----

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

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

|   | 001-33009 |
|--------|-----------|

|   | Commission      File Number |
|--------|-----------------------------|

|   | BRITTON      & KOONTZ CAPITAL CORPORATION |
|--------|-----------------------------------------------|

|   | (Exact      name of Registrant as Specified in ItsCharter) |
|--------|------------------------------------------------------------|

|   | Mississippi                                                             |   | 64-0665423                                   |   |
|--------|-------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|   | (State      or Other Jurisdiction ofIncorporation      or Organization) |   | (I.R.S.      Employer Identification Number) |   |

|   | 500 Main Street,      Natchez,Mississippi  39120 |
|--------|------------------------------------------------------------|

|   | (Address      of Principal Executive Offices) (ZipCode) |
|--------|---------------------------------------------------------|

|   | 601-445-5576 |
|--------|--------------|

|   | (Registrant’s      Telephone Number, Including AreaCode) |
|--------|----------------------------------------------------------------|

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

----

Table of Contents

|   | BRITTON & KOONTZ CAPITAL  CORPORATION |
|--------|-------------------------------------------|

|   |  AND      SUBSIDIARIES |
|--------|-----------------------------|

Consolidated Statements of Financial Condition

Consolidated Statements of Income

Consolidated Statements of Changes in Stockholders’Equity

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

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

Item 3.    Quantitative and QualitativeDisclosures About Market Risk

 Item 4.    Controls andProcedures

Item 1A. RiskFactors

Item2.  Unregistered Sales of Equity Securities and Use ofProceeds

Item6. Exhibits

SIGNATURES

| CERTIFICATION OF CHIEF EXECUTIVE OFFICER AS REQUIRED      PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACTOF      2002   |
|--------------------------------------------------------------------------------------------------------------------------------|
| CERTIFICATION OF CHIEF FINANCIAL OFFICER AS REQUIRED      PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACTOF      2002   |
| CERTIFICATION OF CHIEF EXECUTIVE OFFICER AS REQUIRED      PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF      2002  |
| CERTIFICATION OF CHIEF FINANCIAL OFFICER AS REQUIRED      PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF      2002       |

