**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

| x | QUARTERLY                REPORT UNDER SECTION 13 OR 15 (d) OF                THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF                THE EXCHANGE ACT |
|---|-----------------------------------------------------------------------------------------------|

**JACKSONVILLE      BANCORP, INC.**

| Florida                                        |   | 59-3472981                         |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (IRS                Employer       |
| incorporation                or organization)  |   | Identification                No.) |

** **

----

|                                                                             |                                                                            |   | Page   |
|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------|--------|--------|
|                                                                             |                                                                            |   |   |
| PART                I—FINANCIAL INFORMATION                                |                                                                            |   |
|                                                                             |                                                                            |   |   |
| Item                1.                                                           | Financial                Statements                                             |   |   |
|                                                                             |                                                                            |   |   |
|                                                                             | Consolidated                Balance Sheets                                      |   | 3      |
|                                                                             |                                                                            |   |   |
|                                                                             | Consolidated                Statements of Income                                |   | 4      |
|                                                                             |                                                                            |   |   |
|                                                                             | Consolidated                Statements of Changes in Shareholders’ Equity |   | 5      |
|                                                                             |                                                                            |   |   |
|                                                                             | Consolidated                Statements of Cash Flows                            |   | 6      |
|                                                                             |                                                                            |   |   |
|                                                                             | Notes                to Consolidated Financial Statements                       |   | 7      |
|                                                                             |                                                                            |   |   |
| Item                2.                                                           | Management’s                Discussion and Analysis of                    |   |   |
|                                                                             | Financial                Condition and Results of Operations                    |   | 11     |
|                                                                             |                                                                            |   |   |
| Item                3.                                                           | Quantitative                and Qualitative Disclosures about Market Risk       |   | 20     |
|                                                                             |                                                                            |   |   |
| Item                4.                                                           | Controls                and Procedures                                          |   | 21     |
|                                                                             |                                                                            |   |   |
| Item                4T.                                                          | Controls                and Procedures                                          |   | 21     |
|                                                                             |                                                                            |   |   |
| Part                II—Other Information                                   |                                                                            |   |
|                                                                             |                                                                            |   |   |
| Item                1.                                                           | Legal                Proceedings                                                |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                1A.                                                          | Risk                Factors                                                     |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                2.                                                           | Unregistered                Sales of Equity Securities and Use of Proceeds      |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                3.                                                           | Defaults                Upon Senior Securities                                  |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                4.                                                           | Submission                of Matters to a Vote of Security Holders              |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                5.                                                           | Other                Information                                                |   | 22     |
|                                                                             |                                                                            |   |   |
| Item                6.                                                           | Exhibits                                                                        |   | 23     |
|                                                                             |                                                                            |   |   |
| SIGNATURES                                                                       |                                                                            |   | 24     |
|                                                                             |                                                                            |   |   |
| EXHIBIT                INDEX                                                     |                                                                            |   |
|                                                                             |                                                                            |   |   |
| CERTIFICATIONS                                                                   |                                                                            | 26     |
| Certification                of Gilbert J. Pomar, III                            |                                                                            | 27     |
| Certification                of Valerie A. Kendall                               |                                                                            | 28     |
| Certification                under Section 906 of the Sarbanes-Oxley Act of 2002 |                                                                            |   |

----

**PART      I—FINANCIAL INFORMATION**

**Item      1. Financial Statements**

|                                                                      |   | September                30, |    | December                31, |   |
|---------------------------------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|
|                                                                      |   | 2007                         |    | 200n6                       |   |
|                                                                           |   | (Unaudited)                  |    |                        |   |
| ASSETS                                                                    |   |                         |    |                        |   |
| Cash                and due from banks                                    |   | $                            | 4,987   |                        | $      | 4,373 |   |
| Federal                funds sold                                         |   |                         | 105     |                        |   | 105 |   |
| Total                cash and cash equivalents                            |   |                         | 5,092   |                        |   | 4,478 |   |
| Securities                available for sale                              |   |                         | 29,913  |                        |   | 26,059 |   |
| Securities                held to maturity                                |   |                         | 50      |                        |   | 50 |   |
| Loans,                net of allowance for loan losses                    |   |                         |    |                        |   |   |   |
| of                3,060 at 2007 and $2,621 at 2006                        |   |                         | 333,677 |                        |   | 281,006 |   |
| Premises                and equipment, net                                |   |                         | 4,424   |                        |   | 4,616 |   |
| Bank-owned                life insurance (BOLI)                           |   |                         | 4,967   |                        |   | 4,837 |   |
| Federal                Home Loan Bank (FHLB) stock                        |   |                         | 2,883   |                        |   | 1,071 |   |
| Accrued                interest receivable                                |   |                         | 2,175   |                        |   | 2,107 |   |
| Other                assets                                               |   |                         | 1,110   |                        |   | 1,351 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| Total                assets                                               |   | $                            | 384,291 |                        | $      | 325,575 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| LIABILITIES                                                               |   |                         |    |                        |   |   |   |
| Deposits                                                                  |   |                         |    |                        |   |   |   |
| Noninterest                bearing                                        |   | $                            | 34,620  |                        | $      | 32,967 |   |
| Money                market, NOW and savings deposits                     |   |                         | 130,472 |                        |   | 150,451 |   |
| Time                deposits                                              |   |                         | 134,414 |                        |   | 99,208 |   |
| Total                deposits                                             |   |                         | 299,506 |                        |   | 282,626 |   |
| FHLB                advances                                              |   |                         | 51,050  |                        |   | 11,650 |   |
| Subordinated                debt                                          |   |                         | 7,000   |                        |   | 7,000 |   |
| Accrued                expenses and other liabilities                     |   |                         | 1,278   |                        |   | 1,161 |   |
| Total                liabilities                                          |   |                         | 358,834 |                        |   | 302,437 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| SHAREHOLDERS’                EQUITY                                 |   |                         |    |                        |   |   |   |
| Common                stock, $.01 par value, 8,000,000 shares authorized, |   |                         |    |                        |   |   |   |
| 1,747,981                and 1,743,338 shares issued                      |   |                         | 17      |                        |   | 17 |   |
| Additional                paid-in capital                                 |   |                         | 18,445  |                        |   | 18,230 |   |
| Retained                earnings                                          |   |                         | 7,253   |                        |   | 5,241 |   |
| Treasury                stock, 1,416 and 1,650 shares                     |   |                         | (40     | )                           |   | (57 | ) |
| Accumulated                other comprehensive loss                       |   |                         | (218    | )                           |   | (293 | ) |
| Total                shareholders’ equity                           |   |                         | 25,457  |                        |   | 23,138 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| Total                liabilities and shareholders’ equity           |   | $                            | 384,291 |                        | $      | 325,575 |   |

