858 |                   |   | 1,778 |  | 1.96 |  
|Other interest-bearing liabilities (3)                                           |  |                           | 25,132  |                      |      | 530               |  | 4.22 |                |  |                      | 14,689  |                   |   | 239   |  | 3.25 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                           | 249,278 |                      |      | 4,099             |  | 3.29 |                |  |                      | 196,547 |                   |   | 2,017 |  | 2.05 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                           | 57,685  |                      |      |                   |  |      |                |  |                      | 40,334  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                           | 30,664  |                      |      |                   |  |      |                |  |                      | 24,266  |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                         | 337,627 |                      |      |                   |  |      |                |  | $                    | 261,147 |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                           |         |                      | $    | 7,158             |  |      |                |  |                      |         |                   | $ | 5,469 |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (4)                                                         |  |                           |         |                      |      |                   |  | 3.73 | %              |  |                      |         |                   |   |       |  | 4.06 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (5)                                                          |  |                           |         |                      |      |                   |  | 4.46 | %              |  |                      |         |                   |   |       |  | 4.46 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                           | 1.29    |                      |      |                   |  |      |                |  |                      | 1.25    |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  

---

|(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.
|--- | --------------------------------------------------------------------------------------



18



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Three-Month Periods Ended June 30, 2006 and 2005

General. Our net earnings for the three months ended June 30, 2006, increased to $1,071,000 or $.28 per basic share and $.26 per
diluted share compared to $629,000 or $.19 per basic share and $.17 per diluted share for the three months ended June 30, 2005. Net earnings increased due to an increase in net interest income and noninterest income due to the sale of premises
and equipment of $225,000, which was partially offset by an increase in noninterest expenses and the provision for income taxes.

Net
Interest Income. Interest income increased to $5.9 million during the three months ended June 30, 2006, from $3.9 million in 2005. Interest on loans for the three months ended June 30, 2006 increased to $5.7 million from $3.8
million for the three months ended June 30, 2005. The increase in interest on loans was primarily due to an increase in the average balance of loans to $305.5 million, during the three months ended June 30, 2006 compared to $226.2 million,
during the three months ended June 30, 2005. This increase was also due to an increase in the average yield earned to 7.51% for the three months ended June 30, 2006 from 6.70% for the three months ended June 30, 2005. Interest on
securities increased to $148,000 during the three months ended June 30, 2006 from $98,000 for the three months ended June 30, 2005. The increase in interest income on securities was due to an increase in the average balance of securities
from $14.8 million in 2005 to $15.7 million in 2006 and an increase in the average yield earned from 2.66% in 2005 to 3.77% in 2006.

Interest expense on interest bearing deposit accounts increased to $1.9 million during the three months ended June 30, 2006, compared to $940,000 during the three months ended June 30, 2005. The increase was due to an increase in
the rate paid to 3.36% during the three months ended June 30, 2006 from 2.05% during the three months ended June 30, 2005, and an increase in the average balance of interest bearing deposits to $231.7 million in 2006 from $183.1 million in
2005. Interest expense on other borrowings increased to $295,000 during the three months ended June 30, 2006, compared to $135,000 during the three months ended June 30, 2005. The increase was due to an increase in the average balance of
other borrowings to $26.6 million in 2006 from $16.3 million in 2005, and an increase in the average rate paid on other borrowings to 4.43% during the three months ended June 30, 2006 compared to 3.31% during the three months ended
June 30, 2005.



19



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Three-Month Periods Ended June 30, 2006 and 2005

Provision for Loan Losses.Calculating the allowance for loan losses is divided into two primary allocation groups: (1) specific
allocation loans and (2) all other passing grade loans. For specific allocation loans, the Company has determined an allowance amount to set aside which it believes is sufficient to cover any potential collateral shortfall. Problem loans are
identified by the loan officer, loan review, loan committee or by the examiners. Those loans identified as problem loans are assigned a risk grade. Loans graded special mention are multiplied by an inherent loss factor of 3%-5% to determine the
amount to be included in the allowance. Loans graded substandard are generally multiplied by a loss factor of 5%-15%, loans graded doubtful are generally multiplied by a loss factor of 50% and loans graded loss are multiplied by a loss factor of
100%. In addition to the 5%-15% and 50% on substandard and doubtful loans, respectively, the loans are individually reviewed for any additional reserve that may be necessary. All other loans, graded pass are multiplied by an historical experience
factor to determine the appropriate level of the allowance for loan losses. In addition to historical experience factors, the Company also provides for losses due to economic factors, concentration of credit risk and portfolio composition changes.

The provision for loan losses was $0 for the three months ended June 30, 2006 compared to $203,000 for the three months ended
June 30, 2005. While continued economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming assets and charge-offs, management believes that the levels of
nonperforming assets and the charge-off ratio are stable under the current circumstances.