----

Table of Contents

| PART      I | FINANCIAL      INFORMATION |
|-------------|----------------------------|

----

Table of Contents

| BRITTON & KOONTZ CAPITAL CORPORATION AND      SUBSIDIARIES                |   |
|------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION                                |   |
| FOR      THE PERIODS ENDED                                                         |   |
|                                                                               |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |
| A      S S E T S                                                                   |   |
|                                                                               |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |
|                                                                               |   | March      31, |   |   | December      31, |   |
|  ASSETS:                                                                      |   | 2008 |   |   | 2007 |   |
|  Cash      and due from banks:                                                |   |   |   |   |   |   |
|  Non-interest      bearing                                                    |   | $ | 6,554,832 |   |   | $ | 6,102,837 |   |
|  Interest      bearing                                                        |   |   | 198,687 |   |   |   | 2,629,470 |   |
|         Total      cash and due from banks |   |   | 6,753,519 |   |   |   | 8,732,307 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  Federal      funds sold                                                      |   |   | 156,786 |   |   |   | 245,192 |   |
|  Investment      Securities:                                                  |   |   |   |   |   |   |   |   |
|  Trading      (amortized cost, in 2008 and 2007,                              |   |   |   |   |   |   |   |   |
|      of      $0 and $19,144,678, respectively)            |   |   | - |   |   |   | 19,199,207 |   |
|  Available-for-sale      (amortized cost, in 2008 and 2007,                   |   |   |   |   |   |   |   |   |
|      of      $60,661,887 and $63,612,681, respectively)   |   |   | 61,870,686 |   |   |   | 63,983,146 |   |
|  Held-to-maturity      (market value, in 2008 and 2007,                       |   |   |   |   |   |   |   |   |
|      of      $55,370,970 and $40,639,894, respectively)   |   |   | 54,206,375 |   |   |   | 39,988,305 |   |
|  Equity      securities                                                       |   |   | 2,544,000 |   |   |   | 2,521,000 |   |
|  Loans,      less allowance for loan losses of $2,376,473                     |   |   |   |   |   |   |   |   |
|      in      2008 and $2,430,936 in 2007                  |   |   | 228,304,231 |   |   |   | 220,921,727 |   |
|  Bank      premises and equipment, net                                        |   |   | 7,178,893 |   |   |   | 7,357,785 |   |
|  Other      real estate, net of reserves of $93,360                           |   |   | 444,672 |   |   |   | 746,796 |   |
|  Accrued      interest receivable                                             |   |   | 1,974,934 |   |   |   | 2,294,235 |   |
|  Cash      surrender value of life insurance                                  |   |   | 1,027,422 |   |   |   | 1,013,683 |   |
|  Core      Deposits, net                                                      |   |   | 638,754 |   |   |   | 665,658 |   |
|  Other      assets                                                            |   |   | 930,044 |   |   |   | 676,231 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  TOTAL      ASSETS                                                            |   | $ | 366,030,316 |   |   | $ | 368,345,272 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                          |   |
|                                                                               |   |   |   |   |   |   |   |   |
|                                                                               |   | March      31, |   |   | December      31, |   |
|  LIABILITIES:                                                                 |   | 2008 |   |   | 2007 |   |
|  Deposits                                                                     |   |   |   |   |   |   |   |   |
|  Non-interest      bearing                                                    |   | $ | 49,611,550 |   |   | $ | 47,305,927 |   |
|  Interest      bearing                                                        |   |   | 193,017,904 |   |   |   | 199,088,223 |   |
|         Total      deposits                |   |   | 242,629,454 |   |   |   | 246,394,150 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  Federal      Home Loan Bank advances                                         |   |   | 28,654,651 |   |   |   | 29,160,730 |   |
|  Securities      sold under repurchase agreements                             |   |   | 49,281,477 |   |   |   | 48,229,299 |   |
|  Accrued      interest payable                                                |   |   | 1,831,154 |   |   |   | 2,070,075 |   |
|  Advances      from borrowers for taxes and insurance                         |   |   | 205,232 |   |   |   | 359,501 |   |
|  Accrued      taxes and other liabilities                                     |   |   | 1,595,548 |   |   |   | 1,175,652 |   |
|  Junior      subordinated debentures                                          |   |   | 5,155,000 |   |   |   | 5,155,000 |   |
|         Total      liabilities             |   |   | 329,352,516 |   |   |   | 332,544,407 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  COMMITMENTS      AND CONTINGENCIES                                           |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  STOCKHOLDERS'      EQUITY:                                                   |   |   |   |   |   |   |   |   |
|  Common      stock - $2.50 par value per share;                               |   |   |   |   |   |   |   |   |
|  12,000,000      shares authorized; 2,132,466 issued and                      |   |   |   |   |   |   |   |   |
|  2,117,966      outstanding, for March 31, 2008, and                          |   |   |   |   |   |   |   |   |
| December      31, 2007                                                             |   |   | 5,331,165 |   |   |   | 5,331,165 |   |
|  Additional      paid-in capital                                              |   |   | 7,309,298 |   |   |   | 7,305,970 |   |
|  Retained      earnings                                                       |   |   | 23,536,795 |   |   |   | 23,071,921 |   |
|  Accumulated      other comprehensive income                                  |   |   | 757,917 |   |   |   | 349,184 |   |
|                                                                               |   |   | 36,935,175 |   |   |   | 36,058,240 |   |
|  Cost      of 14,500 shares of common stock held by the company               |   |   | (257,375 | ) |   |   | (257,375 | ) |
|         Total      stockholders' equity    |   |   | 36,677,800 |   |   |   | 35,800,865 |   |
|                                                                               |   |   |   |   |   |   |   |   |
|  TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                              |   | $ | 366,030,316 |   |   | $ | 368,345,272 |   |