----

|                                                                    |   | Three                Months Ended September                30, |      | Nine                Months Ended September                30, |   |
|-------------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|---------------------------------------------------------------|--------|
|                                                                    |   | 2007                                                           |      | 2006                                                          |   | 2007 |   | 2006 |   |
| Interest                and dividend income                             |   |                                                           |      |                                                          |   |   |   |   |   |
| Loans,                including fees                                    |   | $                                                              | 6,747     |                                                          | $      | 5,457 |   | $ | 18,733 |   | $ | 14,961 |   |
| Securities                                                              |   |                                                           | 369       |                                                          |   | 310 |   |   | 1,009 |   |   | 884 |   |
| Other                                                                   |   |                                                           | 18        |                                                          |   | 15 |   |   | 47 |   |   | 148 |   |
| Total                interest income                                    |   |                                                           | 7,134     |                                                          |   | 5,782 |   |   | 19,789 |   |   | 15,993 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Interest                expense                                         |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Deposits                                                                |   | $                                                              | 3,285     |                                                          | $      | 2,454 |   | $ | 9,109 |   | $ | 6,931 |   |
| FHLB                advances                                            |   |                                                           | 504       |                                                          |   | 354 |   |   | 1,132 |   |   | 646 |   |
| Subordinated                debt                                        |   |                                                           | 140       |                                                          |   | 84 |   |   | 414 |   |   | 238 |   |
| Other                                                                   |   |                                                           | 2         |                                                          |   | 6 |   |   | 10 |   |   | 12 |   |
| Total                interest expense                                   |   |                                                           | 3,931     |                                                          |   | 2,898 |   |   | 10,665 |   |   | 7,827 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Net                interest income                                      |   |                                                           | 3,203     |                                                          |   | 2,884 |   |   | 9,124 |   |   | 8,166 |   |
| Provision                for loan losses                                |   |                                                           | 32        |                                                          |   | 138 |   |   | 480 |   |   | 406 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Net                interest income after provision for loan losses |   |                                                           | 3,171     |                                                          |   | 2,746 |   |   | 8,644 |   |   | 7,760 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Noninterest                income                                       |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts                      |   |                                                           | 169       |                                                          |   | 144 |   |   | 470 |   |   | 400 |   |
| Other                income                                             |   |                                                           | 115       |                                                          |   | 146 |   |   | 391 |   |   | 377 |   |
| Total                noninterest income                                 |   |                                                           | 284       |                                                          |   | 290 |   |   | 861 |   |   | 777 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Noninterest                expense                                      |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                           |   |                                                           | 1,122     |                                                          |   | 962 |   |   | 3,197 |   |   | 2,755 |   |
| Occupancy                and equipment                                  |   |                                                           | 437       |                                                          |   | 395 |   |   | 1,343 |   |   | 1,133 |   |
| Other                                                                   |   |                                                           | 729       |                                                          |   | 586 |   |   | 1,804 |   |   | 1,680 |   |
| Total                noninterest expense                                |   |                                                           | 2,288     |                                                          |   | 1,943 |   |   | 6,344 |   |   | 5,568 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                               |   |                                                           | 1,167     |                                                          |   | 1,093 |   |   | 3,161 |   |   | 2,969 |   |
| Income                tax expense                                       |   |                                                           | 386       |                                                          |   | 416 |   |   | 1,143 |   |   | 1,095 |   |
| Net                income                                               |   | $                                                              | 781       |                                                          | $      | 677 |   | $ | 2,018 |   | $ | 1,874 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Weighted                average:                                        |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Common                shares                                            |   |                                                           | 1,745,143 |                                                          |   | 1,725,494 |   |   | 1,743,585 |   |   | 1,721,965 |   |
| Dilutive                stock options and warrants                      |   |                                                           | 70,441    |                                                          |   | 91,105 |   |   | 76,052 |   |   | 86,720 |   |
| Dilutive                shares                                          |   |                                                           | 1,815,584 |                                                          |   | 1,816,599 |   |   | 1,819,637 |   |   | 1,808,685 |   |
|                                                                    |   |                                                           |      |                                                          |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share                          |   | $                                                              | .45       |                                                          | $      | .39 |   | $ | 1.16 |   | $ | 1.09 |   |
| Diluted                earnings per common share                        |   | $                                                              | .43       |                                                          | $      | .37 |   | $ | 1.11 |   | $ | 1.04 |   |

