##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 000-32535
 FIRST BANCTRUST CORPORATION
 (Exact name of registrant as specified its charter)
 Delaware
    
    37-1406661(State or other jurisdiction of 
incorporation or organization)
    
    (IRS Employer
Identification No.)101 South Central Avenue Paris, Illinois
    
    61944(Address of principal executive offices)
    
    (Zip Code)
 Registrants telephone number, including area code: 217-465-6381
 Securities registered pursuant to Section 12 (b) of the Act:
 Nasdaq Capital Market
    
    Common Stock (par value $0.01 per share)(Name of exchange on which registered)
    
    (Title of class)
 Securities registered pursuant to Section 12 (g) of the Act: None
 o þ
 o þ
 þ o
 þ
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer   o
    
    Smaller Reporting Company
þ
 o þ
    DOCUMENTS INCORPORATED BY REFERENCE
  (1)
    
    Portions of the Annual Report to Stockholders for the fiscal year ended December 31, 2007 are
incorporated by reference into Parts II and III.(2)
    
    Portions of the definitive proxy statement for the Annual Meeting of Stockholders, scheduled
for April 21, 2007, are incorporated by reference into Part III.




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##### 



INDEX
 PAGEPART IItem 1. Description of Business
    
    
    1Item 1A. Risk Factors
    
    
    37Item 1B. Unresolved Staff Comments
    
    
    37Item 2. Properties
    
    
    37Item 3. Legal Proceedings
    
    
    38Item 4. Submission of Matters to a Vote of Security Holders
    
    
    38PART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    38Item 6. Selected Financial Data
    
    
    39Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    40Item 7A. Quantitative and Qualitative Disclosures about Market Risk
    
    
    40Item 8. Financial Statements and Supplementary Data
    
    
    40Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    41Item 9A(T). Controls and Procedures
    
    
    41Item 9B. Other Information
    
    
    42PART IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    42Item 11. Executive Compensation
    
    
    43Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    43Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    43Item 14. Principal Accountant Fees and Services
    
    
    44PART IVItem 15. Exhibits and Financial Statement Schedules
    
    
    44SIGNATURES
    
    
    46Exhibit 3.2Exhibit 13.0Exhibit 14.0Exhibit 23.0Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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FORWARD-LOOKING STATEMENTS
  
 PART I
 
 Item 1. Description of Business
     - 1 -




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- 2 -




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General.
  Loan Portfolio Composition.
  - 3 -




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12/31/07
    
    
    12/31/06
    
    
    12/31/05
    
    
    12/31/04
    
    
    12/31/03Amount
    
    
    Amount
    
    
    Amount
    
    
    Amount
    
    
    AmountReal estate loans:One-to-four family
    
    $
    78,035
    
    
    $
    66,665
    
    
    $
    51,823
    
    
    $
    37,568
    
    
    $
    36,513Multi-family
    
    
    13,509
    
    
    
    3,417
    
    
    
    695
    
    
    
    716
    
    
    
    266Commercial
    
    
    49,664
    
    
    
    33,751
    
    
    
    33,244
    
    
    
    16,902
    
    
    
    10,124Construction
    
    
    4,166
    
    
    
    2,423
    
    
    
    2,423
    
    
    
    1,516
    
    
    
    2,275Agricultural loans
    
    
    29,047
    
    
    
    26,983
    
    
    
    20,913
    
    
    
    16,937
    
    
    
    13,908Commercial and industrial
    
    
    14,395
    
    
    
    7,360
    
    
    
    7,886
    
    
    
    6,411
    
    
    
    6,417Agricultural production finance
    
    
    19,875
    
    
    
    18,897
    
    
    
    15,442
    
    
    
    13,603
    
    
    
    12,357Consumer loans:Vehicle
    
    
    21,948
    
    
    
    21,793
    
    
    
    21,305
    
    
    
    20,801
    
    
    
    21,035Consumer finance
    
    
    815
    
    
    
    877
    
    
    
    872
    
    
    
    800
    
    
    
    823Share
    
    
    828
    
    
    
    1,012
    
    
    
    708
    
    
    
    472
    
    
    
    533Other
    
    
    4,133
    
    
    
    3,857
    
    
    
    3,531
    
    
    
    3,099
    
    
    
    3,169Other loans
    
    
    1,526
    
    
    
    1,600
    
    
    
    1,677
    
    
    
    1,769
    
    
    
    1,983Total loans receivable
    
    
    237,941
    
    
    
    188,635
    
    
    
    160,519
    
    
    
    120,594
    
    
    
    109,403Less:Undisbursed portion of loans
    
    
    1
    
    
    
    87
    
    
    
    164
    
    
    
    17
    
    
    
    23Unearned discount and fees
    
    
    994
    
    
    
    882
    
    
    
    808
    
    
    
    829
    
    
    
    845Allowance for loan losses
    
    
    2,091
    
    
    
    2,222
    
    
    
    2,662
    
    
    
    2,300
    
    
    
    2,124Loans receivable, net
    
    $
    234,855
    
    
    $
    185,444
    
    
    $
    156,885
    
    
    $
    117,448
    
    
    $
    106,411
  Origination of Loans.
  - 4 -




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Maturity of Loan Portfolio.
 At December 31, 2007Commercial
    
    
    Agriculturaland
    
    
    Production
    
    
    
    
    
