----

**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C.  20549**

**FORM        10-Q**

| 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 |
|---|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 0-22606 |
|--------|---------|

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

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

|   | (Exact                  name of Registrant as Specified in Its                  Charter) |
|--------|------------------------------------------------------------------------------------------|

|   | 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) (Zip                  Code) |
|--------|---------------------------------------------------------------------------------------|

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

|   | (Registrant’s                  Telephone Number, Including Area                  Code) |
|--------|----------------------------------------------------------------------------------------------|

|   | o | Large                  accelerated filer |   | o | Accelerated                  filer |   | x | Non-accelerated                  filer |
|--------|---|------------------------------------------|--------|---|------------------------------------|--------|---|----------------------------------------|

----

Table            of Contents

**BRITTON        & KOONTZ CAPITAL CORPORATION**

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

**INDEX**

| **PART                  I.**  | **FINANCIAL                  INFORMATION**                                                                                                                                        |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                              |
|                          |                                                                                                                                                                              |
|                          | **Item                  1.    Financial                  Statements**                                                                                         |
|                          |                                                                                                                                                                              |
|                          | 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 and                  Analysis of Financial Condition and Results of                  Operations** |
|                          |                                                                                                                                                                              |
|                          | **Item                  3.    Quantitative and Qualitative                  Disclosures About Market Risk**                                                   |
|                          |                                                                                                                                                                              |
|                          | **Item                  4.    Controls and                  Procedures**                                                                                      |
|                          |                                                                                                                                                                              |
|                          |                                                                                                                                                                              |
| **PART                  II.** | **OTHER                  INFORMATION**                                                                                                                                            |
|                          |                                                                                                                                                                              |
|                          | **Item                  1A.  Risk                  Factors**                                                                                                            |
|                          |                                                                                                                                                                              |
|                          | **Item                  2.     Unregistered Sales of Equity                  Securities and Use of Proceeds**                                                 |
|                          |                                                                                                                                                                              |
|                          | **Item                  6.                      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**

