##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q





(Mark One)

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

For the quarterly period ended September 30, 2008



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

For the transition period from  to

Commission file number 000-50357





FIRST COMMUNITY BANK CORPORATION OF AMERICA

(Exact name of registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Florida                                                        |  | 65-0623023                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

9001 Belcher Road

Pinellas Park, Florida 33782

(Address of principal executive offices) (Zip
Codes)

(727) 520-0987

(Registrants telephone number, including area code)



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





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

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



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

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 |  | 4,111,121 shares               
|(class)                                |  | Outstanding at November 3, 2008









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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, 2008 (unaudited) and At December 31,
2007                                |  | 2    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Earnings -Three and Nine Months Ended September 
30, 2008 and 2007 (unaudited)              |  | 3    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Changes in Stockholders Equity -Nine Months Ended September 
30, 2008 and 2007 (unaudited) |  | 4    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Cash Flows -Nine Months Ended September 30, 2008 and 2007 (unaudited)                       |  | 5-6  
|                                                                                                                                 | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                                 |  | 7-13 
|                                                                                                                                 | 
|Review by Independent Registered Public Accounting Firm                                                                          |  | 14   
|                                                                                                                                 | 
|Report of Independent Registered Public Accounting Firm                                                                          |  | 15   
|                                                                                                                                 | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations                                    |  | 16-24
|                                                                                                                                 | 
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                               |  | 25   
|                                                                                                                                 | 
|Item 4T. Controls and Procedures                                                                                                 |  | 25   
|                                                                                                                                 | 
|PART II. OTHER INFORMATION                                                                                                       |  |      
|                                                                                                                                 | 
|Item 1. Legal Proceedings                                                                                                        |  | 25   
|                                                                                                                                 | 
|Item 1A. Risk Factors                                                                                                            |  | 25   
|                                                                                                                                 | 
|Item 6. Exhibits                                                                                                                 |  | 26   
|                                                                                                                                 | 
|SIGNATURES                                                                                                                       |  | 27   



1



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##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)



|                                                                                                                                    |  |                   |         |                  |        
|----------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- | ---------------- | -------
|                                                                                                                                    |  | September 30,2008 |         | December 31,2007
|                                                                                                                                    |  | (Unaudited)       |         |                 
|Assets                                                                                                                              |  |                   |         |                  |        
|Cash and due from banks                                                                                                             |  | $                 | 6,981   |                  | 8,412  
|Interest-bearing deposits with banks                                                                                                |  |                   | 266     |                  | 688    
|Federal funds sold                                                                                                                  |  |                   | 11,104  |                  |       
|                                                                                                                                    |  |                   |         |                  |        
|Cash and cash equivalents                                                                                                           |  |                   | 18,351  |                  | 9,100  
|                                                                                                                                    |  |                  
|Other interest-bearing deposits with banks                                                                                          |  |                   | 300     |                  | 498    
|Securities available for sale                                                                                                       |  |                   | 26,180  |                  | 6,847  
|Securities held to maturity (market value of $8,230 and $10,178)                                                                    |  |                   | 8,327   |                  | 10,330 
|Loans, net of allowance for loan losses of $3,926 in 2008 and $4,479 in 2007                                                        |  |                   | 393,176 |                  | 382,551
|Federal Home Loan Bank stock, at cost                                                                                               |  |                   | 2,676   |                  | 2,504  
|Premises and equipment, net                                                                                                         |  |                   | 12,426  |                  | 11,486 
|Foreclosed real estate                                                                                                              |  |                   | 1,430   |                  | 538    
|Accrued interest receivable                                                                                                         |  |                   | 1,658   |                  | 1,855  
|Deferred income taxes                                                                                                               |  |                   | 1,982   |                  | 2,294  
|Bank owned life insurance                                                                                                           |  |                   | 7,691   |                  | 7,597  
|Other assets                                                                                                                        |  |                   | 1,988   |                  | 881    
|                                                                                                                                    |  |                   |         |                  |        
|                                                                                                                                    |  | $                 | 476,185 |                  | 436,481
|                                                                                                                                    |  |                   |         |                  |        
|                                                                                                                                    |  |                  
|Liabilities and Stockholders Equity                                                                                                |  |                   |         |                  |        
|                                                                                                                                    |  |                  
|Liabilities:                                                                                                                        |  |                   |         |                  |        
|Noninterest-bearing demand deposits                                                                                                 |  |                   | 32,077  |                  | 31,454 
|Savings, NOW and money-market deposits                                                                                              |  |                   | 132,486 |                  | 115,938
|Time deposits                                                                                                                       |  |                   | 213,643 |                  | 187,228
|                                                                                                                                    |  |                   |         |                  |        
|Total deposits                                                                                                                      |  |                   | 378,206 |                  | 334,620
|                                                                                                                                    |  |                  
|Federal Home Loan Bank advances                                                                                                     |  |                   | 42,000  |                  | 40,000 
|Federal funds purchased                                                                                                             |  |                   |        |                  | 8,900  
|Other borrowings                                                                                                                    |  |                   | 10,765  |                  | 9,613  
|Accrued expenses and other liabilities                                                                                              |  |                   | 7,269   |                  | 6,380  
|                                                                                                                                    |  |                   |         |                  |        
|Total liabilities                                                                                                                   |  |                   | 438,240 |                  | 399,513
|                                                                                                                                    |  |                   |         |                  |        
|                                                                                                                                    |  |                  
|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, 4,111,121 and 4,082,002 shares issued and outstanding in 2008 and
2007 |  |                   | 205     |                  | 204    
|Additional paid-in capital                                                                                                          |  |                   | 30,354  |                  | 30,216 
|Retained earnings                                                                                                                   |  |                   | 7,359   |                  | 6,478  
|Accumulated other comprehensive income                                                                                              |  |                   | 27      |                  | 70     
|                                                                                                                                    |  |                   |         |                  |        
|Total stockholders' equity                                                                                                          |  |                   | 37,945  |                  | 36,968 
|                                                                                                                                    |  |                   |         |                  |        
|                                                                                                                                    |  | $                 | 476,185 |                  | 436,481
|                                                                                                                                    |  |                   |         |                  |        