    
    Other
    
    
    TotalReal Estate
    
    
    Industrial
    
    
    Finance
    
    
    Consumer
    
    
    Loans
    
    
    Loans(In Thousands)Amounts due in:One year or less
    
    $
    17,583
    
    
    $
    3,888
    
    
    $
    13,094
    
    
    $
    2,378
    
    
    $
    22
    
    
    $
    36,965More than one year to five years
    
    
    58,488
    
    
    
    8,886
    
    
    
    3,925
    
    
    
    22,739
    
    
    
    
    
    
    
    94,038More than five years
    
    
    98,350
    
    
    
    1,621
    
    
    
    2,856
    
    
    
    2,607
    
    
    
    1,504
    
    
    
    106,938Total amount due
    
    $
    174,421
    
    
    $
    14,395
    
    
    $
    19,875
    
    
    $
    27,724
    
    
    $
    1,526
    
    
    $
    237,941
  Fixed-Rates
    
    
    Floating or Adjustable-Rates
    
    
    Total(In Thousands)Real estate loans:One-to-four family
    
    $
    25,046
    
    
    $
    48,913
    
    
    $
    73,959Multi-family
    
    
    12,917
    
    
    
    592
    
    
    
    13,509Commercial
    
    
    24,964
    
    
    
    16,294
    
    
    
    41,258Construction
    
    
    22
    
    
    
    507
    
    
    
    529Agricultural loans
    
    
    13,356
    
    
    
    14,227
    
    
    
    27,583Commercial and industrial
    
    
    7,403
    
    
    
    3,104
    
    
    
    10,507Agricultural production finance
    
    
    4,010
    
    
    
    2,771
    
    
    
    6,781Consumer loans:Vehicle
    
    
    21,207
    
    
    
    
    
    
    
    21,207Consumer finance
    
    
    708
    
    
    
    
    
    
    
    708Share
    
    
    45
    
    
    
    5
    
    
    
    50Other
    
    
    3,327
    
    
    
    54
    
    
    
    3,381Other loans
    
    
    
    
    
    
    1,504
    
    
    
    1,504Total loans receivable
    
    $
    113,005
    
    
    $
    87,971
    
    
    $
    200,976
   - 6 -




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One-to-Four Family Residential Real Estate Loans.
     - 7 -




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Commercial Real Estate Loans.
    - 8 -




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Agricultural Real Estate Loans.
  Commercial and Industrial Loans.
  - 9 -




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Agricultural Production Finance Loans.
  Consumer Loans.
    - 10 -




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Real Estate Construction Loans.
  - 11 -




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Multi-family Residential Loans.
 Other Loans.
 Loan Origination and Other Fees.
 Loan servicing.
  General.
  - 12 -




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Delinquent Loans.
 December 31, 200730-59 Days
    
    
    60-89 Days
    
    
    90 or More DaysOverdue
    
    
    Overdue
    
    
    OverduePercent
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    Percentof Total
    
    
    
    
    
    
    of Total
    
    
    
    
    
    
    of TotalAmount
    
    
    Loans
    
    
    Amount
    
    
    Loans
    
    
    Amount
    
    
    Loans(In Thousands)Real estate loans:One-to-four family
    
    $
    899
    
    
    
    0.38
    %
    
    $
    105
    
    
    
    0.04
    %
    
    $
    253
    
    
    
    0.11
    %Commercial
    
    
    722
    
    
    
    0.30
    %
    
    
    1,204
    
    
    
    0.51
    %
    
    
    
    
    
    
    Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Agricultural loans
    
    
    204
    
    
    
    0.09
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    479
    
    
    
    0.20
    %
    
    
    459
    
    
    
    0.19
    %
    
    
    5
    
    
    
    0.00
    %Agricultural production finance
    
    
    11
    
    
    
    0.00
    %
    
    
    157
    
    
    
    0.07
    %
    
    
    584
    
    
    
    0.25
    %Consumer loans:Vehicle
    
    
    198
    
    
    
    0.08
    %
    
    
    9
    
    
    
    0.00
    %
    
    
    10
    
    
    
    0.00
    %Consumer finance
    
    
    17
    
    
    
    0.01
    %
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    0.00
    %Other
    
    
    8
    
    
    
    0.00
    %
    
    
    10
    
    
    
    0.00
    %
    
    
    8
    
    
    
    0.00
    %Total loans
    
    $
    2,538
    
    
    
    1.06
    %
    
    $
    1,944
    
    
    
    0.81
    %
    
    $
    868
    
    
    
    0.36
    %
  - 13 -




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Non-Performing Assets.
 At December 31,2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(In Thousands)Non-perfoming loans:90 Days Delinquent and Non-accrual loans:Real estate loans:One-to-four family
    
    $
    253
    
    
    $
    176
    
    
    $
    306
    
    
    $
    202
    
    
    $
    567Commercial
    
    
    
    
    
    
    546
    
    
    
    510
    
    
    
    
    
    
    
    302Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    108
    
    
    
    113Agricultural loans
    
    
    
    
    
    
    
    
    
    
    64
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    5
    
    
    
    223
    
    
    
    421
    
    
    
    
    
    
    
    Agricultural production finance
    
    
    584
    
    
    
    246
    
    
    
    
    
    
    
    19
    
    
    
    32Consumer loans:Vehicle
    
    
    10
    
    
    
    78
    
    
    
    94
    
    
    
    97
    
    
    
    89Consumer finance
    
    
    8
    
    
    
    
    
    
    
    1
    
    
    
    14
    
    
    
    15Other
    
    
    8
    
    
    
    37
    
    
    
    23
    
    
    