**Item        1.                      Financial        Statements**

----

Table            of Contents

| **BRITTON&KOONTZ CAPITAL                CORPORATION AND                SUBSIDIARIES**   |   |
|--------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF FINANCIAL CONDITION**                                |   |
| **SEPTEMBER                30, 2007 AND DECEMBER 31, 2006**                                      |   |
|                                                                                             |   |   |   |   |   |   |
| **A                S S E T S**                                                                   |   |
|                                                                                             |   |   |   |   |   |   |
| ** ASSETS:**                                                                                |   | **2007** |   |   | **2006** |   |
|  Cash                and due from banks:                                                    |   |   |   |   |   |   |
|  Non-interest                bearing                                                        |   | $ | 6,674,505 |   |   | $ | 6,254,364 |   |
|  Interest                bearing                                                            |   |   | 6,909,870 |   |   |   | 317,799 |   |
| **        Total                cash and due from banks** |   |   | 13,584,375 |   |   |   | 6,572,163 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Federal                funds sold                                                          |   |   | 138,358 |   |   |   | 304,569 |   |
|  Investment                Securities:                                                      |   |   |   |   |   |   |   |   |
|  Trading                (amortized cost, in 2007 and 2006,                                  |   |   |   |   |   |   |   |   |
|      of                $19,749,981 and $0, respectively                 |   |   | 19,525,452 |   |   |   | - |   |
|  Available-for-sale                (amortized cost, in 2007 and 2006,                       |   |   |   |   |   |   |   |   |
|      of                $43,802,706 and $65,580,510, respectively)       |   |   | 43,199,546 |   |   |   | 64,419,428 |   |
|  Held-to-maturity                (market value, in 2007 and 2006,                           |   |   |   |   |   |   |   |   |
|      of                $38,304,022 and $39,525,495, respectively)       |   |   | 38,217,744 |   |   |   | 38,610,920 |   |
|  Equity                securities                                                           |   |   | 3,629,800 |   |   |   | 4,339,700 |   |
|  Loans,                less unearned income of $(115) in 2007 and                           |   |   |   |   |   |   |   |   |
|      $122                in 2006, and allowance for loan losses of      |   |   |   |   |   |   |   |   |
|      $2,490,231                in 2007 and $2,344,434 in 2006           |   |   | 232,478,984 |   |   |   | 241,190,049 |   |
|  Loans                held for sale                                                         |   |   | - |   |   |   | 54,810 |   |
|  Bank                premises and equipment, net                                            |   |   | 7,508,902 |   |   |   | 7,719,278 |   |
|  Other                real estate, net of reserves of $23,340                               |   |   | 851,110 |   |   |   | 1,256,611 |   |
|  Accrued                interest receivable                                                 |   |   | 2,390,261 |   |   |   | 2,437,387 |   |
|  Cash                surrender value of life insurance                                      |   |   | 1,004,599 |   |   |   | 973,212 |   |
|  Core                Deposit, net                                                           |   |   | 692,562 |   |   |   | 773,275 |   |
|  Other                assets                                                                |   |   | 796,130 |   |   |   | 666,839 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| ** TOTAL                ASSETS**                                                            |   | $ | 364,017,823 |   |   | $ | 369,318,241 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                          |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| ** LIABILITIES:**                                                                           |   |   |   |   |   |   |
|  Deposits                                                                                   |   |   |   |   |   |   |   |   |
|  Non-interest                bearing                                                        |   | $ | 45,459,206 |   |   | $ | 50,345,279 |   |
|  Interest                bearing                                                            |   |   | 209,791,513 |   |   |   | 203,411,996 |   |
| **        Total                deposits**                |   |   | 255,250,719 |   |   |   | 253,757,275 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Federal                Home Loan Bank advances                                             |   |   | 37,497,443 |   |   |   | 65,667,972 |   |
|  Securities                sold under repurchase agreements                                 |   |   | 28,264,232 |   |   |   | 8,149,016 |   |
|  Accrued                interest payable                                                    |   |   | 2,285,532 |   |   |   | 1,786,288 |   |
|  Advances                from borrowers for taxes and insurance                             |   |   | 297,347 |   |   |   | 401,678 |   |
|  Accrued                taxes and other liabilities                                         |   |   | 754,426 |   |   |   | 804,124 |   |
|  Junior                subordinated debentures                                              |   |   | 5,155,000 |   |   |   | 5,155,000 |   |
| **        Total                liabilities**             |   |   | 329,504,699 |   |   |   | 335,721,353 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| ** 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 September 30, 2007, and December 31, 2006                  |   |   | 5,331,165 |   |   |   | 5,331,165 |   |
|  Additional                paid-in capital                                                  |   |   | 7,303,287 |   |   |   | 7,295,235 |   |
|  Retained                earnings                                                           |   |   | 22,488,874 |   |   |   | 22,003,063 |   |
|  Accumulated                other comprehensive income                                      |   |   | (352,827 | ) |   |   | (775,200 | ) |
|                                                                                             |   |   | 34,770,499 |   |   |   | 33,854,263 |   |
|  Cost                of 14,500 shares of common stock held by the company                   |   |   | (257,375 | ) |   |   | (257,375 | ) |
| **        Total                stockholders' equity**    |   |   | 34,513,124 |   |   |   | 33,596,888 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| ** TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY**                              |   | $ | 364,017,823 |   |   | $ | 369,318,241 |   |
|                                                                                             |   |   |   |   |   |   |   |   |

