**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**For      the Quarterly Period Ended March 31, 2007**

**                          THE WILBER      CORPORATION                    **

| **New                York**                                                   | **15-6018501**                                         |
|-------------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) | (I.R.S.                Employer Identification Number) |
|                                                                          |                                                   |

**245      Main Street, Oneonta, NY 13820**

**607      432-1700**

**Common      Stock, $0.01 par value per share**

**None**

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

----

**THE      WILBER CORPORATION**

**FORM      10-Q**

**INDEX**

**PART      I – FINANCIAL INFORMATION**

|                                                 |                                                                                                                      |                                                                                                                                |   |
|------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|
| FORWARD-LOOKING                STATEMENTS            |                                                                                                                      |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                1:                               | Interim                Financial Statements (Unaudited)                                                                   |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
|                                                 | Consolidated                Statements of Condition                                                                       |                                                                                                                                |
|                                                 | Consolidated                Statements of Income                                                                          |                                                                                                                                |
|                                                 | Consolidated                Statements of Changes in Shareholders’ Equity and Comprehensive                Income   |                                                                                                                                |
|                                                 | Consolidated                Statements of Cash Flows                                                                      |                                                                                                                                |
|                                                 | Notes                to Interim Unaudited Consolidated Financial Statements                                               |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                2:                               | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
|                                                 | A.                                                                                                                        | General                                                                                                                             |   |
|                                                 | B.                                                                                                                        | Financial                Condition and Performance Overview                                                                         |   |
|                                                 | C.                                                                                                                        | Comparison                of Financial Condition at March 31, 2007 and December 31,                2006                             |   |
|                                                 | D.                                                                                                                        | Comparison                of Results of Operations for the Three Months Ended March 31, 2007                and                2006 |   |
|                                                 | E.                                                                                                                        | Liquidity                                                                                                                           |   |
|                                                 | F.                                                                                                                        | Capital                Resources and Dividends                                                                                      |   |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                3:                               | Quantitative                and Qualitative Disclosures about Market Risk                                                 |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                4:                               | Controls                and Procedures                                                                                    |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                4T:                              | Controls                and Procedures                                                                                    |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| **PART                II – OTHER INFORMATION** |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                1:                               | Legal                Proceedings                                                                                          |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                1A:                              | Risk                Factors                                                                                               |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                2:                               | Unregistered                Sales of Equity Securities and Use of Proceeds                                                |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                3:                               | Defaults                Upon Senior Securities                                                                            |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                4:                               | Submission                of Matters to a Vote of Security Holders                                                        |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                5:                               | Other                Information                                                                                          |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| ITEM                6:                               | Exhibits                                                                                                                  |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| Signature                Page                        |                                                                                                                      |                                                                                                                                |
|                                                 |                                                                                                                      |                                                                                                                                |   |
| Index                to Exhibits                     |                                                                                                                      |

