##### 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 June 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 ofincorporation or organization) |  | (I.R.S. EmployerIdentification 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   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

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

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



|                                       |  |                             
|-------------------------------------- |  | ----------------------------
|Common stock, par value $.05 per share |  | 4,111,121 shares            
|(class)                                |  | Outstanding at July 31, 2008









---

##### 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 June 30, 2008 (unaudited) and At December 31,
2007                               |  | 2                                                                                    
|                                                                                                                           | 
|Condensed Consolidated Statements of Earnings -Three and Six Months Ended June 
30, 2008 and 2007 (unaudited)              |  | 3                                                                                    
|                                                                                                                           | 
|Condensed Consolidated Statements of Changes in Stockholders Equity -Six Months Ended June 
30, 2008 and 2007 (unaudited) |  | 4                                                                                    
|                                                                                                                           | 
|Condensed Consolidated Statements of Cash Flows -Six Months Ended June 30, 2008 and 2007
(unaudited)                       |  | 5-6                                                                                  
|                                                                                                                           | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                           |  | 7-14                                                                                 
|                                                                                                                           | 
|Review by Independent Registered Public Accounting Firm                                                                    |  | 15                                                                                   
|                                                                                                                           | 
|Report of Independent Registered Public Accounting Firm                                                                    |  | 16                                                                                   
|                                                                                                                           |  |                                                                                      
|Item 2.                                                                                                                    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 17-26
|                                                                                                                           |  |                                                                                      
|Item 3.                                                                                                                    |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 27   
|                                                                                                                           |  |                                                                                      
|Item 4T.                                                                                                                   |  | Controls and Procedures                                                               |  | 27   
|                                                                                                                           | 
|PART II. OTHER INFORMATION                                                                                                 |  |                                                                                      
|                                                                                                                           |  |                                                                                      
|Item 1.                                                                                                                    |  | Legal Proceedings                                                                     |  | 27   
|                                                                                                                           |  |                                                                                      
|Item 1A.                                                                                                                   |  | Risk Factors                                                                          |  | 27   
|                                                                                                                           |  |                                                                                      
|Item 4.                                                                                                                    |  | Submission of Matters to a Vote of Security Holders                                   |  | 28   
|                                                                                                                           |  |                                                                                      
|Item 6.                                                                                                                    |  | Exhibits                                                                              |  | 29   
|                                                                                                                           | 
|SIGNATURES                                                                                                                 |  | 30                                                                                   



1



---

##### 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)



|                                                                                                                                    |  |              |         |   |                  |        
|----------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | - | ---------------- | -------
|                                                                                                                                    |  | June 30,2008 |         |   | December 31,2007
|                                                                                                                                    |  | (Unaudited)  |         |   |                 
|Assets                                                                                                                              |  |              |         |   |                  |        
|Cash and due from banks                                                                                                             |  | $            | 7,410   |   |                  | 8,412  
|Interest-bearing deposits with banks                                                                                                |  |              | 4,802   |   |                  | 688    
|Federal funds sold                                                                                                                  |  |              | 21,337  |   |                  |       
|                                                                                                                                    |  |              |         |   |                  |        
|Cash and cash equivalents                                                                                                           |  |              | 33,549  |   |                  | 9,100  
|                                                                                                                                    |  |             
|Other interest-bearing deposits with banks                                                                                          |  |              | 300     |   |                  | 498    
|Securities available for sale                                                                                                       |  |              | 23,129  |   |                  | 6,847  
|Securities held to maturity (market value of $8,847 and $10,178)                                                                    |  |              | 8,996   |   |                  | 10,330 
|Loans, net of allowance for loan losses of $3,883 in 2008 and $4,479 in 2007                                                        |  |              | 384,352 |   |                  | 382,551
|Federal Home Loan Bank stock, at cost                                                                                               |  |              | 2,901   |   |                  | 2,504  
|Premises and equipment, net                                                                                                         |  |              | 12,495  |   |                  | 11,486 
|Foreclosed real estate                                                                                                              |  |              | 2,662   |   |                  | 538    
|Accrued interest receivable                                                                                                         |  |              | 1,749   |   |                  | 1,855  
|Deferred income taxes                                                                                                               |  |              | 2,294   |   |                  | 2,294  
|Bank owned life insurance                                                                                                           |  |              | 7,757   |   |                  | 7,597  
|Other assets                                                                                                                        |  |              | 2,001   |   |                  | 881    
|                                                                                                                                    |  |              |         |   |                  |        
|                                                                                                                                    |  | $            | 482,185 |   |                  | 436,481
|                                                                                                                                    |  |              |         |   |                  |        
|Liabilities and Stockholders Equity                                                                                                |  |              |         |   |                  |        
|                                                                                                                                    |  |             
|Liabilities:                                                                                                                        |  |              |         |   |                  |        
|Noninterest-bearing demand deposits                                                                                                 |  |              | 36,311  |   |                  | 31,454 
|Savings, NOW and money-market deposits                                                                                              |  |              | 143,472 |   |                  | 115,938
|Time deposits                                                                                                                       |  |              | 197,119 |   |                  | 187,228
|                                                                                                                                    |  |              |         |   |                  |        
|Total deposits                                                                                                                      |  |              | 376,902 |   |                  | 334,620
|                                                                                                                                    |  |             
|Federal Home Loan Bank advances                                                                                                     |  |              | 47,000  |   |                  | 40,000 
|Federal funds purchased                                                                                                             |  |              |        |   |                  | 8,900  
|Other borrowings                                                                                                                    |  |              | 13,643  |   |                  | 9,613  
|Accrued expenses and other liabilities                                                                                              |  |              | 7,097   |   |                  | 6,380  
|                                                                                                                                    |  |              |         |   |                  |        
|Total liabilities                                                                                                                   |  |              | 444,642 |   |                  | 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                                                                                                          |  |              | 30,343  |   |                  | 30,216 
|Retained earnings                                                                                                                   |  |              | 7,185   |   |                  | 6,478  
|Accumulated other comprehensive (loss) income                                                                                       |  |              | (190    | ) |                  | 70     
|                                                                                                                                    |  |              |         |   |                  |        
|Total stockholders equity                                                                                                          |  |              | 37,543  |   |                  | 36,968 
|                                                                                                                                    |  |              |         |   |                  |        
|                                                                                                                                    |  | $            | 482,185 |   |                  | 436,481
|                                                                                                                                    |  |              |         |   |                  |        