----

Table            of Contents

| **BRITTON&KOONTZ CAPITAL                CORPORATION AND                SUBSIDIARIES** |   |
|------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED STATEMENTS OF INCOME**                                           |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   | **Three                Months Ended** |   |   | **Nine                Months Ended** |   |
|                                                                                           |   | **September                30,** |   |   | **September                30,** |   |
|                                                                                           |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| ** INTEREST                INCOME:**                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                and fees on loans                                                |   | $ | 4,927,873 |   |   | $ | 4,790,269 |   |   | $ | 14,604,205 |   |   | $ | 13,615,831 |   |
|  Interest                on investment securities:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Taxable                interest income                           |   |   | 983,216 |   |   |   | 870,895 |   |   |   | 2,765,617 |   |   |   | 2,766,923 |   |
|      Exempt                from federal taxes                         |   |   | 408,169 |   |   |   | 409,090 |   |   |   | 1,236,172 |   |   |   | 1,227,191 |   |
|  Interest                on federal funds sold                                            |   |   | 4,144 |   |   |   | 3,286 |   |   |   | 10,225 |   |   |   | 24,619 |   |
|  Total                interest income                                                     |   |   | 6,323,402 |   |   |   | 6,073,540 |   |   |   | 18,616,219 |   |   |   | 17,634,564 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** INTEREST                EXPENSE:**                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                on deposits                                                      |   |   | 1,976,714 |   |   |   | 1,676,086 |   |   |   | 5,845,880 |   |   |   | 4,682,662 |   |
|  Interest                on Federal Home Loan Bank advances                               |   |   | 505,670 |   |   |   | 764,641 |   |   |   | 1,825,196 |   |   |   | 2,178,734 |   |
|  Interest                on trust preferred securities                                    |   |   | 108,624 |   |   |   | 109,953 |   |   |   | 322,410 |   |   |   | 309,023 |   |
|  Interest                on securities sold under repurchase agreements                   |   |   | 269,840 |   |   |   | 135,690 |   |   |   | 468,815 |   |   |   | 296,571 |   |
|  Total                interest expense                                                    |   |   | 2,860,848 |   |   |   | 2,686,370 |   |   |   | 8,462,301 |   |   |   | 7,466,990 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** NET                INTEREST INCOME**                                                   |   |   | 3,462,554 |   |   |   | 3,387,170 |   |   |   | 10,153,918 |   |   |   | 10,167,574 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Provision                for loan losses                                                 |   |   | 120,000 |   |   |   | 90,000 |   |   |   | 320,000 |   |   |   | 210,000 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** NET                INTEREST INCOME AFTER PROVISION**                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** FOR                LOAN LOSSES**                                                       |   |   | 3,342,554 |   |   |   | 3,297,170 |   |   |   | 9,833,918 |   |   |   | 9,957,574 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** OTHER                INCOME:**                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Service                charges on deposit accounts                                       |   |   | 409,424 |   |   |   | 355,885 |   |   |   | 1,197,900 |   |   |   | 1,028,668 |   |
|  Income                from fiduciary activities                                          |   |   | 999 |   |   |   | 9,492 |   |   |   | 2,997 |   |   |   | 29,233 |   |
|  Income                from networking arrangements                                       |   |   | 68,894 |   |   |   | 52,763 |   |   |   | 194,865 |   |   |   | 140,343 |   |
|  Insurance                premiums and commissions                                        |   |   | 25 |   |   |   | 50 |   |   |   | 75 |   |   |   | 74 |   |
|  Gain/(loss)                on sale of ORE                                                |   |   | - |   |   |   | 10,691 |   |   |   | (26,270 | ) |   |   | 10,691 |   |
|  Gain/(loss)                on sale of mortgage loans                                     |   |   | 91,889 |   |   |   | 67,990 |   |   |   | 216,521 |   |   |   | 207,859 |   |
|  Gain/(loss)                on sale of securities                                         |   |   | - |   |   |   | (1,875 | ) |   |   | (558,770 | ) |   |   | (1,875 | ) |
|  Gain/(loss)                on trading securities                                         |   |   | 204,754 |   |   |   | - |   |   |   | (155,412 | ) |   |   | - |   |
|  Gain/(loss)                on sale of other assets                                       |   |   | 1,000 |   |   |   | - |   |   |   | 1,000 |   |   |   | - |   |
|  Other                                                                                    |   |   | 102,796 |   |   |   | 122,958 |   |   |   | 365,055 |   |   |   | 407,395 |   |
|  Total                other income                                                        |   |   | 879,781 |   |   |   | 617,954 |   |   |   | 1,237,961 |   |   |   | 1,822,388 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** OTHER                EXPENSES:**                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Salaries                                                                                 |   |   | 1,327,749 |   |   |   | 1,268,836 |   |   |   | 3,847,802 |   |   |   | 3,844,132 |   |
|  Employee                benefits                                                         |   |   | 189,403 |   |   |   | 182,096 |   |   |   | 567,805 |   |   |   | 574,906 |   |
|  Director                fees                                                             |   |   | 52,500 |   |   |   | 47,750 |   |   |   | 158,425 |   |   |   | 148,575 |   |
|  Net                occupancy expense                                                     |   |   | 241,814 |   |   |   | 252,245 |   |   |   | 724,242 |   |   |   | 720,447 |   |
|  Equipment                expenses                                                        |   |   | 287,544 |   |   |   | 279,469 |   |   |   | 851,620 |   |   |   | 803,948 |   |
|  FDIC                assessment                                                           |   |   | 7,733 |   |   |   | 8,272 |   |   |   | 23,247 |   |   |   | 24,366 |   |
|  Advertising                                                                              |   |   | 41,594 |   |   |   | 53,736 |   |   |   | 121,770 |   |   |   | 170,281 |   |
|  Stationery                and supplies                                                   |   |   | 61,795 |   |   |   | 46,940 |   |   |   | 144,273 |   |   |   | 129,032 |   |
|  Audit                expense                                                             |   |   | 57,292 |   |   |   | 50,029 |   |   |   | 183,551 |   |   |   | 139,704 |   |
|  Other                real estate expense                                                 |   |   | 118,113 |   |   |   | 23,599 |   |   |   | 301,814 |   |   |   | 68,058 |   |
|  Amortization                of deposit premium                                           |   |   | 26,904 |   |   |   | 26,904 |   |   |   | 80,712 |   |   |   | 80,712 |   |
|  Other                                                                                    |   |   | 450,047 |   |   |   | 430,208 |   |   |   | 1,497,184 |   |   |   | 1,431,228 |   |
|  Total                other expenses                                                      |   |   | 2,862,488 |   |   |   | 2,670,084 |   |   |   | 8,502,445 |   |   |   | 8,135,389 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** INCOME                BEFORE INCOME TAX EXPENSE**                                      |   |   | 1,359,847 |   |   |   | 1,245,040 |   |   |   | 2,569,434 |   |   |   | 3,644,573 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                tax expense                                                        |   |   | 358,773 |   |   |   | 321,337 |   |   |   | 527,932 |   |   |   | 920,022 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** NET                INCOME**                                                            |   | $ | 1,001,074 |   |   | $ | 923,703 |   |   | $ | 2,041,502 |   |   | $ | 2,724,551 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ** EARNINGS                PER SHARE DATA:**                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                earnings per share                                                  |   | $ | 0.47 |   |   | $ | 0.44 |   |   | $ | 0.96 |   |   | $ | 1.29 |   |
|  Basic                weighted shares outstanding                                         |   |   | 2,117,966 |   |   |   | 2,117,966 |   |   |   | 2,117,966 |   |   |   | 2,117,381 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Diluted                earnings per share                                                |   | $ | 0.47 |   |   | $ | 0.44 |   |   | $ | 0.96 |   |   | $ | 1.28 |   |
|  Diluted                weighted shares outstanding                                       |   |   | 2,119,093 |   |   |   | 2,122,015 |   |   |   | 2,119,824 |   |   |   | 2,121,943 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash                dividends per share                                                  |   | $ | 0.18 |   |   | $ | 0.18 |   |   | $ | 0.54 |   |   | $ | 0.54 |   |