    3
    
    
    
    8Troubled debt restructurings
    
    
    17
    
    
    
    532
    
    
    
    94
    
    
    
    1,128
    
    
    
    1,403Total non-performing loans
    
    
    885
    
    
    
    1,838
    
    
    
    1,513
    
    
    
    1,571
    
    
    
    2,529Real estate owned (1)
    
    
    554
    
    
    
    366
    
    
    
    267
    
    
    
    190
    
    
    
    96Total nonperforming assets (2)
    
    $
    1,439
    
    
    $
    2,204
    
    
    $
    1,780
    
    
    $
    1,761
    
    
    $
    2,625Total nonperforming loans as a percentage
of total loans
    
    
    0.37
    %
    
    
    0.98
    %
    
    
    0.95
    %
    
    
    1.31
    %
    
    
    2.35
    %Total nonperforming assets and troubled debt
restructurings as a percentage of total assets
    
    
    0.44
    %
    
    
    0.71
    %
    
    
    0.65
    %
    
    
    0.76
    %
    
    
    1.16
    %
 (1)
    
    Real estate owned includes other repossessed assets and the balances are shown net
of related valuation allowances.(2)
    
    Nonperforming assets consist of nonperforming loans, other repossessed assets
and real estate owned. Classified Assets.
  - 14 -




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Reserve Policy and Methodology.
  - 15 -




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December 31,2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003% of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % ofLoans in
    
    
    
    
    
    
    Loans in
    
    
    
    
    
    
    Loans in
    
    
    
    
    
    
    Loans in
    
    
    
    
    
    
    Loans inEach
    
    
    
    
    
    
    Each
    
    
    
    
    
    
    Each
    
    
    
    
    
    
    Each
    
    
    
    
    
    
    EachCategory
    
    
    
    
    
    
    Category
    
    
    
    
    
    
    Category
    
    
    
    
    
    
    Category
    
    
    
    
    
    
    Categoryto Total
    
    
    
    
    
    
    to Total
    
    
    
    
    
    
    to Total
    
    
    
    
    
    
    to Total
    
    
    
    
    
    
    to TotalAmount
    
    
    Loans
    
    
    Amount
    
    
    Loans
    
    
    Amount
    
    
    Loans
    
    
    Amount
    
    
    Loans
    
    
    Amount
    
    
    Loans(In Thousands)Allocated:Real estate loans:One-to-four family
    
    $
    305
    
    
    
    32.80
    %
    
    $
    260
    
    
    
    35.35
    %
    
    $
    318
    
    
    
    32.29
    %
    
    $
    224
    
    
    
    31.15
    %
    
    $
    154
    
    
    
    33.38
    %Multi-family
    
    
    27
    
    
    
    5.68
    %
    
    
    7
    
    
    
    1.81
    %
    
    
    2
    
    
    
    0.43
    %
    
    
    2
    
    
    
    0.59
    %
    
    
    2
    
    
    
    0.24
    %Commercial
    
    
    509
    
    
    
    20.87
    %
    
    
    609
    
    
    
    17.89
    %
    
    
    866
    
    
    
    20.71
    %
    
    
    745
    
    
    
    14.02
    %
    
    
    349
    
    
    
    9.25
    %Construction
    
    
    77
    
    
    
    1.75
    %
    
    
    5
    
    
    
    1.28
    %
    
    
    60
    
    
    
    1.51
    %
    
    
    56
    
    
    
    1.26
    %
    
    
    60
    
    
    
    2.08
    %Agricultural loans
    
    
    114
    
    
    
    12.21
    %
    
    
    78
    
    
    
    14.30
    %
    
    
    84
    
    
    
    13.03
    %
    
    
    52
    
    
    
    14.04
    %
    
    
    91
    
    
    
    12.71
    %Commercial and industrial
    
    
    433
    
    
    
    6.05
    %
    
    
    417
    
    
    
    3.90
    %
    
    
    466
    
    
    
    4.91
    %
    
    
    376
    
    
    
    5.32
    %
    
    
    351
    
    
    
    5.87
    %Agricultural production
finance
    
    
    197
    
    
    
    8.35
    %
    
    
    310
    
    
    
    10.02
    %
    
    
    330
    
    
    
    9.62
    %
    
    
    320
    
    
    
    11.28
    %
    
    
    503
    
    
    
    11.29
    %Consumer loans:Vehicle
    
    
    312
    
    
    
    9.22
    %
    
    
    421
    
    
    
    11.55
    %
    
    
    420
    
    
    
    13.27
    %
    
    
    414
    
    
    
    17.25
    %
    
    
    506
    
    
    
    19.23
    %Consumer finance
    
    
    25
    
    
    
    0.34
    %
    
    
    21
    
    
    
    0.46
    %
    
    
    42
    
    
    
    0.54
    %
    
    
    36
    
    
    
    0.66
    %
    
    
    41
    
    
    
    0.75
    %Share
    
    
    
    
    
    
    0.35
    %
    
    
    
    
    
    
    0.54
    %
    
    
    
    
    
    
    0.44
    %
    
    
    
    
    
    
    0.39
    %
    
    
    
    
    
    
    0.49
    %Other
    
    
    82
    
    
    
    1.74
    %
    
    
    76
    
    
    
    2.04
    %
    
    
    55
    
    
    
    2.20
    %
    
    
    56
    
    
    
    2.57
    %
    
    
    68
    
    
    
    2.90
    %Other loans
    
    
    10
    
    
    