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                            |       |                          |       |      |        |      |       
|--------------------------------------------------- |  | -------------------------- | ----- | ------------------------ | ----- | ---- | ------ | ---- | ------
|                                                    |  | Three Months EndedJune 30, |       | Six Months EndedJune 30,
|                                                    |  | 2008                       |       | 2007                     |       | 2008 |        | 2007
|Interest income:                                    |  |                            |       |                          |       |      |        |      |       
|Loans                                               |  | $                          | 6,324 |                          | 6,783 |      | 13,015 |      | 13,412
|Securities                                          |  |                            | 344   |                          | 174   |      | 591    |      | 366   
|Other interest earning assets                       |  |                            | 135   |                          | 301   |      | 235    |      | 407   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Total interest income                               |  |                            | 6,803 |                          | 7,258 |      | 13,841 |      | 14,185
|                                                    |  |                            |       |                          |       |      |        |      |       
|Interest expense:                                   |  |                            |       |                          |       |      |        |      |       
|Deposits                                            |  |                            | 2,741 |                          | 3,173 |      | 5,486  |      | 6,024 
|Other borrowings                                    |  |                            | 477   |                          | 304   |      | 980    |      | 638   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Total interest expense                              |  |                            | 3,218 |                          | 3,477 |      | 6,466  |      | 6,662 
|                                                    |  |                            |       |                          |       |      |        |      |       
|Net interest income                                 |  |                            | 3,585 |                          | 3,781 |      | 7,375  |      | 7,523 
|                                                    |  |                            |       |                         
|Provision for loan losses                           |  |                            | 713   |                          | 176   |      | 893    |      | 313   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Net interest income after provision for loan losses |  |                            | 2,872 |                          | 3,605 |      | 6,482  |      | 7,210 
|                                                    |  |                            |       |                          |       |      |        |      |       
|Noninterest income:                                 |  |                            |       |                          |       |      |        |      |       
|Service charges on deposit accounts                 |  |                            | 186   |                          | 206   |      | 410    |      | 394   
|Other service charges and fees                      |  |                            | 92    |                          | 58    |      | 129    |      | 111   
|Income from bank owned life insurance               |  |                            | 78    |                          | 22    |      | 160    |      | 43    
|Gain on sale of loans held for sale                 |  |                            | 38    |                          | 72    |      | 63     |      | 104   
|Other                                               |  |                            | 54    |                          | 50    |      | 80     |      | 97    
|                                                    |  |                            |       |                          |       |      |        |      |       
|Total noninterest income                            |  |                            | 448   |                          | 408   |      | 842    |      | 749   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Noninterest expenses:                               |  |                            |       |                          |       |      |        |      |       
|Employee compensation and benefits                  |  |                            | 1,844 |                          | 1,787 |      | 3,750  |      | 3,595 
|Occupancy and equipment                             |  |                            | 400   |                          | 371   |      | 817    |      | 731   
|Data processing                                     |  |                            | 290   |                          | 226   |      | 565    |      | 465   
|Professional fees                                   |  |                            | 111   |                          | 94    |      | 196    |      | 140   
|Office supplies                                     |  |                            | 55    |                          | 39    |      | 112    |      | 105   
|Insurance                                           |  |                            | 108   |                          | 49    |      | 316    |      | 94    
|Other                                               |  |                            | 325   |                          | 252   |      | 579    |      | 453   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Total noninterest expenses                          |  |                            | 3,133 |                          | 2,818 |      | 6,335  |      | 5,583 
|                                                    |  |                            |       |                          |       |      |        |      |       
|Earnings before income taxes                        |  |                            | 187   |                          | 1,195 |      | 989    |      | 2,376 
|                                                    |  |                            |       |                         
|Income taxes                                        |  |                            | 29    |                          | 435   |      | 282    |      | 866   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Net earnings                                        |  | $                          | 158   |                          | 760   |      | 707    |      | 1,510 
|                                                    |  |                            |       |                          |       |      |        |      |       
|Earnings per share:                                 |  |                            |       |                          |       |      |        |      |       
|Basic earnings per share                            |  | $                          | .04   |                          | .19   |      | .17    |      | .37   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Diluted earnings per share                          |  | $                          | .04   |                          | .18   |      | .17    |      | .35   
|                                                    |  |                            |       |                          |       |      |        |      |       
|Dividends per share                                 |  | $                          |      |                          |      |      |       |      |      
|                                                    |  |                            |       |                          |       |      |        |      |       

See Accompanying Notes to Condensed Consolidated Financial Statements.



3



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders Equity

Six Months Ended June 30, 2008 and 2007

(In thousands, except share
amounts)



