##### Table of Contents

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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 September 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 |  | 3,835,187 shares               
|(class)                                |  | Outstanding at October 20, 2006



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

INDEX



|                                                                                                                                 |  |      
|-------------------------------------------------------------------------------------------------------------------------------- |  | -----
|                                                                                                                                 |  | Page 
|PART I.
FINANCIAL INFORMATION                                                                                                    |  |      
|                                                                                                                                 | 
|Item 1.
Financial Statements                                                                                                     |  |      
|                                                                                                                                 | 
|Condensed Consolidated Balance Sheets - At September 30, 2006 (unaudited) and At December 31, 2005                               |  | 2    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Earnings - Three and Nine Months ended September 30, 2006 and 2005 (unaudited)              |  | 3    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Changes in Stockholders Equity - Nine Months Ended September 30, 2006 and 2005 (unaudited) |  | 4    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 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 6.
Exhibits                                                                                                                 |  | 24   
|                                                                                                                                 | 
|SIGNATURES                                                                                                                       |  | 25   



1



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)



|                                                                                                                   |  |                   |         |   |                  |         |  
|------------------------------------------------------------------------------------------------------------------ |  | ----------------- | ------- | - | ---------------- | ------- | -
|                                                                                                                   |  | September 30,2006 |         |   | December 31,2005 |        
|                                                                                                                   |  | (Unaudited)       |         |   |                  |        
|Assets                                                                                                             |  |                   |         |   |                  |         |  
|Cash and due from banks                                                                                            |  | $                 | 2,283   |   |                  | 2,273   |  
|Interest-bearing deposits with banks                                                                               |  |                   | 5,349   |   |                  | 19,425  |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|Cash and cash equivalents                                                                                          |  |                   | 7,632   |   |                  | 21,698  |  
|                                                                                                                   |  |                  
|Other interest-bearing deposits with banks                                                                         |  |                   | 433     |   |                  | 527     |  
|Securities available for sale                                                                                      |  |                   | 5,739   |   |                  | 8,918   |  
|Securities held to maturity                                                                                        |  |                   | 7,113   |   |                  | 5,278   |  
|Loans, net of allowance for loan losses of $3,461 and $3,416                                                       |  |                   | 334,800 |   |                  | 272,534 |  
|Federal Home Loan Bank stock, at cost                                                                              |  |                   | 2,238   |   |                  | 1,109   |  
|Premises and equipment, net                                                                                        |  |                   | 6,266   |   |                  | 8,790   |  
|Accrued interest receivable                                                                                        |  |                   | 1,640   |   |                  | 1,245   |  
|Deferred income taxes                                                                                              |  |                   | 1,471   |   |                  | 1,471   |  
|Bank owned life insurance                                                                                          |  |                   | 2,374   |   |                  | 2,310   |  
|Other assets                                                                                                       |  |                   | 1,889   |   |                  | 874     |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|                                                                                                                   |  | $                 | 371,595 |   |                  | 324,754 |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|Liabilities and Stockholders Equity                                                                               |  |                   |         |   |                  |         |  
|                                                                                                                   |  |                  
|Liabilities:                                                                                                       |  |                   |         |   |                  |         |  
|Noninterest-bearing demand deposits                                                                                |  |                   | 41,184  |   |                  | 37,010  |  
|Savings, NOW and money-market deposits                                                                             |  |                   | 100,646 |   |                  | 115,286 |  
|Time deposits                                                                                                      |  |                   | 147,806 |   |                  | 120,333 |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|Total deposits                                                                                                     |  |                   | 289,636 |   |                  | 272,629 |  
|                                                                                                                   |  |                  
|Federal Home Loan Bank advances                                                                                    |  |                   | 34,500  |   |                  | 12,000  |  
|Other borrowings                                                                                                   |  |                   | 6,299   |   |                  | 3,709   |  
|Accrued expenses and other liabilities                                                                             |  |                   | 8,396   |   |                  | 7,269   |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|Total liabilities                                                                                                  |  |                   | 338,831 |   |                  | 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, 3,835,187 and 3,747,582 shares issued and outstanding |  |                   | 192     |   |                  | 187     |  
|Additional paid-in capital                                                                                         |  |                   | 25,553  |   |                  | 24,826  |  
|Retained earnings                                                                                                  |  |                   | 7,031   |   |                  | 4,200   |  
|Accumulated other comprehensive loss                                                                               |  |                   | (12     | ) |                  | (66     | )