----

|                                                                                                                               |   | Common                  Stock |      | Additional |   |                     |   | Treasury |   | Accumulated                  OtherComprehensive |   |                     |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------|------------|--------|--------------------------|--------|----------|--------|-------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                               |   | Outstanding                   |      | Paid-In    |   | Retained                 |   | Stock    |   | Income                                          |   |                          |   |
|                                                                                                                               |   | Shares                        |      | Amount     |   | Capital                  |   | Earnings |   | Amount                                          |   | (Loss)                   |   | Total |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |
| Balance                at January 1, 2006                                                                                          |   |                          | 1,714,716 |       | $      | 17                       |   | $        | 17,526 |                                            | $      | 2,718                    |   | $ | (54 | ) | $ | (361 | ) | $ | 19,846 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                          |   |                          |      |       |   |                     |   |     |   |                                            |   | 1,874                    |   |   |   |   |   |   |   |   | 1,874 |   |
| Change                in unrealized gain (loss) on securities available for sale, net of                tax                effects |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   | 56 |   |   | 56 |   |
| Total                comprehensive income                                                                                          |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   | 1,930 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Purchase                of treasury stock                                                                                          |   |                          | (5,250    | )          |   |                     |   |     |   |                                            |   |                     |   |   | (173 | ) |   |   |   |   | (173 | ) |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Issuance                of treasury stock                                                                                          |   |                          | 5,250     |       |   |                     |   |     | 6      |                                            |   |                     |   |   | 166 |   |   |   |   |   | 172 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Share-based                compensation expense                                                                                    |   |                          |      |       |   |                     |   |     | 107    |                                            |   |                     |   |   |   |   |   |   |   |   | 107 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Exercise                of common stock options, including tax benefits                                                            |   |                          | 14,129    |       |   |      |   |     | 276    |                                            |   |      |   |   |       |   |   |    |   |   | 276 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2006                                                                                  |   |                          | 1,728,845 |       | $      | 17                       |   | $        | 17,915 |                                            | $      | 4,592                    |   | $ | (61 | ) | $ | (305 | ) | $ | 22,158 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance                at January 1, 2007                                                                                          |   |                          | 1,741,688 |       | $      | 17                       |   | $        | 18,230 |                                            | $      | 5,241                    |   | $ | (57 | ) | $ | (293 | ) | $ | 23,138 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                          |   |                          |      |       |   |                     |   |     |   |                                            |   | 2,018                    |   |   |   |   |   |  |   |   | 2,018 |   |
| Change                in unrealized gain (loss) on securities available for sale, net of                tax                effects |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   | 75 |   |   | 75 |   |
| Total                comprehensive income                                                                                          |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   | 2,093 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Purchase                of treasury stock                                                                                          |   |                          | (4,716    | )          |   |                     |   |     |   |                                            |   |                     |   |   | (148 | ) |   |  |  |   | (148 | ) |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Issuance                of treasury stock                                                                                          |   |                          | 4,950     |       |   |                     |   |     | 1      |                                            |   | (6                       | )      |   | 165 |   |   |   |   |   | 160 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Share-based                compensation expense                                                                                    |   |                          |      |       |   |                     |   |     | 137    |                                            |   |                     |   |   |   |   |   |   |   |   | 137 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Exercise                of common stock options, including tax benefits                                                            |   |                          | 4,643     |       |   |      |   |     | 77     |                                            |   |           |   |   |     |   |   |      |   |   | 77 |   |
|                                                                                                                               |   |                          |      |       |   |                     |   |     |   |                                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                                                                                  |   |                          | 1,746,565 |       | $      | 17                       |   | $        | 18,445 |                                            | $      | 7,253                    |   | $ | (40 | ) | $ | (218 | ) | $ | 25,457 |   |