    0.64
    %
    
    
    18
    
    
    
    0.86
    %
    
    
    19
    
    
    
    1.05
    %
    
    
    19
    
    
    
    1.47
    %
    
    
    
    
    
    
    1.81
    %Unallocated:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,091
    
    
    
    100.00
    %
    
    $
    2,222
    
    
    
    100.00
    %
    
    $
    2,662
    
    
    
    100.00
    %
    
    $
    2,300
    
    
    
    100.00
    %
    
    $
    2,125
    
    
    
    100.00
    %
  - 17 -




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##### Table of Contents



Year Ended December 31,2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003(In Thousands)Total loans outstanding
    
    $
    236,947
    
    
    $
    187,666
    
    
    $
    159,547
    
    
    $
    119,748
    
    
    $
    108,535Average loans outstanding, net
    
    
    204,515
    
    
    
    174,375
    
    
    
    131,405
    
    
    
    111,445
    
    
    
    105,773Balance at beginning of period
    
    
    2,222
    
    
    
    2,662
    
    
    
    2,300
    
    
    
    2,125
    
    
    
    1,963Charge-offs:Real estate loans:One-to-four family
    
    
    47
    
    
    
    74
    
    
    
    72
    
    
    
    78
    
    
    
    118Multi-family
    
    
    181
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial
    
    
    309
    
    
    
    137
    
    
    
    91
    
    
    
    67
    
    
    
    Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Agricultural loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    144
    
    
    
    310
    
    
    
    
    
    
    
    75
    
    
    
    35Agricultural production finance
    
    
    69
    
    
    
    28
    
    
    
    
    
    
    
    14
    
    
    
    234Consumer loans:Vehicle
    
    
    144
    
    
    
    139
    
    
    
    206
    
    
    
    156
    
    
    
    214Consumer finance
    
    
    61
    
    
    
    23
    
    
    
    20
    
    
    
    34
    
    
    
    10Share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    40
    
    
    
    62
    
    
    
    50
    
    
    
    14
    
    
    
    48Total charge-offs
    
    
    995
    
    
    
    773
    
    
    
    439
    
    
    
    438
    
    
    
    659Recoveries:Real estate loans:One-to-four family
    
    
    
    
    
    
    11
    
    
    
    1
    
    
    
    8
    
    
    
    Multi-family
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    1
    
    
    
    Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Agricultural loans
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    5Agricultural production finance
    
    
    1
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    11Consumer loans:Vehicle
    
    
    47
    
    
    
    45
    
    
    
    48
    
    
    
    52
    
    
    
    47Consumer finance
    
    
    12
    
    
    
    15
    
    
    
    11
    
    
    
    23
    
    
    
    23Share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    29
    
    
    
    32
    
    
    
    10
    
    
    
    11
    
    
    
    7Total recoveries
    
    
    89
    
    
    
    103
    
    
    
    91
    
    
    
    98
    
    
    
    93Net charge-offs
    
    
    (906
    )
    
    
    (670
    )
    
    
    (348
    )
    
    
    (340
    )
    
    
    (566
    )Provision for loan losses
    
    
    775
    
    
    
    230
    
    
    
    510
    
    
    
    515
    
    
    
    728Acquired through business combination
    
    
    
    
    
    
    
    
    
    
    200
    
    
    
    
    
    
    
    Balance at end of period
    
    $
    2,091
    
    
    $
    2,222
    
    
    $
    2,662
    
    
    $
    2,300
    
    
    $
    2,125Allowance for loan losses as a
percent of total loans outstanding
    
    
    0.88
    %
    
    
    1.18
    %
    
    
    1.67
    %
    
    
    1.92
    %
    
    
    1.96
    %Allowance for loan losses as a
percent of total non-performing loans
    
    
    236.27
    %
    
    
    120.89
    %
    
    
    175.94
    %
    
    
    146.40
    %
    
    
    188.72
    %Ratio of net charge-offs to
average loans outstanding
    
    
    0.44
    %
    
    
    0.38
    %
    
    
    0.26
    %
    
    
    0.31
    %
    
    
    0.54
    %
  - 18 -




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##### Table of Contents



December 31,2007
    
    
    2006
    
    
    2005Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value(In Thousands)Available for sale:U.S. Treasuries
    
    $
    3,873
    
    
    $
    3,461
    
    
    $
    3,869
    
    
    $
    3,456
    
    
    $
    3,820
    
    
    $
    3,527Federal agencies
    
    
    5,481
    
    
    
    5,619
    
    
    
    6,967
    
    
    
    7,014
    
    
    
    8,483
    
    
    
    8,375State and municipal
    
    
    4,859
    
    
    
    4,851
    
    
    
    12,351
    
    
    
    12,405
    
    
    
    13,181
    
    
    
    13,252Mortgage-backed securities
    
    
    34,021
    
    
    
    33,672
    
    
    
    40,767
    
    
    
    39,957
    
    
    
    51,138
    
    
    
    50,369Equity securities
    
    
    1,026
    
    
    
    1,026
    
    
    
    1,685
    
    
    
    1,683
    
    
    
    903
    
    
    
    901Total
    
    $
    49,260
    
    
    $
    48,629
    
    
    $
    65,639
    
    
    $
    64,515
    
    
    $
    77,525
    
    
    $
    76,424Held to maturity:Mortgage-backed securities
    
    $
    5,331
    
    
    $
    5,284
    
    
    $
    4,780
    
    
    $
    4,662
    
    
    $
    3,437
    
    
    $
    3,384Total
    
    $
    5,331
    
    
    $
    5,284
    
    
    $
    4,780
    
    
    $
    4,662
    
    
    $
    3,437
    
    
    $
    3,384
   - 19 -




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##### Table of Contents



Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedUnder 1
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    5-10
    