|                                                                                                                   |  |                   |         |   |                  |         |  
|Total stockholders equity                                                                                         |  |                   | 32,764  |   |                  | 29,147  |  
|                                                                                                                   |  |                   |         |   |                  |         |  
|                                                                                                                   |  | $                 | 371,595 |   |                  | 324,754 |  
|                                                                                                                   |  |                   |         |   |                  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings
(Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                                  |       |                                 |       |      |        |      |       
|--------------------------------------------------- |  | -------------------------------- | ----- | ------------------------------- | ----- | ---- | ------ | ---- | ------
|                                                    |  | Three Months Ended September 30, |       | Nine Months Ended September 30,
|                                                    |  | 2006                             |       | 2005                            |       | 2006 |        | 2005
|Interest income:                                    |  |                                  |       |                                 |       |      |        |      |       
|Loans                                               |  | $                                | 6,244 |                                 | 4,198 |      | 17,101 |      | 11,401
|Securities                                          |  |                                  | 145   |                                 | 142   |      | 425    |      | 335   
|Other interest earning assets                       |  |                                  | 48    |                                 | 41    |      | 168    |      | 130   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Total interest income                               |  |                                  | 6,437 |                                 | 4,381 |      | 17,694 |      | 11,866
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Interest expense:                                   |  |                                  |       |                                 |       |      |        |      |       
|Deposits                                            |  |                                  | 2,247 |                                 | 1,125 |      | 5,816  |      | 2,904 
|Other borrowings                                    |  |                                  | 366   |                                 | 148   |      | 896    |      | 386   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Total interest expense                              |  |                                  | 2,613 |                                 | 1,273 |      | 6,712  |      | 3,290 
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Net interest income                                 |  |                                  | 3,824 |                                 | 3,108 |      | 10,982 |      | 8,576 
|                                                    |  |                                  |       |                                
|Provision for loan losses                           |  |                                  |      |                                 | 197   |      | 60     |      | 557   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Net interest income after provision for loan losses |  |                                  | 3,824 |                                 | 2,911 |      | 10,922 |      | 8,019 
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Noninterest income:                                 |  |                                  |       |                                 |       |      |        |      |       
|Service charges on deposit accounts                 |  |                                  | 182   |                                 | 132   |      | 511    |      | 378   
|Other service charges and fees                      |  |                                  | 72    |                                 | 30    |      | 171    |      | 80    
|Income from bank owned life insurance               |  |                                  | 22    |                                 | 23    |      | 64     |      | 65    
|Gain on sale of loans held for sale                 |  |                                  | 42    |                                 | 57    |      | 137    |      | 85    
|Gain on sale of premises and equipment              |  |                                  |      |                                 |      |      | 225    |      |      
|Other                                               |  |                                  | 17    |                                 | 81    |      | 71     |      | 240   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Total noninterest income                            |  |                                  | 335   |                                 | 323   |      | 1,179  |      | 848   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Noninterest expenses:                               |  |                                  |       |                                 |       |      |        |      |       
|Employee compensation and benefits                  |  |                                  | 1,809 |                                 | 1,355 |      | 5,085  |      | 3,613 
|Occupancy and equipment                             |  |                                  | 333   |                                 | 216   |      | 868    |      | 594   
|Data processing                                     |  |                                  | 230   |                                 | 183   |      | 635    |      | 558   
|Professional fees                                   |  |                                  | 34    |                                 | 46    |      | 142    |      | 165   
|Office supplies                                     |  |                                  | 97    |                                 | 50    |      | 194    |      | 137   
|Insurance                                           |  |                                  | 51    |                                 | 45    |      | 138    |      | 124   
|Other                                               |  |                                  | 166   |                                 | 156   |      | 560    |      | 487   
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Total noninterest expenses                          |  |                                  | 2,720 |                                 | 2,051 |      | 7,622  |      | 5,678 
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Earnings before income taxes                        |  |                                  | 1,439 |                                 | 1,183 |      | 4,479  |      | 3,189 
|                                                    |  |                                  |       |                                
|Income taxes                                        |  |                                  | 526   |                                 | 432   |      | 1,648  |      | 1,179 
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Net earnings                                        |  | $                                | 913   |                                 | 751   |      | 2,831  |      | 2,010 
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Earnings per share:                                 |  |                                  |       |                                 |       |      |        |      |       
|Basic earnings per share                            |  | $                                | 0.24  |                                 | 0.23  |      | 0.74   |      | 0.61  
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Diluted earnings per share                          |  | $                                | 0.22  |                                 | 0.20  |      | 0.69   |      | 0.53  
|                                                    |  |                                  |       |                                 |       |      |        |      |       
|Dividends per share                                 |  | $                                |      |                                 |      |      |       |      |      
|                                                    |  |                                  |       |                                 |       |      |        |      |       