|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|------------------------------------------------------------------------------------------------ |  | ------------ | - | ----------------- | ------ | --- | -------- | ------ | - | ----------------------------------- | ------ | - | ------ | ---- | - | ----- | ------ | -
|                                                                                                 |  | Common Stock |   | AdditionalPaid-in |        |     | Retained |        |   | AccumulatedOtherComprehensiveIncome |        |   |        |     
|                                                                                                 |  | Shares       |   |                   | Amount |     | Capital  |        |   | Earnings                            |        |   | (Loss) |      |   | Total |       
|Balance at December 31, 2006                                                                     |  | 3,840,687    |   |                   | $      | 192 |          | 25,642 |   |                                     | 7,852  |   |        | (4   | ) |       | 33,682 |  
|                                                                                                 |  |              |   |                   |        |    
|Comprehensive income:                                                                            |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Net earnings (unaudited)                                                                         |  |             |   |                   |        |    |          |       |   |                                     | 1,510  |   |        |     |   |       | 1,510  |  
|                                                                                                 |  |              |   |                   |        |    
|Net change in unrealized loss on securities available for sale, net of taxes of $22 (unaudited)  |  |             |   |                   |        |    |          |       |   |                                     |       |   |        | (35  | ) |       | (35    | )
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Comprehensive income (unaudited)                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       | 1,475  |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|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)                                    |  | 21,457       |   |                   |        | 1   |          | 122    |   |                                     |       |   |        |     |   |       | 123    |  
|                                                                                                 |  |              |   |                   |        |    
|Share-based compensation expense (unaudited)                                                     |  |             |   |                   |        |    |          | 25     |   |                                     |       |   |        |     |   |       | 25     |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Balance at June 30, 2007 (unaudited)                                                             |  | 4,078,002    |   |                   | $      | 204 |          | 30,162 |   |                                     | 5,123  |   |        | (39  | ) |       | 35,450 |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Balance at December 31, 2007                                                                     |  | 4,082,002    |   |                   |        | 204 |          | 30,216 |   |                                     | 6,478  |   |        | 70   |   |       | 36,968 |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|                                                                                                 |  |              |   |                   |        |    
|Comprehensive income:                                                                            |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Net earnings (unaudited)                                                                         |  |             |   |                   |        |    |          |       |   |                                     | 707    |   |        |     |   |       | 707    |  
|                                                                                                 |  |              |   |                   |        |    
|Net change in unrealized gain on securities available for sale, net of taxes of $156 (unaudited) |  |             |   |                   |        |    |          |       |   |                                     |       |   |        | (260 | ) |       | (260   | )
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Comprehensive income (unaudited)                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       | 447    |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Exercise of stock options (unaudited)                                                            |  | 35,141       |   |                   |        | 1   |          | 168    |   |                                     |       |   |        |     |   |       | 169    |  
|                                                                                                 |  |              |   |                   |        |    
|Retirement of common stock (unaudited)                                                           |  | (6,022       | ) |                   |        |    |          | (59    | ) |                                     |       |   |        |     |   |       | (59    | )
|                                                                                                 |  |              |   |                   |        |    
|Share-based compensation expense (unaudited)                                                     |  |             |   |                   |        |    |          | 18     |   |                                     |       |   |        |     |   |       | 18     |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  
|Balance at June 30, 2008 (unaudited)                                                             |  | 4,111,121    |   |                   | $      | 205 |          | 30,343 |   |                                     | 7,185  |   |        | (190 | ) |       | 37,543 |  
|                                                                                                 |  |              |   |                   |        |     |          |        |   |                                     |        |   |        |      |   |       |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



4



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



|                                                                                              |  |                          |         |   |      |         |  
|--------------------------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ---- | ------- | -
|                                                                                              |  | Six Months EndedJune 30, |        
|                                                                                              |  | 2008                     |         |   | 2007 |        
|Cash flows from operating activities:                                                         |  |                          |         |   |      |         |  
|Net earnings                                                                                  |  | $                        | 707     |   |      | 1,510   |  
|Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |  |                          |         |   |      |         |  
|Provision for loan losses                                                                     |  |                          | 893     |   |      | 313     |  
|Depreciation and amortization                                                                 |  |                          | 303     |   |      | 254     |  
|Net Amortization of premiums and discounts on securities                                      |  |                          | (21     | ) |      | (14     | )
|Share-based compensation                                                                      |  |                          | 18      |   |      | 25      |  
|Net amortization of deferred loan fees and costs                                              |  |                          | (175    | ) |      | (133    | )
|Income from bank owned life insurance                                                         |  |                          | (160    | ) |      | (43     | )
|Origination of loans held for sale                                                            |  |                          | (4,312  | ) |      | (10,272 | )
|Proceeds from sale of loans held for sale                                                     |  |                          | 4,645   |   |      | 9,710   |  
|Gain on sale of loans held for sale                                                           |  |                          | (63     | ) |      | (104    | )
|Decrease (increase) in accrued interest receivable                                            |  |                          | 106     |   |      | (121    | )
|Increase in other assets                                                                      |  |                          | (1,120  | ) |      | (635    | )
|Increase (decrease) in accrued expenses and other liabilities                                 |  |                          | 873     |   |      | (1,504  | )
|                                                                                              |  |                          |         |   |      |         |  
|Net cash provided by (used in) operating activities                                           |  |                          | 1,694   |   |      | (1,014  | )
|                                                                                              |  |                          |         |   |      |         |  
|Cash flows from investing activities:                                                         |  |                          |         |   |      |         |  
|Net change in other interest-bearing deposits with banks                                      |  |                          | 198     |   |      | (128    | )
|Purchase of securities available for sale                                                     |  |                          | (17,898 | ) |      | (4,068  | )
|Principal payments on securities available for sale                                           |  |                          | 717     |   |      | 133     |  
|Proceeds from calls and maturities of securities available for sale                           |  |                          | 500     |   |      | 2,500   |  
|Purchase of securities held to maturity                                                       |  |                          |        |   |      | (1,000  | )
|Proceeds from maturities of securities held to maturity                                       |  |                          | 1,160   |   |      | 500     |  
|Principal payments on securities held to maturity                                             |  |                          | 178     |   |      | 175     |  
|Net increase in loans                                                                         |  |                          | (4,913  | ) |      | (18,370 | )
|Purchase of premises and equipment, net                                                       |  |                          | (1,312  | ) |      | (2,670  | )
|(Purchase) redemption of Federal Home Loan Bank stock                                         |  |                          | (397    | ) |      | 1,039   |  
|                                                                                              |  |                          |         |   |      |         |  
|Net cash used in investing activities                                                         |  |                          | (21,767 | ) |      | (21,889 | )
|                                                                                              |  |                          |         |   |      |         |  
|Cash flows from financing activities:                                                         |  |                          |         |   |      |         |  
|Increase in deposits                                                                          |  |                          | 42,282  |   |      | 43,602  |  
|Proceeds from Federal Home Loan Bank advances                                                 |  |                          | 20,000  |   |      |        |  
|Repayment of Federal Home Loan Bank advances                                                  |  |                          | (13,000 | ) |      | (24,500 | )
|Net (decrease) increase in other borrowings                                                   |  |                          | (4,870  | ) |      | 2,616   |  
|Fractional shares of stock dividend paid in cash                                              |  |                          |        |   |      | (2      | )
|Proceeds from exercise of stock options                                                       |  |                          | 169     |   |      | 270     |  
|Retirement of common stock                                                                    |  |                          | (59     | ) |      |        |  
|                                                                                              |  |                          |         |   |      |         |  
|Net cash provided by financing activities                                                     |  |                          | 44,522  |   |      | 21,986  |  
|                                                                                              |  |                          |         |   |      |         |  
|Net increase (decrease) in cash and cash equivalents                                          |  |                          | 24,449  |   |      | (917    | )
|                                                                                              |  |                         
|Cash and cash equivalents at beginning of period                                              |  |                          | 9,100   |   |      | 11,527  |  
|                                                                                              |  |                          |         |   |      |         |  
|Cash and cash equivalents at end of period                                                    |  | $                        | 33,549  |   |      | 10,610  |  
|                                                                                              |  |                          |         |   |      |         |  