----

Table ofContents

| BRITTON & KOONTZ CAPITAL CORPORATION AND      SUBSIDIARIES |   |
|---------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME                    |   |
|                                                                |   |   |   |   |   |   |
|                                                                |   | Three      Months Ended |   |
|                                                                |   | March      31, |   |
|                                                                |   | 2008 |   |   | 2007 |   |
|  INTEREST INCOME:                                              |   |   |   |   |   |   |
|  Interest      and fees on loans                               |   | $ | 4,287,749 |   |   | $ | 4,776,965 |   |
|  Interest      on investment securities:                       |   |   |   |   |   |   |   |   |
|      Taxable      interest income          |   |   | 1,129,188 |   |   |   | 812,168 |   |
|      Exempt      from federal taxes        |   |   | 417,152 |   |   |   | 414,730 |   |
|  Interest      on federal funds sold                           |   |   | 2,199 |   |   |   | 3,244 |   |
|  Total      interest income                                    |   |   | 5,836,288 |   |   |   | 6,007,107 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  INTEREST      EXPENSE:                                        |   |   |   |   |   |   |   |   |
|  Interest      on deposits                                     |   |   | 1,642,637 |   |   |   | 1,846,895 |   |
|  Interest      on Federal Home Loan Bank advances              |   |   | 213,963 |   |   |   | 707,083 |   |
|  Interest      on trust preferred securities                   |   |   | 96,000 |   |   |   | 106,429 |   |
|  Interest      on securities sold under repurchase agreements  |   |   | 553,155 |   |   |   | 85,151 |   |
|  Total      interest expense                                   |   |   | 2,505,755 |   |   |   | 2,745,558 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  NET      INTEREST INCOME                                      |   |   | 3,330,533 |   |   |   | 3,261,549 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Provision      for loan losses                                |   |   | 120,000 |   |   |   | 80,000 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  NET      INTEREST INCOME AFTER PROVISION                      |   |   |   |   |   |   |   |   |
|  FOR      LOAN LOSSES                                          |   |   | 3,210,533 |   |   |   | 3,181,549 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  OTHER      INCOME:                                            |   |   |   |   |   |   |   |   |
|  Service      charges on deposit accounts                      |   |   | 401,116 |   |   |   | 394,197 |   |
|  Income      from fiduciary activities                         |   |   | 999 |   |   |   | 999 |   |
|  Income      from networking arrangements                      |   |   | 29,016 |   |   |   | 80,317 |   |
|  Gain/(loss)      on sale of mortgage loans                    |   |   | 58,514 |   |   |   | 49,623 |   |
|  Gain/(loss)      on sale of securities                        |   |   | 148,116 |   |   |   | (558,770 | ) |
|  Net      gain on trading securities                           |   |   | - |   |   |   | 90,363 |   |
|  Other                                                         |   |   | 145,674 |   |   |   | 140,958 |   |
|  Total      other income                                       |   |   | 783,435 |   |   |   | 197,687 |   |
|                                                                |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |
|  OTHER      EXPENSES:                                          |   |   |   |   |   |   |   |   |
|  Salaries                                                      |   |   | 1,426,583 |   |   |   | 1,268,785 |   |
|  Employee      benefits                                        |   |   | 184,852 |   |   |   | 188,507 |   |
|  Director      fees                                            |   |   | 46,150 |   |   |   | 44,800 |   |
|  Net      occupancy expense                                    |   |   | 228,531 |   |   |   | 235,950 |   |
|  Equipment      expenses                                       |   |   | 301,143 |   |   |   | 283,287 |   |
|  FDIC      assessment                                          |   |   | 7,423 |   |   |   | 7,799 |   |
|  Advertising                                                   |   |   | 54,151 |   |   |   | 42,894 |   |
|  Stationery      and supplies                                  |   |   | 44,381 |   |   |   | 41,699 |   |
|  Audit      expense                                            |   |   | 55,743 |   |   |   | 63,127 |   |
|  Other      real estate expense (includes gains on sale)       |   |   | 11,817 |   |   |   | 179,203 |   |
|  Amortization      of deposit premium                          |   |   | 26,904 |   |   |   | 26,904 |   |
|  Other                                                         |   |   | 473,913 |   |   |   | 535,790 |   |
|  Total      other expenses                                     |   |   | 2,861,591 |   |   |   | 2,918,745 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  INCOME      BEFORE INCOME TAX EXPENSE                         |   |   | 1,132,377 |   |   |   | 460,491 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Income      tax expense                                       |   |   | 286,270 |   |   |   | 33,366 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  NET      INCOME                                               |   | $ | 846,107 |   |   | $ | 427,125 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  EARNINGS      PER SHARE DATA:                                 |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Basic      earnings per share                                 |   | $ | 0.40 |   |   | $ | 0.20 |   |
|  Basic      weighted shares outstanding                        |   |   | 2,117,966 |   |   |   | 2,117,966 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Diluted      earnings per share                               |   | $ | 0.40 |   |   | $ | 0.20 |   |
|  Diluted      weighted shares outstanding                      |   |   | 2,118,750 |   |   |   | 2,120,993 |   |