See Accompanying Notes to Condensed Consolidated Financial Statements.



3



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in
Stockholders Equity

Nine Months Ended September 30, 2006 and 2005

(Dollars in thousands)



|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|----------------------------------------------------------------------------------------------- |  | ------------ | - |  | ------------------------ | --- | - | ---------------- | ------ | - | ----------------------------------- | ----- | - | ----- | --- | - |  | ------ | -
|                                                                                                |  | Common Stock |   |  | AdditionalPaid-inCapital |     |   | RetainedEarnings |        |   | AccumulatedOtherCompre-hensive 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)                                                                        |  |             |   |  |                          |    |   |                  |       |   |                                     | 2,010 |   |       |    |   |  | 2,010  |  
|Net change in unrealized loss on securities available for sale, net of taxes of $7 (unaudited)  |  |             |   |  |                          |    |   |                  |       |   |                                     |      |   |       | (12 | ) |  | (12    | )
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  | 1,998  |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|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 September 30, 2005 (unaudited)                                                       |  | 2,216,201    |   |  | $                        | 178 |   |                  | 19,177 |   |                                     | 6,142 |   |       | (73 | ) |  | 25,424 |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Balance at December 31, 2005                                                                    |  | 3,747,582    |   |  |                          | 187 |   |                  | 24,826 |   |                                     | 4,200 |   |       | (66 | ) |  | 29,147 |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Comprehensive income:                                                                           |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Net earnings (unaudited)                                                                        |  |             |   |  |                          |    |   |                  |       |   |                                     | 2,831 |   |       |    |   |  | 2,831  |  
|Net change in unrealized loss on securities available for sale, net of taxes of $33 (unaudited) |  |             |   |  |                          |    |   |                  |       |   |                                     |      |   |       | 54  |   |  | 54     |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  | 2,885  |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Exercise of common stock options (87,658 shares) (unaudited)                                    |  | 87,658       |   |  |                          | 5   |   |                  | 528    |   |                                     |      |   |       |    |   |  | 533    |  
|Three-for-two stock split, fractional shares paid-in cash (unaudited)                           |  | (53          | ) |  |                          |    |   |                  |       |   |                                     |      |   |       |    |   |  |       |  
|Tax benefit from common stock options exercised (unaudited)                                     |  |             |   |  |                          |    |   |                  | 188    |   |                                     |      |   |       |    |   |  | 188    |  
|Stock option expense (unaudited)                                                                |  |             |   |  |                          |    |   |                  | 11     |   |                                     |      |   |       |    |   |  | 11     |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  
|Balance at September 30, 2006 (unaudited)                                                       |  | 3,835,187    |   |  | $                        | 192 |   |                  | 25,553 |   |                                     | 7,031 |   |       | (12 | ) |  | 32,764 |  
|                                                                                                |  |              |   |  |                          |     |   |                  |        |   |                                     |       |   |       |     |   |  |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



4



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(Unaudited)

(In thousands)



|                                                                                    |  |                                |         |   |      |         |  
|----------------------------------------------------------------------------------- |  | ------------------------------ | ------- | - | ---- | ------- | -
|                                                                                    |  | Nine Months EndedSeptember 30, |        
|                                                                                    |  | 2006                           |         |   | 2005 |        
|Cash flows from operating activities:                                               |  |                                |         |   |      |         |  
|Net earnings                                                                        |  | $                              | 2,831   |   |      | 2,010   |  
|Adjustments to reconcile net earnings to net cash provided by operating activities: |  |                                |         |   |      |         |  
|Provision for loan losses and costs                                                 |  |                                | 60      |   |      | 557     |  
|Depreciation and amortization                                                       |  |                                | 340     |   |      | 235     |  
|Net amortization of deferred loan fees and costs                                    |  |                                | 64      |   |      | (20     | )
|Deferred income taxes                                                               |  |                                |        |   |      | (168    | )
|Income from bank owned life insurance                                               |  |                                | (64     | ) |      | (65     | )
|Origination of loans held for sale                                                  |  |                                | (10,580 | ) |      | (6,444  | )
|Proceeds from sale of loans held for sale                                           |  |                                | 11,374  |   |      | 5,634   |  
|Gain on sale of loans held for sale                                                 |  |                                | (137    | ) |      | (85     | )
|(Gain) loss on sale of foreclosed real estate                                       |  |                                |        |   |      | (1      | )
|Gain on sale of premises and equipment                                              |  |                                | (225    | ) |      |        |  
|Increase in accrued interest receivable                                             |  |                                | (395    | ) |      | (188    | )
|Increase in other assets                                                            |  |                                | (1,015  | ) |      | (80     | )
|Increase in accrued expenses and other liabilities                                  |  |                                | 1,094   |   |      | 4,027   |  
|Share based compensation                                                            |  |                                | 11      |   |      |        |  
|                                                                                    |  |                                |         |   |      |         |  
|Net cash provided by operating activities                                           |  |                                | 3,358   |   |      | 5,412   |  
|                                                                                    |  |                                |         |   |      |         |  
|Cash flows from investing activities:                                               |  |                                |         |   |      |         |  
|Net change in other interest-bearing deposits with banks                            |  |                                | 94      |   |      | 93      |  
|Purchase of securities available for sale                                           |  |                                | (2,500  | ) |      | (487    | )
|Principal payments on securities available for sale                                 |  |                                | 266     |   |      | 446     |  
|Proceeds from maturities and calls of securities available for sale                 |  |                                | 5,500   |   |      | 2,500   |  
|Purchase of securities held to maturity                                             |  |                                | (2,160  | ) |      | (11,303 | )
|Proceeds from calls of securities held to maturity                                  |  |                                |        |   |      | 500     |  
|Principal payments on securities held to maturity                                   |  |                                | 325     |   |      | 8,310   |  
|Net increase in loans                                                               |  |                                | (63,047 | ) |      | (46,129 | )
|Sale (purchase) of premises and equipment, net                                      |  |                                | 2,409   |   |      | (2,912  | )
|Purchase of Federal Home Loan Bank stock                                            |  |                                | (1,129  | ) |      | (166    | )
|Proceeds from sale of foreclosed real estate                                        |  |                                |        |   |      | 50      |  
|                                                                                    |  |                                |         |   |      |         |  
|Net cash used in investing activities                                               |  |                                | (60,242 | ) |      | (49,098 | )
|                                                                                    |  |                                |         |   |      |         |  
|Cash flows from financing activities:                                               |  |                                |         |   |      |         |  
|Increase in deposits                                                                |  |                                | 17,007  |   |      | 47,629  |  
|Repayment of Federal Home Loan Bank advances                                        |  |                                | (76,500 | ) |      | (25,800 | )
|Proceeds from Federal Home Loan Bank advances                                       |  |                                | 99,000  |   |      | 26,800  |  
|Increase in other borrowings                                                        |  |                                | 2,590   |   |      | 2,560   |  
|Proceeds from exercise of stock options                                             |  |                                | 533     |   |      | 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                                           |  |                                | 42,818  |   |      | 50,948  |  
|                                                                                    |  |                                |         |   |      |         |  
|Net (decrease) increase in cash and cash equivalents                                |  |                                | (14,066 | ) |      | 7,262   |  
|                                                                                    |  |                               
|Cash and cash equivalents at beginning of period                                    |  |                                | 21,698  |   |      | 9,738   |  
|                                                                                    |  |                                |         |   |      |         |  
|Cash and cash equivalents at end of period                                          |  | $                              | 7,632   |   |      | 17,000  |  
|                                                                                    |  |                                |         |   |      |         |  