----

Table            of Contents

| **BRITTON&KOONTZ CAPITAL                CORPORATION AND                SUBSIDIARIES** |   |
|------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**                  |   |
| **FOR                THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006**                       |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Other |   |   |   |   |   | Total |   |
|                                                                                           |   | Common                Stock |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |   |   | Treasury |   |   | Stockholders' |   |
|                                                                                           |   | Shares |   |   | Amount |   |   | Capital |   |   | Earnings |   |   | Income |   |   | Stock |   |   | Equity |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance                at December 31, 2005                                              |   |   | 2,116,316 |   |   | $ | 5,327,040 |   |   | $ | 7,254,113 |   |   | $ | 19,949,100 |   |   | $ | (1,012,720 | ) |   | $ | (257,375 | ) |   | $ | 31,260,158 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive                Income:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net                income                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,724,551 |   |   |   | - |   |   |   |   |   |   |   | 2,724,551 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Other                comprehensive income, net of tax:           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                change in unrealized gain/(loss)                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on                securities available for sale,                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  net                of taxes of $28,590                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,059 |   |   |   |   |   |   |   | 48,059 |   |
|  Other                Comprehensive gains from                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  derivatives,                net of reclassification                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustment                of $155                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (260 | ) |   |   |   |   |   |   | (260 | ) |
|  Total                Comprehensive Income                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,772,350 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash                Dividend paid $0.54 per share                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,143,386 | ) |   |   |   |   |   |   |   |   |   |   | (1,143,386 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Stock                Options exercised                                                   |   |   | 1,650 |   |   |   | 4,125 |   |   |   | 31,119 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 35,244 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Fair                value of unexercised stock options                                   |   |   |   |   |   |   |   |   |   |   | 7,570 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7,570 |   |
|  Balance                at September 30, 2006                                             |   |   | 2,117,966 |   |   |   | 5,331,165 |   |   |   | 7,292,802 |   |   |   | 21,530,265 |   |   | $ | (964,921 | ) |   |   | (257,375 | ) |   | $ | 32,931,936 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  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                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,041,502 |   |   |   | - |   |   |   |   |   |   |   | 2,041,502 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Other                comprehensive income, net of tax:           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                change in unrealized gain/(loss)                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on                securities available for sale,                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  net                of taxes of $208,104                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 349,817 |   |   |   |   |   |   |   | 349,817 |   |
|  Other                Comprehensive gains from                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  derivatives,                net of reclassification                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustment                of $43,163                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 72,556 |   |   |   |   |   |   |   | 72,556 |   |
|  Total                Comprehensive Income                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,463,875 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash                Dividend paid $0.54 per share                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,143,702 | ) |   |   |   |   |   |   |   |   |   |   | (1,143,702 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Fair                value of unexercised stock options                                   |   |   |   |   |   |   |   |   |   |   | 8,052 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,052 |   |
|  Balance                at September 30, 2007                                             |   |   | 2,117,966 |   |   | $ | 5,331,165 |   |   | $ | 7,303,287 |   |   | $ | 22,488,874 |   |   | $ | (352,827 | ) |   | $ | (257,375 | ) |   | $ | 34,513,124 |   |