    
    Average
    
    
    Over 10
    
    
    AverageAvailable-for-sale securities
    
    Year
    
    
    Yield
    
    
    1-5 Years
    
    
    Yield
    
    
    Years
    
    
    Yield
    
    
    Years
    
    
    Yield
    
    
    Total(In Thousands)U.S. Treasuries
    
    $
    1,142
    
    
    
    3.63
    %
    
    $
    2,319
    
    
    
    4.07
    %
    
    $
    0
    
    
    
    
    
    
    $
    0
    
    
    
    
    
    
    $
    3,461Federal agencies
    
    
    998
    
    
    
    3.52
    %
    
    
    4,621
    
    
    
    5.19
    %
    
    
    0
    
    
    
    
    
    
    
    0
    
    
    
    
    
    
    
    5,619State and municipal
    
    
    81
    
    
    
    4.72
    %
    
    
    1,482
    
    
    
    4.19
    %
    
    
    3,288
    
    
    
    2.55
    %
    
    
    0
    
    
    
    
    
    
    
    4,851Mortgage-backed securities (1)
    
    
    9,871
    
    
    
    4.67
    %
    
    
    19,911
    
    
    
    4.66
    %
    
    
    3,001
    
    
    
    4.33
    %
    
    
    889
    
    
    
    3.69
    %
    
    
    33,672Total
    
    $
    12,092
    
    
    
    
    
    
    $
    28,333
    
    
    
    
    
    
    $
    6,289
    
    
    
    
    
    
    $
    889
    
    
    
    
    
    
    $
    47,603
 (1)
    
    The maturities for mortgage-backed securities are based on prepayment speed assumptions established by management
based on the current interest rate environment. The assumption rates vary by the individual security.   Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedUnder 1
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    5-10
    
    
    Average
    
    
    Over 10
    
    
    AverageHeld-to-maturity securities
    
    Year
    
    
    Yield
    
    
    1-5 Years
    
    
    Yield
    
    
    Years
    
    
    Yield
    
    
    Years
    
    
    Yield
    
    
    Total(In Thousands)Mortgage-backed securities (1)
    
    $
    1,127
    
    
    
    5.10
    %
    
    $
    3,826
    
    
    
    4.97
    %
    
    $
    378
    
    
    
    4.50
    %
    
    $
    
    
    
    
    
    
    
    $
    5,331Total
    
    $
    1,127
    
    
    
    
    
    
    $
    3,826
    
    
    
    
    
    
    $
    378
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    5,331
 (1)
    
    The maturities for mortgage-backed securities are based on prepayment speed assumptions established by management
based on the current interest rate environment. The assumption rates vary by the individual security.    - 20 -




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##### Table of Contents



General.
 Deposits.
    - 21 -




---



##### Table of Contents



December 31, 2007
    
    
    December 31, 2006
    
    
    December 31, 2005Percent
    
    
    
    
    
    
    
    
    
    
    Percent
    
    
    
    
    
    
    
    
    
    
    Percentof Total
    
    
    Weighted
    
    
    
    
    
    
    of Total
    
    
    Weighted
    
    
    
    
    
    
    of Total
    
    
    WeightedAverage
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    AverageBalance
    
    
    Deposits
    
    
    Rate
    
    
    Balance
    
    
    Deposits
    
    
    Rate
    
    
    Balance
    
    
    Deposits
    
    
    Rate(In Thousands)Money market deposits
    
    $
    20,127
    
    
    
    9.01
    %
    
    
    3.48
    %
    
    $
    21,164
    
    
    
    10.05
    %
    
    
    2.62
    %
    
    $
    15,841
    
    
    
    9.41
    %
    
    
    1.99
    %Savings deposits
    
    
    14,738
    
    
    
    6.60
    %
    
    
    2.06
    %
    
    
    12,449
    
    
    
    5.91
    %
    
    
    0.83
    %
    
    
    12,225
    
    
    
    7.26
    %
    
    
    0.85
    %NOW and other demand deposits
    
    
    28,935
    
    
    
    12.96
    %
    
    
    1.76
    %
    
    
    27,219
    
    
    
    12.93
    %
    
    
    1.02
    %
    
    
    36,990
    
    
    
    21.97
    %
    
    
    1.05
    %Non-interest bearing deposits
    
    
    20,390
    
    
    
    9.13
    %
    
    
    0.00
    %
    
    
    21,423
    
    
    
    10.18
    %
    
    
    0.00
    %
    
    
    17,357
    
    
    
    10.31
    %
    
    
    0.00
    %Total
    
    
    84,190
    
    
    
    37.70
    %
    
    
    1.80
    %
    
    
    82,255
    
    
    
    39.07
    %
    
    
    1.14
    %
    
    
    82,413
    
    
    
    48.95
    %
    
    
    0.98
    %Certificate accountsThree months or less
    
    
    1,218
    
    
    
    0.55
    %
    
    
    3.91
    %
    
    
    3,515
    
    
    
    1.67
    %
    
    
    4.50
    %
    
    
    356
    
    
    
    0.21
    %
    
    
    1.45
    %Over three through six months
    
    
    19,196
    
    
    