(continued)



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)



|                                                                                                                                   |  |                                |       |      |       |  
|---------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ----- | ---- | ----- | -
|                                                                                                                                   |  | Nine Months EndedSeptember 30, |      
|                                                                                                                                   |  | 2006                           |       | 2005 |      
|Supplemental disclosure of cash flow information:                                                                                  |  |                                |       |      |       |  
|Cash paid during the period for:                                                                                                   |  |                                |       |      |       |  
|Interest                                                                                                                           |  | $                              | 6,411 |      | 3,304 |  
|                                                                                                                                   |  |                                |       |      |       |  
|Income taxes                                                                                                                       |  | $                              | 1,648 |      | 1,516 |  
|                                                                                                                                   |  |                                |       |      |       |  
|Noncash transactions:                                                                                                              |  |                                |       |      |       |  
|Accumulated other comprehensive income, net change in unrealized gain (loss) on securities available for sale, net of income
taxes |  | $                              | 54    |      | (12   | )
|                                                                                                                                   |  |                                |       |      |       |  
|Tax benefit from common stock options exercised                                                                                    |  | $                              |      |      | 49    |  
|                                                                                                                                   |  |                                |       |      |       |  
|Stock dividend                                                                                                                     |  | $                              |      |      | 9     |  
|                                                                                                                                   |  |                                |       |      |       |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial
Statements (Unaudited)



|1. | General.First Community Bank Corporation of America (the Holding Company) owns all of the outstanding common stock of First Community Bank of America (the
Bank) and First Community Lender Services, Inc. (FCLS) (collectively, the Company). The Holding Companys primary business activity is the 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 nine months ended September 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
September 30, 2006, the results of operations for the three- and nine-month periods ended September 30, 2006 and 2005 and cash flows for the nine-month periods ended September 30, 2006 and 2005. The results of operations and other
data for the three- and nine-month periods ended September 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 nine months ended September 30, 2006 or 2005.
|-- | -----------------------------------------------------------------------------------------------------------------------------------

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



|                               |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|------------------------------ |  | ------------------------------- | ----- | - | ------------------------------ | ----- | - | ---- | ----- | - | ---- | ----- | -
|                               |  | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |      
|                               |  | 2006                            |       |   | 2005                           |       |   | 2006 |       |   | 2005 |      
|Balance at beginning of period |  | $                               | 3,474 |   |                                | 2,985 |   |      | 3,416 |   |      | 2,640 |  
|Provision for loan losses      |  |                                 |      |   |                                | 197   |   |      | 60    |   |      | 557   |  
|Charge-offs                    |  |                                 | (14   | ) |                                | (4    | ) |      | (17   | ) |      | (21   | )
|Recoveries                     |  |                                 | 1     |   |                                | 1     |   |      | 2     |   |      | 3     |  
|                               |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Balance at end of period       |  | $                               | 3,461 |   |                                | 3,179 |   |      | 3,461 |   |      | 3,179 |  
|                               |  |                                 |       |   |                                |       |   |      |       |   |      |       |  

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



|                                             |  |                  |     |      |   
|-------------------------------------------- |  | ---------------- | --- | ---- | --
|                                             |  | At September 30,
|                                             |  | 2006             |     | 2005
|Nonaccrual loans                             |  | $                | 298 |      | 17
|Past due ninety days or more, still accruing |  |                  |    |      |  
|                                             |  |                  |     |      |   
|                                             |  | $                | 298 |      | 17
|                                             |  |                  |     |      |   

At September 30, 2006 and December 31, 2005 loans held for sale approximated $729,000
and $1,386,000, respectively and are included in net loans on the condensed consolidated balance sheets.