----

Table of Contents

| BRITTON & KOONTZ CAPITAL CORPORATION AND      SUBSIDIARIES                        |   |
|--------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY                            |   |
| FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND      2007                                    |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                                       |   | Common      Stock |   |   | Additional |   |   |   |   |   | Other |   |   |   |   |   | Total |   |
|                                                                                       |   |   |   |   |   |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |   |   | Treasury |   |   | Stockholders' |   |
|                                                                                       |   | Shares |   |   | Amount |   |   | Capital |   |   | Earnings |   |   | Income |   |   | Stock |   |   | Equity |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      at December 31, 2006                                                    |   |   | 2,117,966 |   |   | $ | 5,331,165 |   |   | $ | 7,295,235 |   |   | $ | 22,003,063 |   |   | $ | (775,200 | ) |   | $ | (257,375 | ) |   | $ | 33,596,888 |   |
|  Adjustment      to opening balance, net of tax, for the                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adoption      of SFAS No. 159                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (411,989 | ) |   |   |   |   |   |   |   |   |   |   | (411,989 | ) |
|  Adjusted      opening balance, January 1, 2007                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 21,591,074 |   |   |   |   |   |   |   |   |   |   | $ | 33,184,899 |   |
|  Comprehensive      Income:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      income                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 427,125 |   |   |   |   |   |   |   |   |   |   |   | 427,125 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Other      comprehensive                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         income      (net of tax):                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      change in unrealized gain/(loss)                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         on      securities available for sale, net |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         of      taxes for $31,283                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 52,586 |   |   |   |   |   |   |   | 52,586 |   |
|  Other      Comprehensive gains from                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         derivates,      net of reclassification    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         adjustment      of $21,095                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 35,260 |   |   |   |   |   |   |   | 35,260 |   |
|  Total      Comprehensive income                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 514,971 |   |
|  FAS      159 adjustment                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 705,760 |   |   |   |   |   |   |   | 705,760 |   |
|  Cash      Dividend paid $0.18 per share                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (381,234 | ) |   |   |   |   |   |   |   |   |   |   | (381,234 | ) |
|  Fair      Value unexercised stock options                                            |   |   |   |   |   |   |   |   |   |   | 1,434 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,434 |   |
|  Balance      at March 31, 2007                                                       |   |   | 2,117,966 |   |   | $ | 5,331,165 |   |   | $ | 7,296,669 |   |   | $ | 21,636,965 |   |   | $ | 18,406 |   |   | $ | (257,375 | ) |   | $ | 34,025,830 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      at December 31, 2007                                                    |   |   | 2,117,966 |   |   | $ | 5,331,165 |   |   | $ | 7,305,970 |   |   | $ | 23,071,921 |   |   | $ | 349,184 |   |   | $ | (257,375 | ) |   | $ | 35,800,865 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive      Income:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      income                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 846,107 |   |   |   |   |   |   |   |   |   |   |   | 846,107 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Other      comprehensive                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         income      (net of tax):                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      change in unrealized gain/(loss)                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         on      securities available for sale, net |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         of      taxes of $312,699                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 525,636 |   |   |   |   |   |   |   | 525,636 |   |
|  Other      Comprehensive gains from                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         derivates,      net of reclassification    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         adjustment      of $(69,545)               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (116,903 | ) |   |   |   |   |   |   | (116,903 | ) |
|  Total      Comprehensive income                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,254,840 |   |
|  Cash      Dividend paid $0.18 per share                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (381,234 | ) |   |   |   |   |   |   |   |   |   |   | (381,234 | ) |
|  Fair      Value unexercised stock options                                            |   |   |   |   |   |   |   |   |   |   | 3,328 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,328 |   |
|  Balance      at March 31, 2008                                                       |   |   | 2,117,966 |   |   | $ | 5,331,165 |   |   | $ | 7,309,298 |   |   | $ | 23,536,795 |   |   | $ | 757,917 |   |   | $ | (257,375 | ) |   | $ | 36,677,800 |   |