The allowance for loan losses is $3.5 million at
June 30, 2006. While management believes that its allowance for loan losses is adequate as of June 30, 2006, future adjustments to the Companys allowance for loan losses may be necessary if economic conditions differ substantially
from the assumptions used in making the initial determination.

Noninterest Income. Noninterest income increased to $545,000
in 2006 from $276,000 for the three- months ended June 30, 2005. The increase was primarily due to a one time gain of $225,000 on the sale of premises and equipment.

Noninterest Expenses. Total noninterest expenses increased to $2.5 million for the three months ended June 30, 2006 from $1.9 million for the comparable period ended June 30, 2005, primarily
due to an increase in employee compensation and benefits of $531,000 due to the overall growth of the Company and the opening of a new banking office in the fourth quarter of 2006.

Income Taxes. Income taxes for the three months ended June 30, 2006 was $632,000 or 37.1% compared to $377,000 or 37.5% for the period
ended June 30, 2005



20



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Six-Month Periods Ended June 30, 2006 and 2005

General. Our net earnings for the six months ended June 30, 2006, increased to $1,918,000 or $.51 per basic share and $.47 per diluted
share compared to $1,259,000 or $.38 per basic share and $.33 per diluted share for the six months ended June 30, 2005. Net earnings increased due to an increase in net interest income and an increase in noninterest income due to the sale of
premises and equipment, which was partially offset by an increase in noninterest expenses and the provision for income taxes.

Net
Interest Income. Interest income increased to $11.3 million during the six months ended June 30, 2006, from $7.5 million in 2005. Interest on loans for the six months ended June 30, 2006 increased to $10.9 million from $7.2 million
for the six months ended June 30, 2005. The increase in interest on loans was primarily due to an increase in the average balance of loans to $295.1 million during the six months ended June 30, 2006 compared to $218.8 million during the
six months ended June 30, 2005. This increase was also due to an increase in the average yield earned to 7.36% for the six months ended June 30, 2006 from 6.58% for the six months ended June 30, 2005. Interest on securities increased
to $280,000 during the six months ended June 30, 2006, from $194,000 for the six months ended June 30, 2005. The increase in interest income on securities was due to an increase in the average balance of securities from $15.1 million in
2005 to $15.6 million in 2006, and an increase in the average yield earned from 2.57% in 2005 to 3.59% in 2006.

Interest expense on
interest-bearing deposit accounts increased to $3.6 million during the six months ended June 30, 2006, compared to $1.8 million during the six months ended June 30, 2005. The increase was due to an increase in the rate paid to 3.19% during
the six months ended June 30, 2006 from 1.96% during the six months ended June 30, 2005, and an increase in the average balance of interest bearing deposits to $224.1 million in 2006 from $181.9 million in 2005. Interest expense on other
borrowings increased to $530,000 during the six months ended June 30, 2006, compared to $239,000 during the six months ended June 30, 2005. The increase was due to a increase in the average balance of other borrowings to $25.1 million in
2006 from $14.7 million in 2005, and an increase in the average rate paid on other borrowings to 4.22% during the six months ended June 30, 2006 compared to 3.25% during the six months ended June 30, 2005.



21



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Six-Month Periods Ended June 30, 2006 and 2005

Provision for Loan Losses.Calculating the allowance for loan losses is divided into two primary allocation groups: (1) specific
allocation loans and (2) all other passing grade loans. For specific allocation loans, the Company has determined an allowance amount to set aside which it believes is sufficient to cover any potential collateral shortfall. Problem loans are
identified by the loan officer, loan review, loan committee or by the examiners. Those loans identified as problem loans are assigned a risk grade. Loans graded special mention are multiplied by an inherent loss factor of 3%-5% to determine the
amount to be included in the allowance. Loans graded substandard are generally multiplied by a loss factor of 5%-15%, loans graded doubtful are generally multiplied by a loss factor of 50% and loans graded loss are multiplied by a loss factor of
100%. In addition to the 5%-15% and 50% on substandard and doubtful loans, respectively, the loans are individually reviewed for any additional reserve that may be necessary. All other loans, graded pass are multiplied by an historical experience
factor to determine the appropriate level of the allowance for loan losses. In addition to historical experience factors, the Company also provides for losses due to economic factors, concentration of credit risk and portfolio composition changes.

The provision for loan losses was $60,000 for the six months ended June 30, 2006 compared to $361,000 for the six months ended
June 30, 2005. While continued economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming assets and charge-offs, management believes that the levels of
nonperforming assets and the charge-off ratio are stable under the current circumstances.