(continued)



5



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited), Continued

(In thousands)



|                                                                                                                                          |  |                          |       |   |      |       |  
|----------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------ | ----- | - | ---- | ----- | -
|                                                                                                                                          |  | Six Months EndedJune 30, |      
|                                                                                                                                          |  | 2008                     |       |   | 2007 |      
|Supplemental disclosure of cash flow information:                                                                                         |  |                          |       |   |      |       |  
|Cash paid during the period for:                                                                                                          |  |                          |       |   |      |       |  
|Interest, net of capitalized interest of $181 and $0                                                                                      |  | $                        | 6,344 |   |      | 6,723 |  
|                                                                                                                                          |  |                          |       |   |      |       |  
|Income taxes                                                                                                                              |  | $                        | 595   |   |      | 1,055 |  
|                                                                                                                                          |  |                          |       |   |      |       |  
|Noncash transactions:                                                                                                                     |  |                          |       |   |      |       |  
|Accumulated other comprehensive income (loss), net change in unrealized gain (loss) on securities available for sale, net of income
taxes |  | $                        | (260  | ) |      | (35   | )
|                                                                                                                                          |  |                          |       |   |      |       |  
|Transfer from loans to foreclosed real estate                                                                                             |  | $                        | 2,124 |   |      |      |  
|                                                                                                                                          |  |                          |       |   |      |       |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



6



---

##### Table of Contents

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 six months ended June 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 June 30, 2008, the results of operations for the three- and six-month periods ended June 30, 2008 and 2007 and cash flows for the six-month periods ended June 30, 2008 and 2007. The results of operations and
other data for the three- and six-month periods ended June 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 EndedJune 30, |        |   | Six Months EndedJune 30, |      
|                               |  | 2008                       |        |   | 2007                     |       |   | 2008 |        |   | 2007 |      
|Balance at beginning of period |  | $                          | 4,201  |   |                          | 3,637 |   |      | 4,479  |   |      | 3,499 |  
|Provision for loan losses      |  |                            | 713    |   |                          | 176   |   |      | 893    |   |      | 313   |  
|Charge-offs                    |  |                            | (1,032 | ) |                          | (2    | ) |      | (1,490 | ) |      | (3    | )
|Recoveries                     |  |                            | 1      |   |                          |      |   |      | 1      |   |      | 2     |  
|                               |  |                            |        |   |                          |       |   |      |        |   |      |       |  
|Balance at end of period       |  | $                          | 3,883  |   |                          | 3,811 |   |      | 3,883  |   |      | 3,811 |  
|                               |  |                            |        |   |                          |       |   |      |        |   |      |       |  

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



|                                             |  |                          |       |      |      
|-------------------------------------------- |  | ------------------------ | ----- | ---- | -----
|                                             |  | At June 30,             
|                                             |  | 2008                     |       | 2007
|Balance at end of period                     |  | $                        | 9,504 |      | 1,427
|                                             |  |                          |       |      |      
|Total related allowance for losses           |  | $                        | 810   |      | 126  
|                                             |  |                          |       |      |      
|                                             | 
|                                             |  | Six Months EndedJune 30,
|                                             |  | 2008                     |       | 2007
|Average investment in impaired loans         |  | $                        | 6,498 |      | 1,001
|                                             |  |                          |       |      |      
|Interest income recognized on impaired loans |  | $                        |      |      |     
|                                             |  |                          |       |      |      
|Interest income received on impaired loans   |  | $                        |      |      |     
|                                             |  |                          |       |      |      



(continued)



7



---

##### Table of Contents

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 June 30,
|                                             |  | 2008        |       | 2007
|Nonaccrual loans                             |  | $           | 6,544 |      | 1,427
|Past due ninety days or more, still accruing |  |             |      |      |     
|                                             |  |             |       |      |      
|                                             |  | $           | 6,544 |      | 1,427
|                                             |  |             |       |      |      



|3. | Loans Held for Sale.At June 30, 2008 and December 31, 2007 loans held for sale approximated $158,000 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 June30,
|                                                                      |  | 2008                       |     | 2007                  
|                                                                      |  | Earnings                   |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |     | PerShareAmount
|Basic EPS:                                                            |  |                            |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Net earnings available to common stockholders                         |  | $                          | 158 |                        | 4,111,121 |                | $ | 0.04     |  | $                      | 760 |                | 4,072,891 |  | $ | 0.19
|Effect of dilutive securities-                                        |  |                            |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Incremental shares from assumed conversion of options                 |  |                            |     |                        | 140,400   |                |   |          |  |                        |     |                | 238,684   |  |   |     
|                                                                      |  |                            |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Diluted EPS:                                                          |  |                            |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     
|Net earnings available to common stockholders and assumed conversions |  | $                          | 158 |                        | 4,251,521 |                | $ | 0.04     |  | $                      | 760 |                | 4,311,575 |  | $ | 0.18
|                                                                      |  |                            |     |                        |           |                |   |          |  |                        |     |                |           |  |   |     



(continued)