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| BRITTON & KOONTZ CAPITAL CORPORATION AND      SUBSIDIARIES     |   |
|-------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                              |   |
| PERIODS      ENDED MARCH 31,                                            |   |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   | 2008 |   |   | 2007 |   |
|  CASH FLOWS FROM OPERATING      ACTIVITIES                         |   |   |   |   |   |   |
|  Net      income                                                   |   | $ | 846,107 |   |   | $ | 427,125 |   |
|  Adjustments      to reconcile net income to net cash              |   |   |   |   |   |   |   |   |
|  provided      by (used in) operating activities:                  |   |   |   |   |   |   |   |   |
|  Deferred      income taxes                                        |   |   | (34,608 | ) |   |   | (23,265 | ) |
|  Provision      for loan losses                                    |   |   | 120,000 |   |   |   | 80,000 |   |
|  Provision      for losses on foreclosed real estate               |   |   | 35,010 |   |   |   | - |   |
|  Provision      for depreciation                                   |   |   | 210,285 |   |   |   | 196,848 |   |
|  Stock      dividends received                                     |   |   | (23,000 | ) |   |   | (47,200 | ) |
|  (Gain)/loss      on sale of other real estate                     |   |   | (32,694 | ) |   |   | - |   |
|  (Gain)/loss      on sale of mortgage loans                        |   |   | (58,514 | ) |   |   | (49,623 | ) |
|  (Gain)/loss      on sale of investment securities                 |   |   | (148,116 | ) |   |   | 558,770 |   |
|  (Gain)/loss      on sale of trading securities                    |   |   | - |   |   |   | (90,363 | ) |
|  Net      amortization (accretion) of securities                   |   |   | (26,631 | ) |   |   | 21,054 |   |
|  Amortization      of deposit premium                              |   |   | 26,904 |   |   |   | 26,904 |   |
|  Writedown      of other real estate                               |   |   | - |   |   |   | 211,959 |   |
|  Writedown      of other repossessed assets                        |   |   | - |   |   |   | 15,000 |   |
|  Purchase      of trading securities                               |   |   |   |   |   |   | (21,171,178 | ) |
|  Proceeds      from sales, maturities and paydowns                 |   |   |   |   |   |   |   |   |
|  of      trading securities                                        |   |   | 19,349,806 |   |   |   | - |   |
|  Net      change in:                                               |   |   |   |   |   |   |   |   |
|  Loans      held for sale                                          |   |   | - |   |   |   | (60,796 | ) |
|  Accrued      interest receivable                                  |   |   | 319,301 |   |   |   | 34,597 |   |
|  Cash      surrender value                                         |   |   | (13,739 | ) |   |   | (13,332 | ) |
|  Other      assets                                                 |   |   | (283,462 | ) |   |   | (389,523 | ) |
|  Accrued      interest payable                                     |   |   | (238,920 | ) |   |   | 346,330 |   |
|  Accrued      taxes and other liabilities                          |   |   | 54,552 |   |   |   | 98,170 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Net      cash provided by (used in) operating activities          |   |   | 20,102,281 |   |   |   | (19,828,523 | ) |
|                                                                    |   |   |   |   |   |   |   |   |
|  CASH FLOWS FROM INVESTING      ACTIVITIES                         |   |   |   |   |   |   |   |   |
|  (Increase)/decrease      in federal funds sold                    |   |   | 88,406 |   |   |   | 180,495 |   |
|  Proceeds      from sales, maturities and paydowns of securities:  |   |   |   |   |   |   |   |   |
|  Available-for-sale                                                |   |   | 2,983,919 |   |   |   | 56,019,275 |   |
|  Held-to-maturity                                                  |   |   | 584,248 |   |   |   | 3,662,022 |   |
|  Purchase      of securities:                                      |   |   |   |   |   |   |   |   |
|  Available-for-sale                                                |   |   | - |   |   |   | (34,476,634 | ) |