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|--------------------------------------------------- |  | ------------------------------- | ----- | ------------------------------ | ---- | ----- | ---- | ------ | ---- | ------
|                                                    |  | Three Months EndedSeptember 30, |       | Nine Months EndedSeptember 30,
|                                                    |  | 2008                            |       |                                | 2007 |       | 2008 |        | 2007
|Interest income:                                    |  |                                 |       |                                |      |       |      |        |      |       
|Loans                                               |  | $                               | 6,192 |                                |      | 7,040 |      | 19,207 |      | 20,452
|Securities                                          |  |                                 | 407   |                                |      | 227   |      | 998    |      | 593   
|Other interest earning assets                       |  |                                 | 86    |                                |      | 70    |      | 321    |      | 477   
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Total interest income                               |  |                                 | 6,685 |                                |      | 7,337 |      | 20,526 |      | 21,522
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Interest expense:                                   |  |                                 |       |                                |      |       |      |        |      |       
|Deposits                                            |  |                                 | 2,680 |                                |      | 3,243 |      | 8,166  |      | 9,267 
|Other borrowings                                    |  |                                 | 443   |                                |      | 343   |      | 1,423  |      | 981   
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Total interest expense                              |  |                                 | 3,123 |                                |      | 3,586 |      | 9,589  |      | 10,248
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Net interest income                                 |  |                                 | 3,562 |                                |      | 3,751 |      | 10,937 |      | 11,274
|                                                    |  |                                 |       |                               
|Provision for loan losses                           |  |                                 | 1,246 |                                |      | 176   |      | 2,139  |      | 489   
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Net interest income after provision for loan losses |  |                                 | 2,316 |                                |      | 3,575 |      | 8,798  |      | 10,785
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Noninterest income:                                 |  |                                 |       |                                |      |       |      |        |      |       
|Service charges on deposit accounts                 |  |                                 | 181   |                                |      | 220   |      | 591    |      | 614   
|Other service charges and fees                      |  |                                 | 51    |                                |      | 75    |      | 180    |      | 186   
|Income from bank owned life insurance               |  |                                 | 383   |                                |      | 77    |      | 542    |      | 120   
|Gain on sale of loans held for sale                 |  |                                 | 1     |                                |      | 26    |      | 64     |      | 130   
|Other                                               |  |                                 | 88    |                                |      | 48    |      | 169    |      | 145   
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Total noninterest income                            |  |                                 | 704   |                                |      | 446   |      | 1,546  |      | 1,195 
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Noninterest expenses:                               |  |                                 |       |                                |      |       |      |        |      |       
|Employee compensation and benefits                  |  |                                 | 1,705 |                                |      | 1,760 |      | 5,455  |      | 5,355 
|Occupancy and equipment                             |  |                                 | 417   |                                |      | 379   |      | 1,234  |      | 1,110 
|Data processing                                     |  |                                 | 305   |                                |      | 238   |      | 870    |      | 703   
|Professional fees                                   |  |                                 | 84    |                                |      | 82    |      | 280    |      | 222   
|Office supplies                                     |  |                                 | 52    |                                |      | 40    |      | 164    |      | 145   
|Insurance                                           |  |                                 | 124   |                                |      | 51    |      | 440    |      | 145   
|Other                                               |  |                                 | 308   |                                |      | 208   |      | 887    |      | 661   
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Total noninterest expenses                          |  |                                 | 2,995 |                                |      | 2,758 |      | 9,330  |      | 8,341 
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Earnings before income taxes (benefit)              |  |                                 | 25    |                                |      | 1,263 |      | 1,014  |      | 3,639 
|                                                    |  |                                 |       |                               
|Income taxes (benefit)                              |  |                                 | (149  | )                              |      | 429   |      | 133    |      | 1,295 
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Net earnings                                        |  | $                               | 174   |                                |      | 834   |      | 881    |      | 2,344 
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Earnings per share:                                 |  |                                 |       |                                |      |       |      |        |      |       
|Basic earnings per share                            |  | $                               | 0.04  |                                |      | 0.20  |      | 0.21   |      | 0.58  
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Diluted earnings per share                          |  | $                               | 0.04  |                                |      | 0.19  |      | 0.21   |      | 0.54  
|                                                    |  |                                 |       |                                |      |       |      |        |      |       
|Dividends per share                                 |  | $                               |      |                                |      |      |      |       |      |      
|                                                    |  |                                 |       |                                |      |       |      |        |      |       

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity

Nine Months Ended September 30, 2008 and 2007

(In thousands, except
share amounts)



|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|----------------------------------------------------------------------------------------------- |  | ------------ | - | ------------------------ | ------ | --- | ---------------- | ------ | - | ------------------------------------------ | ------ | - | ----- | --- | - |  | ------ | -
|                                                                                                |  | Common
Stock |   | AdditionalPaid-inCapital |        |     | RetainedEarnings |        |   | AccumulatedOtherComprehensiveIncome (Loss) |        |   | Total |    
|                                                                                                |  | Shares       |   |                          | Amount |     |                  |        |  
|Balance at December 31, 2006                                                                    |  | 3,840,687    |   |                          | $      | 192 |                  | 25,642 |   |                                            | 7,852  |   |       | (4  | ) |  | 33,682 |  
|                                                                                                |  |              |   |                          |        |    
|Comprehensive income:                                                                           |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Net earnings (unaudited)                                                                        |  |             |   |                          |        |    |                  |       |   |                                            | 2,344  |   |       |    |   |  | 2,344  |  
|                                                                                                |  |              |   |                          |        |    
|Net change in unrealized loss on securities available for sale, net of taxes of $18 (unaudited) |  |             |   |                          |        |    |                  |       |   |                                            |       |   |       | 35  |   |  | 35     |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  | 2,379  |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Exercise of stock options before 5% stock dividend (unaudited)                                  |  | 22,811       |   |                          |        | 1   |                  | 146    |   |                                            |       |   |       |    |   |  | 147    |  
|                                                                                                |  |              |   |                          |        |    
|5% stock dividend, net of fractional shares paid-in cash (unaudited)                            |  | 193,047      |   |                          |        | 10  |                  | 4,227  |   |                                            | (4,237 | ) |       |    |   |  |       |  
|                                                                                                |  |              |   |                          |        |    
|Fractional shares paid-in cash (unaudited)                                                      |  |             |   |                          |        |    |                  |       |   |                                            | (2     | ) |       |    |   |  | (2     | )
|                                                                                                |  |              |   |                          |        |    
|Exercise of stock options after 5% stock dividend (unaudited)                                   |  | 25,457       |   |                          |        | 1   |                  | 144    |   |                                            |       |   |       |    |   |  | 145    |  
|                                                                                                |  |              |   |                          |        |    
|Share based compensation expense (unaudited)                                                    |  |             |   |                          |        |    |                  | 42     |   |                                            |       |   |       |    |   |  | 42     |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Balance at September 30, 2007 (unaudited)                                                       |  | 4,082,002    |   |                          | $      | 204 |                  | 30,201 |   |                                            | 5,957  |   |       | 31  |   |  | 36,393 |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Balance at December 31, 2007                                                                    |  | 4,082,002    |   |                          |        | 204 |                  | 30,216 |   |                                            | 6,478  |   |       | 70  |   |  | 36,968 |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|                                                                                                |  |              |   |                          |        |    
|Comprehensive income:                                                                           |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Net earnings (unaudited)                                                                        |  |             |   |                          |        |    |                  |       |   |                                            | 881    |   |       |    |   |  | 881    |  
|                                                                                                |  |              |   |                          |        |    
|Net change in unrealized gain on securities available for sale, net of taxes of $26 (unaudited) |  |             |   |                          |        |    |                  |       |   |                                            |       |   |       | (43 | ) |  | (43    | )
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Comprehensive income (unaudited)                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  | 838    |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Exercise of stock options (unaudited)                                                           |  | 35,141       |   |                          |        | 1   |                  | 168    |   |                                            |       |   |       |    |   |  | 169    |  
|                                                                                                |  |              |   |                          |        |    
|Retirement of common stock (unaudited)                                                          |  | (6,022       | ) |                          |        |    |                  | (59    | ) |                                            |       |   |       |    |   |  | (59    | )
|                                                                                                |  |              |   |                          |        |    
|Share based compensation expense (unaudited)                                                    |  |             |   |                          |        |    |                  | 29     |   |                                            |       |   |       |    |   |  | 29     |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  
|Balance at September 30, 2008 (unaudited)                                                       |  | 4,111,121    |   |                          | $      | 205 |                  | 30,354 |   |                                            | 7,359  |   |       | 27  |   |  | 37,945 |  
|                                                                                                |  |              |   |                          |        |     |                  |        |   |                                            |        |   |       |     |   |  |        |  