----

|                                                                                                     |   | Nine                Months Ended September 30, |    |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                                                     |   | 2007                                           |    | 2006 |   |
| Cash                flows from operating activities                                                      |   |                                           |    |   |   |
| Net                income                                                                                |   | $                                              | 2,018   |   | $ | 1,874 |   |
| Adjustments                to reconcile net income to net cash from operating                activities: |   |                                           |    |   |   |   |   |
| Depreciation                and amortization                                                             |   |                                           | 416     |   |   | 384 |   |
| Net                amortization of deferred loan fees                                                    |   |                                           | 95      |   |   | (142 | ) |
| Provision                for loan losses                                                                 |   |                                           | 480     |   |   | 406 |   |
| Premium                amortization, net of accretion                                                    |   |                                           | 14      |   |   | 31 |   |
| Earnings                on Bank Owned Life Insurance                                                     |   |                                           | (130    | ) |   | (156 | ) |
| Share-based                compensation                                                                  |   |                                           | 297     |   |   | 279 |   |
| Loss                on disposal of assets                                                                |   |                                           | — |   |   | 9 |   |
| Net                change in accrued interest receivable and other assets                                |   |                                           | 333     |   |   | (761 | ) |
| Net                change in accrued expenses and other liabilities                                      |   |                                           | (10     | ) |   | (559 | ) |
| Net                cash from operating activities                                                        |   |                                           | 3,513   |   |   | 1,365 |   |
|                                                                                                     |   |                                           |    |   |   |   |   |
| Cash                flows from investing activities                                                      |   |                                           |    |   |   |   |   |
| Purchases                of securities available for sale                                                |   |                                           | (6,244  | ) |   | (5,203 | ) |
| Proceeds                from maturities, calls and paydown                                               |   |                                           | 2,495   |   |   | 2,733 |   |
| of                securities available for sale                                                          |   |                                           |    |   |   |   |   |
| Loan                (originations) payments, net                                                         |   |                                           | (53,246 | ) |   | (36,641 | ) |
| Additions                to premises and equipment, net                                                  |   |                                           | (167    | ) |   | (1,188 | ) |
| Net                change in Federal Home Loan Bank stock                                                |   |                                           | (1,812  | ) |   | (913 | ) |
| Net                cash from investing activities                                                        |   |                                           | (58,974 | ) |   | (41,212 | ) |
|                                                                                                     |   |                                           |    |   |   |   |   |
| Cash                flows from financing activities                                                      |   |                                           |    |   |   |   |   |
| Net                change in deposits                                                                    |   |                                           | 16,880  |   |   | 25,925 |   |
| Net                change in overnight FHLB advances                                                     |   |                                           | 18,400  |   |   | 18,100 |   |
| Net                change in Fed funds purchased                                                         |   |                                           | (134    | ) |   | — |   |
| Proceeds                from fixed rate FHLB advances                                                    |   |                                           | 21,000  |   |   | — |   |
| Proceeds                from exercise of stock options                                                   |   |                                           | 46      |   |   | 164 |   |
| Excess                tax benefits from stock-based payment arrangements                                 |   |                                           | 31      |   |   | 112 |   |
| Purchase                of treasury stock                                                                |   |                                           | (148    | ) |   | (173 | ) |
| Net                cash from financing activities                                                        |   |                                           | 56,075  |   |   | 44,128 |   |
|                                                                                                     |   |                                           |    |   |   |   |   |
| Net                change in cash and cash equivalents                                                   |   |                                           | 614     |   |   | 4,281 |   |
| Cash                and cash equivalents at beginning of period                                          |   |                                           | 4,478   |   |   | 4,767 |   |
|                                                                                                     |   |                                           |    |   |   |   |   |
| Cash                and cash equivalents at end of period                                                |   | $                                              | 5,092   |   | $ | 9,048 |   |
|                                                                                                     |   |                                           |    |   |   |   |   |
| Supplemental                disclosures of cash flow information                                    |   |                                           |    |   |   |   |   |
| Cash                paid during the period for                                                           |   |                                           |    |   |   |   |   |
| Interest                                                                                                 |   | $                                              | 10,355  |   | $ | 7,708 |   |
| Income                taxes                                                                              |   |                                           | 1,155   |   |   | 1,722 |   |

----

**NOTE      1 - BASIS OF PRESENTATION**

**Adoption      of New Accounting Standards**

*Accounting      for Uncertainty in Income Taxes*
*,      *

----

**NOTE      2 - LOAN PORTFOLIO COMPOSITION**

|                                        |   | Total                Loans September 30, 2007 |    | Total                Loans December 31, 2006 |   | %                Increase (Decrease)from December 31, 2006 to September 30,                2007 |   |
|---------------------------------------------|--------|-----------------------------------------------|---------|----------------------------------------------|--------|-------------------------------------------------------------------------------------------------|--------|
| Real                estate mortgage loans:  |   |                                          |    |                                         |   |                                                                                            |   |
| Commercial                                  |   | $                                             | 202,541 |                                         | $      | 170,762                                                                                         |   |   | 18.6 | % |
| Residential                                 |   |                                          | 72,795  |                                         |   | 62,270                                                                                          |   |   | 16.9 | % |
| Construction(1)                             |   |                                          | 35,328  |                                         |   | 25,479                                                                                          |   |   | 38.7 | % |
| Farmland                                    |   |                                          | 1,620   |                                         |   | 1,800                                                                                           |   |   | (10.0 | %) |
| Commercial                loans             |   |                                          | 19,821  |                                         |   | 18,903                                                                                          |   |   | 4.9 | % |
| Consumer                loans               |   |                                          | 5,007   |                                         |   | 4,693                                                                                           |   |   | 6.7 | % |
| Subtotal                                    |   |                                          | 337,112 |                                         |   | 283,907                                                                                         |   |   | 18.7 | % |
| Less:                Net deferred loan fees |   |                                          | (375    | )                                            |   | (280                                                                                            | )      |   | 33.9 | % |
| Total                                       |   | $                                             | 336,737 |                                         | $      | 283,627                                                                                         |   |   | 18.7 | % |