(continued)



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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 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. 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 September 30:                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Basic EPS:                                                            |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 913   |                        | 3,818,679 |                | $ | .24      |  | $                      | 751   |                | 3,324,302 |  | $ | .23
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Incremental shares from assumed conversion of options                 |  |          |       |                        | 282,351   |                |   |          |  |                        |      |                | 450,225   |  |   |    
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Diluted EPS:                                                          |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 913   |                        | 4,101,030 |                | $ | .22      |  | $                      | 751   |                | 3,774,527 |  | $ | .20
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Nine Months Ended September 30:                                       |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Basic EPS:                                                            |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 2,831 |                        | 3,804,143 |                | $ | .74      |  | $                      | 2,010 |                | 3,329,229 |  | $ | .61
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Incremental shares from assumed conversion of options and warrants    |  |          |       |                        | 279,679   |                |   |          |  |                        |      |                | 448,440   |  |   |    
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Diluted EPS:                                                          |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 2,831 |                        | 4,083,822 |                | $ | .69      |  | $                      | 2,010 |                | 3,777,669 |  | $ | .53
|                                                                      |  |          |       |                        |           |                |   |          |  |                        |       |                |           |  |   |    

The following options were excluded from the calculation of EPS for the three and nine months
ended September 30, 2006 due to the exercise price being above the average market price:



|                   |  |                |       |             |      |        |     
|------------------ |  | -------------- | ----- | ----------- | ---- | ------ | ----
|Number Outstanding |  | Exercise Price |       | Year Issued |      | Expire
|6,000              |  | $              | 20.19 |             | 2006 |        | 2016
|5,000              |  |                | 20.50 |             | 2006 |        | 2016
|10,000             |  |                | 21.00 |             | 2006 |        | 2016
|10,000             |  |                | 20.15 |             | 2006 |        | 2016

(continued)



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##### Table of Contents

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 nine months ended September 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 EndedSeptember 30, 2005 |     |   | Nine Months EndedSeptember 30,
2005 |      
|Net earnings, as reported                                                                                       |  | $                                    | 751 |   |                                     | 2,010 |  
|Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards |  |                                      | (16 | ) |                                     | (108  | )
|                                                                                                                |  |                                      |     |   |                                     |       |  
|Proforma net earnings                                                                                           |  | $                                    | 735 |   |                                     | 1,902 |  
|                                                                                                                |  |                                      |     |   |                                     |       |  
|Basic earnings per share:                                                                                       |  |                                      |     |   |                                     |       |  
|As reported                                                                                                     |  | $                                    | .23 |   |                                     | .61   |  
|                                                                                                                |  |                                      |     |   |                                     |       |  
|Proforma                                                                                                        |  | $                                    | .22 |   |                                     | .57   |  
|                                                                                                                |  |                                      |     |   |                                     |       |  
|Diluted earnings per share:                                                                                     |  |                                      |     |   |                                     |       |  
|As reported                                                                                                     |  | $                                    | .20 |   |                                     | .53   |  
|                                                                                                                |  |                                      |     |   |                                     |       |  
|Proforma                                                                                                        |  | $                                    | .19 |   |                                     | .50   |  
|                                                                                                                |  |                                      |     |   |                                     |       |  

(continued)



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##### Table of Contents

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 September 30, 2006, no options remain available for grant under the directors plan and 55,671
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 September 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 periods up to four years and have terms up to 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                           |  | 31,000           |   |  |                               | 20.49 |                                          |           |                         |   |      
|Exercised                         |  | (87,658          | ) |  |                               | 6.07  |                                          |           |                         |   |      
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Outstanding at September 30, 2006 |  | 688,086          |   |  | $                             | 10.83 |                                          | 4.6 years |                         | $ | 6,305
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Exercisable at September 30, 2006 |  | 663,286          |   |  | $                             | 10.47 |                                          | 4.2 years |                         | $ | 6,304
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |      

The total intrinsic value of options exercised during the three and nine months ended
September 30, 2006 was $505,000 and $1,035,000, respectively and the tax benefit relating to the stock options exercised was $0 and $188,000, respectively. At September 30, 2006, there was approximately $85,000 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 42 months. The total fair value of shares vesting and recognized as
compensation expense was approximately $6,000 for the three months ended and $11,000 for the nine months ended September 30, 2006, respectively, and the associated income tax benefit recognized was $0 for both the three and nine months ended
September 30, 2006.

(continued)



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##### Table of Contents

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 September 30, 2005. The fair value of each option granted for the three
and nine months ended September 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 EndedSeptember 30, 2006 |      |   | Nine Months EndedSeptember 30, |     
|                                                                    |  |                                      | 2006 |   |                                | 2005 |  
|Risk-free interest rate                                             |  |                                      | 5.04 | % |                                | 4.94 | % |  | 4.05 | %
|Dividend yield                                                      |  |                                      |     |   |                                |     |   |  |     |  
|Expected volatility                                                 |  |                                      | 8    | % |                                | 8    | % |  | 10   | %
|Expected life in years                                              |  |                                      | 6    |   |                                | 5    |   |  | 4    |  
|                                                                    |  |                                      |     
|Per share grant-date fair value of options issued during the period |  | $                                    | 5.25 |   |                                | 4.79 |   |  | 4.03 |  
|                                                                    |  |                                      |      |   |                                |      |   |  |      |  

As part of its adoption of SFAS 123R, the Company examined its historical pattern of option
exercises in an effort to determine if there were any pattern based on certain employee populations. From this analysis, the Company could not identify any patterns in the exercise of options. As such, the Company used the guidance in Staff
Accounting Bulletin No. 107 to determine the estimated life of options issued subsequent to the adoption of SFAS 123R. The expected volatility is based on historical volatility of the similar peer-group banks common stock prices.



|5. | Regulatory Capital. The Bank is required to maintain certain minimum regulatory capital requirements. At September 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 office 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
was deferred and is being amortized using the straight-line method over the ten year lease term. The lease expense is being straight-lined over the ten year lease life due to yearly 2% CPI increases.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

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, has made a limited review of
the financial data as of September 30, 2006, and for the three- and nine- month periods ended September 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.