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, |        
|                                                                                    |  | 2008                           |         |   | 2007 |        
|Cash flows from operating activities:                                               |  |                                |         |   |      |         |  
|Net earnings                                                                        |  | $                              | 881     |   |      | 2,344   |  
|Adjustments to reconcile net earnings to net cash provided by operating activities: |  |                                |         |   |      |         |  
|Provision for loan losses                                                           |  |                                | 2,139   |   |      | 489     |  
|Depreciation and amortization                                                       |  |                                | 462     |   |      | 382     |  
|Share-based compensation                                                            |  |                                | 29      |   |      | 42      |  
|Net amortization of deferred loan fees and costs                                    |  |                                | (239    | ) |      | (206    | )
|Net amortization of premium and discounts on securities                             |  |                                | (40     | ) |      | (21     | )
|Income from bank owned life insurance                                               |  |                                | (542    | ) |      | (120    | )
|Origination of loans held for sale                                                  |  |                                | (4,375  | ) |      | (13,076 | )
|Proceeds from sale of loans held for sale                                           |  |                                | 4,867   |   |      | 13,362  |  
|Gain on sale of loans held for sale                                                 |  |                                | (64     | ) |      | (130    | )
|Decrease (increase) in accrued interest receivable                                  |  |                                | 197     |   |      | (150    | )
|Write down of foreclosed real estate                                                |  |                                | 106     |   |      |        |  
|Net gain on sale of foreclosed real estate                                          |  |                                | (43     | ) |      |        |  
|Increase in other assets                                                            |  |                                | (1,107  | ) |      | (513    | )
|Increase (decrease) in accrued expenses and other liabilities                       |  |                                | 915     |   |      | (1,851  | )
|Deferred income taxes                                                               |  |                                | 312     |   |      |        |  
|                                                                                    |  |                                |         |   |      |         |  
|Net cash provided by operating activities                                           |  |                                | 3,498   |   |      | 552     |  
|                                                                                    |  |                                |         |   |      |         |  
|Cash flows from investing activities:                                               |  |                                |         |   |      |         |  
|Net change in other interest-bearing deposits with banks                            |  |                                | 198     |   |      | (29     | )
|Purchase of securities available for sale                                           |  |                                | (21,996 | ) |      | (5,809  | )
|Principal payments on securities available for sale                                 |  |                                | 1,430   |   |      | 147     |  
|Proceeds from calls and maturities of securities available for sale                 |  |                                | 1,200   |   |      | 2,500   |  
|Purchase of securities held to maturity                                             |  |                                |        |   |      | (1,000  | )
|Proceeds from maturities of securities held to maturity                             |  |                                | 1,844   |   |      | 500     |  
|Principal payments on securities held to maturity                                   |  |                                | 163     |   |      | 268     |  
|Net increase in loans                                                               |  |                                | (15,653 | ) |      | (22,266 | )
|Purchase of premises and equipment, net                                             |  |                                | (1,402  | ) |      | (2,899  | )
|Redemption (purchase) of Federal Home Loan Bank stock                               |  |                                | (172    | ) |      | 814     |  
|Proceeds from redemption of bank owned life insurance                               |  |                                | 448     |   |      |        |  
|Purchase of bank owned life insurance                                               |  |                                |        |   |      | (5,000  | )
|Proceeds from sale of foreclosed real estate                                        |  |                                | 1,745   |   |      |        |  
|                                                                                    |  |                                |         |   |      |         |  
|Net cash used in investing activities                                               |  |                                | (32,195 | ) |      | (32,774 | )
|                                                                                    |  |                                |         |   |      |         |  
|Cash flows from financing activities:                                               |  |                                |         |   |      |         |  
|Increase in deposits                                                                |  |                                | 43,586  |   |      | 40,353  |  
|Proceeds from Federal Home Loan Bank advances                                       |  |                                | 20,000  |   |      | 5,000   |  
|Repayment of Federal Home Loan Bank advances                                        |  |                                | (18,000 | ) |      | (26,500 | )
|Net (decrease) increase in other borrowings                                         |  |                                | (7,748  | ) |      | 11,179  |  
|Fractional shares of stock dividend paid in cash                                    |  |                                |        |   |      | (2      | )
|Proceeds from exercise of stock options                                             |  |                                | 169     |   |      | 292     |  
|Retirement of common stock                                                          |  |                                | (59     | ) |      |        |  
|                                                                                    |  |                                |         |   |      |         |  
|Net cash provided by financing activities                                           |  |                                | 37,948  |   |      | 30,322  |  
|                                                                                    |  |                                |         |   |      |         |  
|Net increase (decrease) in cash and cash equivalents                                |  |                                | 9,251   |   |      | (1,900  | )
|                                                                                    |  |                               
|Cash and cash equivalents at beginning of period                                    |  |                                | 9,100   |   |      | 11,527  |  
|                                                                                    |  |                                |         |   |      |         |  
|Cash and cash equivalents at end of period                                          |  | $                              | 18,351  |   |      | 9,627   |  
|                                                                                    |  |                                |         |   |      |         |  

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)



|                                                                                                                                          |  |                                |       |   |      |       
|----------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ----- | - | ---- | ------
|                                                                                                                                          |  | Nine Months EndedSeptember 30,
|                                                                                                                                          |  | 2008                           |       |   | 2007
|Supplemental disclosure of cash flow information:                                                                                         |  |                                |       |   |      |       
|Cash paid during the period for:                                                                                                          |  |                                |       |   |      |       
|Interest, net of capitalized interest of $194 and $0                                                                                      |  | $                              | 9,495 |   |      | 10,274
|                                                                                                                                          |  |                                |       |   |      |       
|Income taxes                                                                                                                              |  | $                              | 595   |   |      | 1,579 
|                                                                                                                                          |  |                                |       |   |      |       
|Noncash transactions:                                                                                                                     |  |                                |       |   |      |       
|Accumulated other comprehensive income (loss), net change in unrealized gain (loss) on securities available for sale, net of income
taxes |  | $                              | (43   | ) |      | 35    
|                                                                                                                                          |  |                                |       |   |      |       
|Transfer from loans to foreclosed real estate                                                                                             |  | $                              | 2,700 |   |      | 244   
|                                                                                                                                          |  |                                |       |   |      |       

See Accompanying Notes to Condensed Consolidated Financial Statements.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. General.First Community Bank Corporation of America (the Holding Company) owns all of the outstanding common stock of First Community Bank of America (the Bank) and First
Community Lender Services, Inc. (FCLS) (collectively, the Company). The Holding Companys primary business activity is the operation of the Bank. The Bank is a federally-chartered stock savings bank providing a variety
of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, two banking offices in Pasco County, three banking offices located in Charlotte County, and two offices located
in Hillsborough County, Florida. FCLS had minimal activity during the nine months ended September 30, 2008 and 2007.