**NOTE      3 - ALLOWANCE FOR LOAN LOSSES**

|                                                         |   | Nine                Months Ended September                30, |   |
|--------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                         |   | 2007                                                          |   | 2006 |   |
|                                                         |   |                                                          |   |   |   |
| Balance,                January 1                            |   | $                                                             | 2,621  |   | $ | 2,207 |   |
| Provisions                for loan losses charged to expense |   |                                                          | 480    |   |   | 406 |   |
| Loans                charged off                             |   |                                                          | (51    | ) |   | (103 | ) |
| Recoveries                of loans previously charged off    |   |                                                          | 10     |   |   | 4 |   |
| Balance,                September 30                         |   | $                                                             | 3,060  |   | $ | 2,514 |   |

|                                                                      |   | September                30, |    | December                31, |   |
|---------------------------------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|
|                                                                      |   | 2007                         |    | 2006                        |   |
| Year-end                loans with no allocated allowance for loan losses |   | $                            | 475     |                        | $      | 378 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| Year-end                loans with allocated allowance for loan losses    |   |                         | — |                        |   | 194 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| Total                                                                     |   | $                            | 475     |                        | $      | 572 |   |
|                                                                      |   |                         |    |                        |   |   |   |
| Amount                of the allowance for loan losses allocated          |   | $                            | — |                        | $      | 30 |   |

----

**NOTE      4 - CAPITAL ADEQUACY**

|                                         |   | **Actual**   |   | **For                Capital Adequacy Purposes** |   | **To                Be Well Capitalized Under Prompt Corrective Action                Provisions** |   |
|----------------------------------------------|--------|--------------|--------|--------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                         |   |  Amount |   | Ratio                                            |   | Amount                                                                                             |   | Ratio |   | Amount |   | Ratio |   |
| September                30, 2007            |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |
| Total                Capital to risk         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |
| weighted                assets               |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |
| Consolidated                                 |   | $            | 35,735 |                                             |   | 10.46                                                                                              | %      | $ | 27,332 |   |   | 8.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 34,632 |                                             |   | 10.12                                                                                              | %      |   | 27,366 |   |   | 8.00 | % | $ | 34,207 |   |   | 10.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 (Core) Capital to Risk |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted                assets               |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |         | 32,675 |                                             |   | 9.56                                                                                               | %      |   | 13,666 |   |   | 4.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 31,572 |                                             |   | 9.23                                                                                               | %      |   | 13,683 |   |   | 4.00 | % |   | 20,524 |   |   | 6.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 (Core) Capital to      |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average                assets                |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |         | 32,675 |                                             |   | 8.69                                                                                               | %      |   | 15,036 |   |   | 4.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 31,572 |                                             |   | 8.39                                                                                               | %      |   | 15,060 |   |   | 4.00 | % |   | 18,825 |   |   | 5.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December                31, 2006             |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Capital to risk         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted                assets               |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   | $            | 33,052 |                                             |   | 11.48                                                                                              | %      | $ | 23,043 |   |   | 8.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 29,594 |                                             |   | 10.18                                                                                              | %      |   | 23,263 |   |   | 8.00 | % | $ | 29,079 |   |   | 10.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 (Core) Capital to Risk |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted                assets               |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |         | 30,431 |                                             |   | 10.57                                                                                              | %      |   | 11,521 |   |   | 4.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 26,973 |                                             |   | 9.28                                                                                               | %      |   | 11,632 |   |   | 4.00 | % |   | 17,447 |   |   | 6.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 (Core) Capital to      |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average                assets                |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |         | 30,431 |                                             |   | 9.47                                                                                               | %      |   | 12,856 |   |   | 4.00 | % |   | N/A |   |   | N/A |   |
| Bank                                         |   |         | 26,973 |                                             |   | 8.38                                                                                               | %      |   | 12,872 |   |   | 4.00 | % |   | 16,091 |   |   | 5.00 | % |
|                                         |   |         |   |                                             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**NOTE      5 - FEDERAL HOME LOAN BANK ADVANCES**

|                                                          |   | 2007   |   | 2006   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|
| Overnight                advance maturing daily at a          |   |   |   |   |   |   |   |
| daily                variable rate of 5.44% and 5.50%         |   |   |   |   |   |   |   |
| at                September 30, 2007 and December 31,         |   |   |   |   |   |   |   |
| 2006,                respectively                             |   | $      | 27,050 |   | $      | 8,650 |   |
|                                                          |   |   |   |   |   |   |   |
| Advances                maturing April 11, 2008 at a          |   |   |   |   |   |   |   |
| fixed                rate of 4.36%                            |   |   | 3,000  |   |   | 3,000 |   |
|                                                          |   |   |   |   |   |   |   |
| Advances                maturing January 11, 2008 at          |   |   |   |   |   |   |   |
| a                fixed rate of 5.26%                          |   |   | 6,000  |   |   | — |   |
|                                                          |   |   |   |   |   |   |   |
| Convertible                advances maturing June 8, 2010     |   |   |   |   |   |   |   |
| with                a quarterly call option beginning June 9, |   |   |   |   |   |   |   |
| 2008                at a fixed rate of 4.99%                  |   |   | 5,000  |   |   | — |   |
|                                                          |   |   |   |   |   |   |   |
| Convertible                advances maturing June 8, 2012     |   |   |   |   |   |   |   |
| with                a quarterly call option beginning         |   |   |   |   |   |   |   |
| September                10, 2007 at a fixed rate of 4.68%    |   |   | 5,000  |   |   | — |   |
|                                                          |   |   |   |   |   |   |   |
| Convertible                advances maturing September 13,    |   |   |   |   |   |   |   |
| 2010                with a quarterly call option beginning    |   |   |   |   |   |   |   |
| September                13, 2008 at a fixed rate of 4.51%    |   |   | 5,000  |   |   | — |   |
|                                                          |   |   |   |   |   |   |   |
|                                                          |   | $      | 51,050 |   | $      | 11,650 |   |