8



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



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



|                                                                      |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|--------------------------------------------------------------------- |  | ------------------------- | --- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | ----- | -------------- | --------- |  | - | ----
|                                                                      |  | Six Months Ended June 30,
|                                                                      |  | 2008                      |     | 2007                  
|                                                                      |  | Earnings                  |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |       | PerShareAmount
|Basic EPS:                                                            |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Net earnings available to common stockholders                         |  | $                         | 707 |                        | 4,112,147 |                | $ | 0.17     |  | $                      | 1,510 |                | 4,065,654 |  | $ | 0.37
|                                                                      |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Effect of dilutive securities-                                        |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Incremental shares from assumed conversion of options                 |  |                           |     |                        | 138,747   |                |   |          |  |                        |       |                | 252,512   |  |   |     
|                                                                      |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Diluted EPS:                                                          |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     
|Net earnings available to common stockholders and assumed conversions |  | $                         | 707 |                        | 4,250,894 |                | $ | 0.17     |  | $                      | 1,510 |                | 4,318,166 |  | $ | 0.35
|                                                                      |  |                           |     |                        |           |                |   |          |  |                        |       |                |           |  |   |     

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



|                                                  |  |                   |  |             |  |               |       |        |          
|------------------------------------------------- |  | ----------------- |  | ----------- |  | ------------- | ----- | ------ | ---------
|For the three and six months ended June 30, 2008: |  | NumberOutstanding |  | YearGranted |  | ExercisePrice |       | Expire
|Options                                           |  | 233,102           |  | 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
|                                                  |  | 3,150             |  | 2006        |  |               | 19.52 |        | 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)



9



---

##### Table of Contents

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 June 30, 2008, no options remain available for grant under the directors plan and 52,640 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 June 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                |  | (12,600          | ) |  |                               | 20.75 |                                          |           |                         |   |      
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Outstanding at June 30, 2008     |  | 637,980          |   |  | $                             | 10.85 |                                          | 3.4 years |                         | $ | 1,603
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      
|Exercisable at June 30, 2008     |  | 614,750          |   |  | $                             | 10.67 |                                          | 2.9 years |                         | $ | 1,603
|                                 |  |                  |   |  |                               |       |                                          |           |                         |   |      

The total intrinsic value of options exercised during the six months ended June 30, 2008 and
2007 was $222,000 and $609,000. At June 30, 2008, there was approximately $47,000 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 twenty-three months. The total fair value of shares vesting and recognized as compensation expense was approximately $18,000 and $25,000 for the six months ended June 30, 2008 and 2007, respectively.
There was no associated tax benefit recognized for both the six months ended June 30, 2008 and 2007.



(continued)



10



---

##### Table of Contents

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 six months ended June 30, 2008. The fair value of each option granted for
the three and six months ended June 30, 2008 and 2007 is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                     |  |                    |      |   |                  |      |  
|-------------------------------------------------------------------- |  | ------------------ | ---- | - | ---------------- | ---- | -
|                                                                     |  | Three Months Ended |      |   | Six Months Ended |     
|                                                                     |  | June 30,           |      |   | June 30,         |     
|                                                                     |  | 2007               |      |   | 2007             |     
|Risk-free interest rate                                              |  |                    | 4.66 | % |                  | 4.69 | %
|Expected dividend yield                                              |  |                    |     |   |                  |     |  
|Expected volatility                                                  |  |                    | 3    | % |                  | 5    | %
|Expected life in years                                               |  |                    | 6    |   |                  | 6    |  
|Per share grant-date fair value of options granted during the period |  | $                  | 4.44 |   |                  | 4.55 |  
|                                                                     |  |                    |      |   |                  |      |  

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 June 30, 2008, the Bank was in compliance with its
regulatory capital requirements.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



(continued)



11



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|7. | 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 and foreclosed assets. 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 ofJune 30,2008                     |        | Quoted PricesIn ActiveMarkets forIdenticalAssets(Level 1) |   | SignificantOtherObservableInputs(Level 2) |        | SignificantUnobservableInputs(Level 3)
|Available for sale securities |  | $                                               | 23,129 |                                                           |  |                                           | 23,129 |                                        | 



(continued)



12



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|7. | 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 six month period ended June 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.

Foreclosed Real Estate.Foreclosed real estate represents real estate acquired by the Company as a result of foreclosure or by deed in lieu of
foreclosure and is carried, net of any allowance for losses if any, at the lower of cost or estimated fair value less estimated selling costs. Fair value is estimated in the same manner as impaired loans and, as such, is also classified as Level 3.
As these properties are actively marketed, estimated fair value may be periodically adjusted through an allowance for losses to reflect decreases resulting from changing market conditions.



(continued)



13



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued



|7. | Fair Value Measurement, Continued.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 June 30, 2008 (in thousands).
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                       |  |                                     |       |                   |   |                 |   |         |       |               |     |               |    
|---------------------- |  | ----------------------------------- | ----- | ----------------- | - | --------------- | - | ------- | ----- | ------------- | --- | ------------- | ---
|                       |  |                                     |       | Total Losses     
|                       |  | Net carrying value at June 30, 2008 |       | Three-MonthsEnded |   | Six-MonthsEnded
|                       |  | Total                               |       | Level 1           |   | Level 2         |   | Level 3 |       | June 30, 2008 |     | June 30, 2008
|Impaired loans         |  | $                                   | 9,504 |                   |  |                 |  |         | 9,504 |               | 106 |               | 106
|Foreclosed real estate |  |                                     | 2,662 |                   |  |                 |  |         | 2,662 |               | 74  |               | 74 



14



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Review by Independent Registered Public Accounting Firm

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



15



---

##### 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 June 30, 2008, the related condensed consolidated statements of earnings for the
three- and six-month periods ended June 30, 2008 and 2007 and the related condensed consolidated statements of changes in stockholders equity and cash flows for the six-month periods ended June 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                
|August 6, 2008                



16



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Item 2. Managements Discussion and Analysis of

Financial Condition and Results of Operations

Forward Looking Statements

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

General

First Community Bank Corporation of America (the Holding Company) owns all of the outstanding common stock of First Community Bank of America
(the Bank) and First Community Lender Services, Inc. (FCLS) (collectively, the Company). The Holding Companys primary business activity is the 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 six months ended June 30, 2008 and 2007.

Liquidity and Capital Resources

The Companys primary source of cash during the six months ended June 30, 2008,
was from net deposit inflows of approximately $42 million. Cash was used primarily to increase securities $15 million and federal funds sold by $21 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.