|  Held-to-maturity                                                  |   |   | (14,811,294 | ) |   |   | (3,771,579 | ) |
|  (Increase)/decrease      in loans                                 |   |   | (7,443,990 | ) |   |   | 3,081,571 |   |
|  Proceeds      from sale and transfers of other real estate        |   |   | 299,808 |   |   |   | - |   |
|  Proceeds      from sale and transfers of other repossessed assets |   |   | - |   |   |   | 4,000 |   |
|  Purchase      of premises and equipment                           |   |   | (31,393 | ) |   |   | (180,617 | ) |
|                                                                    |   |   |   |   |   |   |   |   |
|  Net      cash provided by (used in) investing activities          |   |   | (18,330,296 | ) |   |   | 24,518,533 |   |
|                                                                    |   |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING      ACTIVITIES                         |   |   |   |   |   |   |   |   |
|  Increase      /(decrease) in customer deposits                    |   |   | 2,079,916 |   |   |   | 2,483,566 |   |
|  Increase      /(decrease) in brokered deposits                    |   |   | (5,844,612 | ) |   |   | 9,962,130 |   |
|  Increase      /(decrease) in securities sold under                |   |   |   |   |   |   |   |   |
|  repurchase      agreements                                        |   |   | 1,052,178 |   |   |   | (554,183 | ) |
|  Increase      /(decrease) in FHLB advances                        |   |   | (506,080 | ) |   |   | (14,048,624 | ) |
|  Increase      /(decrease) in advances from borrowers              |   |   |   |   |   |   |   |   |
|  for      taxes and insurance                                      |   |   | (154,269 | ) |   |   | (186,578 | ) |
|  Cash      dividends paid                                          |   |   | (381,234 | ) |   |   | (381,234 | ) |
|  Fair      value of unexercised stock options                      |   |   | 3,328 |   |   |   | 1,434 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Net      cash provided by (used in) financing activities          |   |   | (3,750,773 | ) |   |   | (2,723,489 | ) |
|                                                                    |   |   |   |   |   |   |   |   |
|  NET      INCREASE/(DECREASE) IN CASH AND DUE FROM BANKS           |   |   | (1,978,788 | ) |   |   | 1,966,521 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  CASH      AND DUE FROM BANKS AT BEGINNING OF PERIOD               |   |   | 8,732,307 |   |   |   | 6,572,163 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  CASH      AND DUE FROM BANKS AT END OF PERIOD                     |   | $ | 6,753,519 |   |   | $ | 8,538,684 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  SUPPLEMENTAL      DISCLOSURES OF CASH FLOW                        |   |   |   |   |   |   |
|  INFORMATION:                                                      |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Cash      paid during the year for interest                       |   | $ | 2,744,676 |   |   | $ | 2,399,228 |   |
|  Cash      paid during the year for income taxes                   |   | $ | 159,986 |   |   | $ | - |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  SCHEDULE      OF NONCASH INVESTING AND                            |   |   |   |   |   |   |   |   |
|  FINANCING      ACTIVITIES:                                        |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Change      in unrealized gains (losses)                          |   |   |   |   |   |   |   |   |
|   on      securities available for sale                       |   | $ | 838,335 |   |   | $ | 83,869 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Change      in the deferred tax effect in unrealized              |   |   |   |   |   |   |   |   |
|   gains      (losses) on securities available for sale        |   | $ | 312,699 |   |   | $ | 31,283 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Change      in unrealized gains (losses) on derivative            |   | $ | (186,448 | ) |   | $ | 56,355 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|  Change      in the deferred tax effect in                         |   |   |   |   |   |   |   |   |
|  unrealized      gains (losses) on derivative                      |   | $ | (69,545 | ) |   | $ | 21,096 |   |