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, 2008, the results of
operations for the three- and nine-month periods ended September 30, 2008 and 2007 and cash flows for the nine-month periods ended September 30, 2008 and 2007. The results of operations and other data for the three- and nine-month periods
ended September 30, 2008 are not necessarily indicative of results that may be expected for the year ending December 31, 2008.

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



|                               |  |                                 |        |   |                                |       |   |      |        |   |      |       |  
|------------------------------ |  | ------------------------------- | ------ | - | ------------------------------ | ----- | - | ---- | ------ | - | ---- | ----- | -
|                               |  | Three Months EndedSeptember 30, |        |   | Nine Months EndedSeptember 30, |      
|                               |  | 2008                            |        |   | 2007                           |       |   | 2008 |        |   | 2007 |      
|Balance at beginning of period |  | $                               | 3,883  |   |                                | 3,811 |   |      | 4,479  |   |      | 3,499 |  
|Provision for loan losses      |  |                                 | 1,246  |   |                                | 176   |   |      | 2,139  |   |      | 489   |  
|Charge-offs                    |  |                                 | (1,204 | ) |                                | (98   | ) |      | (2,694 | ) |      | (101  | )
|Recoveries                     |  |                                 | 1      |   |                                | 1     |   |      | 2      |   |      | 3     |  
|                               |  |                                 |        |   |                                |       |   |      |        |   |      |       |  
|Balance at end of period       |  | $                               | 3,926  |   |                                | 3,890 |   |      | 3,926  |   |      | 3,890 |  
|                               |  |                                 |        |   |                                |       |   |      |        |   |      |       |  

Impaired collateral dependent loans are as follows (in thousands):



|                                             |  |                                |        |      |      
|-------------------------------------------- |  | ------------------------------ | ------ | ---- | -----
|                                             |  | At September 30,              
|                                             |  | 2008                           |        | 2007
|Balance at end of period                     |  | $                              | 13,611 |      | 850  
|                                             |  |                                |        |      |      
|Total related allowance for losses           |  | $                              | 374    |      | 121  
|                                             |  |                                |        |      |      
|                                             | 
|                                             |  | Nine Months EndedSeptember 30,
|                                             |  | 2008                           |        | 2007
|Average investment in impaired loans         |  | $                              | 8,565  |      | 1,064
|                                             |  |                                |        |      |      
|Interest income recognized on impaired loans |  | $                              |       |      |     
|                                             |  |                                |        |      |      
|Interest income received on impaired loans   |  | $                              | 17     |      |     
|                                             |  |                                |        |      |      

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



2. Loan Impairment and Loan Losses, Continued.Nonaccrual and past due loans were as follows (in
thousands):



|                                             |  |                  |        |      |      
|-------------------------------------------- |  | ---------------- | ------ | ---- | -----
|                                             |  | At September 30,
|                                             |  | 2008             |        | 2007
|Nonaccrual loans                             |  | $                | 12,054 |      | 1,075
|Past due ninety days or more, still accruing |  |                  |       |      |     
|                                             |  |                  |        |      |      
|                                             |  | $                | 12,054 |      | 1,075
|                                             |  |                  |        |      |      

3. Loans Held for Sale.At September 30, 2008 and December 31, 2007 loans held for sale
approximated $0 and $428,000, respectively and are included in net loans on the condensed consolidated balance sheets.

4. 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. The following tables present the calculations of EPS (dollars in thousands, except per share amounts):



|                                                                      |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|--------------------------------------------------------------------- |  | -------------------------------- | --- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | --- | -------------- | --------- |  | - | ----
|                                                                      |  | Three Months Ended September 30,
|                                                                      |  | 2008                             |     | 2007                  
|                                                                      |  | Earnings                         |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |     | PerShareAmount
|Basic EPS-                                                            |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Net earnings available to common stockholders                         |  | $                                | 174 |                        | 4,111,121 |                | $ | 0.04     |  | $                      | 834 |                | 4,079,274 |  | $ | 0.20
|                                                                      |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Effect of dilutive securities-                                        |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Incremental shares from assumed conversion of options                 |  |                                  |     |                        | 104,399   |                |   |          |  |                        |     |                | 204,888   |  |   |     
|                                                                      |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Diluted EPS-                                                          |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Net earnings available to common stockholders and assumed conversions |  | $                                | 174 |                        | 4,215,520 |                | $ | 0.04     |  | $                      | 834 |                | 4,284,162 |  | $ | 0.19
|                                                                      |  |                                  |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



4. Earnings Per Share (EPS), Continued.



|                                                                      |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|--------------------------------------------------------------------- |  | ------------------------------- | --- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | ----- | -------------- | --------- |  | - | ----
|                                                                      |  | Nine Months Ended September 30,
|                                                                      |  | 2008                            |     | 2007                  
|                                                                      |  | Earnings                        |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |       | PerShareAmount
|Basic EPS-                                                            |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Net earnings available to common stockholders                         |  | $                               | 881 |                        | 4,111,802 |                | $ | 0.21     |  | $                      | 2,344 |                | 4,070,244 |  | $ | 0.58
|                                                                      |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Effect of dilutive securities-                                        |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Incremental shares from assumed conversion of options                 |  |                                 |     |                        | 128,820   |                |   |          |  |                        |       |                | 233,355   |  |   |     
|                                                                      |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Diluted EPS-                                                          |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Net earnings available to common stockholders and assumed conversions |  | $                               | 881 |                        | 4,240,622 |                | $ | 0.21     |  | $                      | 2,344 |                | 4,303,599 |  | $ | 0.54
|                                                                      |  |                                 |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     

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



|                                                        |  |                   |  |             |  |               |       |        |          
|------------------------------------------------------- |  | ----------------- |  | ----------- |  | ------------- | ----- | ------ | ---------
|                                                        |  | NumberOutstanding |  | YearGranted |  | ExercisePrice |       | Expire
|For the three and nine months ended September 30, 2008: |  |                   |  |             |  |               |       |       
|                                                        |  |                   |  |            
|Options                                                 |  | 232,315           |  | 2005        |  | $             | 16.31 |        | 2011     
|                                                        |  | 16,538            |  | 2004        |  |               | 13.53 |        | 2010-2014
|                                                        |  | 15,750            |  | 2005        |  |               | 15.24 |        | 2011-2015
|                                                        |  | 19,688            |  | 2005        |  |               | 15.36 |        | 2011     
|                                                        |  | 788               |  | 2005        |  |               | 16.80 |        | 2011     
|                                                        |  | 6,300             |  | 2006        |  |               | 19.23 |        | 2012-2016
|                                                        |  | 10,500            |  | 2006        |  |               | 19.19 |        | 2016     
|                                                        |  | 10,500            |  | 2007        |  |               | 18.71 |        | 2017     
|                                                        |  | 6,850             |  | 2007        |  |               | 18.57 |        | 2017     
|                                                        |  | 5,000             |  | 2007        |  |               | 14.75 |        | 2017     

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



5. Stock-Based Compensation. 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 620,156 (amended) for directors and 516,797 (amended) for employees. At September 30, 2008, no options remain
available for grant under the directors plan and 56,577 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 236,250 (amended) for
either directors or employees. At September 30, 2008, 15,750 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 plans is as follows (dollars in thousands,
except per share amounts):



|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |    
|--------------------------------- |  | ---------------- | - |  | ----------------------------- | ----- | ---------------------------------------- | --------- | ----------------------- | - | ---
|                                  |  | Number ofOptions |   |  | Weighted-AverageExercisePrice |       | Weighted-AverageRemainingContractualTerm |           | AggregateIntrinsicValue
|Outstanding at December 31, 2007  |  | 685,721          |   |  | $                             | 10.71 |                                          |           |                         |   |    
|Options exercised                 |  | (35,141          | ) |  |                               | 4.84  |                                          |           |                         |   |    
|Options forfeited                 |  | (16,537          | ) |  |                               | 20.31 |                                          |           |                         |   |    
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |    
|Outstanding at September 30, 2008 |  | 634,043          |   |  | $                             | 10.92 |                                          | 3.4 years |                         | $ | 381
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |    
|Exercisable at September 30, 2008 |  | 613,913          |   |  | $                             | 10.67 |                                          | 2.9 years |                         | $ | 381
|                                  |  |                  |   |  |                               |       |                                          |           |                         |   |    

The total intrinsic value of options exercised during the nine months ended September 30, 2008 and 2007 was
$222,000 and $645,000, respectively. At September 30, 2008, there was approximately $88,000 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 19 months. The total fair value of shares vesting and recognized as compensation expense was approximately $29,000 and $42,000 for the nine months ended September 30, 2008 and 2007, respectively.
There was no associated tax benefit recognized for both the nine months ended September 30, 2008 and 2007.

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



5. Stock-Based Compensation, Continued.No options were granted during the three and nine months
ended September 30, 2008. The fair value of each option granted for the three and nine months ended September 30, 2008 and 2007 is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:



|                                                                     |  |                                     |      |   |                                    |      |  
|-------------------------------------------------------------------- |  | ----------------------------------- | ---- | - | ---------------------------------- | ---- | -
|                                                                     |  | Three Months EndedSeptember 30,2007 |      |   | Nine Months EndedSeptember 30,2007 |     
|Risk-free interest rate                                              |  |                                     | 4.28 | % |                                    | 4.60 | %
|Expected dividend yield                                              |  |                                     |     |   |                                    |     |  
|Expected volatility                                                  |  |                                     | 4    | % |                                    | 5    | %
|Expected life in years                                               |  |                                     | 6    |   |                                    | 6    |  
|Per share grant-date fair value of options granted during the period |  | $                                   | 3.28 |   |                                    | 4.26 |  
|                                                                     |  |                                     |      |   |                                    |      |  

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. The expected volatility is based on historical volatility of similar peer Companys common stock. The risk-free rate for periods within the contractual life of the option is based on U.S. Treasury yield curve in effect
at the time of grant. The expected dividend yield assumption is based on the Companys history and expectation of dividend payments.

6.
Regulatory Capital. The Bank is required to maintain certain minimum regulatory capital requirements. At September 30, 2008, the Bank was in compliance with its regulatory capital requirements.

7. Financial Covenant Compliance Status. First Community Bank Corporation of America has a $12 million line of credit with Silverton Bank. As of
September 30, 2008, the Company has funded $2 million on this line. First Community Bank Corporation of America exceeded one of the ratios required in the covenants. First Community Bank of Americas ratio of non-performing assets as a
percent of gross loans was 3.40% on September 30, 2008 which exceeded the covenant limit of 1.50%. The Company received a waiver for the second quarter and is renegotiating the limit on the covenant going forward. All other covenants are well
within the prescribed limits.

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



8. Fair Value Measurement.On January 1, 2008, the Company adopted Statement of Financial
Accounting Standard (SFAS) No. 157, Fair Value Measurements for financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard
does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This standard does not apply to measurements related to share-based payments.

SFAS 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair
value into three broad levels. The following is a brief description of those three levels:



| |  |  | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar
assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities that are not active. Such inputs may include interest rates and yield curves, volatilities, prepayment speeds, credit risks, and default rates.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using
reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Currently, the Company has securities available for sale that are
recorded at fair value on a recurring basis. Also from time to time the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as impaired loans. These nonrecurring fair value adjustments involve
the application of lower-of-cost-or-market, accounting or write-downs of individual assets.

Our listing of financial assets and liabilities subject to
fair value measurements on a recurring basis are as follows (in thousands):



|                              |  |                                                 |        |                                                           |   |                                           |        |                                        |  
|----------------------------- |  | ----------------------------------------------- | ------ | --------------------------------------------------------- | - | ----------------------------------------- | ------ | -------------------------------------- | -
|                              |  | Fair Value Measurements at Reporting Date Using
|                              |  | Fair Valueas ofSeptember 30,2008                |        | Quoted PricesIn ActiveMarkets forIdenticalAssets(Level
1) |   | SignificantOtherObservableInputs(Level 2) |        | SignificantUnobservableInputs(Level 3)
|Available for sale securities |  | $                                               | 26,180 |                                                           |  |                                           | 26,180 |                                        | 

(continued)



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



8. Fair Value Measurement, Continued.The fair values of the Companys securities available
for sale are determined by third party service providers utilizing various methods dependent upon the specific type of investment. Where quoted prices are available in an active market, securities are classified within level 1 of the valuation
hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of
securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain
high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level 3 of the valuation hierarchy. Securities classified within level 3 include
certain residual interests in securitizations and other less liquid securities.

There were no transactions for financial assets or liabilities measured on
a recurring basis using significant unobservable inputs for determining fair value for the nine month period ended September 30, 2008.

Impaired
Loans. A loan is considered impaired when, based upon current information and events, it is probable that we will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement.
The Companys impaired loans are normally collateral dependent and, as such, are carried at the lower of the Companys net recorded investment in the loan or the estimated fair value of the collateral less estimated selling costs.
Adjustments to the recorded investment are made through specific valuation allowances that are recorded as part of the overall allowances for loan losses. Estimates of fair value is determined based on a variety of information, including the use of
available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Companys officers related to values of properties in the Companys market areas. These officers
take into consideration the type, location and occupancy of the property as well as current economic conditions in the area the property is located in assessing estimates of fair value. Accordingly, fair value estimates for impaired loans is
classified as Level 3.

The following table provides the level of valuation assumptions used to determine the carrying value of our assets measured at fair
value on a nonrecurring basis at September 30, 2008 (in thousands).



|               |  |                                          |        |              |   |         |   |         |        |                                    |       |                                   |      
|-------------- |  | ---------------------------------------- | ------ | ------------ | - | ------- | - | ------- | ------ | ---------------------------------- | ----- | --------------------------------- | -----
|               |  | Net Carrying Value at September 30, 2008 |        | Total Losses
|               |  | Total                                    |        | Level 1      |   | Level 2 |   | Level 3 |        | Three-MonthsEndedSeptember 30,2008 |       | Nine-MonthsEndedSeptember 30,2008
|Impaired loans |  | $                                        | 13,611 |              |  |         |  |         | 13,611 |                                    | 1,269 |                                   | 2,618



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Review by Independent Registered Public Accounting Firm

Hacker, Johnson & Smith PA, the Companys independent registered public accounting firm, has made a limited review of the financial data as of September 30, 2008, and for the three- and nine-month periods ended
September 30, 2008 and 2007 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

The Board of Directors and Stockholders

First Community Bank Corporation of
America

Pinellas Park, Florida:

We have
reviewed the accompanying condensed consolidated balance sheet of First Community Bank Corporation of America and Subsidiaries (the Company) as of September 30, 2008, the related condensed consolidated statements of earnings for the
three- and nine-month periods ended September 30, 2008 and 2007 and the related condensed consolidated statements of changes in stockholders equity and cash flows for the nine-month periods ended September 30, 2008 and 2007. These
interim financial statements are the responsibility of the Companys management.

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

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

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance sheet of the Company as of December 31, 2007, 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 March 24, 2008, 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, 2007, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it
has been derived.



|                              
|------------------------------
|/s/ Hacker, Johnson & Smith PA
|                              
|HACKER, JOHNSON & SMITH PA    
|Tampa, Florida                
|November 6, 2008              



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Item 2. Managements Discussion and Analysis of

Financial Condition and Results of Operations

Forward Looking Statements

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

General

First Community Bank Corporation of America (the Holding Company) owns all of the outstanding common stock of First Community Bank of America (the
Bank) and First Community Lender Services, Inc. (FCLS) (collectively, the Company). The Holding Companys primary business activity is the operation of the Bank. The Bank is a federally-chartered stock
savings bank providing a variety of banking services to small and middle market businesses and individuals through its three banking offices located in Pinellas County, two banking offices located in Pasco County, three banking offices located in
Charlotte County and two offices located in Hillsborough County, Florida. FCLS had minimal activity during the nine months ended September 30, 2008 and 2007.

Liquidity and Capital Resources

The Companys primary source of cash during the nine months ended September 30, 2008, was from
net deposit inflows of approximately $43 million. Cash was used primarily to increase securities $17 million and federal funds sold by $11 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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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, 2008, follows (in thousands):



|                             |  |                |       
|---------------------------- |  | -------------- | ------
|                             |  | ContractAmount
|Commitments to extend credit |  | $              | 18,851
|                             |  |                |       
|Unused lines of credit       |  | $              | 34,428
|                             |  |                |       
|Standby letters of credit    |  | $              | 1,866 
|                             |  |                |       

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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Selected Financial Information

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



|                                                                      |  |                                   |   |  |                            |   |  |                                   |  
|--------------------------------------------------------------------- |  | --------------------------------- | - |  | -------------------------- | - |  | --------------------------------- | -
|                                                                      |  | Nine MonthsEndedSeptember 30,2008 |   |  | Year EndedDecember 31,2007 |   |  | Nine MonthsEndedSeptember 30,2007 |  
|Average equity as a percentage of average assets                      |  | 8.12                              | % |  | 8.57                       | % |  | 8.56                              | %
|                                                                      |  |                                   |  
|Equity to total assets at end of period                               |  | 7.97                              | % |  | 8.47                       | % |  | 8.63                              | %
|                                                                      |  |                                   |  
|Return on average assets (1)                                          |  | 0.25                              | % |  | 0.69                       | % |  | 0.76                              | %
|                                                                      |  |                                   |  
|Return on average equity (1)                                          |  | 3.13                              | % |  | 8.05                       | % |  | 8.91                              | %
|                                                                      |  |                                   |  
|Noninterest expenses to average assets (1)                            |  | 2.69                              | % |  | 2.70                       | % |  | 2.71                              | %
|                                                                      |  |                                   |  
|Nonperforming assets as a percentage of total assets at end of period |  | 2.83                              | % |  | 0.67                       | % |  | 0.40                              | %



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



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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, |        
|                                                                                 |  | 2008                             |         |                      | 2007 |                  
|                                                                                 |  | AverageBalance                   |         | InterestandDividends |      | AverageYield/Rate |  |       | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)           |        
|Interest-earning assets:                                                         |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Loans (1)                                                                        |  | $                                | 388,277 |                      |      | 6,192             |  | 6.38  | %              |  | $                    | 365,621 |                   |   | 7,040 |  | 7.70 | %
|Securities                                                                       |  |                                  | 33,741  |                      |      | 407               |  | 4.82  |                |  |                      | 17,716  |                   |   | 227   |  | 5.13 |  
|Other interest-earning assets (2)                                                |  |                                  | 2,295   |                      |      | 86                |  | 14.99 |                |  |                      | 4,448   |                   |   | 70    |  | 6.29 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                                  | 424,313 |                      |      | 6,685             |  | 6.30  |                |  |                      | 387,785 |                   |   | 7,337 |  | 7.57 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                                  | 48,899  |                      |      |                   |  |       |                |  |                      | 30,082  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                                | 473,212 |                      |      |                   |  |       |                |  | $                    | 417,867 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                  
|Interest-bearing liabilities:                                                    |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                  | 136,665 |                      |      | 625               |  | 1.83  |                |  |                      | 110,395 |                   |   | 687   |  | 2.49 |  
|Time deposits                                                                    |  |                                  | 207,828 |                      |      | 2,055             |  | 3.96  |                |  |                      | 199,451 |                   |   | 2,556 |  | 5.13 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                                  | 344,493 |                      |      | 2,680             |  | 3.11  |                |  |                      | 309,846 |                   |   | 3,243 |  | 4.19 |  
|Other borrowings (3)                                                             |  |                                  | 51,539  |                      |      | 443               |  | 3.44  |                |  |                      | 30,066  |                   |   | 343   |  | 4.56 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                                  | 396,032 |                      |      | 3,123             |  | 3.15  |                |  |                      | 339,912 |                   |   | 3,586 |  | 4.22 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                  
|Noninterest-bearing liabilities                                                  |  |                                  | 39,524  |                      |      |                   |  |       |                |  |                      | 41,908  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                                  | 37,656  |                      |      |                   |  |       |                |  |                      | 36,047  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                                | 473,212 |                      |      |                   |  |       |                |  | $                    | 417,867 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                                  |         |                      | $    | 3,562             |  |       |                |  |                      |         |                   | $ | 3,751 |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (4)                                                         |  |                                  |         |                      |      |                   |  | 3.15  | %              |  |                      |         |                   |   |       |  | 3.35 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (5)                                                          |  |                                  |         |                      |      |                   |  | 3.36  | %              |  |                      |         |                   |   |       |  | 3.87 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                  | 1.07    |                      |      |                   |  |       |                |  |                      | 1.14    |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |       |                |  |                      |         |                   |   |       |  |      |  