17



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



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

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

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

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

A summary of the amounts of the Companys financial instruments, with off-balance sheet risk at June 30, 2008, follows (in thousands):



|                             |  |                |       
|---------------------------- |  | -------------- | ------
|                             |  | ContractAmount
|Commitments to extend credit |  | $              | 25,218
|                             |  |                |       
|Unused lines of credit       |  | $              | 35,804
|                             |  |                |       
|Standby letters of credit    |  | $              | 3,075 
|                             |  |                |       

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.



18



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Selected Financial Information

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



|                                                                      |  |                             |   |  |                            |   |  |                             |  
|--------------------------------------------------------------------- |  | --------------------------- | - |  | -------------------------- | - |  | --------------------------- | -
|                                                                      |  | Six MonthsEndedJune 30,2008 |   |  | Year EndedDecember 31,2007 |   |  | Six MonthsEndedJune 30,2007 |  
|Average equity as a percentage of average assets                      |  | 8.20                        | % |  | 8.57                       | % |  | 8.52                        | %
|                                                                      |  |                             |  
|Equity to total assets at end of period                               |  | 7.79                        | % |  | 8.47                       | % |  | 8.59                        | %
|                                                                      |  |                             |  
|Return on average assets (1)                                          |  | 0.31                        | % |  | 0.69                       | % |  | 0.75                        | %
|                                                                      |  |                             |  
|Return on average equity (1)                                          |  | 3.78                        | % |  | 8.05                       | % |  | 8.77                        | %
|                                                                      |  |                             |  
|Noninterest expenses to average assets (1)                            |  | 2.78                        | % |  | 2.70                       | % |  | 2.76                        | %
|                                                                      |  |                             |  
|Nonperforming assets as a percentage of total assets at end of period |  | 1.91                        | % |  | 0.67                       | % |  | 0.44                        | %



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



19



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Results of Operations

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



|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|-------------------------------------------------------------------------------- |  | --------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ----- |  | ---- | -
|                                                                                 |  | Three Months Ended June 30, |        
|                                                                                 |  | 2008                        |         |                      | 2007 |                  
|                                                                                 |  | AverageBalance              |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)      |        
|Interest-earning assets:                                                         |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans (1)                                                                        |  | $                           | 381,243 |                      |      | 6,324             |  | 6.64 | %              |  | $                    | 356,374 |                   |   | 6,783 |  | 7.61 | %
|Securities                                                                       |  |                             | 27,741  |                      |      | 344               |  | 4.96 |                |  |                      | 16,486  |                   |   | 174   |  | 4.22 |  
|Other interest-earning assets (2)                                                |  |                             | 11,276  |                      |      | 135               |  | 4.79 |                |  |                      | 25,949  |                   |   | 301   |  | 4.64 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                             | 420,260 |                      |      | 6,803             |  | 6.48 |                |  |                      | 398,809 |                   |   | 7,258 |  | 7.28 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                             | 43,647  |                      |      |                   |  |      |                |  |                      | 19,300  |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                           | 463,907 |                      |      |                   |  |      |                |  | $                    | 418,109 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                             | 132,404 |                      |      | 606               |  | 1.83 |                |  |                      | 115,338 |                   |   | 692   |  | 2.40 |  
|Time deposits                                                                    |  |                             | 196,296 |                      |      | 2,135             |  | 4.35 |                |  |                      | 196,259 |                   |   | 2,481 |  | 5.06 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                             | 328,700 |                      |      | 2,741             |  | 3.34 |                |  |                      | 311,597 |                   |   | 3,173 |  | 4.07 |  
|                                                                                 |  |                             |         |                      |      |                  
|Other interest-bearing liabilities (3)                                           |  |                             | 56,386  |                      |      | 477               |  | 3.38 |                |  |                      | 26,753  |                   |   | 304   |  | 4.55 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                             | 385,086 |                      |      | 3,218             |  | 3.34 |                |  |                      | 338,350 |                   |   | 3,477 |  | 4.11 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                             | 41,444  |                      |      |                   |  |      |                |  |                      | 44,563  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                             | 37,377  |                      |      |                   |  |      |                |  |                      | 35,196  |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                           | 463,907 |                      |      |                   |  |      |                |  | $                    | 418,109 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                             |         |                      | $    | 3,585             |  |      |                |  |                      |         |                   | $ | 3,781 |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (4)                                                         |  |                             |         |                      |      |                   |  | 3.14 | %              |  |                      |         |                   |   |       |  | 3.17 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (5)                                                          |  |                             |         |                      |      |                   |  | 3.41 | %              |  |                      |         |                   |   |       |  | 3.79 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                             | 1.09    |                      |      |                   |  |      |                |  |                      | 1.18    |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  



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



20



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



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



|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ------ |  | ---- | -
|                                                                                 |  | Six Months Ended June 30, |        
|                                                                                 |  | 2008                      |         |                      | 2007 |                  
|                                                                                 |  | AverageBalance            |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)    |        
|Interest-earning assets:                                                         |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Loans (1)                                                                        |  | $                         | 384,768 |                      |      | 13,015            |  | 6.77 | %              |  | $                    | 353,057 |                   |   | 13,412 |  | 7.60 | %
|Securities                                                                       |  |                           | 24,101  |                      |      | 591               |  | 4.90 |                |  |                      | 16,246  |                   |   | 366    |  | 4.51 |  
|Other interest-earning assets (2)                                                |  |                           | 10,041  |                      |      | 235               |  | 4.68 |                |  |                      | 14,084  |                   |   | 407    |  | 5.78 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-earning assets                                                    |  |                           | 418,910 |                      |      | 13,841            |  | 6.61 |                |  |                      | 383,387 |                   |   | 14,185 |  | 7.40 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Noninterest-earning assets                                                       |  |                           | 39,988  |                      |      |                   |  |      |                |  |                      | 23,680  |                   |   |        |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total assets                                                                     |  | $                         | 458,898 |                      |      |                   |  |      |                |  | $                    | 407,067 |                   |   |        |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Interest-bearing liabilities:                                                    |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                           | 128,594 |                      |      | 1,231             |  | 1.91 |                |  |                      | 113,188 |                   |   | 1,331  |  | 2.35 |  
|Time deposits                                                                    |  |                           | 195,483 |                      |      | 4,255             |  | 4.35 |                |  |                      | 188,357 |                   |   | 4,693  |  | 4.98 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing deposits                                                  |  |                           | 324,077 |                      |      | 5,486             |  | 3.39 |                |  |                      | 301,545 |                   |   | 6,024  |  | 4.00 |  
|Other interest-bearing liabilities (3)                                           |  |                           | 55,923  |                      |      | 980               |  | 3.50 |                |  |                      | 27,019  |                   |   | 638    |  | 4.72 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total interest-bearing liabilities                                               |  |                           | 380,000 |                      |      | 6,466             |  | 3.40 |                |  |                      | 328,564 |                   |   | 6,662  |  | 4.06 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Noninterest-bearing liabilities                                                  |  |                           | 41,263  |                      |      |                   |  |      |                |  |                      | 43,766  |                   |   |        |  |      |  
|Stockholders equity                                                             |  |                           | 37,635  |                      |      |                   |  |      |                |  |                      | 34,737  |                   |   |        |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Total liabilities and stockholders equity                                       |  | $                         | 458,898 |                      |      |                   |  |      |                |  | $                    | 407,067 |                   |   |        |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest income                                                              |  |                           |         |                      | $    | 7,375             |  |      |                |  |                      |         |                   | $ | 7,523  |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Interest-rate spread (4)                                                         |  |                           |         |                      |      |                   |  | 3.21 | %              |  |                      |         |                   |   |        |  | 3.34 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Net interest margin (5)                                                          |  |                           |         |                      |      |                   |  | 3.52 | %              |  |                      |         |                   |   |        |  | 3.92 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                           | 1.10    |                      |      |                   |  |      |                |  |                      | 1.17    |                   |   |        |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |        |  |      |  



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



21



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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

General. Our net earnings for the three months ended June 30, 2008, were $158,000 or $.04 per basic share and $.04 per diluted share compared to $760,000 or $.19 per basic share and $.18 per diluted
share for the three months ended June 30, 2007. The second quarter 2008 reflected a $537,000 increase in provision for loan losses and a $315,000 increase in noninterest expense reflecting an investment in new branches and infrastructure to
support growth.

Net Interest Income. Interest income decreased to $6.8 million during the three months ended June 30, 2008, from $7.3
million in 2007. Interest on loans for the three months ended June 30, 2008 decreased to $6.3 million from $6.8 million for the three months ended June 30, 2007. This decrease was also due to a decrease in the average yield earned to 6.64%
for the three months ended June 30, 2008 from 7.61% for the three months ended June 30, 2007. Interest on securities increased to $344,000 during the three months ended June 30, 2008 from $174,000 for the three months ended
June 30, 2007. The increase in interest income on securities was due to an increase in the average balance of securities from $16.5 million in 2007 to $27.7 million in 2008 and an increase in the average yield earned from 4.22% in 2007 to 4.96%
in 2008.

Interest expense on interest-bearing deposit accounts decreased to $2.7 million during the three months ended June 30, 2008, compared to
$3.2 million during the three months ended June 30, 2007. The decrease was due to a decrease in the rate paid to 3.34% during the three months ended June 30, 2008 from 4.07% during the three months ended June 30, 2007. Interest
expense on other borrowings increased to $477,000 during the three months ended June 30, 2008, compared to $304,000 during the three months ended June 30, 2007. The increase was due to an increase in the average balance of other borrowings
to $56.3 million in 2008 from $26.8 million in 2007. The average rate paid on other borrowings decreased to 3.38% during the three months ended June 30, 2008 compared to 4.55% during the three months ended June 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.

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.



22



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

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



Provision for Loan Losses, Continued.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 $713,000 for the three months ended
June 30, 2008 compared to $176,000 for the three months ended June 30, 2007. While continued economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming
assets and charge-offs, management believes that the levels of nonperforming assets and the charge-off ratio adequately reflects the current circumstances.

The allowance for loan losses is $3.9 million at June 30, 2008. While management believes that its allowance for loan losses is adequate as of June 30, 2008, future adjustments to the Companys allowance for loan losses may
be necessary if economic conditions differ substantially from the assumptions used in making the initial determination.

Noninterest Income.
Noninterest income increased to $448,000 in 2008 from $408,000 for the three- months ended June 30, 2007. The increase was primarily due to a $56,000 increase in income from bank owned life insurance.

Noninterest Expenses. Total noninterest expenses increased to $3.1 million for the three months ended June 30, 2008 from $2.8 million for the
comparable period ended June 30, 2007, reflected increases in all categories of expense. These increases reflect the opening of two new banking offices.

Income Taxes. Income taxes for the three months ended June 30, 2008 was $29,000 or 15.5% compared to $435,000 or 36.4% for the period ended June 30, 2007. The lower tax rate reflects an increase in tax-free income.



23



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Six-Month Periods Ended June 30, 2008 and 2007

General. Our net earnings for the six months ended June 30, 2008, decreased to $707,000 or $.17 per basic share and $.17 per diluted share compared to $1,510,000 or $.37 per basic share and $.35 per
diluted share for the six months ended June 30, 2007. Net earnings decreased due to $580,000 increase in provision for loan losses, a $148,000 decrease in net interest income and a $752,000 increase in noninterest expense reflecting an
investment in new branches.

Net Interest Income. Interest income decreased to $13.8 million during the six months ended June 30, 2008,
from $14.2 million in 2007. Interest on loans for the six months ended June 30, 2008 decreased to $13.0 million from $13.4 million for the six months ended June 30, 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 6.77% from 7.60% for the same period in 2007. The average balance of loans was $384.8 million during the six months ended
June 30, 2008 compared to $353.1 million during the six months ended June 30, 2007. Interest on securities increased to $591,000 during the six months ended June 30, 2008, from $366,000 for the six months ended June 30, 2007. The
increase in interest income on securities was due to an increase in the average balance of securities from $16.2 million in 2007 to $24.1 million in 2008, and an increase in the average yield earned from 4.51% in 2007 to 4.90% in 2008.