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##### Table of Contents

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 September 30, 2006, the related
interim condensed consolidated statements of earnings for the three- and nine-month periods ended September 30, 2006 and 2005 and the related interim condensed consolidated statements of changes in stockholders equity and cash flows for
the nine-month periods ended September 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                
|October 25, 2006              



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##### Table of Contents

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 nine months ended September 30, 2006 and 2005.

Liquidity and Capital Resources

The Companys primary source of cash during the nine months
ended September 30, 2006, was from net deposit inflows of approximately $17 million, proceeds from Federal Home Loan Bank advances of $99 million and principal repayments and maturities of securities of approximately $6.1 million. Cash was used
primarily to originate net loans of approximately $63 million to repay Federal Home Loan Bank advance of $76.5 million and purchase securities of approximately $4.7 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.



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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

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

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

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

A summary of the amounts of the Companys financial instruments, with off-balance sheet risk at September 30, 2006, follows (in thousands):



|                             |  |                |       
|---------------------------- |  | -------------- | ------
|                             |  | ContractAmount
|Commitments to extend credit |  | $              | 7,025 
|                             |  |                |       
|Unused lines of credit       |  | $              | 31,622
|                             |  |                |       
|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.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Selected Financial Information

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



|                                                                      |  |                                   |   |  |                            |   |  |                                   |  
|--------------------------------------------------------------------- |  | --------------------------------- | - |  | -------------------------- | - |  | --------------------------------- | -
|                                                                      |  | Nine MonthsEndedSeptember 30,2006 |   |  | Year EndedDecember 31,2005 |   |  | Nine MonthsEndedSeptember 30,2005 |  
|Average equity as a percentage of average assets                      |  | 9.03                              | % |  | 9.03                       | % |  | 9.11                              | %
|Equity to total assets at end of period                               |  | 8.82                              | % |  | 8.98                       | % |  | 8.51                              | %
|Return on average assets (1)                                          |  | 1.09                              | % |  | 1.02                       | % |  | .99                               | %
|Return on average equity (1)                                          |  | 12.10                             | % |  | 11.34                      | % |  | 10.91                             | %
|Noninterest expenses to average assets (1)                            |  | 2.94                              | % |  | 2.79                       | % |  | 2.81                              | %
|Nonperforming assets as a percentage of total assets at end of period |  | .08                               | % |  |                           | % |  | .01                               | %

---

|(1) | Annualized for the nine months ended September 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 September 30, |        
|                                                                                 |  | 2006                             |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance                   |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)           |        
|Interest-earning assets:                                                         |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans (1)                                                                        |  | $                                | 324,213 |                      |      | 6,244             |  | 7.70 | %              |  | $                    | 239,165 |                   |   | 4,198 |  | 7.02 | %
|Securities                                                                       |  |                                  | 13,857  |                      |      | 145               |  | 4.19 |                |  |                      | 19,412  |                   |   | 142   |  | 2.93 |  
|Other interest-earning assets (2)                                                |  |                                  | 7,404   |                      |      | 48                |  | 2.59 |                |  |                      | 10,132  |                   |   | 41    |  | 1.62 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                                  | 345,474 |                      |      | 6,437             |  | 7.45 |                |  |                      | 268,709 |                   |   | 4,381 |  | 6.52 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                                  | 14,914  |                      |      |                   |  |      |                |  |                      | 17,775  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                                | 360,388 |                      |      |                   |  |      |                |  | $                    | 286,484 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                  | 91,269  |                      |      | 662               |  | 2.90 |                |  |                      | 92,655  |                   |   | 337   |  | 1.46 |  
|Time deposits                                                                    |  |                                  | 144,903 |                      |      | 1,585             |  | 4.38 |                |  |                      | 101,603 |                   |   | 788   |  | 3.10 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                                  | 236,172 |                      |      | 2,247             |  | 3.81 |                |  |                      | 194,258 |                   |   | 1,125 |  | 2.32 |  
|Other interest-bearing liabilities (3)                                           |  |                                  | 30,868  |                      |      | 366               |  | 4.74 |                |  |                      | 17,367  |                   |   | 148   |  | 3.41 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                                  | 267,040 |                      |      | 2,613             |  | 3.91 |                |  |                      | 211,625 |                   |   | 1,273 |  | 2.41 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                                  | 61,093  |                      |      |                   |  |      |                |  |                      | 49,707  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                                  | 32,255  |                      |      |                   |  |      |                |  |                      | 25,152  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                                | 360,388 |                      |      |                   |  |      |                |  | $                    | 286,484 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                                  |         |                      | $    | 3,824             |  |      |                |  |                      |         |                   | $ | 3,108 |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (4)                                                         |  |                                  |         |                      |      |                   |  | 3.54 | %              |  |                      |         |                   |   |       |  | 4.11 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (5)                                                          |  |                                  |         |                      |      |                   |  | 4.43 | %              |  |                      |         |                   |   |       |  | 4.63 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                  | 1.29    |                      |      |                   |  |      |                |  |                      | 1.27    |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  