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Table            of Contents

| **BRITTON&KOONTZ CAPITAL                CORPORATION AND                SUBSIDIARIES** |   |
|------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                       |   |
| **PERIODS                ENDED SEPTEMBER 30,**                                                 |   |
|                                                                                           |   |   |   |   |   |   |
|                                                                                           |   | **2007** |   |   | **2006** |   |
| ** CASH                FLOWS FROM OPERATING ACTIVITIES**                                  |   |   |   |   |   |   |
|  Net                income                                                                |   | $ | 2,041,502 |   |   | $ | 2,724,551 |   |
|  Adjustments                to reconcile net income to net cash                           |   |   |   |   |   |   |   |   |
|  provided                by (used in) operating activities:                               |   |   |   |   |   |   |   |   |
|  Deferred                income taxes                                                     |   |   | (298,255 | ) |   |   | (181,080 | ) |
|  Provision                for loan losses                                                 |   |   | 320,000 |   |   |   | 210,000 |   |
|  Provision                for losses on foreclosed real estate                            |   |   | 23,340 |   |   |   | - |   |
|  Provision                for depreciation                                                |   |   | 592,380 |   |   |   | 591,234 |   |
|  Stock                dividends received                                                  |   |   | (131,900 | ) |   |   | (142,900 | ) |
|  (Gain)/loss                on sale of other real estate                                  |   |   | 26,270 |   |   |   | (10,691 | ) |
|  (Gain)/loss                on sale of other repossessed assets                           |   |   | (1,000 | ) |   |   | - |   |
|  (Gain)/loss                on sale of mortgage loans                                     |   |   | (216,521 | ) |   |   | (207,859 | ) |
|  (Gain)/loss                on sale of investment securities                              |   |   | 558,770 |   |   |   | 1,875 |   |
|  (Gain)/loss                on valuation of trading securities                            |   |   | 155,412 |   |   |   | - |   |
|  Net                amortization (accretion) of securities                                |   |   | (11,420 | ) |   |   | 115,976 |   |
|  Amortization                of deposit premium                                           |   |   | 80,712 |   |   |   | 80,712 |   |
|  Writedown                of other real estate                                            |   |   | 297,959 |   |   |   | 22,178 |   |
|  Writedown                of other repossessed assets                                     |   |   | 15,000 |   |   |   | - |   |
|  Purchase                of trading securities                                            |   |   | (21,171,178 | ) |   |   | - |   |
|  Proceeds                from sales, maturities and paydowns                              |   |   |   |   |   |   |   |   |
|  of                trading securities                                                     |   |   | 1,079,229 |   |   |   | - |   |
|  Net                change in:                                                            |   |   |   |   |   |   |   |   |
|  Loans                held for sale                                                       |   |   | 54,810 |   |   |   | 171,200 |   |
|  Accrued                interest receivable                                               |   |   | 47,126 |   |   |   | (209,013 | ) |
|  Cash                surrender value                                                      |   |   | (31,387 | ) |   |   | (28,167 | ) |
|  Other                assets                                                              |   |   | 18,542 |   |   |   | (190,692 | ) |
|  Accrued                interest payable                                                  |   |   | 499,244 |   |   |   | 468,414 |   |
|  Accrued                taxes and other liabilities                                       |   |   | (49,823 | ) |   |   | 144,170 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Net                cash provided by (used in) operating activities                       |   |   | (16,101,188 | ) |   |   | 3,559,908 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** CASH                FLOWS FROM INVESTING ACTIVITIES**                                  |   |   |   |   |   |   |   |   |
|  (Increase)/decrease                in federal funds sold                                 |   |   | 166,210 |   |   |   | 127,360 |   |
|  Proceeds                from sales, maturities and paydowns of securities:               |   |   |   |   |   |   |   |   |
|  Available-for-sale                                                                       |   |   | 58,187,260 |   |   |   | 16,370,116 |   |
|  Held-to-maturity                                                                         |   |   | 5,698,207 |   |   |   | 713,263 |   |
|  Redemption                of FHLB stock                                                  |   |   | 841,800 |   |   |   | 1,044,000 |   |
|  Purchases                of securities:                                                  |   |   |   |   |   |   |   |   |