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|   | BRITTON & KOONTZ CAPITAL CORPORATION AND      SUBSIDIARIES |
|--------|----------------------------------------------------------------|

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

|   | FOR      THE THREE MONTHS ENDED MARCH 31,2008 |
|--------|-----------------------------------------------|

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|                                             |   | For      the three months endedMarch      31, |      |
|--------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                             |   | 2008                                          |      |   | 2007 |   |
| Basic      weighted average shares outstanding   |   |                                          | 2,117,966 |   |   |   | 2,117,966 |   |
| Dilutive      effect of granted options          |   |                                          | 784       |   |   |   | 3,027 |   |
|                                             |   |                                          |      |   |   |   |   |   |
| Diluted      weighted average shares outstanding |   |                                          | 2,118,750 |   |   |   | 2,120,993 |   |
| Net      income                                  |   | $                                             | 846,107   |   |   | $ | 427,125 |   |
| Net      income per share-basic                  |   | $                                             | 0.40      |   |   | $ | 0.20 |   |
| Net      income per share-diluted                |   | $                                             | 0.40      |   |   | $ | 0.20 |   |

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Item 2.

|   | Financial      Condition |
|--------|--------------------------|

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|                                                                                |   | 03/31/08 |        |   | 12/31/07 |   |
|-------------------------------------------------------------------------------------|--------|----------|-------------|--------|----------|--------|
| Mortgage-Backed      Securities                                                     |   | $        | 77,156,787  |   |     | $      | 84,741,030 |   |
| Obligations      of State and                                                       |   |     |        |   |     |   |   |   |
| Political      Subdivisions                                                         |   |     | 37,711,475  |   |     |   | 38,004,634 |   |
|              Total |   | $        | 114,868,262 |   |     | $      | 122,745,664 |   |

|                                          |   | 03/31/08 |        |   | 12/31/07 |   |
|-----------------------------------------------|--------|----------|-------------|--------|----------|--------|
| Commercial,      financial & agricultural |   | $        | 25,578,000  |   |     | $      | 25,884,000 |   |
| Real      estate-construction                 |   |     | 43,508,000  |   |     |   | 45,097,000 |   |
| Real      estate-1-4 family residential       |   |     | 65,113,000  |   |     |   | 68,041,000 |   |
| Real      estate-other                        |   |     | 88,731,000  |   |     |   | 76,520,000 |   |
| Installment                                   |   |     | 7,556,000   |   |     |   | 7,550,000 |   |
| Other                                         |   |     | 195,000     |   |     |   | 261,000 |   |
| Total      loans                              |   | $        | 230,681,000 |   |     | $      | 223,353,000 |   |

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|                                                                                                                                                                   |   | 03/31/08                    |   |   | 12/31/07 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------|--------|
|                                                                                                                                                                   |   | (dollars      in thousands) |   |
| Non-accrual      loans by type:                                                                                                                                        |   |                        |   |   |     |   |
| Real      estate                                                                                                                                                       |   | $                           | 1,269  |   |     | $      | 992 |   |
| Installment                                                                                                                                                            |   |                        | 199    |   |     |   | 87 |   |
| Commercial      and all other loans                                                                                                                                    |   |                        | 1,454  |   |     |   | 223 |   |
| Total      non-accrual loans                                                                                                                                           |   |                        | 2,922  |   |     |   | 1,302 |   |
| Loans      past due 90 days or more                                                                                                                                    |   |                        | 838    |   |     |   | 12 |   |
| Total      nonperforming loans                                                                                                                                         |   |                        | 3,760  |   |     |   | 1,314 |   |
| Other      real estate owned (net)                                                                                                                                     |   |                        | 445    |   |     |   | 747 |   |
| Total      nonperforming assets                                                                                                                                        |   | $                           | 4,205  |   |     | $      | 2,061 |   |
| Nonperforming      loans as a percent of loans, net of unearned           interest      and loans held for sale |   |                        | 1.63   | %      |     |   | .59 | % |