---

|(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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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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



|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ------ |  | ---- | -
|                                                                                 |  | Nine Months Ended September 30, |        
|                                                                                 |  | 2006                            |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance                  |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)          |        
|Interest-earning assets:                                                         |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Loans (1)                                                                        |  | $                               | 304,909 |                      |      | 17,101            |  | 7.48 | %              |  | $                    | 225,659 |                   |   | 11,401 |  | 6.74 | %
|Securities                                                                       |  |                                 | 15,021  |                      |      | 425               |  | 3.77 |                |  |                      | 16,551  |                   |   | 335    |  | 2.70 |  
|Other interest-earning assets (2)                                                |  |                                 | 9,284   |                      |      | 168               |  | 2.41 |                |  |                      | 10,922  |                   |   | 130    |  | 1.59 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-earning assets                                                    |  |                                 | 329,214 |                      |      | 17,694            |  | 7.17 |                |  |                      | 253,132 |                   |   | 11,866 |  | 6.25 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Noninterest-earning assets                                                       |  |                                 | 16,083  |                      |      |                   |  |      |                |  |                      | 16,532  |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total assets                                                                     |  | $                               | 345,297 |                      |      |                   |  |      |                |  | $                    | 269,664 |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Interest-bearing liabilities:                                                    |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                 | 92,951  |                      |      | 1,576             |  | 2.26 |                |  |                      | 86,754  |                   |   | 745    |  | 1.15 |  
|Time deposits                                                                    |  |                                 | 135,245 |                      |      | 4,240             |  | 4.18 |                |  |                      | 99,282  |                   |   | 2,159  |  | 2.90 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing deposits                                                  |  |                                 | 228,196 |                      |      | 5,816             |  | 3.40 |                |  |                      | 186,036 |                   |   | 2,904  |  | 2.08 |  
|Other interest-bearing liabilities (3)                                           |  |                                 | 27,064  |                      |      | 896               |  | 4.41 |                |  |                      | 15,591  |                   |   | 386    |  | 3.30 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing liabilities                                               |  |                                 | 255,260 |                      |      | 6,712             |  | 3.51 |                |  |                      | 201,627 |                   |   | 3,290  |  | 2.18 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Noninterest-bearing liabilities                                                  |  |                                 | 58,843  |                      |      |                   |  |      |                |  |                      | 43,464  |                   |   |        |  |      |  
|Stockholders equity                                                             |  |                                 | 31,194  |                      |      |                   |  |      |                |  |                      | 24,573  |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total liabilities and stockholders equity                                       |  | $                               | 345,297 |                      |      |                   |  |      |                |  | $                    | 269,664 |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest income                                                              |  |                                 |         |                      | $    | 10,982            |  |      |                |  |                      |         |                   | $ | 8,576  |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Interest-rate spread (4)                                                         |  |                                 |         |                      |      |                   |  | 3.66 | %              |  |                      |         |                   |   |        |  | 4.07 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest margin (5)                                                          |  |                                 |         |                      |      |                   |  | 4.45 | %              |  |                      |         |                   |   |        |  | 4.52 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                 | 1.29    |                      |      |                   |  |      |                |  |                      | 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.
|--- | --------------------------------------------------------------------------------------



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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

General. Our net earnings for the three months ended September 30, 2006, increased to $913,000 or $.24 earnings per basic share and $.22 earnings per diluted share compared to $751,000 or $0.23
earnings per basic share and $.20 earnings per diluted share for the three months ended September 30, 2005. Net earnings increased due to an increase in net interest income and a reduction in the provision for loan losses, which were both
partially offset by a increase in noninterest expenses and income taxes.

Net Interest Income. Interest income increased to $6.4 million
during the three months ended September 30, 2006, from $4.4 million in 2005. Interest on loans for the three months ended September 30, 2006 increased to $6.2 million from $4.2 million for the three months ended September 30, 2005.
The increase in interest on loans was primarily due to an increase in the average balance of loans to $324 million, during the three months ended September 30, 2006 compared to $239 million, during the three months ended September 30,
2005. This increase was also due to an increase in the average yield earned to 7.70% for the three months ended September 30, 2006 from 7.02% for the three months ended September 30, 2005. Interest on securities increased to $145,000
during the three months ended September 30, 2006 from $142,000 for the three months ended September 30, 2005. The increase in interest income on securities was due to an increase in the yield earned from 2.93% in 2005 to 4.19% in 2006,
partially offset by a decrease in the average balance of securities from $19.4 million in 2005 to $13.9 million in 2006.

Interest expense
on interest bearing deposit accounts increased to $2.2 million during the three months ended September 30, 2006, compared to $1.1 million during the three months ended September 30, 2005. The increase was due to an increase in the average
balance of interest bearing deposits to $236 million in 2006 from $194 million in 2005 and an increase in the average rate paid from 2.32% in 2005 to 3.81% in 2006. Interest expense on other borrowings increased to $366,000 during the three months
ended September 30, 2006, compared to $148,000 during the three months ended September 30, 2006. The increase was due to an increase in the average balance of other borrowings to $30.9 million in 2006 from $17.4 million in 2005, and an
increase in the average rate paid on other borrowings to 4.74% during the three months ended September 30, 2006 compared to 3.41% during the three months ended September 30, 2005.