|  Available-for-sale                                                                       |   |   | (36,954,202 | ) |   |   | (5,286,957 | ) |
|  Held-to-maturity                                                                         |   |   | (5,308,539 | ) |   |   | (309,929 | ) |
|  (Increase)/decrease                in loans                                              |   |   | 8,298,668 |   |   |   | (2,310,396 | ) |
|  Proceeds                from sale and transfers of other real estate                     |   |   | 362,850 |   |   |   | 152,713 |   |
|  Proceeds                from sale and transfers of other repossessed assets              |   |   | 5,000 |   |   |   | 4,500 |   |
|  Proceeds                from sale of premises and equipment                              |   |   | 491 |   |   |   | - |   |
|  Purchase                of premises and equipment                                        |   |   | (382,495 | ) |   |   | (358,606 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Net                cash provided by (used in) investing activities                       |   |   | 30,915,250 |   |   |   | 10,146,064 |   |
|                                                                                           |   |   |   |   |   |   |
| ** CASH                FLOWS FROM FINANCING ACTIVITIES**                                  |   |   |   |   |   |   |   |   |
|  Increase                /(decrease) in customer deposits                                 |   |   | (5,283,524 | ) |   |   | (1,169,515 | ) |
|  Increase                /(decrease) in brokered deposits                                 |   |   | 6,776,968 |   |   |   | 600,670 |   |
|  Increase                /(decrease) in securities sold under                             |   |   |   |   |   |   |   |   |
|  repurchase                agreements                                                     |   |   | 20,115,216 |   |   |   | 1,355,271 |   |
|  Increase                /(decrease) in FHLB advances                                     |   |   | (28,170,529 | ) |   |   | (15,252,485 | ) |
|  Increase                /(decrease) in advances from borrowers                           |   |   |   |   |   |   |   |   |
|  for                taxes and insurance                                                   |   |   | (104,331 | ) |   |   | (106,762 | ) |
|  Cash                dividends paid                                                       |   |   | (1,143,702 | ) |   |   | (1,143,385 | ) |
|  Common                stock issued                                                       |   |   | 8,052 |   |   |   | 42,814 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Net                cash provided by (used in) financing activities                       |   |   | (7,801,850 | ) |   |   | (15,673,392 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** NET                INCREASE/(DECREASE) IN CASH AND DUE FROM BANKS**                    |   |   | 7,012,212 |   |   |   | (1,967,420 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** CASH                AND DUE FROM BANKS AT BEGINNING OF PERIOD**                        |   |   | 6,572,163 |   |   |   | 9,825,459 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** CASH                AND DUE FROM BANKS AT END OF PERIOD**                              |   | $ | 13,584,375 |   |   | $ | 7,858,039 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** SUPPLEMENTAL                DISCLOSURES OF CASH FLOW**                                 |   |   |   |   |   |   |
| ** INFORMATION:**                                                                         |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Cash                paid during the year for interest                                    |   | $ | 7,963,057 |   |   | $ | 6,998,576 |   |
|  Cash                paid during the year for income taxes                                |   | $ | 670,312 |   |   | $ | 1,051,298 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| ** SCHEDULE                OF NONCASH INVESTING AND**                                     |   |   |   |   |   |   |   |   |
| ** FINANCING                ACTIVITIES:**                                                 |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|   Transfers                from loans foreclosed to other real estate                |   | $ | 304,918 |   |   | $ | 137,754 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Change                in unrealized gains (losses)                                       |   |   |   |   |   |   |   |   |
|   on                securities available for sale                                    |   | $ | 557,921 |   |   | $ | 76,649 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Change                in the deferred tax effect in unrealized                           |   |   |   |   |   |   |   |   |
|   gains                (losses) on securities available for sale                     |   | $ | 208,104 |   |   | $ | 28,590 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Change                in unrealized gains (losses) on derivative                         |   | $ | 115,719 |   |   | $ | (415 | ) |
|                                                                                           |   |   |   |   |   |   |   |   |
|  Change                in the deferred tax effect in                                      |   |   |   |   |   |   |   |   |
|  unrealized                gains (losses) on derivative                                   |   | $ | 43,163 |   |   | $ | (155 | ) |