Interest expense on interest-bearing deposit accounts decreased to $5.5 million during the six months ended June 30, 2008, compared to $6.0 million during the
six months ended June 30, 2007. The decrease was due to a decrease in the rate paid to 3.39% during the six months ended June 30, 2008 from 4.00% during the six months ended June 30, 2007. The average balance of interest bearing
deposits increased to $324.1 million in 2008 from $301.5 million in 2007. Interest expense on other borrowings increased to $980,000 during the six months ended June 30, 2008, compared to $638,000 during the six months ended June 30, 2007.
The increase was due to an increase in the average balance of other borrowings to $55.9 million in 2008 from $27.0 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 3.50% during the six months ended June 30, 2008 compared to 4.72% during the six months ended June 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.



24



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Six-Month Periods Ended June 30, 2008 and 2007



Provision for Loan Losses, Continued.Larger commercial loans that exhibit probable or observed credit
weaknesses are subject to individual review. Where appropriate, the allowance is allocated to individual loans based on our estimate of the borrowers ability to repay the loan given the availability of collateral, other sources of cash flows
and available legal options. Included in the review of individual loans are those that are impaired 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.

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 $893,000 for the six months ended June 30, 2008 compared to $313,000 for the six months ended June 30, 2007. While continued
economic weakness, rapidly rising interest rates, or other factors could cause stress on the loan portfolio and affect the levels of nonperforming assets and charge-offs, management believes that the levels of nonperforming assets and the charge-off
ratio adequately reflect the current circumstances.

The allowance for loan losses is $3.9 million at June 30, 2008. While management believes that
its allowance for loan losses is adequate as of June 30, 2008, future adjustments to the Companys allowance for loan losses may be necessary if economic conditions differ substantially from the assumptions used in making the initial
determination.



25



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

Comparison of the Six-Month Periods Ended June 30, 2008 and 2007



Noninterest Income. Noninterest income increased to $842,000 in 2008 from $749,000 for the six months
ended June 30, 2007. The increase was primarily due to an increase in income from bank owned life insurance.

Noninterest Expenses.
Total noninterest expenses increased to $6.3 million for the six months ended June 30, 2008 from $5.6 million for the comparable period ended June 30, 2007 due to increases in most categories of noninterest expense reflecting the opening
of new banking offices.

Income Taxes. Income taxes for the six months ended June 30, 2008 was $282,000 or 28.5% compared to $866,000 or
36.5% for the period ended June 30, 2007. The lower tax rate reflects an increase in tax-free income and which constitutes a significantly larger percentage of pre-tax income.



26



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

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



27



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART II. OTHER INFORMATION, CONTINUED



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

The Annual Meeting of Shareholders (the Annual Meeting) of First Community Bank Corporation of America, was held on May 12, 2008, to
consider the election of nine directors with terms expiring at the Annual Meeting in 2009, to fix the number of directors to serve on the board for the ensuing year at eleven and the adjournment of the Annual Meeting to solicit additional proxies in
the event there were not sufficient votes to approve any of the foregoing items.

At the Annual Meeting 3,700,856 shares were present in person or by
proxy. Listed below are the directors that were elected at the Annual Meeting, their terms, and a summary of the votes cast for each nominee.



|                   |  |              |  |           |  |         |  |        
|------------------ |  | ------------ |  | --------- |  | ------- |  | -------
|                   |  | TermExpiring |  | For       |  | Against |  | Abstain
|Brad Bishop        |  | 2009         |  | 3,692,956 |  |        |  | 7,900  
|                   |  |              |  |           |  |         |  |        
|Kenneth P. Cherven |  | 2009         |  | 3,692,594 |  |        |  | 8,262  
|                   |  |              |  |           |  |         |  |        
|Edwin C. Hussemann |  | 2009         |  | 3,692,799 |  |        |  | 8,057  
|                   |  |              |  |           |  |         |  |        
|Kenneth Delarbre   |  | 2009         |  | 3,693,045 |  |        |  | 7,811  
|                   |  |              |  |           |  |         |  |        
|James Macaluso     |  | 2009         |  | 3,643,489 |  |        |  | 57,367 
|                   |  |              |  |           |  |         |  |        
|David K. Meehan    |  | 2009         |  | 3,692,798 |  |        |  | 8,058  
|                   |  |              |  |           |  |         |  |        
|Robert G. Menke    |  | 2009         |  | 3,692,799 |  |        |  | 8,057  
|                   |  |              |  |           |  |         |  |        
|Robert M. Menke    |  | 2009         |  | 3,689,848 |  |        |  | 11,008 
|                   |  |              |  |           |  |         |  |        
|Kenneth F. Faliero |  | 2009         |  | 3,692,956 |  |        |  | 7,900  
|                   |  |              |  |           |  |         |  |        

The shareholders voted on two other matters-



|                                                  |  |           |  |         |  |        
|------------------------------------------------- |  | --------- |  | ------- |  | -------
|                                                  |  | For       |  | Against |  | Abstain
|Fix the number of directors to serve on the board |  | 3,674,624 |  | 13,717  |  | 12,515 
|                                                  |  |           |  |         |  |        
|Solicit additional proxies if needed              |  | 3,663,401 |  | 26,281  |  | 11,174 
|                                                  |  |           |  |         |  |        



28



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES

PART II. OTHER INFORMATION, CONTINUED



Item 6. Exhibits

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



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



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

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

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

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



29



---

##### Table of Contents

FIRST COMMUNITY BANK CORPORATION OF AMERICA AND SUBSIDIARIES



SIGNATURES

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



|                      |  |  |  |                                             |  |                                                          
|--------------------- |  |  |  | ------------------------------------------- |  | ---------------------------------------------------------
|                      |  |  |  | FIRST COMMUNITY BANK CORPORATION OF AMERICA
|                      |  |  |  | (Registrant)                               
|                      |  |  | 
|Date: August 13, 2008 |  |  |  | By:                                         |  | /s/ Kenneth P. Cherven                                   
|                      |  |  |  |                                             |  | Kenneth P. Cherven, President and Chief Executive Officer
|                      |  |  | 
|Date: August 13, 2008 |  |  |  | By:                                         |  | /s/ Stan B. McClelland                                   
|                      |  |  |  |                                             |  | Stan B. McClelland, Chief Financial Officer              



30