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

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

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

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

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



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



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



|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ------ |  | ---- | -
|                                                                                 |  | Nine Months Ended September 30, |        
|                                                                                 |  | 2008                            |         |                      | 2007 |                  
|                                                                                 |  | AverageBalance                  |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)          |        
|Interest-earning assets:                                                         |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Loans (1)                                                                        |  | $                               | 385,946 |                      |      | 19,207            |  | 6.64 | %              |  | $                    | 357,291 |                   |   | 20,452 |  | 7.63 | %
|Securities                                                                       |  |                                 | 27,338  |                      |      | 998               |  | 4.87 |                |  |                      | 15,701  |                   |   | 593    |  | 5.04 |  
|Other interest-earning assets (2)                                                |  |                                 | 7,440   |                      |      | 321               |  | 5.75 |                |  |                      | 11,877  |                   |   | 477    |  | 5.35 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-earning assets                                                    |  |                                 | 420,724 |                      |      | 20,526            |  | 6.50 |                |  |                      | 384,869 |                   |   | 21,522 |  | 7.46 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                  
|Noninterest-earning assets                                                       |  |                                 | 42,980  |                      |      |                   |  |      |                |  |                      | 26,160  |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total assets                                                                     |  | $                               | 463,704 |                      |      |                   |  |      |                |  | $                    | 411,029 |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                  
|Interest-bearing liabilities:                                                    |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                 | 131,304 |                      |      | 1,856             |  | 1.88 |                |  |                      | 112,246 |                   |   | 2,018  |  | 2.40 |  
|Time deposits                                                                    |  |                                 | 199,628 |                      |      | 6,310             |  | 4.21 |                |  |                      | 192,096 |                   |   | 7,249  |  | 5.03 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing deposits                                                  |  |                                 | 330,932 |                      |      | 8,166             |  | 3.29 |                |  |                      | 304,342 |                   |   | 9,267  |  | 4.06 |  
|                                                                                 |  |                                 |         |                      |      |                  
|Other borrowings (3)                                                             |  |                                 | 54,451  |                      |      | 1,423             |  | 3.48 |                |  |                      | 28,046  |                   |   | 981    |  | 4.66 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing liabilities                                               |  |                                 | 385,383 |                      |      | 9,589             |  | 3.32 |                |  |                      | 332,388 |                   |   | 10,248 |  | 4.11 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                  
|Noninterest-bearing liabilities                                                  |  |                                 | 40,679  |                      |      |                   |  |      |                |  |                      | 43,462  |                   |   |        |  |      |  
|Stockholders equity                                                             |  |                                 | 37,642  |                      |      |                   |  |      |                |  |                      | 35,179  |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total liabilities and stockholders equity                                       |  | $                               | 463,704 |                      |      |                   |  |      |                |  | $                    | 411,029 |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest income                                                              |  |                                 |         |                      | $    | 10,937            |  |      |                |  |                      |         |                   | $ | 11,274 |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Interest-rate spread (4)                                                         |  |                                 |         |                      |      |                   |  | 3.19 | %              |  |                      |         |                   |   |        |  | 3.35 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest margin (5)                                                          |  |                                 |         |                      |      |                   |  | 3.47 | %              |  |                      |         |                   |   |        |  | 3.91 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                 | 1.09    |                      |      |                   |  |      |                |  |                      | 1.16    |                   |   |        |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  



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

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

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

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

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



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Three-Month Periods Ended September 30, 2008 and 2007

General. Our net earnings for the three months ended September 30, 2008, were to $174,000 or $.04 earnings per basic share and $.04 earnings per
diluted share compared to $834,000 or $0.20 earnings per basic share and $0.19 earnings per diluted share for the three months ended September 30, 2007. The third quarter 2008 reflected an increase in noninterest income and a $1,070,000
increase in provision for loan losses and a $237,000 increase in noninterest expense reflecting an investment in new branches and infrastructure to support growth.

Net Interest Income. Interest income decreased to $6.7 million during the three months ended September 30, 2008, from $7.3 million in 2007. Interest on loans for the three months ended September 30, 2008 decreased to
$6.2 million from $7.0 million for the three months ended September 30, 2007. This decrease was also due to a decrease in the average yield earned to 6.38% for the three months ended September 30, 2008 from 7.70% for the three months ended
September 30, 2007. Interest on securities increased to $407,000 during the three months ended September 30, 2008 from $227,000 for the three months ended September 30, 2007. The increase in interest income on securities was due to an
increase in the average balance of securities from $17.7 million in 2007 to $33.7 million in 2008.

Interest expense on interest-bearing deposits decreased
to $2.7 million during the three months ended September 30, 2008, compared to $3.2 million during the three months ended September 30, 2007. The decrease was due to a decrease in the rate paid to 3.11% during the three months ended
September 30, 2008 from 4.19% during the three months ended September 30, 2007. Interest expense on other borrowings increased to $443,000 during the three months ended September 30, 2008, compared to $343,000 during the three months
ended September 30, 2007. The increase was due to an increase in the average balance of other borrowings to $51.5 million in 2008 from $30.1 million in 2007. The average rate paid on other borrowings decreased to 3.44% during the three months
ended September 30, 2008 compared to 4.56% during the three months ended September 30, 2007.

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

Larger commercial loans that exhibit probable or observed credit weaknesses are subject to individual review. Where appropriate, the allowance is allocated to individual
loans based on our estimate of the borrowers ability to repay the loan given the availability of collateral, other sources of cash flows and available legal options. Included in the review of individual loans are those that are impaired as
provided in Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan, as amended. Any specific reserves for impaired loans are measured based on the fair value of the underlying
collateral. The collectability of both principal and interest is evaluated when assessing the allowance. Historical loss rates are applied to other commercial loans not subject to specific allocations.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Three-Month Periods Ended September 30, 2008 and 2007, Continued



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

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

During
2007, we changed our overall approach in the determination of the allowances for loan losses. A new methodology was created to be in compliance with the guidance issued by the federal agencies in December of 2006. This methodology incorporated the
calculation of loans considered impaired under FAS 114 and allocations for performing portfolio categories based on applying historical charge off data for loans categorized by similar risk characteristics based on the Companys experience as
per FAS 5. The methodology includes an unallocated portion (qualitative factors) justified by current general market conditions, trends in performance (delinquency), economic and political trends.

The provision for loan losses was $1,246,000 for the three months ended September 30, 2008 compared to $176,000 for the three months ended September 30, 2007.
While continued economic weakness, or other factors could cause continued 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 allowance for
loan losses ratio adequately reflect the current circumstances.

The allowance for loan losses is $3.9 million at September 30, 2008. While management
believes that its allowance for loan losses is adequate as of September 30, 2008, future adjustments to the Companys allowance for loan losses may be necessary as economic conditions could dictate.

Noninterest Income. Noninterest income increased to $704,000 in 2008 from $446,000 for the three-months ended September 30, 2007 primarily due to a
death benefit received from bank owned life insurance.

Noninterest Expense. Total noninterest expenses increased to $3.0 million for the
three months ended September 30, 2008 from $2.8 million for the comparable period ended September 30, 2007, reflected in FDIC insurance, other real estate and data processing expenses.

Income Taxes (Benefit). Income taxes (benefit) for the three months ended September 30, 2008, was $(149,000) compared to $429,000 or
34.0% for the period ended September 30, 2007. The lower tax rate reflects the year-to-date impact of an increase in tax-free income.