    8.60
    %
    
    
    4.92
    %
    
    
    25,341
    
    
    
    12.04
    %
    
    
    4.91
    %
    
    
    3,926
    
    
    
    2.33
    %
    
    
    2.73
    %Over six through twelve months
    
    
    68,289
    
    
    
    30.57
    %
    
    
    4.83
    %
    
    
    43,298
    
    
    
    20.56
    %
    
    
    4.19
    %
    
    
    29,696
    
    
    
    17.64
    %
    
    
    2.69
    %Over one to three years
    
    
    20,587
    
    
    
    9.22
    %
    
    
    4.18
    %
    
    
    27,576
    
    
    
    13.10
    %
    
    
    3.56
    %
    
    
    26,698
    
    
    
    15.86
    %
    
    
    2.59
    %Over three to five years
    
    
    16,866
    
    
    
    7.55
    %
    
    
    4.43
    %
    
    
    15,861
    
    
    
    7.53
    %
    
    
    4.18
    %
    
    
    12,828
    
    
    
    7.62
    %
    
    
    4.33
    %Over five years
    
    
    12,985
    
    
    
    5.81
    %
    
    
    4.45
    %
    
    
    12,690
    
    
    
    6.03
    %
    
    
    4.42
    %
    
    
    12,435
    
    
    
    7.39
    %
    
    
    4.35
    %Total certificates
    
    
    139,141
    
    
    
    62.30
    %
    
    
    4.65
    %
    
    
    128,281
    
    
    
    60.93
    %
    
    
    4.23
    %
    
    
    85,939
    
    
    
    51.05
    %
    
    
    3.14
    %Total average deposits
    
    $
    223,331
    
    
    
    100.00
    %
    
    
    3.58
    %
    
    $
    210,536
    
    
    
    100.00
    %
    
    
    3.02
    %
    
    $
    168,352
    
    
    
    100.00
    %
    
    
    2.08
    %
  - 22 -




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##### Table of Contents



Maturity DateOne Year
    
    
    Over 1-2
    
    
    Over 2-3
    
    
    Over 3Interest Rate
    
    or Less
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    Total(In Thousands)2.00% - 3.99%
    
    $
    18,733
    
    
    $
    3,859
    
    
    $
    2,675
    
    
    $
    491
    
    
    $
    25,7584.00% - 5.99%
    
    
    94,834
    
    
    
    13,689
    
    
    
    6,253
    
    
    
    5,760
    
    
    
    120,536$
    113,567
    
    
    $
    17,548
    
    
    $
    8,928
    
    
    $
    6,251
    
    
    $
    146,294
  December 31, 2007(In Thousands)3 months or less
    
    $
    8,564Over 3 months through 6 months
    
    
    10,081Over 6 months thruogh 12 months
    
    
    16,026Over 12 months
    
    
    12,207Total
    
    $
    46,878
 Return on Equity and Assets
 2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Return on assets (net income divided by
average total assets)
    
    
    0.35
    %
    
    
    0.40
    %
    
    
    0.52
    %
    
    
    0.54
    %
    
    
    0.90
    %Return on equity (net income divided by
average equity)
    
    
    4.00
    %
    
    
    4.26
    %
    
    
    4.66
    %
    
    
    4.58
    %
    
    
    7.38
    %Dividend payout ratio (total dividends paid
divided by net income
    
    
    48.98
    %
    
    
    48.62
    %
    
    
    46.64
    %
    
    
    46.82
    %
    
    
    23.05
    %Equity to assets ratio (average equity
divided by average total assets)
    
    
    8.77
    %
    
    
    9.27
    %
    
    
    11.08
    %
    
    
    11.84
    %
    
    
    12.19
    %
  - 23 -




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##### Table of Contents



Borrowings.
   Interest
    
    
    Fixed or
    
    Maturity
    
    First Convertible
    
    AmountDate of Advance
    
    Rate
    
    
    Variable
    
    Date
    
    Date
    
    (in thousands)February, 1998
    
    
    5.32
    %
    
    Fixed
    
    February, 2008
    
    February, 2003
    
    $
    1,500February, 2001
    
    
    4.86
    %
    
    Fixed
    
    February, 2011
    
    February, 2004
    
    
    10,000March, 2003
    
    
    3.35
    %
    
    Fixed
    
    March, 2008
    
    
    
    
    2,000October, 2003
    
    
    3.61
    %
    
    Fixed
    
    October, 2008
    
    
    
    
    300September, 2001
    
    
    3.12
    %
    
    Fixed
    
    September, 2011
    
    
    
    
    5,000September, 2006
    
    
    4.12
    %
    
    Fixed
    
    September, 2016
    
    September, 2007
    
    
    14,000March, 2007
    
    
    4.13
    %
    
    Fixed
    
    March, 2017
    
    March, 2008
    
    
    5,000April, 2007
    
    
    4.29
    %
    
    Fixed
    
    April, 2017
    
    April, 2008
    
    
    5,000July, 2007
    
    
    4.75
    %
    
    Fixed
    
    July, 2012
    
    January, 2008
    
    
    5,000Open line of credit
    
    
    3.96
    %
    
    Variable
    
    
    
    
    
    
    8,000$
    55,800
   24




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25




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##### Table of Contents



26




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##### Table of Contents



First BancTrust Corporation
 General.
  27




---



##### Table of Contents



Sarbanes-Oxley Act of 2002.
   28




---



##### Table of Contents



Acquisitions.
   29




---



##### Table of Contents



Source of Strength Policy
 Capital Requirements.
 Restrictions on Transactions With Affiliates.
   30