The allowance for loan losses is $3.5 million at
June 30, 2006. While management believes that its allowance for loan losses is adequate as of June 30, 2006, future adjustments to the Companys allowance for loan losses may be necessary if economic conditions differ substantially
from the assumptions used in making the initial determination.

Noninterest Income. Noninterest income increased to $844,000
in 2006 from $526,000 for the six months ended June 30, 2005. The increase is primarily due to a increase in gains recognized on the sale of loans held for sale and premises and equipment and an increase in service charges on deposit accounts.

Noninterest Expenses. Total noninterest expenses increased to $4.9 million for the six months ended June 30, 2006 from
$3.6 million for the comparable period ended June 30, 2005, primarily due to an increase in employee compensation and benefits of $1.0 million due to the overall growth of the Company and the opening of new banking office in the fourth quarter
of 2006.

Income Taxes. Income taxes for the six months ended June 30, 2006, was $1,122,000 or 36.9% compared to $747,000
or 37.2% for the period ended June 30, 2005.



22



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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. There has been no significant change in the Companys market risk exposure since December 31, 2005.

Item 4. 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 material 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.



23



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART II. OTHER INFORMATION, CONTINUED

Item 4. Submission of Matters to Vote a of Security Holders

The Annual Meeting of Shareholders (the Annual Meeting) of First Community Bank Corporation of America, was held on April 17, 2006, to consider the election of eight directors with terms expiring at
the Annual Meeting in 2007, to fix the number of directors to serve on the board for the ensuing year at eleven, adoption of the 2005 Stock Plan, to approve an amendment to the Articles of Incorporation to increase the number of authorized shares to
20,000,000 and to create a class of preferred stock authorized in the amount of 2,000,000 shares, and the adjournment of the Annual Meeting to solicit additional proxies in the event there were not sufficient votes to approve any of the foregoing
items.

At the Annual Meeting 2,077,525 shares were present in person or by proxy. Listed below are the directors that were elected at the Annual Meeting,
their terms, and a summary of the votes cast for each nominee.



|                   |  |              |  |           |  |         |  |        
|------------------ |  | ------------ |  | --------- |  | ------- |  | -------
|                   |  | TermExpiring |  | For       |  | Against |  | Abstain
|Brad Bishop        |  | 2007         |  | 2,077,425 |  |        |  | 100    
|                   |  |              |  |           |  |         |  |        
|Kenneth P. Cherven |  | 2007         |  | 2,076,375 |  |        |  | 1,150  
|                   |  |              |  |           |  |         |  |        
|Edwin C. Hussemann |  | 2007         |  | 2,077,425 |  |        |  | 100    
|                   |  |              |  |           |  |         |  |        
|Kenneth Delarbre   |  | 2007         |  | 2,077,425 |  |        |  | 100    
|                   |  |              |  |           |  |         |  |        
|James Macaluso     |  | 2007         |  | 2,076,375 |  |        |  | 1,150  
|                   |  |              |  |           |  |         |  |        
|David K. Meehan    |  | 2007         |  | 2,076,375 |  |        |  | 1,150  
|                   |  |              |  |           |  |         |  |        
|Robert G. Menke    |  | 2007         |  | 2,076,375 |  |        |  | 1,150  
|                   |  |              |  |           |  |         |  |        
|Robert M. Menke    |  | 2007         |  | 2,073,565 |  |        |  | 3,960  
|                   |  |              |  |           |  |         |  |        

The shareholders voted on four other matters-



|                                                  |  |           |  |         |  |        
|------------------------------------------------- |  | --------- |  | ------- |  | -------
|                                                  |  | For       |  | Against |  | Abstain
|Fix the number of directors to serve on the board |  | 2,065,421 |  | 10,730  |  | 1,374  
|                                                  |  |           |  |         |  |        
|Adoption of 2005 Stock Plan                       |  | 2,044,253 |  | 23,225  |  | 10,047 
|                                                  |  |           |  |         |  |        
|Amendment to the Articles of Incorporation        |  | 2,046,066 |  | 23,662  |  | 7,797  
|                                                  |  |           |  |         |  |        
|Solicit additional proxies if needed              |  | 2,055,191 |  | 20,960  |  | 1,374  
|                                                  |  |           |  |         |  |        



24



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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.
|---- | -------------------------------------------------------------------------------------------------------------------



25



---

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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: August 14, 2006 |  | By:                                         |  | /s/ Kenneth P. Cherven                                             
|                      |  |                                             |  | Kenneth P. Cherven, President and Chief Executive
Officer          
|                      |  |                                            
|Date: August 14, 2006 |  | By:                                         |  | /s/ Sue A. Gilman                                                  
|                      |  |                                             |  | Sue A. Gilman, Executive Vice President and Chief
Financial Officer



26