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**General**

**Forward      Looking Statements**

**Business      Strategy**

----

**Introduction**

**Comparison      of Financial Condition at September 30, 2007 and December 31,      2006**

----

**Comparison      of Operating Results for the Nine Months Ended September 30, 2007 and      2006**

**Net      Income **

**Net      Interest Income**

----

***Average      Balance Sheet; Interest Rates and Interest      Differential.***
** **

|                                                    |   | Nine                  Months Ended September 30, |    |
|---------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                    |   | 2007                                             |    | 2006 |   |
|                                                    |   | Average                  Balance                 |    | Interest |   | Average                  Rate |   | Average                  Balance |   | Interest |   | Average                  Rate |   |
|                                                    |   | (Dollars                  in thousands)          |    |
| Interest-earning                  assets:               |   |                                             |    |   |   |   |   |   |   |   |   |   |   |
| Loans                  (1)                              |   | $                                                | 310,169 |   | $ | 18,733 |   |   | 8.07 | % | $ | 254,143 |   | $ | 14,961 |   |   | 7.87 | % |
| Securities                  (2)                         |   |                                             | 29,177  |   |   | 1,009 |   |   | 4.62 |   |   | 27,148 |   |   | 884 |   |   | 4.35 |   |
| Other                  interest-earning assets (3)      |   |                                             | 885     |   |   | 47 |   |   | 7.10 |   |   | 4,030 |   |   | 148 |   |   | 4.91 |   |
| Total                  interest-earning assets          |   |                                             | 340,231 |   |   | 19,789 |   |   | 7.78 |   |   | 285,321 |   |   | 15,993 |   |   | 7.49 |   |
| Noninterest-earning                  assets (4)         |   |                                             | 13,716  |   |   |   |   |   |   |   |   | 13,597 |   |   |   |   |   |   |   |
| Total                  assets                           |   | $                                                | 353,947 |   |   |   |   |   |   |   | $ | 298,918 |   |   |   |   |   |   |   |
|                                                    |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  liabilities:          |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                  and NOW deposits               |   | $                                                | 17,106  |   | $ | 245 |   |   | 1.91 |   | $ | 18,300 |   | $ | 253 |   |   | 1.85 |   |
| Money                  market deposits                  |   |                                             | 123,059 |   |   | 4,208 |   |   | 4.57 |   |   | 135,385 |   |   | 4,464 |   |   | 4.41 |   |
| Time                  deposits                          |   |                                             | 118,167 |   |   | 4,656 |   |   | 5.27 |   |   | 67,574 |   |   | 2,214 |   |   | 4.38 |   |
| FHLB                  advances                          |   |                                             | 28,499  |   |   | 1,132 |   |   | 5.31 |   |   | 16,577 |   |   | 646 |   |   | 5.21 |   |
| Subordinated                  debt                      |   |                                             | 7,000   |   |   | 414 |   |   | 7.91 |   |   | 4,000 |   |   | 238 |   |   | 7.96 |   |
| Other                  interest-bearing liabilities (5) |   |                                             | 242     |   |   | 10 |   |   | 5.52 |   |   | 272 |   |   | 12 |   |   | 5.90 |   |
| Total                  interest-bearing liabilities     |   |                                             | 294,073 |   |   | 10,665 |   |   | 4.85 |   |   | 242,108 |   |   | 7,827 |   |   | 4.32 |   |
| Noninterest-bearing                  liabilities        |   |                                             | 35,867  |   |   |   |   |   |   |   |   | 36,124 |   |   |   |   |   |   |   |
| Shareholders'                  equity                   |   |                                             | 24,007  |   |   |   |   |   |   |   |   | 20,686 |   |   |   |   |   |   |   |
| Total                  liabilities and                  |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| shareholders'                  equity                   |   | $                                                | 353,947 |   |   |   |   |   |   |   | $ | 298,918 |   |   |   |   |   |   |   |
| Net                  interest income                    |   |                                             |    |   | $ | 9,124 |   |   |   |   |   |   |   | $ | 8,166 |   |   |   |   |
| Interest                  rate spread (6)               |   |                                             |    |   |   |   |   |   | 2.93 | % |   |   |   |   |   |   |   | 3.17 | % |
| Net                  interest margin (7)                |   |                                             |    |   |   |   |   |   | 3.59 | % |   |   |   |   |   |   |   | 3.83 | % |