---



##### Table of Contents



Taxation
  First Bank & Trust
 General.
   31




---



##### Table of Contents



Insurance of Accounts.
     32




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##### Table of Contents



Capital Requirements.
   Dividends.
  33




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##### Table of Contents



Safety and Soundness Guidelines.
 Federal Home Loan Bank System.
    34




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##### Table of Contents



Community Investment and Consumer Protection Laws.
  Federal Reserve System.
 Recent Accounting Pronouncements.
 Postretirement Benefits Associated with Split-Dollar Life Insurance
  35




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##### Table of Contents



Fair Value Measurements
 The Fair Value Option for Financial
Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115
 Business Combinations
  36




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##### Table of Contents



Non-controlling Interest in Consolidated
Financial Statements  an Amendment of ARB No. 151
 
   
   
   Net Book Value ofProperty andLease
    
    
    LeaseholdOwned or
    
    
    Expiration
    
    
    Improvements at
    
    
    Deposits as ofLocation
    
    Leased
    
    
    Date
    
    
    December 31, 2007
    
    
    December 31, 2007101 South Central Avenue
    
    Owned
    
    
    
    
    
    $
    6,398
    
    
    $
    102,710Paris Illinois 61944610 North Michigan Avenue
    
    Owned
    
    
    
    
    
    
    556
    
    
    
    55,671Marshall, Illinois 624411251 Woodfield Drive
    
    Leased
    
    
    8/31/2009
    
    
    
    140
    
    
    
    29,738Savoy, Illinois 618741500 East Grove Avenue
    
    Owned
    
    
    
    
    
    
    1,253
    
    
    
    27,087Rantoul Illinois 6186610 East Cumberland Street
    
    Owned
    
    
    
    
    
    
    314
    
    
    
    5,428Martinsville Illinois 62442826 West Champaign
    
    Leased
    
    
    1/31/2008
    
    
    
    
    
    
    
    11,505Rantoul Illinois 61866208 West Washington Street
    
    Owned
    
    
    
    
    
    
    130
    
    
    
    Paris Illinois 61944
  37




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38




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ISSUER PURCHASES OF EQUITY SECURITIES
 (d) Maximum(c) Total Number
    
    
    Number ofof Shares
    
    
    Shares that MayPurchased as
    
    
    Yet Be(a) Total Number
    
    
    (b) Average
    
    
    Part of Publicly
    
    
    Purchased Underof Shares
    
    
    Price Paid
    
    
    Announced Plans
    
    
    the PlansPeriod
    
    Purchased
    
    
    per Share
    
    
    or Programs
    
    
    or Programs10/1/2007
to
10/31/2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,71011/1/2007
to
11/30/2007
    
    
    9,561
    
    
    
    10.36
    
    
    
    9,561
    
    
    
    42,14912/1/2007
to
12/31/2007
    
    
    22,500
    
    
    
    10.46
    
    
    
    22,500
    
    
    
    19,649Total
    
    
    32,061
    
    
    
    10.43
    
    
    
    32,061
    
    
    
    19,649
 (1)
    
    The board of directors approved the repurchase by the Company of 117,710 shares over the one year period ending March 15, 2008. 
    39




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40




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41




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42




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Equity Compensation Plan Information.
 Equity Compensation Plan Information
 Number of securities to be
    
    
    Weighted-average
    
    
    Number of securities remainingissued upon exercise of
    
    
    exercise price of
    
    
    available for future issuance underoutstanding options, warrants
    
    
    outstanding options,
    
    
    equity compensation plans (excludingand rights
    
    
    warrants and rights
    
    
    securities reflected in the first column)Equity compensation
plans approved by
security holders
    
    
    289,474
    
    
    $
    9.87
    
    
    
    5,200
    (1)Equity compensation
plans not approved
by security holders
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    289,174
    
    
    $
    9.87
    
    
    
    5,200
    (1)
 (1)
    
    As of December 31, 2007, 48,178 shares of restricted stock had been granted, which are excluded
from the total. 
    43




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##### Table of Contents



Independent Accountants Report
    
    
    45Consolidated Balance Sheets as of
December 31, 2007 and 2006
    
    
    46-47Consolidated Statements of Income for the years
ended December 31, 2007 2006, and 2005
    
    
    48-49Consolidated Statements of Stockholders Equity for
the years ended December 31, 2007, 2006, and 2005
    
    
    50-51Consolidated Statements of Cash Flows for the years
ended December 31, 2007, 2006, and 2005
    
    
    52-53Notes to Consolidated Financial Statements
    
    
    54-91
     44




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##### Table of Contents



No.
    
    Description3.1
    
    Certificate of Incorporation of First
BancTrust Corporation*3.2
    
    Amended and Restated Bylaws of First
BancTrust Corporation (filed herewith)4.0
    
    Form of Stock Certificate of First
BancTrust Corporation*4.1
    
    Trust Preferred Securities Indenture +10.1
    
    Employment Agreement between First BancTrust
Corporation, First Bank & Trust, s.b. and Terry J. Howard**(1)10.2
    
    Severance Agreement between First BancTrust
Corporation, First Bank & Trust, s.b. and Larry W. Strohm ++(1)10.3
    
    2002 Stock Option Plan***(1)10.4
    
    Form of Stock Option Agreement *****(1)10.5
    
    2002 Recognition and Retention Plan and
Trust Agreement***(1)10.6
    
    First BancTrust Corporation Deferred
Compensation Plan **** (1)10.7
    
    Amendment Number One to First BancTrust
Corporation Deferred Compensation Plan **** (1)10.8
    
    Trust Preferred Securities Subscription
Agreement +10.9
    
    Trust Preferred Securities Declaration of
Trust +10.10
    
    Trust Preferred Securities Guarantee Agreement
+13.0
    
    2007 Annual Report to Stockholders (filed
herewith)14.0
    
    Code of Ethics (filed herewith)21.0
    
    Subsidiary information is incorporated
herein by reference to Part I  Subsidiaries23.0
    
    Consent of BKD, LLP (filed herewith)31.1
    
    Certification of Terry J. Howard, required
by Rule 13a-14(a).31.2
    
    Certification of Ellen M. Litteral, required
by Rule 13a-14(a).32.1
    
    Certification of Terry J. Howard, Chief
Executive Officer pursuant to Rule 13a-14(b) and Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).32.2
    
    Certification of Ellen M. Litteral, Chief
Financial Officer pursuant to Rule 13a-14(b) and Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
 
 *
    
    Incorporated herein by reference from the Registration Statement on Form SB-2, as
amended, filed on December 15, 2000, Registration No. 333-51934.**
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on April 1,
2002.***
    
    Incorporated herein by reference from the Registrants definitive proxy statement filed
on March 22, 2002.****
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on March 28, 2003.*****
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on March 29, 2005.+
    
    Incorporated herein by reference from the Registrants Form 10-K filed on
March 28, 2006.++
    
    Incorporated herein by reference from the Registrants Form 10-K filed on
March 28, 2007.(1)
    
    Management contract or compensatory plan or arrangement.  45




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##### Table of Contents



First BancTrust CorporationDate: March 27, 2008
    /s/ Terry J. HowardTerry J. HowardPresident, Chief Executive Officer
and Director  Date: March 27, 2008
    /s/   Terry J. HowardTerry J. HowardPresident, Chief Executive Officer
and Director (Principal Executive Officer)Date: March 27, 2008
    /s/   John W. WelbornJohn W. Welborn, DirectorChairman of the Board of DirectorsDate: March 27, 2008
    /s/   Vick N. BowyerVick N. Bowyer, DirectorDate: March 27, 2008
    /s/   David W. DickDavid W. Dick, DirectorDate: March 27, 2008
    /s/   James D. MotleyJames D. Motley, DirectorDate: March 27, 2008
    /s/   Joseph R. SchroederJoseph R. Schroeder, DirectorDate: March 27, 2008
    /s/   Terry T. HutchisonTerry T. Hutchison, DirectorDate: March 27, 2008
    /s/   John P. GrahamJohn P. Graham, DirectorDate: March 27, 2008
    /s/   Ellen M. LitteralEllen M. Litteral, Chief FinancialOfficer and Treasurer (Principal
Accounting and Financial
Officer)  46




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##### Table of Contents



No.
    
    Description3.1
    
    Certificate of Incorporation of First BancTrust Corporation*3.2
    
    Amended and Restated Bylaws of First BancTrust    Corporation (filed herewith)4.0
    
    Form of Stock Certificate of First BancTrust Corporation*4.1
    
    Trust Preferred Securities Indenture +10.1
    
    Employment Agreement between First BancTrust Corporation, First Bank & Trust, s.b. and Terry J. Howard**(1)10.2
    
    Severance Agreement between First BancTrust Corporation, First Bank & Trust, s.b. and Larry W. Strohm ++(1)10.3
    
    2002 Stock Option Plan***(1)10.4
    
    Form of Stock Option Agreement *****(1)10.5
    
    2002 Recognition and Retention Plan and Trust Agreement***(1)10.6
    
    First BancTrust Corporation Deferred Compensation Plan  **** (1)10.7
    
    Amendment Number One to First BancTrust Corporation Deferred Compensation Plan **** (1)10.8
    
    Trust Preferred Securities Subscription Agreement +10.9
    
    Trust Preferred Securities Declaration of Trust +10.10
    
    Trust Preferred Securities Guarantee Agreement +13.0
    
    2007 Annual Report to Stockholders (filed herewith)14.0
    
    Code of Ethics (filed herewith)21.0
    
    Subsidiary information is incorporated herein by reference to "Part I - Subsidiaries"23.0
    
    Consent of BKD, LLP (filed herewith)31.1
    
    Certification of Terry J. Howard, required by Rule 13a-14(a).31.2
    
    Certification of Ellen M. Litteral, required by Rule 13a-14(a).32.1
    
    Certification of Terry J. Howard, Chief Executive Officer pursuant to Rule 13a-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).32.2
    
    Certification of Ellen M. Litteral, Chief Financial Officer pursuant to Rule 13a-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
 
 *
    
    Incorporated herein by reference from the Registration Statement on Form SB-2, as
amended, filed on December 15, 2000, Registration No. 333-51934.**
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on April 1,
2002.***
    
    Incorporated herein by reference from the Registrants definitive proxy statement filed
on March 22, 2002.****
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on March 28, 2003.*****
    
    Incorporated herein by reference from the Registrants Form 10-KSB filed on March 29, 2005.+
    
    Incorporated herein by reference from the Registrants Form 10-K filed on
March 28, 2006.++
    
    Incorporated herein by reference from the Registrants Form 10-K filed on
March 28, 2007.(1)
    
    Management contract or compensatory plan or arrangement.