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Three-Month Periods Ended September 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 September 30, 2006 compared to $197,000 for the three months ended September 30,
2005. Management believes the lack of provision is warranted because classified assets decreased during the three months ended September 30, 2006 by $1.5 million, and charge-offs remain low. 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 September 30, 2006. While management believes that its
allowance for loan losses is adequate as of September 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 $335,000 in 2006 from $323,000 for the three- months ended
September 30, 2005 primarily due to an increase in service charges on deposit accounts and other service charges and fees.

Noninterest
Expense. Total noninterest expense increased to $2.7 million for the three months ended September 30, 2006 from $2.1 million for the comparable period ended September 30, 2005, primarily due to an increase in employee compensation
and benefits of $1.8 million due to the overall growth of the Company and the opening of a new banking office in the fourth quarter of 2005 and the opening of a new banking office in the third quarter of 2006.

Income Taxes. Income taxes for the three months ended September 30, 2006, were $526,000 or 36.6% compared to $432,000 or 36.5% for the period ended
September 30, 2005.



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Nine-Month Periods Ended September 30, 2006 and 2005

General. Our net earnings for the nine months ended September 30, 2006, increased to $2.8 million or $.74 earnings per basic share and $.69 earnings per diluted share compared to $2.0 million or
$.61 earnings per basic share and $.53 earnings per diluted share for the nine months ended September 30, 2005. Net earnings increased due to an increase in net interest income and a reduction in the provision for loan losses, which were both
partially offset by an increase in noninterest expenses and income taxes.

Net Interest Income. Interest income increased to $17.7 million
during the nine months ended September 30, 2006, from $11.9 million in 2005. Interest on loans for the nine months ended September 30, 2006 increased to $17.1 million from $11.4 million for the nine months ended September 30, 2005.
The increase in interest on loans was primarily due to an increase in the average balance of loans to $305 million, during the nine months ended September 30, 2006 compared to $226 million, during the nine months ended September 30, 2005.
This increase was also due to an increase in the average yield earned to 7.48% for the nine months ended September 30, 2006 from 6.74% for the nine months ended September 30, 2005. Interest on securities increased to $425,000 during the
nine months ended September 30, 2006 from $335,000 for the nine months ended September 30, 2005. The increase in interest income on securities was due to an increase in the average yield earned from 2.70% in 2005 to 3.77% in 2006,
partially offset by a decrease in the average balance of securities from $16.5 million in 2005 to $15.0 million in 2006.

Interest expense
on interest-bearing deposit accounts increased to $5.8 million during the nine months ended September 30, 2006, compared to $2.9 million during the nine months ended September 30, 2005. The increase was due to an increase in the rate paid
to 3.4% during the nine months ended September 30, 2006 from 2.08% during the nine months ended September 30, 2005, and an increase in the average balance of interest bearing deposits to $228 million in 2006 from $186 million in 2005.
Interest expense on other borrowings increased to $896,000 during the nine months ended September 30, 2006, compared to $386,000 during the nine months ended September 30, 2005. The increase was due to an increase in the average rate paid
on other borrowings to 4.41% during the nine months ended September 30, 2006 compared to 3.30% during the nine months ended September 30, 2005, and an increase in the average balance of other borrowings to $27.1 million in 2006 from $15.6
million in 2005.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Nine-Month Periods Ended September 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 nine months ended September 30, 2006 compared to $557,000 for the nine months ended
September 30, 2005. Management believes the decreased provision is warranted because classified assets decreased during the nine months ended September 30, 2006 by $600,000, and charge-offs remain low. 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 September 30, 2006. While management believes that
its allowance for loan losses is adequate as of September 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 $1.2 million in 2006 from $848,000 for the nine months ended
September 30, 2005. The increase is primarily due to an increase in service charges on deposit accounts and gain recognized on the sale of premises and equipment.

Noninterest Expense. Total noninterest expense increased to $7.6 million for the nine months ended September 30, 2006 from $5.7 million for the comparable period ended September 30, 2005,
primarily due to an increase in employee compensation and benefits of $5.1 million due to the overall growth of the Company and the opening of a new banking office in the fourth quarter of 2005 and the opening of a new banking office in the third
quarter of 2006.

Income Taxes. Income taxes for the nine months ended September 30, 2006, were $1.6 million or 36.8% compared to $1.2
million or 37.0% for the period ended September 30, 2005.



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##### Table of Contents

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.



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##### Table of Contents

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



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##### Table of Contents

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: November 8, 2006 |  | By:                                         |  | /s/ Kenneth P. Cherven                     
|                       |  |                                             |  | Kenneth P. Cherven, President and          
|                       |  |                                             |  | Chief Executive Officer                    
|                       |  |                                            
|Date: November 8, 2006 |  | By:                                         |  | /s/ Sue A. Gilman                          
|                       |  |                                             |  | Sue A. Gilman, Executive Vice President and
|                       |  |                                             |  | Chief Financial Officer                    



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