----

----

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

| (2) | Due                to immateriality, the interest income and yields related to certain                tax                exempt assets have not been adjusted to reflect a fully taxable equivalent                yield. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                federal funds sold. |
|-----|---------------------------------------------|

| (4) | For                presentation purposes, the BOLI acquired by the Bank has been included                in                noninterest-earning assets. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes                federal funds purchased. |
|-----|--------------------------------------------------|

| (6) | Interest                rate spread represents the difference between the average yield on                interest-earning assets and the average cost of interest-bearing                liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Net                interest margin is net interest income divided by average interest-earning                assets. |
|-----|----------------------------------------------------------------------------------------------------------------------|

***Rate/Volume      Analysis.***
** **

|                                                |   | Nine                  Months Ended September 30,2007                  Versus 2006 (1)Increase                  (decrease) due to changes in: |   |
|-----------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                |   | Volume                                                                                                                                       |   | Rate |   | NetChange |   |
|                                                |   | (Dollars                  in thousands)                                                                                                      |   |
| Interest                  income:                   |   |                                                                                                                                         |   |   |   |   |   |
| Loans                                               |   | $                                                                                                                                            | 3,375  |   | $ | 397 |   | $ | 3,772 |   |
| Securities                                          |   |                                                                                                                                         | 68     |   |   | 57 |   |   | 125 |   |
| Other                  interest-earning assets      |   |                                                                                                                                         | (148   | ) |   | 47 |   |   | (101 | ) |
| Total                  interest income              |   |                                                                                                                                         | 3,295  |   |   | 501 |   |   | 3,796 |   |
|                                                |   |                                                                                                                                         |   |   |   |   |   |   |   |   |
| Interest                  expense:                  |   |                                                                                                                                         |   |   |   |   |   |   |   |   |
| Savings                  and NOW deposits           |   |                                                                                                                                         | (17    | ) |   | 9 |   |   | (8 | ) |
| Money                  market deposits              |   |                                                                                                                                         | (417   | ) |   | 161 |   |   | (256 | ) |
| Time                  deposits                      |   |                                                                                                                                         | 1,922  |   |   | 520 |   |   | 2,442 |   |
| FHLB                  advances                      |   |                                                                                                                                         | 473    |   |   | 13 |   |   | 486 |   |
| Subordinated                  debt                  |   |                                                                                                                                         | 177    |   |   | (1 | ) |   | 176 |   |
| Other                  interest-bearing liabilities |   |                                                                                                                                         | (1     | ) |   | (1 | ) |   | (2 | ) |
| Total                  interest expense             |   |                                                                                                                                         | 2,137  |   |   | 701 |   |   | 2,838 |   |
|                                                |   |                                                                                                                                         |   |   |   |   |   |   |   |   |
| Increase                  in net interest income    |   | $                                                                                                                                            | 1,158  |   | $ | (200 | ) | $ | 958 |   |

----

| (1) | The                change in interest due to both rate and volume has been allocated                to the                volume and rate components in proportion to the relationship of the                dollar                amounts of the absolute change in                each. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Policies**

----

**Asset      Quality**

|                                                                                    |   | September                  30,          |    | December                  31, |   |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|-------------------------------|--------|
|                                                                                    |   | 2007                                    |    | 2006                          |   |
|                                                                                    |   | (Dollars                  in thousands) |    |
|                                                                                    |   |                                    |    |                          |   |
| Nonaccruing                  loans                                                      |   | $                                       | 522     |                          | $      | 420 |   |
| Loans                  past due over 90 days still on accrual                           |   |                                    | — |                          |   | 809 |   |
| Total                  nonperforming loans                                              |   |                                    | 522     |                          |   | 1,229 |   |
| Foreclosed                  assets, net                                                 |   |                                    | — |                          |   | — |   |
| Total                  nonperforming assets                                             |   | $                                       | 522     |                          | $      | 1,229 |   |
|                                                                                    |   |                                    |    |                          |   |   |   |
| Allowance                  for loan losses                                              |   | $                                       | 3,060   |                          | $      | 2,621 |   |
|                                                                                    |   |                                    |    |                          |   |   |   |
| Nonperforming                  loans and foreclosed assets as a percent of total assets |   |                                    | .14     | %                             |   | .38 | % |
| Nonperforming                  loans as a percent of gross loans                        |   |                                    | .16     | %                             |   | .43 | % |
| Allowance                  for loan losses as a percent of nonperforming loans          |   |                                    | 586.21  | %                             |   | 213.26 | % |

----

**Allowance      and Provision for Loan Losses**

----

**Noninterest      Income, Noninterest Expense and Income Taxes**

**Comparison      of Operating Results for the Three Months Ended September 30, 2007 and      2006**

----

**Capital**

**Cash      Flows and Liquidity**

***Cash      Flows***
*.*

***Liquidity.***

**Recent      Accounting Pronouncements**

*Fair      Value Measurements*

----

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

***Contractual      Obligations, Commitments and Contingent Liabilities***
**.      **

***Off-Balance      Sheet Arrangements***
*.      *

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

----

**Item      4.**
**      Controls and Procedures**

**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, as amended,                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 as of the end of the period covered by this report, the                principal executive officer and principal financial officer of the                Company                concluded that the Company’s disclosure controls and procedures were                adequate. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b. | *Changes                in internal controls.*                The Company made no significant changes in its internal control over                financial reporting during its most recent quarter that has materially                affected, or is reasonably likely to materially affect, the Company’s                internal control over financial                reporting. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      II - OTHER INFORMATION**