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|                                                                                                          |   | 03/31/08                    |   |   | 03/31/07 |   |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------|--------|
|                                                                                                          |   | (dollars      in thousands) |   |
| Balance      at beginning of period                                                                           |   | $                           | 2,431  |   |     | $      | 2,344 |   |
| Charge-offs:                                                                                                  |   |                        |   |   |     |   |   |   |
| Real      Estate                                                                                              |   |                        | (259   | )      |     |   | (25 | ) |
| Commercial                                                                                                    |   |                        | (45    | )      |     |   | (73 | ) |
| Installment      and other                                                                                    |   |                        | (14    | )      |     |   | (28 | ) |
| Recoveries:                                                                                                   |   |                        |   |   |     |   |   |   |
| Real      Estate                                                                                              |   |                        | 4      |   |     |   | - |   |
| Commercial                                                                                                    |   |                        | 105    |   |     |   | 7 |   |
| Installment      and other                                                                                    |   |                        | 34     |   |     |   | 18 |   |
| Net      (charge-offs)/recoveries                                                                             |   |                        | (175   | )      |     |   | (101 | ) |
| Provision      charged to operations                                                                          |   |                        | 120    |   |     |   | 80 |   |
| Balance      at end of period                                                                                 |   | $                           | 2,376  |   |     | $      | 2,323 |   |
| Allowance      for loan losses as a percent of loans, net of unearned interest &      loans held for sale |   |                        | 1.03   | %      |     |   | .97 | % |
| Net      charge-offs as a percent of average loans                                                            |   |                        | .08    | %      |     |   | .04 | % |

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|                               |   | 03/31/08 |        |   | 12/31/07 |   |
|------------------------------------|--------|----------|-------------|--------|----------|--------|
| Non-Interest      Bearing          |   | $        | 49,611,550  |   |     | $      | 47,305,927 |   |
| NOW      Accounts                  |   |     | 24,766,281  |   |     |   | 24,056,081 |   |
| Money      Market Deposit Accounts |   |     | 31,545,372  |   |     |   | 34,449,399 |   |
| Savings      Accounts              |   |     | 18,278,062  |   |     |   | 17,310,284 |   |
| Certificates      of Deposit       |   |     | 118,428,189 |   |     |   | 123,272,459 |   |
| Total      Deposits                |   | $        | 242,629,454 |   |     | $      | 246,394,150 |   |

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Item3.  

Item4.   

Item 1A

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Item2.  

Item6.

| Exhibit |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.1     | *      | Restated      Articles of Incorporation of Britton & Koontz Capital Corporation, as      amended, incorporated by reference to Exhibit 3.1 to Registrant’s      Quarterly Report on Form 10-Q filed with the Securities and Exchange      Commission on August 4, 2006.                                                                                                                                                                                                                                                                                                                            |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.2     | *      | By-Laws      of Britton & Koontz Capital Corporation, as amended, incorporated by      reference to Exhibit 3.2 to Registrant’s Annual Report on Form 10-K filed      with the Securities and Exchange Commission on March 14,    2008.                                                                                                                                                                                                                                                                                                                                                            |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.1     | *      | Shareholder      Rights Agreement dated June 1, 1996 between Britton & Koontz Capital      Corporation and Britton & Koontz First National Bank, as Rights Agent,      incorporated by reference to Exhibit 4.3 to Registrant’s Registration      Statement on Form S-8, Registration No. 333-20631, filed with the      Commission on January 29, 1997, as amended by Amendment No. 1 to Rights      Agreement dated as of August 15, 2006, incorporated by reference to      Exhibit 4.2 to Registrant’s Current Report on Form 8-K filed with the      Commission on August 17, 2006. |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.1    |   | Certifications      of the Chief Executive Officer, as required pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.2    |   | Certifications      of the Chief Financial Officer, as required pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.1    |   | Certifications      of the Chief Executive Officer, as required pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.2    |   | Certifications      of the Chief Financial Officer, as required pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| * | As      indicated in the column entitled “Description of Exhibits” this exhibit is      incorporated by reference to another filing or  document. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

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|   | EXHIBIT      INDEX    |
|--------|--------------------------------------|

|                                                                                                                                  |                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| Exhibit                           | Description of Exhibit                                                                                                         |
|                                                                                                                                  |                                                                                                                           |
| 31.1                                                                                                                                  | Certifications of the Chief Executive Officer, as      required pursuant to Section 302 of the Sarbanes-Oxley Act of      2002 |
|                                                                                                                                  |                                                                                                                           |
| 31.2                                                                                                                                  | Certifications of the Chief Financial Officer, as      required pursuant to Section 302 of the Sarbanes-Oxley Act of      2002 |
|                                                                                                                                  |                                                                                                                           |
| 32.1                                                                                                                                  | Certifications of the Chief Executive Officer, as      required pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |
|                                                                                                                                  |                                                                                                                           |
| 32.2                                                                                                                                  | Certifications of the Chief Financial Officer, as      required pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |