----

**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 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

**BRITTON      & KOONTZ CAPITAL CORPORATION**

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

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

----

**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

----

**PART      I**
**FINANCIAL      INFORMATION**

**Item      1.**
**Financial      Statements**

----

| **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:**                                                                                     |   | **2007** |   | **2006** |   |
| Cash                  and due from banks:                                                       |   |   |   |   |   |
|                       Non-interest bearing                                  |   | $ | 7,658,409 |   | $ | 6,254,363 |   |
|                       Interest bearing                                      |   |   | 880,275 |   |   | 317,799 |   |
| **Total                  cash and due from banks**                                              |   |   | 8,538,684 |   |   | 6,572,163 |   |
|                                                                                            |   |   |   |   |   |   |   |
| Federal                  funds sold                                                             |   |   | 124,073 |   |   | 304,569 |   |
| Investment                  Securities:                                                         |   |   |   |   |   |   |   |
|                     Trading (amortized cost, in 2007 and 2006,                        |   |   |   |   |   |   |   |
|                        of $19,924,723 and $0, respectively)            |   |   | 19,358,005 |   |   | - |   |
|                     Available-for-sale (amortized cost, in 2007 and 2006,             |   |   |   |   |   |   |   |
|                        of $45,031,728 and $65,580,510, respectively)   |   |   | 44,521,233 |   |   | 64,419,428 |   |
|                     Held-to-maturity (market value, in 2007 and 2006,                 |   |   |   |   |   |   |   |
|                        of $39,437,941 and $39,525,495, respectively)   |   |   | 38,719,915 |   |   | 38,610,920 |   |
|                     Equity securities                                                 |   |   | 4,386,900 |   |   | 4,339,700 |   |
| Loans,                  less unearned income of $21 in 2007 and                                 |   |   |   |   |   |   |   |
|                       $122 in 2006, and allowance for loan losses of        |   |   |   |   |   |   |   |
|                         $2,322,640 in 2007 and $2,344,434 in 2006 |   |   | 238,074,101 |   |   | 241,190,049 |   |
| Loans                  held for sale                                                            |   |   | 115,606 |   |   | 54,810 |   |
| Bank                  premises and equipment, net                                               |   |   | 7,703,048 |   |   | 7,719,278 |   |
| Other                  real estate, net                                                         |   |   | 1,044,352 |   |   | 1,256,611 |   |
| Accrued                  interest receivable                                                    |   |   | 2,402,790 |   |   | 2,437,387 |   |
| Cash                  surrender value of life insurance                                         |   |   | 986,544 |   |   | 973,212 |   |
| Deposit                  Premium                                                                |   |   | 746,370 |   |   | 773,275 |   |
| Other                  assets                                                                   |   |   | 1,121,108 |   |   | 666,839 |   |
|                                                                                            |   |   |   |   |   |   |   |
| **TOTAL                  ASSETS**                                                               |   | $ | 367,842,729 |   | $ | 369,318,241 |   |

----

| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                      |   |                           |        |                              |   |
|--------------------------------------------------------------------------------|--------|--------------------------------|-------------|-----------------------------------|--------|
|                                                                           |   |                           |        |                              |   |
|                                                                           |   |                           |        |                              |   |
|                                                                           |   | **March                  31,** |        | **December                  31,** |   |
| **LIABILITIES:**                                                               |   | **2007**                       |        | **2006**                          |   |
| Deposits                                                                       |   |                           |        |                              |   |   |   |
| Non-interest                  bearing                                          |   | $                              | 51,679,173  |                              | $      | 50,345,279 |   |
| Interest                  bearing                                              |   |                           | 214,523,798 |                              |   | 203,411,996 |   |
| **Total                  deposits**                                            |   |                           | 266,202,971 |                              |   | 253,757,275 |   |
|                                                                           |   |                           |        |                              |   |   |   |
| Federal                  Home Loan Bank advances                               |   |                           | 51,619,348  |                              |   | 65,667,972 |   |
| Securities                  sold under repurchase agreements                   |   |                           | 7,594,833   |                              |   | 8,149,016 |   |
| Accrued                  interest payable                                      |   |                           | 2,132,618   |                              |   | 1,786,288 |   |
| Advances                  from borrowers for taxes and insurance               |   |                           | 215,100     |                              |   | 401,678 |   |
| Accrued                  taxes and other liabilities                           |   |                           | 897,029     |                              |   | 804,124 |   |
| Junior                  subordinated debentures                                |   |                           | 5,155,000   |                              |   | 5,155,000 |   |
| **Total                  liabilities**                                         |   |                           | 333,816,899 |                              |   | 335,721,353 |   |
|                                                                           |   |                           |        |                              |   |   |   |
| **COMMITMENTS                  AND CONTINGENCIES**                             |   |                           |        |                              |   |   |   |
|                                                                           |   |                           |        |                              |   |   |   |
| **STOCKHOLDERS'                  EQUITY:**                                     |   |                           |        |                              |   |   |   |
| Common                  stock - $2.50 par value per share;                     |   |                           |        |                              |   |   |   |
| 12,000,000                  shares authorized; 2,131,586 and 2,130,816 issued; |   |                           |        |                              |   |   |   |
| 2,117,966                  outstanding for March 31, 2007, and 2,117,966       |   |                           |        |                              |   |   |   |
| outstanding                  for December 31, 2006                             |   |                           | 5,331,165   |                              |   | 5,331,165 |   |
| Additional                  paid-in capital                                    |   |                           | 7,296,669   |                              |   | 7,295,235 |   |
| Retained                  earnings                                             |   |                           | 21,636,965  |                              |   | 22,003,063 |   |
| Accumulated                  other comprehensive income                        |   |                           | 18,406      |                              |   | (775,200 | ) |
|                                                                           |   |                           | 34,283,205  |                              |   | 33,854,263 |   |
| Cost                  of 14,500 shares of common stock held by the company     |   |                           | (257,375    | )                                 |   | (257,375 | ) |
| **Total                  stockholders' equity**                                |   |                           | 34,025,830  |                              |   | 33,596,888 |   |
|                                                                           |   |                           |        |                              |   |   |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                |   | $                              | 367,842,729 |                              | $      | 369,318,241 |   |
|                                                                           |   |                           |        |                              |   |   |   |

----

| **BRITTON&KOONTZ                  CAPITAL CORPORATION AND SUBSIDIARIES** |                                                   |                                    |      |     |   |
|------------------------------------------------------------------------------|--------------------------------------------------------|-----------------------------------------|-----------|----------|--------|
| **CONSOLIDATED                  STATEMENTS OF INCOME**                       |                                                   |                                    |      |     |   |
|                                                                         |                                                   |                                    |      |     |   |
|                                                                         |           | **Three                  Months Ended** |      |          |   |
|                                                                         |                                                   | **March                  31,**          |           |     |   |
|                                                                         |                                                   | **2007**                                |      | **2006** |   |
| **INTEREST                  INCOME:**                                        |                                                   |                                    |      |     |   |
| Interest                  and fees on loans                                  |                                                   | $                                       | 4,776,965 |     | $      | 4,338,445 |   |
| Interest                  on investment securities:                          |                                                   |                                    |      |     |   |   |   |
| Taxable                  interest income                                     |                                                   |                                    | 812,168   |     |   | 957,632 |   |
| Exempt                  from federal taxes                                   |                                                   |                                    | 414,730   |     |   | 408,574 |   |
| Interest                  on federal funds sold                              |                                                   |                                    | 3,244     |     |   | 12,021 |   |
| Total                  interest income                                       |                                                   |                                    | 6,007,107 |     |   | 5,716,672 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |
| **INTEREST                  EXPENSE:**                                       |                                                   |                                    |      |     |   |   |   |
| Interest                  on deposits                                        |                                                   |                                    | 1,846,895 |     |   | 1,440,148 |   |
| Interest                  on Federal Home Loan Bank advances                 |                                                   |                                    | 707,083   |     |   | 716,945 |   |
| Interest                  on trust preferred securities                      |                                                   |                                    | 106,429   |     |   | 99,218 |   |
| Interest                  on securities sold under repurchase agreements     |                                                   |                                    | 85,151    |     |   | 80,428 |   |
| Total                  interest expense                                      |                                                   |                                    | 2,745,558 |     |   | 2,336,739 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |
| **NET                  INTEREST INCOME**                                     |                                                   |                                    | 3,261,549 |     |   | 3,379,933 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |
| Provision                  for loan losses                                   |                                                   |                                    | 80,000    |     |   | 60,000 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |
| **NET                  INTEREST INCOME AFTER PROVISION**                     |                                                   |                                    |      |     |   |   |   |
| **FOR                  LOAN LOSSES**                                         |                                                   |                                    | 3,181,549 |     |   | 3,319,933 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |
| **OTHER                  INCOME:**                                           |                                                   |                                    |      |     |   |   |   |
| Service                  charges on deposit accounts                         |                                                   |                                    | 394,197   |     |   | 327,348 |   |
| Income                  from fiduciary activities                            |                                                   |                                    | 999       |     |   | 9,358 |   |
| Income                  from investment activities                           |                                                   |                                    | 80,317    |     |   | 20,774 |   |
| Insurance                  premiums and commissions                          |                                                   |                                    | 50        |     |   | - |   |
| Gain/(loss)                  on sale of mortgage loans                       |                                                   |                                    | 49,623    |     |   | 85,148 |   |
| Gain/(loss)                  on sale of securities                           |                                                   |                                    | (468,407  | )        |   | - |   |
| Gain/(loss)                  on sale of other assets                         |                                                   |                                    | -         |     |   | (400 | ) |
| Other                                                                        |                                                   |                                    | 140,908   |     |   | 169,155 |   |
| Total                  other income                                          |                                                   |                                    | 197,687   |     |   | 611,383 |   |
|                                                                         |                                                   |                                    |      |     |   |   |   |

----

| **OTHER                  EXPENSES:**                  |   |   |      |   |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|
| Salaries                                              |   |   | 1,268,785 |   |   | 1,271,667 |   |
| Employee                  benefits                    |   |   | 188,507   |   |   | 191,451 |   |
| Director                  fees                        |   |   | 44,800    |   |   | 47,345 |   |
| Net                  occupancy expense                |   |   | 235,950   |   |   | 223,218 |   |
| Equipment                  expenses                   |   |   | 283,287   |   |   | 263,885 |   |
| FDIC                  assessment                      |   |   | 7,799     |   |   | 7,906 |   |
| Advertising                                           |   |   | 42,894    |   |   | 54,457 |   |
| Stationery                  and supplies              |   |   | 41,699    |   |   | 45,742 |   |
| Audit                  expense                        |   |   | 63,127    |   |   | 45,481 |   |
| Other                  real estate expense            |   |   | 179,203   |   |   | 26,389 |   |
| Amortization                  of deposit premium      |   |   | 26,904    |   |   | 26,904 |   |
| Other                                                 |   |   | 535,790   |   |   | 484,854 |   |
| Total                  other expenses                 |   |   | 2,918,745 |   |   | 2,689,299 |   |
|                                                  |   |   |      |   |   |   |   |
| **INCOME                  BEFORE INCOME TAX EXPENSE** |   |   | 460,491   |   |   | 1,242,017 |   |
|                                                  |   |   |      |   |   |   |   |
| Income                  tax expense                   |   |   | 33,366    |   |   | 316,625 |   |
|                                                  |   |   |      |   |   |   |   |
| **NET                  INCOME**                       |   | $      | 427,125   |   | $      | 925,392 |   |
|                                                  |   |   |      |   |   |   |   |
| **EARNINGS                  PER SHARE DATA:**         |   |   |      |   |   |   |   |
|                                                  |   |   |      |   |   |   |   |
| Basic                  earnings per share             |   | $      | 0.20      |   | $      | 0.44 |   |
| Basic                  weighted shares outstanding    |   |   | 2,117,966 |   |   | 2,116,811 |   |
|                                                  |   |   |      |   |   |   |   |
| Diluted                  earnings per share           |   | $      | 0.20      |   | $      | 0.44 |   |
| Diluted                  weighted shares outstanding  |   |   | 2,120,993 |   |   | 2,124,283 |   |

----

| **BRITTON&KOONTZ                    CAPITAL CORPORATION AND                    SUBSIDIARIES** |                                 |
|---------------------------------------------------------------------------------------------------|--------------------------------------|
| **CONSOLIDATED                    STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**                 |                                 |
| **FOR                    THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006**                         |                                 |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |                                 |  |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |
|                                                                                              |        | Common                    Stock |   | Additional |   |   |   | Other |   |   |   | Total |   |
|                                                                                              |                                 |   |   |   |   | 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                                                                     |                                 |   | - |   |   | - |   |   | - |   |   | 925,392 |   |   | - |   |   |   |   |   | 925,392 |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                    comprehensive                                                            |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income                    (net of tax):                                                           |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    change in unrealized gain/(loss)                                           |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on                    securities available for sale, net                                          |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                    taxes for $137,685                                                          |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | (231,443 | ) |   |   |   |   | (231,443 | ) |
| Other                    Comprehensive gains from                                                 |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| derivates,                    net of reclassification                                             |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustment                    of $8,873                                                           |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | (14,916 | ) |   |   |   |   | (14,916 | ) |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    Comprehensive income                                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 679,033 |   |
| Cash                    Dividend paid $0.18 per share                                             |                                 |   |   |   |   |   |   |   |   |   |   | (381,075 | ) |   |   |   |   |   |   |   | (381,075 | ) |
| Stock                    Options exercised                                                        |                                 |   | 770 |   |   | 1,925 |   |   | 14,522 |   |   |   |   |   |   |   |   |   |   |   | 16,447 |   |
| Balance                    at March 31, 2006                                                      |                                 |   | 2,117,086 |   | $ | 5,328,965 |   | $ | 7,268,635 |   | $ | 20,493,416 |   | $ | (1,259,079 | ) | $ | (257,375 | ) | $ | 31,574,562 |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2006                                                   |                                 |   | 2,117,966 |   | $ | 5,331,165 |   | $ | 7,295,235 |   | $ | 22,003,063 |   | $ | (775,200 | ) | $ | (257,375 | ) | $ | 33,596,888 |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 of $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                                                             |                                 |   |   |   |   |   |   |   |   |   |   | (411,989 | ) |   | 705,760 |   |   |   |   |   | 293,771 |   |
| 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 |   |
|                                                                                              |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **BRITTON&KOONTZ                  CAPITAL CORPORATION AND                  SUBSIDIARIES** |   |
|-----------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                    |   |
| **PERIODS                  ENDED MARCH 31,**                                                  |   |
|                                                                                          |   |   |   |   |   |
|                                                                                          |   | **2007** |   | **2006** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                                     |   |   |   |   |   |
| Net                  income                                                                   |   | $ | 427,125 |   | $ | 925,392 |   |
|                     Adjustments to reconcile net income to net cash                 |   |   |   |   |   |   |   |
|                       provided by (used in) operating activities:         |   |   |   |   |   |   |   |
|                         Deferred income taxes                   |   |   | (23,265 | ) |   | (239,390 | ) |
|                         Provision for loan losses               |   |   | 80,000 |   |   | 60,000 |   |
|                         Provision for depreciation              |   |   | 196,848 |   |   | 196,632 |   |
|                        Stock dividends received                      |   |   | (47,200 | ) |   | (48,200 | ) |
|                       (Gain)/loss on sale of mortgage loans               |   |   | (49,623 | ) |   | (85,148 | ) |
|                       (Gain)/loss on sale of investment securities        |   |   | 468,407 |   |   | - |   |
|                       Net amortization (accretion) of securities          |   |   | 21,054 |   |   | 44,768 |   |
|                       Amortization of deposit premium                     |   |   | 26,904 |   |   | 26,904 |   |
|                       Writedown of other real estate                      |   |   | 211,959 |   |   | 22,178 |   |
|                       Writedown of other repossessed assets               |   |   | 15,000 |   |   | - |   |
| Net                  change in:                                                               |   |   |   |   |   |   |   |
|                       Loans held for sale                                 |   |   | (60,796 | ) |   | 171,200 |   |
|                       Accrued interest receivable                         |   |   | 34,597 |   |   | 111,627 |   |
|                       Cash surrender value                                |   |   | (13,332 | ) |   | (12,166 | ) |
|                       Other assets                                        |   |   | (389,523 | ) |   | (14,997 | ) |
|                       Accrued interest payable                            |   |   | 346,330 |   |   | 291,815 |   |
|                       Accrued taxes and other liabilities                 |   |   | 98,170 |   |   | 186,520 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Net                  cash provided (used) by operating activities                             |   |   | 1,342,655 |   |   | 1,637,135 |   |
|                                                                                          |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                                     |   |   |   |   |   |   |   |
| (Increase)/decrease                  in federal funds sold                                    |   |   | 180,495 |   |   | (680,250 | ) |
| Proceeds                  from sales, maturities and paydowns                                 |   |   |   |   |   |   |   |
| of                  investment securities                                                     |   |   | 6,496,507 |   |   | 4,200,719 |   |
| Redemption                  of FHLB stock                                                     |   |   | - |   |   | 420,400 |   |
| Purchases                  of investment securities                                           |   |   | (6,234,601 | ) |   | (612,882 | ) |
| (Increase)/decrease                  in loans                                                 |   |   | 3,081,571 |   |   | 10,469,053 |   |
| Proceeds                  from sale and transfers of other real estate                        |   |   | - |   |   | 1,079 |   |
| Proceeds                  from sale and transfers of other repossessed assets                 |   |   | 4,000 |   |   | 4,500 |   |
| Purchase                  of premises and equipment                                           |   |   | (180,617 | ) |   | (155,254 | ) |
|                                                                                          |   |   |   |   |   |   |   |
| Net                  cash provided (used) by investing activities                             |   |   | 3,347,355 |   |   | 13,647,365 |   |

----

|                                                                    |   | **2007** |        | **2006** |   |
|-------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**               |   |     |        |     |   |
| Increase                  /(decrease) in customer deposits              |   |     | 2,483,566   |     |   | 6,114,609 |   |
| Increase                  /(decrease) in brokered deposits              |   |     | 9,962,130   |     |   | 78,359 |   |
| Increase                  /(decrease) in securities sold under          |   |     |        |     |   |   |   |
| repurchase                  agreements                                  |   |     | (554,183    | )        |   | 266,090 |   |
| Increase                  /(decrease) in FHLB advances                  |   |     | (14,048,624 | )        |   | (13,106,570 | ) |
| Increase                  /(decrease) in advances from borrowers        |   |     |        |     |   |   |   |
| for                  taxes and insurance                                |   |     | (186,578    | )        |   | (200,878 | ) |
| Cash                  dividends paid                                    |   |     | (381,234    | )        |   | (381,075 | ) |
| Common                  stock issued                                    |   |     | 1,434       |     |   | 16,447 |   |
|                                                                    |   |     |        |     |   |   |   |
| Net                  cash provided (used) by financing activities       |   |     | (2,723,489  | )        |   | (7,213,018 | ) |
|                                                                    |   |     |        |     |   |   |   |
| **NET                  INCREASE/(DECREASE) IN CASH AND DUE FROM BANKS** |   |     | 1,966,521   |     |   | 8,071,482 |   |
|                                                                    |   |     |        |     |   |   |   |
| **CASH                  AND DUE FROM BANKS AT BEGINNING OF PERIOD**     |   |     | 6,572,163   |     |   | 9,825,459 |   |
|                                                                    |   |     |        |     |   |   |   |
| **CASH                  AND DUE FROM BANKS AT END OF PERIOD**           |   | $        | 8,538,684   |     | $      | 17,896,941 |   |
|                                                                    |   |     |        |     |   |   |   |
|                                                                    |   |     |        |     |   |   |   |
|                                                                    |   |     |        |     |   |   |   |
|                                                                    |   |     |        |     |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW**              |   |     | **2007**    |     |   | **2006** |   |
| **INFORMATION:**                                                        |   |     |        |     |   |   |   |
|                                                                    |   |     |        |     |   |   |   |
| Cash                  paid during the year for interest                 |   | $        | 2,399,228   |     | $      | 2,044,924 |   |
|                                                                    |   |     |        |     |   |   |   |
| **SCHEDULE                  OF NONCASH INVESTING AND**                  |   |     |        |     |   |   |   |
| **FINANCING                  ACTIVITIES:**                              |   |     |        |     |   |   |   |
|                                                                    |   |     |        |     |   |   |   |
| Change                  in unrealized gains (losses)                    |   |     |        |     |   |   |   |
| on                  securities available for sale                       |   | $        | 83,869      |     | $      | (369,128 | ) |
|                                                                    |   |     |        |     |   |   |   |
| Change                  in the deferred tax effect in unrealized        |   |     |        |     |   |   |   |
| gains                  (losses) on securities available for sale        |   | $        | (31,283     | )        | $      | (137,685 | ) |
|                                                                    |   |     |        |     |   |   |   |
| Change                  in unrealized gains (losses) on derivative      |   | $        | 56,355      |     | $      | (23,789 | ) |
|                                                                    |   |     |        |     |   |   |   |
| Change                  in the deferred tax effect in                   |   |     |        |     |   |   |   |
| unrealized                  gains (losses) on derivative                |   | $        | (21,096     | )        | $      | (8,873 | ) |
|                                                                    |   |     |        |     |   |   |   |

----

**BRITTON&KOONTZ      CAPITAL CORPORATION AND      SUBSIDIARIES**

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2007**

**Note      A. Basis of Presentation**

**Note      B. Interest Rate Risk Management**

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

----

**Note      D. Junior Subordinated Debentures**

**Note      E. Loan Commitments**

**$64.5**

**Note      F. Earnings per Share**

|                                                       |     For                the                three months ended |
|------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                       |     March                31,                                 |
|                                                       |                                                                                  |
|                                                       |  2007                                                                       | 2006 |
|                                                       |                                                                                  |  |
| Basic                weighted average shares outstanding   | 2,117,966                                                                        |                  2,116,811 |
| Dilutive                effect of granted options          | 3,027                                                                            |                         7,472 |
|                                                       |                                                                             |   |
| Diluted                weighted average shares outstanding | 2,120,993                                                                        |                   2,124,283 |
| Net                income                                  | $                   427,125                                       | $                   925,392 |
| Net                income per share-basic                  | $                0.20                                                            |                        $ 0.44 |
| Net                income per share-diluted                | $                0.20                                                            |                       $ 0.44 |

----

**Note      G. Adoption of Statement of Financial Accounting Standards (“SFAS”) Nos. 157 and      159**

|    Description                                                                                                                                                                                                        | Balance                SheetAt                January 1, 2007Prior                to Adoption |   | Net                Loss Upon                Adoption                      |   |  Balance                SheetAt                January 1, 2007After                Adoption of Fair Value Option |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|
|  Investment                Securities Increase                in Deferred Tax Asset Cumulative                Effect of the Adoption of the Fair Value Option (charge                to retained earnings)  |  $20,387,696                                                                             |   |  $(657,080)                  245,091  $(411,989) |   |  $19,730,616                                                                                                |

----

|        Description | Fair                Value Measurements at                March 31, 2007 |   | Quoted                Prices in Active Markets for Identical Assets |   |       Significant                Other Observable                Inputs |       Significant Observable                Inputs |
|-------------------------------------------------------|------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                  |                                                                         |   |                                                                |   |                                                                                                  |                                                                                  |
| Trading                Securities           | $19,358,005                                                             |   | $19,358,005                                                         |   |                                                                                                  |                                                                                  |

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

**SUMMARY**

----

**.      **

**Financial      Condition**

**Assets**

** **

**Investment      Securities**

**TABLE      1: COMPOSITION OF INVESTMENT PORTFOLIO **
***(Amortized      Cost)***

|                                                     |   | **03/31/07** |        | **12/31/06** |   |
|----------------------------------------------------------|--------|--------------|-------------|--------------|--------|
|                                                     |   |         |        |         |   |
| Mortgage-Backed                Securities                |   | $            | 60,749,944  |         | $      | 61,518,891 |   |
| Agencies                Obligations                      |   |         | 6,500,000   |         |   | 6,496,959 |   |
| Obligations                of State and                  |   |         |        |         |   |   |   |
|                    Political Subdivisions |   |         | 36,426,422  |         |   | 36,175,580 |   |
|                                                          |   |         |        |         |   |   |   |
|                                                     |   | $            | 103,676,366 |         | $      | 104,191,430 |   |
|                                                          |   |         |        |         |   |   |   |

----

**Loans      **

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

|                                                    |   |                       ** **** 03/31/07** |        |                        ** 12/31/06** |   |
|---------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Commercial,                financial & agricultural |   | $                                                                                                                                                                | 27,912,000  |                                                                                                                                                         | $      | 28,385,000 |   |
| Real                estate-construction                 |   |                                                                                                                                                             | 42,895,000  |                                                                                                                                                         |   | 44,592,000 |   |
| Real                estate-residential                  |   |                                                                                                                                                             | 79,901,000  |                                                                                                                                                         |   | 83,256,000 |   |
| Real                estate-other                        |   |                                                                                                                                                             | 80,482,000  |                                                                                                                                                         |   | 76,473,000 |   |
| Installment                                             |   |                                                                                                                                                             | 9,065,000   |                                                                                                                                                         |   | 10,680,000 |   |
| Other                                                   |   |                                                                                                                                                             | 257,000     |                                                                                                                                                         |   | 203,000 |   |
|                                                    |   |                                                                                                                                                             |        |                                                                                                                                                         |   |  |   |
| Total                loans                              |   | $                                                                                                                                                                | 240,512,000 |                                                                                                                                                         | $      | 243,589,000 |   |
|                                                         |   |                                                                                                                                                             |        |                                                                                                                                                         |   |   |   |

**Bank      Premises**

**Asset      Quality**

----

**TABLE      3: BREAKDOWN OF NONPERFORMING ASSETS**

|                                                                                                                                     |   |              **  **** 03/31/07** |   |                 **12/31/06** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                     |   | (dollars                in thousands)                                                                            |   |
| Non-accrual                loans by type:                                                                                                |   |                                                                                                             |   |                                                                                                         |   |   |   |
|                    Real estate                                                                                            |   | $                                                                                                                | 1,370  |                                                                                                         | $      | 829 |   |
|                    Installment                                                                                            |   |                                                                                                             | 21     |                                                                                                         |   | 13 |   |
|                    Commercial and all other loans                                                                         |   |                                                                                                             | 246    |                                                                                                         |   | 351 |   |
|                                                                                                                                     |   |                                                                                                             |   |                                                                                                         |   |   |   |
| Total                non-accrual loans                                                                                                   |   |                                                                                                             | 1,637  |                                                                                                         |   | 1,193 |   |
| Loans                past due 90 days or more                                                                                            |   |                                                                                                             | 170    |                                                                                                         |   | 232 |   |
|                                                                                                                                          |   |                                                                                                             |   |                                                                                                         |   |   |   |
| Total                nonperforming loans** **                                                                                       |   |                                                                                                             | 1,807  |                                                                                                         |   | 1,425 |   |
| Other                real estate owned (net)                                                                                             |   |                                                                                                             | 1,044  |                                                                                                         |   | 1,257 |   |
|                                                                                                                                          |   |                                                                                                             |   |                                                                                                         |   |   |   |
| Total                nonperforming assets                                                                                                |   | $                                                                                                                | 2,851  |                                                                                                         | $      | 2,682 |   |
|                                                                                                                                          |   |                                                                                                             |   |                                                                                                         |   |  |   |
| Nonperforming                loans as a percent of loans, net of unearned interest and loans held                for                sale |   |                                                                                                             | .75    | %                                                                                                            |   | .59 | % |
|                                                                                                                                          |   |                                                                                                             |   |                                                                                                         |   |   |   |

**Allowance      for Possible Loan Losses**

----

**Provision      for Possible Loan Losses**

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

|                                                                                                                              |   |                         03/31//07  |   |                 03/31/06 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |   |                  (dollars                in                thousands) |   |
| Balance                at beginning of period                                                                                     |   | $                                                                                                                                                          | 2,344  |                                                                                                     | $      | 2,378 |   |
| Charge-offs:                                                                                                                      |   |                                                                                                                                                       |   |                                                                                                     |   |   |   |
|                    Real Estate                                                                                     |   |                                                                                                                                                       | (25    | )                                                                                                        |   | (8 | ) |
|                    Commercial                                                                                      |   |                                                                                                                                                       | (73    | )                                                                                                        |   | (10 | ) |
|                    Installment and other                                                                           |   |                                                                                                                                                       | (28    | )                                                                                                        |   | (26 | ) |
| Recoveries:                                                                                                                       |   |                                                                                                                                                       |   |                                                                                                     |   |   |   |
|                    Real Estate                                                                                     |   |                                                                                                                                                       | -      |                                                                                                     |   | 21 |   |
|                    Commercial                                                                                      |   |                                                                                                                                                       | 7      |                                                                                                     |   | 5 |   |
|                    Installment and other                                                                           |   |                                                                                                                                                       | 18     |                                                                                                     |   | 4 |   |
|                                                                                                                                   |   |                                                                                                                                                       |   |                                                                                                     |   |  |   |
| Net                (charge-offs)/recoveries                                                                                       |   |                                                                                                                                                       | (101   | )                                                                                                        |   | (14 | ) |
| Provision                charged to operations                                                                                    |   |                                                                                                                                                       | 80     |                                                                                                     |   | 60 |   |
|                                                                                                                                   |   |                                                                                                                                                       |   |                                                                                                     |   |   |   |
| Balance                at end of period                                                                                           |   | $                                                                                                                                                          | 2,323  |                                                                                                     | $      | 2,424 |   |
|                                                                                                                                   |   |                                                                                                                                                       |   |                                                                                                     |   |   |   |
| Allowance                for loan losses as a percent of loans, net of unearned interest &                loans held for sale |   |                                                                                                                                                       | .97    | %                                                                                                        |   | 1.03 | % |
|                                                                                                                                   |   |                                                                                                                                                       |   |                                                                                                     |   |  |   |
| Net                charge-offs as a percent of average loans                                                                      |   |                                                                                                                                                       | .04    | %                                                                                                        |   | .01 | % |
|                                                                                                                              |   |                                                                                                                                                       |   |                                                                                                     |   |   |   |

**Potential      Problem Loans**

**Deposits      **

----

**TABLE        5: COMPOSITION OF DEPOSITS**

|                                           |   |                        ** **** 03/31/07** | ** **  |                           ** **** 12/31/06** |   |
|------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                           |   |                                                                                                                                                                   |        |                                                                                                                                                                                     |   |
| Non-Interest                  Bearing          |   | $                                                                                                                                                                      | 51,679,173  |                                                                                                                                                                                     | $      | 50,345,279 |   |
| NOW                  Accounts                  |   |                                                                                                                                                                   | 25,001,915  |                                                                                                                                                                                     |   | 24,555,009 |   |
| Money                  Market Deposit Accounts |   |                                                                                                                                                                   | 35,850,846  |                                                                                                                                                                                     |   | 37,101,457 |   |
| Savings                  Accounts              |   |                                                                                                                                                                   | 19,012,208  |                                                                                                                                                                                     |   | 18,082,839 |   |
| Certificates                  of Deposit       |   |                                                                                                                                                                   | 134,658,829 |                                                                                                                                                                                     |   | 123,672,691 |   |
|                                                |   |                                                                                                                                                                   |        |                                                                                                                                                                                     |   |  |   |
| Total                  Deposits                |   | $                                                                                                                                                                      | 266,202,971 |                                                                                                                                                                                     | $      | 253,757,275 |   |
|                                                |   |                                                                                                                                                                   |        |                                                                                                                                                                                     |   |  |   |

**Borrowings      **

** **

**Capital**

----

**TABLE        6: COMPARISON OF REGULATORY CAPITAL (**
***at        December 31, 2006***
**)**

|                                      |   |          As                Reported |   |         SFAS                159Adjusted |   |    Minimum                Capital Requirement |   |         Minimum                To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|-------------------------------------------|--------|----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                      |   |
|                                      |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |
| Total                Capital (to Risk-    |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Weighted                Assets)           |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Consolidated                              |   |                                                                             | 15.27  | %                                                                               |   | 15.12                                                             | %      |                                                                                                                                    | 8.00   | % |   | N/A |   |
| The                Bank                   |   |                                                                             | 14.17  | %                                                                               |   | 14.01                                                             | %      |                                                                                                                                    | 8.00   | % |   | 10.00 | % |
| Tier                I Capital (to Risk-   |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Weighted                Assets)           |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Consolidated                              |   |                                                                             | 14.40  | %                                                                               |   | 14.24                                                             | %      |                                                                                                                                    | 4.00   | % |   | N/A |   |
| The                Bank                   |   |                                                                             | 13.29  | %                                                                               |   | 13.14                                                             | %      |                                                                                                                                    | 4.00   | % |   | 6.00 | % |
| Tier                I Capital (to Average |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Assets)                                   |   |                                                                             |   |                                                                            |   |                                                              |   |                                                                                                                                    |   |   |   |   |   |
| Consolidated                              |   |                                                                             | 10.45  | %                                                                               |   | 10.34                                                             | %      |                                                                                                                                    | 4.00   | % |   | N/A |   |
| The                Bank                   |   |                                                                             | 9.57   | %                                                                               |   | 9.46                                                              | %      |                                                                                                                                    | 4.00   | % |   | 5.00 | % |

**Off-Balance      Sheet Arrangements**

**Contractual      Obligations**

|                                          |   | Payments                due by period |   |
|-----------------------------------------------|--------|---------------------------------------|--------|
| **Contractual                Obligations**    |   |   Total                     |   | Less                than 1 year |   |  1-3                years |   |  3-5                years |   | More                than 5 years |   |
|                                          |   |                                  |   |   |   |   |   |   |   |   |   |
| Long-Term                Debt Obligations     |   | $                                     | 51,619 |   | $ | 38,500 |   | $ | 13,119 |   | $ | - |   | $ | - |   |
| Operating                Lease Obligations    |   |                                  | 732    |   |   | 106 |   |   | 212 |   |   | 211 |   |   | 203 |   |
| Customer                Repurchase Agreements |   |                                  | 7,594  |   |   | 7,594 |   |   | - |   |   | - |   |   | - |   |
| Junior                Subordinated Debenture  |   |                                  | 5,000  |   |   | 5,000 |   |   | - |   |   | - |   |   | - |   |
|                                          |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                                     | 64,945 |   | $ | 51,200 |   | $ | 13,331 |   | $ | 211 |   | $ | 203 |   |

----

**Results      of Operations**

**Net      Income**

**Net      Interest Income and Net Interest Margin **

----

**        Non-Interest      Income**

** **

**Non-Interest      Expense**

**Income      Taxes**

**Liquidity      and Capital Resources**

**(Check      final)**

----

**DISCLOSURE      REGARDING FORWARD-LOOKING STATEMENTS**

**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      **

| 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 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                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 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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**                                EXHIBITINDEX**

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