| **Item              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

|   | There                are no material pending legal proceedings to which we are a party                or to                which any of our properties are subject; nor are there material                proceedings known to be contemplated by any governmental authority;                nor                are there any material proceedings known to us, pending or contemplated,                in which any of our directors, officers, affiliates or any principal                security holders, or any associate of any of the foregoing, is a                party or                has an interest adverse to us, except as set forth                below. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On                April 11, 2006, The Jacksonville Bank was served with a Summons and                a copy                of the Complaint filed by Wells Fargo Financial Leasing, Inc. in                the                Circuit Court of the Fourth Judicial Circuit in and for Duval County,                Florida. The basis of the Complaint stems from an erroneous wire                transfer                that was made by Wells Fargo on February 16, 2005 to one of our                customers, offsetting an overdraft in our customer’s account in the amount                of $33,143.95. The Bank retained the amount and Wells Fargo is pursuing                the refund plus interest and costs. A settlement agreement in the                amount                of $5,000 has been reached. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                1A.** | **Risk                Factors** |
|-----------------------------|---------------------------------|

|   |   |
|--------|--------|
|   | There                have been no material changes from the risk factors disclosed in                the                Company’s Annual Report on Form 10-K for the year ended December 31, 2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds** |
|----------------------------|-----------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
|   | None |
|--------|------|

| **Item                3.** | **Defaults                Upon Senior Securities** |
|----------------------------|----------------------------------------------------|

|   |   |
|--------|--------|
|   | None |
|--------|------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
|   | None |
|--------|------|

| **Item                5.** | **Other                Information** |
|----------------------------|--------------------------------------|

----

| **Item              6.** | **Exhibits** |
|--------------------------|--------------|

| Exhibit                  No. 3.1:  |   | Articles                  of Incorporation of the Company (1)                                                                                                                              |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.2:  |   | Amended                  and Restated Bylaws of the Company (2)                                                                                                                            |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.3:  |   | Amendment                  No. 1 to Amended and Restated Bylaws of the Company (3)                                                                                                         |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.4:  |   | Amendment                  No. 2 to Amended and Restated Bylaws of the Company (4)                                                                                                         |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 31.1: |   | Certification                  of principal executive officer required by Rule 13a-14(a)/15d-14(a)                  of the                  Exchange Act                                   |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 31.2: |   | Certification                  of principal financial officer required by Rule 13a-14(a)/15d-14(a)                  of the                  Exchange Act                                   |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 32:   |   | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of                  2002 |

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| (1) | Incorporated                herein by reference to Exhibit No. 3.1 to Form SB-2, Registration                Statement and amendments thereto, effective as of September 30, 1998,                Registration No. 333-64815. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                herein by reference to Exhibit No. 3.2 to Form 10-QSB for the quarter                ended June 30, 2002, filed August 14,                2002. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated                herein by reference to Exhibit No. 3.3 to Form 10-QSB for the quarter                ended June 30, 2005, filed August 10,                2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated                herein by reference to Exhibit 99.1 to Form 8-K, filed May 29,                2007. |
|-----|-----------------------------------------------------------------------------------------------------------------|

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|                                |                                                                                     |                                   |
|-------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------|
| Date:              November 8, 2007 |                                                                                          | /s/              Gilbert J. Pomar, III |
|                                | Gilbert                J. Pomar, IIIPresident                and Chief Executive Officer |

|                                |                                                                                                               |                                |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------|-------------------------------------|
| Date:              November 8, 2007 |                                                                                                                    | /s/              Valerie A. Kendall |
|                                | Valerie                A. KendallExecutive                Vice Presidentand                Chief Financial Officer |

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| Exhibit                  No. 3.1:  |   | Articles                  of Incorporation of the Company (1)                                                                                                                              |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.2:  |   | Amended                  and Restated Bylaws of the Company (2)                                                                                                                            |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.3:  |   | Amendment                  No. 1 to Amended and Restated Bylaws of the Company (3)                                                                                                         |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 3.4:  |   | Amendment                  No. 2 to Amended and Restated Bylaws of the Company (4)                                                                                                         |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 31.1: |   | Certification                  of principal executive officer required by Rule 13a-14(a)/15d-14(a)                  of the                  Exchange Act                                   |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 31.2: |   | Certification                  of principal financial officer required by Rule 13a-14(a)/15d-14(a)                  of the                  Exchange Act                                   |
|                               |   |                                                                                                                                                                                       |
| Exhibit                  No. 32:   |   | Certification                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of                  2002 |

----

| (1) | Incorporated                herein by reference to Exhibit No. 3.1 to Form SB-2, Registration                Statement and amendments thereto, effective as of September 30, 1998,                Registration No. 333-64815. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                herein by reference to Exhibit No. 3.2 to Form 10-QSB for the quarter                ended June 30, 2002, filed August 14,                2002. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated                herein by reference to Exhibit No. 3.3 to Form 10-QSB for the quarter                ended June 30, 2005, filed August 10,                2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated                herein by reference to Exhibit 99.1 to Form 8-K, filed May 29,                2007. |
|-----|-----------------------------------------------------------------------------------------------------------------|

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