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FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Comparison of the Nine-Month Periods Ended September 30, 2008 and 2007

General. Our net earnings for the nine months ended September 30, 2008, decreased to $.9 million or $.21 earnings per basic share and $.21 earnings
per diluted share compared to $2.3 million or $0.58 earnings per basic share and $0.54 earnings per diluted share for the nine months ended September 30, 2007. The first nine months of 2008 reflected a $1,650,000 increase in provision for loan
losses and a $989,000 increase in noninterest expense reflecting an investment in new branches and infrastructure to support growth.

Net Interest
Income. Interest income decreased to $20.5 million during the nine months ended September 30, 2008, from $21.5 million in 2007. The decrease in interest on loans reflected the impact of rapidly declining interest rates during the end of
2007 and the first half of 2008. The average yield earned on loans declined to 6.64% from 7.63% for the same period in 2007. The average balance of loans was $385 million during the nine months ended September 30, 2008 compared to $357 million
during the nine months ended September 30, 2007. Interest on securities increased to $998,000 during the nine months ended September 30, 2008 from $593,000 for the nine months ended September 30, 2007. The increase in interest income
on securities was due to an increase in the average balance of securities from $15.7 million in 2007 to $27.3 million in 2008. The average yield earned on securities decreased from 5.04% in 2007 to 4.87% in 2008.

Interest expense on interest-bearing deposit accounts decreased to $8.2 million during the nine months ended September 30, 2008, compared to $9.3 million during the
nine months ended September 30, 2007. The decrease was due to an decrease in the rate paid to 3.29% during the nine months ended September 30, 2008 from 4.06% during the nine months ended September 30, 2007. The average balance of
interest bearing deposits increased to $331 million in 2008 from $304 million in 2007. Interest expense on other borrowings increased to $1,423,000 during the nine months ended September 30, 2008, compared to $981,000 during the nine months
ended September 30, 2007. The increase was due to an increase in the average balance of other borrowings to $54.5 million in 2008 from $28.0 million in 2007. The increase in other borrowings reflected the market opportunity to secure low cost
funds in the declining interest rate environment. The average rate paid on other borrowings declined to 3.48% during the nine months ended September 30, 2008 compared to 4.66% during the nine months ended September 30, 2007.

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

Larger commercial loans that exhibit probable or observed
credit weaknesses are subject to individual review. Where appropriate, the allowance is allocated to individual loans based on our estimate of the borrowers ability to repay the loan given the availability of collateral, other sources of cash
flows and available legal options. Included in the review of individual loans are those that are impaired as provided in Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan,
as amended. Any specific reserves for impaired loans are measured based on the fair value of the underlying collateral. The collectability of both principal and interest is evaluated when assessing the allowance. Historical loss rates are applied to
other commercial loans not subject to specific allocations.



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Comparison of the Nine-Month Periods Ended September 30, 2008 and 2007, Continued



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

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

During 2007, we
changed our overall approach in the determination of the allowances for loan losses. A new methodology was created to be in compliance with the guidance issued by the federal agencies in December of 2006. This methodology incorporated the
calculation of loans considered impaired under FAS 114 and allocations for performing portfolio categories based on applying historical charge off data for loans categorized by similar risk characteristics based on the Companys experience as
per FAS 5. The methodology includes an unallocated portion (qualitative factors) justified by current general market conditions, trends in performance (delinquency), economic and political trends.

The provision for loan losses was $2,139,000 for the nine months ended September 30, 2008 compared to $489,000 for the nine months ended September 30, 2007.
While continued economic weakness, or other factors could cause continued 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 adequately reflect the current circumstances.

The allowance for loan losses is $3.9 million at September 30, 2008. While management believes
that its allowance for loan losses is adequate as of September 30, 2008, future adjustments to the Companys allowance for loan losses may be necessary as economic conditions could dictate.

Noninterest Income. Noninterest income increased to $1,546,000 in 2008 from $1,195,000 for the nine months ended September 30, 2007. The increase was
primarily due to a death benefit received from bank owned life insurance.

Noninterest Expenses. Total noninterest expenses increased to $9.3
million for the nine months ended September 30, 2008 from $8.3 million for the comparable period ended September 30, 2007 due to a $295,000 increase in FDIC insurance combined with increases in most categories of noninterest expenses
reflecting the opening of new banking offices.

Income Taxes. Income taxes for the nine months ended September 30, 2008, were $133,000
or 13.1% compared to $1.3 million or 35.6% for the period ended September 30, 2007. The lower tax rate reflects an increase in tax-free income, which constitutes a significantly larger percentage of pretax income.



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Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

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

Item 4T. Controls and Procedures

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

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

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There are no 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.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in Item 1A Risk Factors in
our Annual Report on Form 10-K for the year ended December 31, 2007.



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PART II. OTHER INFORMATION, CONTINUED



Item 6. Exhibits

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



|            |  |                        |  |                                                                                                                                              
|----------- |  | ---------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description of Exhibit
|*           |  | 3.1                    |  | Amended and Restated Articles of Incorporation                                                                                               
|            |  |                       
|*           |  | 3.2                    |  | Bylaws                                                                                                                                       
|            |  |                       
|*           |  | 4.1                    |  | Specimen Common Stock Certificate                                                                                                            
|            |  |                       
|*           |  | 4.3                    |  | Warrant Certificate                                                                                                                          
|            |  |                       
|**          |  | 10.1                   |  | Employment Agreement of Kenneth P. Cherven dated June 16, 2002                                                                               
|            |  |                       
|*           |  | 10.2                   |  | First Amended and Restated Non-Employee Director Stock Option Plan                                                                           
|            |  |                       
|*           |  | 10.3                   |  | Long-Term Incentive Plan                                                                                                                     
|            |  |                       
|*           |  | 10.4                   |  | Incentive Compensation Plan                                                                                                                  
|            |  |                       
|***         |  | 10.5                   |  | Employment Agreement of Kenneth P. Cherven dated November 29, 2004                                                                           
|            |  |                       
|****        |  | 10.6                   |  | Deferred Compensation Plan of Kenneth P. Cherven dated January 1, 2005.                                                                      
|            |  |                       
|            |  | 31.1                   |  | Certification of Chief Executive Officer required by Rule 13a- 14(a)/15d-14(a) under the Exchange Act                                        
|            |  |                       
|            |  | 31.2                   |  | Certification of Chief Financial Officer required by Rule 13a- 14(a)/15d-14(a) under the Exchange Act                                        
|            |  |                       
|            |  | 32.1                   |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
|            |  |                       
|            |  | 32.2                   |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002
|            |  |                       
|**          |  | 99.5                   |  | Audit Committee Charter                                                                                                                      



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

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

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

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



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SIGNATURES

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



|                        |  |  |  |                                             |  |                                                          
|----------------------- |  |  |  | ------------------------------------------- |  | ---------------------------------------------------------
|                        |  |  |  | FIRST COMMUNITY BANK CORPORATION OF AMERICA
|                        |  |  |  | (Registrant)                               
|                        |  |  | 
|Date: November 12, 2008 |  |  |  | By:                                         |  | /s/ Kenneth P. Cherven                                   
|                        |  |  |  |                                             |  | Kenneth P. Cherven, President and Chief Executive Officer
|                        |  |  | 
|Date: November 12, 2008 |  |  |  | By:                                         |  | /s/ Stan B. McClelland                                   
|                        |  |  |  |                                             |  | Stan B. McClelland, Chief Financial Officer              



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