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**BRITTON&KOONTZ      CAPITAL CORPORATION AND      SUBSIDIARIES**

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|   | **SEPTEMBER                30, 2007 AND DECEMBER 31,                2006** |
|--------|----------------------------------------------------------------------------|

**Note      A.  Basis of Presentation**

**Note      B.  Interest Rate Risk Management**

**Note      C.  Loans Held-for-Sale**

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Table          of Contents

**Note      D.  Junior Subordinated Debentures**

**Note      E.  Loan Commitments**

**Note      F.  Earnings per Share**

|                                                       |   | For                  the three months endedSeptember                  30, |      |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------|-----------|
|                                                       |   | 2007                                                                      |      |   | 2006 |   |
| Basic                weighted average shares outstanding   |   |                                                                      | 2,117,966 |   |   |   | 2,117,966 |   |
| Dilutive                effect of granted options          |   |                                                                      | 1,127     |   |   |   | 4,049 |   |
|                                                       |   |                                                                      |      |   |   |   |   |   |
| Diluted                weighted average shares outstanding |   |                                                                      | 2,119,093 |   |   |   | 2,122,015 |   |
| Net                income                                  |   | $                                                                         | 1,001,074 |   |   | $ | 923,703 |   |
| Net                income per share-basic                  |   | $                                                                         | 0.47      |   |   | $ | 0.44 |   |
| Net                income per share-diluted                |   | $                                                                         | 0.47      |   |   | $ | 0.44 |   |
|                                                       |   | For                  the nine months endedSeptember                  30,  |      |
|                                                       |   | 2007                                                                      |      |   | 2006 |   |
| Basic                weighted average shares outstanding   |   |                                                                      | 2,117,966 |   |   |   | 2,117,381 |   |
| Dilutive                effect of granted options          |   |                                                                      | 1,858     |   |   |   | 4,562 |   |
|                                                       |   |                                                                      |      |   |   |   |   |   |
| Diluted                weighted average shares outstanding |   |                                                                      | 2,119,824 |   |   |   | 2,121,943 |   |
| Net                income                                  |   | $                                                                         | 2,041,502 |   |   | $ | 2,724,551 |   |
| Net                income per share-basic                  |   | $                                                                         | 0.96      |   |   | $ | 1.29 |   |
| Net                income per share-diluted                |   | $                                                                         | 0.96      |   |   | $ | 1.28 |   |

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

**SUMMARY**

----

Table          of Contents

**Financial      Condition**

**Assets**

** **

**Investment      Securities**

**TABLE      1: COMPOSITION OF      INVESTMENT PORTFOLIO **

**(**

*Amortized      Cost*

**)**

|                                                                                |   | 09/30/07     |        |   | 12/31/06 |   |
|-------------------------------------------------------------------------------------|--------|--------------|-------------|--------|----------|--------|
| Mortgage-Backed                Securities                                           |   | $            | 65,622,908  |   |     | $      | 61,518,891 |   |
| Agencies                Obligations                                                 |   |         | 0           |   |     |   | 6,496,959 |   |
| Obligations                of State and                                             |   |         |        |   |     |   |   |   |
| Political                Subdivisions                                               |   | *** *** | 36,147,523  |   |     |   | 36,175,580 |   |
|              Total |   | $            | 101,770,431 |   |     | $      | 104,191,430 |   |

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**Loans**

**TABLE      2: COMPOSITION OF LOAN PORTFOLIO *(including loans held for      sale)***

|                                                    |   | 09/30/07 |        |   | 12/31/06 |   |
|---------------------------------------------------------|--------|----------|-------------|--------|----------|--------|
| Commercial,                financial & agricultural |   | $        | 27,412,000  |   |     | $      | 28,385,000 |   |
| Real                estate-construction                 |   |     | 47,399,000  |   |     |   | 44,592,000 |   |
| Real                estate-1-4 family residential       |   |     | 67,247,000  |   |     |   | 76,796,000 |   |
| Real                estate-other                        |   |     | 84,655,000  |   |     |   | 82,933,000 |   |
| Installment                                             |   |     | 8,099,000   |   |     |   | 10,680,000 |   |
| Other                                                   |   |     | 157,000     |   |     |   | 203,000 |   |
| Total                loans                              |   | $        | 234,969,000 |   |     | $      | 243,589,000 |   |

**Bank      Premises**

**Asset      Quality**

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Table          of Contents

**TABLE      3: BREAKDOWN OF NONPERFORMING ASSETS**

|                                                                                                                                     |   | 09/30/07                              |   |   | 12/31/06 |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|----------|--------|
|                                                                                                                                     |   | (dollars                in thousands) |   |
| Non-accrual                loans by type:                                                                                                |   |                                  |   |   |     |   |
| Real                estate                                                                                                               |   | $                                     | 1,204  |   |     | $      | 829 |   |
| Installment                                                                                                                              |   |                                  | 172    |   |     |   | 13 |   |
| Commercial                and all other loans                                                                                            |   |                                  | 162    |   |     |   | 351 |   |
| Total                non-accrual loans                                                                                                   |   |                                  | 1,538  |   |     |   | 1,193 |   |
| Loans                past due 90 days or more                                                                                            |   |                                  | 0      |   |     |   | 232 |   |
| Total                nonperforming loans                                                                                                 |   |                                  | 1,538  |   |     |   | 1,425 |   |
| Other                real estate owned (net)                                                                                             |   |                                  | 851    |   |     |   | 1,257 |   |
| Total                nonperforming assets                                                                                                |   | $                                     | 2,389  |   |     | $      | 2,682 |   |
| Nonperforming                loans as a percent of loans, net of unearned interest and loans held                for                sale |   |                                  | .65    | %      |     |   | .59 | % |

**Allowance      for Possible Loan      Losses**

**              Provision      for Possible Loan Losses**

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Table          of Contents

**TABLE      4: ACTIVITY OF ALLOWANCE FOR POSSIBLE LOAN LOSSES**

|                                                                                                                              |   | 09/30/07                              |   |   | 09/30/06 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|----------|--------|
|                                                                                                                              |   | (dollars                in thousands) |   |
| Balance                at beginning of period                                                                                     |   | $                                     | 2,344  |   |     | $      | 2,378 |   |
| Charge-offs:                                                                                                                      |   |                                  |   |   |     |   |   |   |
| Real                Estate                                                                                                        |   |                                  | (121   | )      |     |   | (8 | ) |
| Commercial                                                                                                                        |   |                                  | (87    | )      |     |   | (242 | ) |
| Installment                and other                                                                                              |   |                                  | (42    | )      |     |   | (43 | ) |
| Recoveries:                                                                                                                       |   |                                  |   |   |     |   |   |   |
| Real                Estate                                                                                                        |   |                                  | 4      |   |     |   | 26 |   |
| Commercial                                                                                                                        |   |                                  | 40     |   |     |   | 10 |   |
| Installment                and other                                                                                              |   |                                  | 32     |   |     |   | 26 |   |
| Net                (charge-offs)/recoveries                                                                                       |   |                                  | (174   | )      |     |   | (231 | ) |
| Provision                charged to operations                                                                                    |   |                                  | 320    |   |     |   | 210 |   |
| Balance                at end of period                                                                                           |   | $                                     | 2,490  |   |     | $      | 2,357 |   |
| Allowance                for loan losses as a percent of loans, net of unearned interest &                loans held for sale |   |                                  | 1.06   | %      |     |   | .95 | % |
| Net                charge-offs as a percent of average loans                                                                      |   |                                  | .07    | %      |     |   | .10 | % |

**Potential      Problem      Loans**

**Deposits**

**TABLE      5: COMPOSITION OF DEPOSITS**

|                                         |   | 09/30/07 |        |   | 12/31/06 |   |
|----------------------------------------------|--------|----------|-------------|--------|----------|--------|
| Non-Interest                Bearing          |   | $        | 45,459,206  |   |     | $      | 50,345,279 |   |
| NOW                Accounts                  |   |     | 23,644,311  |   |     |   | 24,555,009 |   |
| Money                Market Deposit Accounts |   |     | 37,923,852  |   |     |   | 37,101,457 |   |
| Savings                Accounts              |   |     | 18,063,785  |   |     |   | 18,082,839 |   |
| Certificates                of Deposit       |   |     | 130,159,565 |   |     |   | 123,672,691 |   |
| Total                Deposits                |   | $        | 255,250,719 |   |     | $      | 253,757,275 |   |

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**Borrowings**

**Capital**

**Off-Balance      Sheet      Arrangements**

**Results      of Operations**

**Net      Income**

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**Net      Interest Income and Net Interest      Margin**

**Non-Interest      Income**

**Non-Interest      Expense**

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**Income      Taxes**

**Liquidity      and Capital Resources**

** **

**Contractual      Obligations**

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**DISCLOSURE      REGARDING FORWARD-LOOKING STATEMENTS**

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

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**Item      4.  Controls      and Procedures**

**PART      II.  OTHER INFORMATION**

**Item      1A.  Risk Factors**

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

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**Item        6. **Exhibits****

| 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 and restated,                incorporated by reference to Exhibit 3.2 to Registrant’s Quarterly Report                on Form 10-Q filed with the Securities and Exchange Commission on                November                14, 2006.                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 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                Securities and Exchange Commission on January 29, 1997. |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.2     | *      | Amendment                No. 1 to Rights Agreement dated as of August 15, 2006, by and between                Britton & Koontz Capital Corporation and Britton & Koontz Bank,                N.A., incorporated by reference to Exhibit 4.2 to Registrant’s Current                Report on Form 8-K filed with the Securities and Exchange 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                                                                                                                                                                                                                                                                                 |

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**SIGNATURES**

| Date:                 November                13, 2007 |   | /s/              W. Page Ogden    |
|-------------------------------------------------------------|--------|----------------------------------------|
|                                                        |   | W.                Page Ogden           |
|                                                        |   | Chief                Executive Officer |

| Date:                 November                13, 2007 |        | /s/              William M. Salters  |
|-------------------------------------------------------------|--------|-------------------------------------------|
|                                                        |   | William                M. Salters         |
|                                                        |   | Chief                Financial Officer    |

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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 |

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