----

*Index*

----

*Index*

E

| ***The                Wilber Corporation***                                                                    |   |                         |        |   |                            |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|--------|---------------------------------|--------|
| ***Consolidated                Statements of Condition (Unaudited)***                                          |   |                         |        |   |                            |   |
|                                                                                                           |   |                         |        |   |                            |   |
|                                                                                                           |   | **March                31,** |        |   | **December                31,** |   |
| ***dollars                in thousands except share and per share data***                                      |   | **2007**                     |        |   | **2006**                        |   |
| **Assets**                                                                                                     |   |                         |        |   |                            |   |
| Cash                and Due from Banks                                                                         |   | **$**                        | **12,108**  |   |                            | $      | 12,742 |   |
| Time                Deposits with Other Banks                                                                  |   | ** **                   | **801**     |   |                            |   | 800 |   |
| Federal                Funds Sold                                                                              |   | ** **                   | **14,195**  |   |                            |   | 12,317 |   |
| Total                Cash and Cash Equivalents                                                                 |   | ** **                   | **27,104**  |   |                            |   | 25,859 |   |
| Securities                                                                                                     |   |                         |        |   |                            |   |   |   |
| Trading,                at Fair Value                                                                          |   | ** **                   | **1,540**   |   |                            |   | 1,625 |   |
| Available-for-Sale,                at Fair Value                                                               |   | ** **                   | **226,491** |   |                            |   | 228,959 |   |
| Held-to-Maturity,                Fair Value of $57,537 at March 31, 2007,                                      |   |                         |        |   |                            |   |   |   |
|    and                $61,310 at December 31, 2006                                              |   | ** **                   | **58,264**  |   |                            |   | 62,358 |   |
| Other                Investments                                                                               |   | ** **                   | **4,451**   |   |                            |   | 4,600 |   |
| Loans                                                                                                          |   | ** **                   | **412,608** |   |                            |   | 405,832 |   |
| Allowance                for Loan Losses                                                                       |   | ** **                   | **(6,718**  | **)**  |                            |   | (6,680 | ) |
| Loans,                Net                                                                                      |   | ** **                   | **405,890** |   |                            |   | 399,152 |   |
| Premises                and Equipment, Net                                                                     |   | ** **                   | **5,637**   |   |                            |   | 5,686 |   |
| Bank                Owned Life Insurance                                                                       |   | ** **                   | **16,257**  |   |                            |   | 16,108 |   |
| Goodwill                                                                                                       |   | ** **                   | **4,682**   |   |                            |   | 4,518 |   |
| Intangible                Assets, Net                                                                          |   | ** **                   | **486**     |   |                            |   | 520 |   |
| Other                Assets                                                                                    |   | ** **                   | **13,201**  |   |                            |   | 12,596 |   |
| Total                Assets                                                                                    |   | **$**                        | **764,003** |   |                            | $      | 761,981 |   |
|                                                                                                           |   |                         |        |   |                            |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                  |   |                         |        |   |                            |   |   |   |
| Deposits:                                                                                                      |   |                         |        |   |                            |   |   |   |
| Demand                                                                                                         |   | **$**                        | **69,510**  |   |                            | $      | 71,914 |   |
| Savings,                NOW and Money Market Deposit Accounts                                                  |   | ** **                   | **251,292** |   |                            |   | 243,249 |   |
| Certificates                of Deposit (Over $100M)                                                            |   | ** **                   | **103,413** |   |                            |   | 101,025 |   |
| Certificates                of Deposit (Under $100M)                                                           |   | ** **                   | **188,319** |   |                            |   | 188,386 |   |
| Other                Deposits                                                                                  |   | ** **                   | **24,512**  |   |                            |   | 24,470 |   |
|    Total                Deposits                                                                |   | ** **                   | **637,046** |   |                            |   | 629,044 |   |
| Short-Term                Borrowings                                                                           |   | ** **                   | **18,991**  |   |                            |   | 18,459 |   |
| Long-Term                Borrowings                                                                            |   | ** **                   | **36,178**  |   |                            |   | 42,204 |   |
| Other                Liabilities                                                                               |   | ** **                   | **6,990**   |   |                            |   | 8,942 |   |
| Total                Liabilities                                                                               |   | ** **                   | **699,205** |   |                            |   | 698,649 |   |
|                                                                                                           |   |                         |        |   |                            |   |   |   |
| Shareholders’                Equity:                                                                     |   |                         |        |   |                            |   |   |   |
| Common                Stock, $.01 Par Value, 16,000,000 Shares Authorized,                                     |   |                         |        |   |                            |   |   |   |
| and                13,961,664 Shares Issued at March 31, 2007,                                                 |   |                         |        |   |                            |   |   |   |
| and                December 31, 2006                                                                           |   | ** **                   | **140**     |   |                            |   | 140 |   |
| Additional                Paid in Capital                                                                      |   | ** **                   | **4,224**   |   |                            |   | 4,224 |   |
| Retained                Earnings                                                                               |   | ** **                   | **90,866**  |   |                            |   | 89,921 |   |
| Accumulated                Other Comprehensive Loss                                                            |   | ** **                   | **(2,726**  | **)**  |                            |   | (3,247 | ) |
| Treasury                Stock at Cost, 3,392,482 Shares at March 31, 2007                                      |   |                         |        |   |                            |   |   |   |
|  and                December 31, 2006                                                                     |   | ** **                   | **(27,706** | **)**  |                            |   | (27,706 | ) |
| Total                Shareholders’ Equity                                                                |   | ** **                   | **64,798**  |   |                            |   | 63,332 |   |
| Total                Liabilities and Shareholders’ Equity                                                |   | **$**                        | **764,003** |   |                            | $      | 761,981 |   |
|                                                                                                           |   |                         |        |   |                            |   |   |   |
| *See                accompanying notes to interim unaudited consolidated financial                statements.* |   |                         |        |   |                            |

----

*Index*

| ***The                Wilber Corporation***                                                                    |   |                                  |           |   |     |   |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------------|--------|----------|--------|
| ***Consolidated                Statements of Income (Unaudited)***                                             |   | **Three                Months Ended** |           |
|                                                                                                           |   | **March                31,**          |           |
| ***dollars                in thousands except share and per share data***                                      |   | **2007**                              |           |   | **2006** |   |
| **Interest                and Dividend Income**                                                                |   |                                  |           |   |     |   |
| Interest                and Fees on Loans                                                                      |   | **$**                                 | **7,689**      |   |     | $      | 7,310 |   |
| Interest                and Dividends on Securities:                                                           |   |                                  |           |   |     |   |   |   |
| U.S.                Government and Agency Obligations                                                          |   | ** **                            | **2,441**      |   |     |   | 2,440 |   |
| State                and Municipal Obligations                                                                 |   | ** **                            | **647**        |   |     |   | 597 |   |
| Other                                                                                                          |   | ** **                            | **101**        |   |     |   | 60 |   |
| Interest                on Federal Funds Sold and Time Deposits                                                |   | ** **                            | **236**        |   |     |   | 63 |   |
| Total                Interest and Dividend Income                                                              |   | ** **                            | **11,114**     |   |     |   | 10,470 |   |
|                                                                                                           |   |                                  |           |   |     |   |   |   |
| **Interest                Expense**                                                                            |   |                                  |           |   |     |   |   |   |
| Interest                on Deposits:                                                                           |   |                                  |           |   |     |   |   |   |
| Savings,                NOW and Money Market Deposit Accounts                                                  |   | ** **                            | **1,216**      |   |     |   | 873 |   |
| Certificates                of Deposit (Over $100M)                                                            |   | ** **                            | **1,138**      |   |     |   | 783 |   |
| Certificates                of Deposit (Under $100M)                                                           |   | ** **                            | **1,875**      |   |     |   | 1,638 |   |
| Other                Deposits                                                                                  |   | ** **                            | **250**        |   |     |   | 221 |   |
| Interest                on Short-Term Borrowings                                                               |   | ** **                            | **180**        |   |     |   | 200 |   |
| Interest                on Long-Term Borrowings                                                                |   | ** **                            | **391**        |   |     |   | 505 |   |
| Total                Interest Expense                                                                          |   | ** **                            | **5,050**      |   |     |   | 4,220 |   |
| **Net                Interest Income**                                                                         |   | ** **                            | **6,064**      |   |     |   | 6,250 |   |
| Provision                for Loan Losses                                                                       |   | ** **                            | **260**        |   |     |   | 420 |   |
| Net                Interest Income After Provision for Loan Losses                                             |   | ** **                            | **5,804**      |   |     |   | 5,830 |   |
|                                                                                                           |   |                                  |           |   |     |   |   |   |
| **Non                Interest Income**                                                                         |   |                                  |           |   |     |   |   |   |
| Trust                Fees                                                                                      |   | ** **                            | **380**        |   |     |   | 389 |   |
| Service                Charges on Deposit Accounts                                                             |   | ** **                            | **418**        |   |     |   | 407 |   |
| Commissions                Income                                                                              |   | ** **                            | **146**        |   |     |   | 186 |   |
| Investment                Security Gains, Net                                                                  |   | ** **                            | **47**         |   |     |   | 293 |   |
| Increase                in Cash Surrender Value of Bank Owned Life Insurance                                   |   | ** **                            | **149**        |   |     |   | 132 |   |
| Other                Service Fees                                                                              |   | ** **                            | **81**         |   |     |   | 103 |   |
| Gain                on Disposal of Fixed Assets and Other Real Estate                                          |   | ** **                            | **359**        |   |     |   | 0 |   |
| Other                Income                                                                                    |   | ** **                            | **189**        |   |     |   | 140 |   |
| Total                Non Interest Income                                                                       |   | ** **                            | **1,769**      |   |     |   | 1,650 |   |
|                                                                                                           |   |                                  |           |   |     |   |   |   |
| **Non                Interest Expense**                                                                        |   |                                  |           |   |     |   |   |   |
| Salaries                                                                                                       |   | ** **                            | **2,348**      |   |     |   | 2,390 |   |
| Employee                Benefits                                                                               |   | ** **                            | **611**        |   |     |   | 599 |   |
| Occupancy                Expense of Bank Premises                                                              |   | ** **                            | **465**        |   |     |   | 454 |   |
| Furniture                and Equipment Expense                                                                 |   | ** **                            | **210**        |   |     |   | 184 |   |
| Computer                Service Fees                                                                           |   | ** **                            | **191**        |   |     |   | 204 |   |
| Advertising                and Marketing                                                                       |   | ** **                            | **111**        |   |     |   | 103 |   |
| Professional                Fees                                                                               |   | ** **                            | **268**        |   |     |   | 232 |   |
| Other                Miscellaneous Expenses                                                                    |   | ** **                            | **772**        |   |     |   | 685 |   |
| Total                Non Interest Expense                                                                      |   | ** **                            | **4,976**      |   |     |   | 4,851 |   |
| Income                Before Taxes                                                                             |   | ** **                            | **2,597**      |   |     |   | 2,629 |   |
| Income                Taxes                                                                                    |   | ** **                            | **(648**       | **)**  |     |   | (676 | ) |
| **Net                Income**                                                                                  |   | **$**                                 | **1,949**      |   |     | $      | 1,953 |   |
|                                                                                                           |   |                                  |           |   |     |   |   |   |
| Weighted                Average Shares Outstanding                                                             |   | ** **                            | **10,569,182** |   |     |   | 11,145,937 |   |
| Basic                Earnings Per Share                                                                        |   | **$**                                 | **0.18**       |   |     | $      | 0.18 |   |
|                                                                                                           |   |                                  |           |   |     |   |   |   |
| *See                accompanying notes to interim unaudited consolidated financial                statements.* |   |                                  |           |   |     |

----

*Index*

| ***The                Wilber Corporation***                                                                                         |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------------|--------|----------------------------|--------|--------------|--------------|--------|--------|----------------------------------|--------|--------|--------------|----------------------------------|--------|-----------|--------|
| ***Consolidated                Statements of Changes in Shareholders' Equity and Comprehensive Income                (Unaudited)*** |   |       |         |   |                       |   |         |
|                                                                                                                                |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |
|                                                                                                                                |   |       |         |   |                       |   |         |         |   |   | **Accumulated**                  |   |   |         |                             |   |      |   |
|                                                                                                                                |   |       |         |   | **Additional**             |   |         |         |   |   | **Other**                        |   |   |         |                             |   |      |   |
|                                                                                                                                |   | **Common** |         |   | **Paid                in** |   |         | **Retained** |   |   | **Comprehensive**                |   |   | **Treasury** |                             |   |      |   |
| ***dollars                in thousands except share and per share data***                                                           |   | **Stock**  |         |   | **Capital**                |   |         | **Earnings** |   |   | **Income                (Loss)** |   |   | **Stock**    |                             |   | **Total** |   |
| Balance                December 31, 2005                                                                                            |   | $          | 140          |   |                       | $      | 4,224        |         |   | $      | 86,900                           |   |   | $            | (2,409                           | )      |      | $      | (21,138 | ) |   | $ | 67,717 |   |
| Comprehensive                Income:                                                                                                |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   |   |   |
| Net                Income                                                                                                           |   |       | -            |   |                       |   | -            |         |   |   | 1,953                            |   |   |         | -                                |   |      |   | - |   |   |   | 1,953 |   |
| Change                in Net Unrealized Loss                                                                                        |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   |   |   |
| on                Securities, Net of Taxes                                                                                          |   |       | -            |   |                       |   | -            |         |   |   | -                                |   |   |         | (831                             | )      |      |   | - |   |   |   | (831 | ) |
| Total                Comprehensive Income                                                                                           |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   | 1,122 |   |
| Cash                Dividends ($.095 per share)                                                                                     |   |       | -            |   |                       |   | -            |         |   |   | (1,059                           | )      |   |         | -                                |   |      |   | - |   |   |   | (1,059 | ) |
| Balance                March 31, 2006                                                                                               |   | $          | 140          |   |                       | $      | 4,224        |         |   | $      | 87,794                           |   |   | $            | (3,240                           | )      |      | $      | (21,138 | ) |   | $ | 67,780 |   |
|                                                                                                                                |   |       |    |   |                       |   |    |         |   |   |                        |   |   |         |                   |   |      |   |                  |   |   |   |                  |   |
| Balance                December 31, 2006                                                                                            |   | $          | 140          |   |                       | $      | 4,224        |         |   | $      | 89,921                           |   |   | $            | (3,247                           | )      |      | $      | (27,706 | ) |   | $ | 63,332 |   |
| Comprehensive                Income:                                                                                                |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   |   |   |
| Net                Income                                                                                                           |   |       | -            |   |                       |   | -            |         |   |   | 1,949                            |   |   |         | -                                |   |      |   | - |   |   | ** ** | **1,949** |   |
| Change                in Net Unrealized Loss                                                                                        |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   |   |   |
| on                Securities, Net of Taxes                                                                                          |   |       | -            |   |                       |   | -            |         |   |   | -                                |   |   |         | 502                              |   |      |   | - |   |   | ** ** | **502** |   |
| Change                in Pension Asset, Net of Tax                                                                                  |   |       | -            |   |                       |   | -            |         |   |   | -                                |   |   |         | 19                               |   |      |   | - |   |   | ** ** | **19** |   |
| Total                Comprehensive Income                                                                                           |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   | ** ** | **2,470** |   |
| Cash                Dividends ($.095 per share)                                                                                     |   |       | -            |   |                       |   | -            |         |   |   | (1,004                           | )      |   |         | -                                |   |      |   | - |   |   | ** ** | **(1,004** | **)** |
| **Balance                March 31, 2007**                                                                                           |   | **$**      | **140**      |   |                       | **$**  | **4,224**    |         |   | **$**  | **90,866**                       |   |   | **$**        | **(2,726**                       | **)**  |      | **$**  | **(27,706** | **)** |   | **$** | **64,798** |   |
|                                                                                                                                |   |       |         |   |                       |   |         |         |   |   |                             |   |   |         |                             |   |      |   |   |   |   |   |   |   |

*See      accompanying notes to interim unaudited consolidated financial      statements.*

----

*Index*

|                                                                                                                       |   |                                             |        |   |     |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|--------|----------|--------|
| ***The                  Wilber Corporation***                                                                              |   |                                             |        |   |     |   |
| ***Consolidated                  Statements of Cash Flows (Unaudited)***                                                   |   |                                             |        |   |     |   |
|                                                                                                                       |   | **Three                  Months Ended**          |        |
|                                                                                                                       |   | **March                  31,**    |        |
| ***dollars                  in thousands***                                                                                |   | **2007**                                         |        |   | **2006** |   |
| **Cash                  Flows from Operating Activities:**                                                                 |   |                                             |        |   |     |   |
| Net                  Income                                                                                                |   | **$**                                            | **1,949**   |   |     | $      | 1,953 |   |
| Adjustments                  to Reconcile Net Income to Net Cash                                                           |   |                                             |        |   |     |   |   |   |
| (Used                  by) Provided by Operating Activities:                                                               |   |                                             |        |   |     |   |   |   |
|    Provision                  for Loan Losses                                                               |   | ** **                                       | **260**     |   |     |   | 420 |   |
|    Depreciation                  and Amortization                                                           |   | ** **                                       | **263**     |   |     |   | 279 |   |
|    Net                  Amortization of Premiums and Accretion of Discounts on                  Investments |   | ** **                                       | **128**     |   |     |   | 181 |   |
|    Gain                  on Disposal of Fixed Assets                                                        |   | ** **                                       | **(352**    | **)**  |     |   | 0 |   |
|    Available-for-Sale                  Investment Security Gains, net                                       |   | ** **                                       | **0**       |   |     |   | (197 | ) |
|    Other                  Real Estate Gains                                                                 |   | ** **                                       | **(7**      | **)**  |     |   | 0 |   |
|    Increase                  in Cash Surrender Value of Bank Owned Life Insurance                           |   | ** **                                       | **(149**    | **)**  |     |   | (132 | ) |
|    Net                  Decrease in Trading Securities                                                      |   | ** **                                       | **132**     |   |     |   | 54 |   |
|    Net                  Gains on Trading Securities                                                         |   | ** **                                       | **(47**     | **)**  |     |   | (96 | ) |
|    Increase                  in Other Assets                                                                |   | ** **                                       | **(454**    | **)**  |     |   | (680 | ) |
|    Decrease                  in Other Liabilities                                                           |   | ** **                                       | **(2,174**  | **)**  |     |   | (1,695 | ) |
| Net                  Cash (Used by) Provided by Operating Activities                                                       |   | ** **                                       | **(451**    | **)**  |     |   | 87 |   |
|                                                                                                                       |   |                                             |        |   |     |   |   |   |
| **Cash                  Flows from Investing Activities:**                                                                 |   |                                             |        |   |     |   |   |   |
| Net                  Cash Paid for Provantage Funding Corporation                                                          |   | ** **                                       | **(155**    | **)**  |     |   | 0 |   |
| Proceeds                  from Maturities of Held-to-Maturity Investment Securities                                        |   | ** **                                       | **4,064**   |   |     |   | 1,902 |   |
| Purchases                  of Held-to-Maturity Investment Securities                                                       |   | ** **                                       | **0**       |   |     |   | (4,904 | ) |
| Proceeds                  from Maturities of Available-for-Sale Investment                  Securities                     |   | ** **                                       | **10,907**  |   |     |   | 7,559 |   |
| Proceeds                  from Sales of Available-for-Sale Investment Securities                                           |   | ** **                                       | **0**       |   |     |   | 2,961 |   |
| Purchases                  of Available-for-Sale Investment Securities                                                     |   | ** **                                       | **(7,715**  | **)**  |     |   | (13,705 | ) |
| Net                  Decrease (Increase) in Other Investments                                                              |   | ** **                                       | **149**     |   |     |   | (272 | ) |
| Net                  (Increase) Decrease in Loans                                                                          |   | ** **                                       | **(6,698**  | **)**  |     |   | 3,626 |   |
| Purchase                  of Premises and Equipment, Net of Disposals                                                      |   | ** **                                       | **(387**    | **)**  |     |   | (119 | ) |
| Proceeds                  from Sale of Other Real Estate                                                                   |   | ** **                                       | **27**      |   |     |   | 0 |   |
|    Net                  Cash Provided by (Used by) Investing Activities                                     |   | ** **                                       | **192**     |   |     |   | (2,952 | ) |
|                                                                                                                       |   |                                             |        |   |     |   |   |   |
| **Cash                  Flows from Financing Activities:**                                                                 |   |                                             |        |   |     |   |   |   |
| Net                  Increase (Decrease) in Demand Deposits, Savings, NOW,                                                 |   |                                             |        |   |     |   |   |   |
|    Money                  Market and Other Deposits                                                         |   | ** **                                       | **5,681**   |   |     |   | (7,100 | ) |
| Net                  Increase in Certificates of Deposit                                                                   |   | ** **                                       | **2,321**   |   |     |   | 6,748 |   |
| Net                  Increase in Short-Term Borrowings                                                                     |   | ** **                                       | **532**     |   |     |   | 14,006 |   |
| Increase                  in Long-Term Borrowings                                                                          |   | ** **                                       | **10,000**  |   |     |   | 0 |   |
| Repayment                  of Long-Term Borrowings                                                                         |   | ** **                                       | **(16,026** | **)**  |     |   | (4,585 | ) |
| Cash                  Dividends Paid                                                                                       |   | ** **                                       | **(1,004**  | **)**  |     |   | (1,059 | ) |
|    Net                  Cash Provided by Financing Activities                                               |   | ** **                                       | **1,504**   |   |     |   | 8,010 |   |
|      Net                  Increase in Cash and Cash Equivalents                                   |   | ** **                                       | **1,245**   |   |     |   | 5,145 |   |
| Cash                  and Cash Equivalents at Beginning of Year                                                            |   | ** **                                       | **25,859**  |   |     |   | 18,417 |   |
| Cash                  and Cash Equivalents at End of Period                                                                |   | **$**                                            | **27,104**  |   |     | $      | 23,562 |   |
|                                                                                                                       |   |                                             |        |   |     |   |   |   |
| **Supplemental                  Disclosures of Cash Flow Information:**                                                    |   |                                             |        |   |     |   |   |   |
| Cash                  Paid during Period for:                                                                              |   |                                             |        |   |     |   |   |   |
| Interest                                                                                                                   |   | **$**                                            | **5,002**   |   |     | $      | 4,101 |   |
| Income                  Taxes                                                                                              |   | **$**                                            | **2,195**   |   |     | $      | 2,712 |   |
| Non                  Cash Investing Activities:                                                                            |   |                                             |        |   |     |   |   |   |
| Change                  in Unrealized Gain (Loss) on Securities                                                            |   | **$**                                            | **822**     |   |     | $      | (1,359 | ) |
| Fair                  Value of Assets Acquired                                                                             |   | **$**                                            | **599**     |   |     | $      | 0 |   |
| Fair                  Value of Liabilities Assumed                                                                         |   | **$**                                            | **444**     |   |     | $      | 0 |   |
|                                                                                                                       |   |                                             |        |   |     |   |   |   |
| *See                  accompanying notes to interim unaudited consolidated financial                  statements.*         |   |                                             |        |   |     |

----

*Index*

***Note      1.  Basis of Presentation***

***Note      2.  Earnings Per Share***

***Note      3.  Guarantees***

----

*Index*

| ***Note                  4.  Employee Benefit Plans*** |   |   |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Effective                February 28, 2006, the Company's defined benefit pension plan was                frozen.  Under the frozen plan, no future benefits will be                accrued for plan participants, nor will any new participants be enrolled                in the plan.  This plan is sponsored by the Company's bank                subsidiary.  Prior to being frozen, the plan covered employees                who had attained the age of 21 and completed one year of service.                Although                the plan was frozen, the Company mantains the responsibility for                funding                the plan.  The Company's funding practice is to contribute at                least the minimum amount annually to meet minimum funding requirements.                An                annual minimum contirbution is not required in 2007 because the plan                is                more than 100% funded.  Plan assets consist primarily of                marketable fixed income securities and common stocks. Plan benefits                are                based on years of service and the employee’s average compensation during                the five highest consecutive years of the last ten years of                employment. |

| The                  Components of Net Periodic (Benefit) Cost, based on a measurement                  date as                  of the prior September 30, are: |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                             |   |   |   |   |   |   |   |   |   |

|                                            |   | **Three                  Months Ended**          |     |
|-------------------------------------------------|--------|--------------------------------------------------|----------|
|                                            |   | **March                  31,**    |     |
| ***dollars                  in thousands***     |   | **2007**                                         |     |   | **2006** |   |
| Service                  Cost                   |   | **$**                                            | **34**   |   |   | $ | 106 |   |
| Interest                  Cost                  |   | ** **                                       | **225**  |   |   |   | 211 |   |
| Expected                  Return on Plan Assets |   | ** **                                       | **(331** | **)** |   |   | (334 | ) |
| Net                  Amortization               |   | ** **                                       | **32**   |   |   |   | 19 |   |
|                                            |   | **$**                                            | **(40**  | **)** |   | $ | 2 |   |

| ***Note                  5. Other Comprehensive Income*** |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|

| The                  following is a summary of changes in other comprehensive income                  for the                  periods presented: |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                              |   |   |

|                                                                                                            |   | **Three                  Months Ended**          |    |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                            |   | **March                  31,**    |    |
| ***dollars                  in thousands***                                                                     |   | **2007**                                         |    |   | **2006** |   |
| Unrealized                  Holding Gains (Losses) Arising During the Period Net of                  Tax        |   |                                             |    |   |   |   |
|   (Pre-tax                  Amount of $822 and ($1,162))                                              |   | **$**                                            | **502** |   |   | $ | (710 | ) |
| Reclassification                  Adjustment for Gains Realized in Net Income                                   |   |                                             |    |   |   |   |   |   |
|   During                  the Period, Net of Tax (Pre-tax Amount of $0 and ($197))                    |   | ** **                                       | **0**   |   |   |   | (121 | ) |
| Change                  in Pension Asset (Pre-tax Amount of $32 and $0)                                         |   | ** **                                       | **19**  |   |   |   | 0 |   |
|      Other                  Comprehensive Income (Loss), Net of Tax of $333 and ($528) |   | **$**                                            | **521** |   |   | $ | (831 | ) |

----

*Index*

| ***Note                6. Goodwill and Intangible                Assets***                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |
| In                March 2007 the Company acquired 100% of the capital stock of Provantage                Funding Corporation, a New York State licensed mortgage                banker.  The transaction was accounted for as a business                combination in accordance with Statement of Financial Accounting                Standards                No. 141, "Business Combinations" ("SFAS No. 141"). |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |
| The                following is a summary of the transaction and the related assets                acquired                and liabilities assumed:                                                                                                                                                                                                                                                                           |

|                                                            |   |       |         |
|-----------------------------------------------------------------|--------|------------|--------------|
| ***dollars                in thousands***                       |   |       |         |
| Accounts                Receivable                              |   | ** ** | **48**       |   |
| Warehouse                Line Receivable                        |   | ** ** | **306**      |   |
| Prepaid                Assets & Other                       |   | ** ** | **33**       |   |
| Fixed                Assets, net                                |   | ** ** | **48**       |   |
| Goodwill                                                        |   | ** ** | **164**      |   |
|    Total                Assets                   |   | **$**      | **599**      |   |
|                                                            |   |       |         |   |
| Accounts                Payable                                 |   | **$**      | **13**       |   |
| Line                of Credit                                   |   | ** ** | **422**      |   |
| Income                Taxes Payable                             |   | ** ** | **9**        |   |
|    Total                Liabilities              |   | **$**      | **444**      |   |
|                                                            |   |       |    |   |
| Net                Cash Paid for Provantage Funding Corporation |   | **$**      | **155**      |   |
|                                                            |   |       |         |   |

| The                consolidated statement of income includes Provantage Funding Corporation                operating results beginning March 1, 2007.  Included in the net                cash paid for Provantage Funding Corporation is $18,000 of direct                acquisition costs and $210,000 of cash and cash equivalents owned                by                Provantage Funding Corporation prior to the acquisition.  The                fair value of all assets acquired and liabilities assumed were equal                to                the carrying values on Provantage Funding Corporation's statement                of                condition at the date of acquisition. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| ***Note                7.  Income Taxes***                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Effective                January 1, 2007, the Company adopted the provisions of Financial                Accounting Standards Board issued Interpretation No. 48, “Accounting for                Uncertainty in Income Taxes” (“FIN 48”).  There was no                cumulative effect related to adopting FIN 48.                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| As                of January 1, 2007, the Company’s unrecognized tax benefit totaled                $52,000, which would impact the Company’s effective tax rate if recognized                or reversed.  As a result of the expiration of the statute of                limitations, it is reasonably possible that the unrecognized tax                benefit                will be reversed during the next 12 months.                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The                Company is currently open to audit by the Internal Revenue Service                for the                years ending December 31, 2003 through 2006. The Company’s state income                tax return is open to audit for the years ending December 31, 2002                through                2006, and the Company is currently undergoing an examination by New                York                State for the tax years 2003 and 2004. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| The                Company accounts for interest and penalties related to uncertain                tax                positions as part of its provision for federal and state income taxes.                As                of January 1, 2007, the Company had accrued $10,000 of interest related                to                uncertain tax positions. As of March 31, 2007, the total amount of                accrued                interest was $11,000.           |

----

*Index*

| ***Note                8.  Impaired Loans***                                                        |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                          |   |   |   |   |   |   |   |
| The                following provides information on impaired loans for the periods                presented: |

|                                                         |   | **March                31,** |      |   | **December                31,** |   |
|--------------------------------------------------------------|--------|------------------------------|-----------|--------|---------------------------------|--------|
| ***dollars                in thousands***                    |   | **2007**                     |      |   | **2006**                        |   |
| Impaired                Loans                                |   | **$**                        | **4,329** |   |                            | $      | 1,896 |   |
| Allowance                for Impaired Loans                  |   | ** **                   | **517**   |   |                            |   | 334 |   |
| Average                Recorded Investment in Impaired Loans |   | ** **                   | **4,240** |   |                            |   | 1,597 |   |
|                                                         |   |                         |      |   |                            |   |   |   |

| At                March 31, 2007, $4,259,000 of the impaired loans had a specific reserve                allocation of $517,000 compared to $1,669,000 of total impaired loans                at                December 31, 2006 with a related reserve of $334,000. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| The                following table sets forth information with regard to non-performing                loans:                                                                                                                                                         |

|                                                                |   | **March                  31,** |      |   | **December                  31,** |   |
|---------------------------------------------------------------------|--------|--------------------------------|-----------|--------|-----------------------------------|--------|
| ***dollars                  in thousands***                         |   | **2007**                       |      |   | **2006**                          |   |
| Loans                  in Non-Accrual Status                        |   | **$**                          | **2,775** |   |                              | $      | 2,347 |   |
| Loans                  Contractually Past Due 90 Days or More       |   |                           |      |   |                              |   |   |   |
|    and                  Still Accruing Interest      |   | ** **                     | **31**    |   |                              |   | 182 |   |
| Troubled                  Debt Restructured Loans                   |   | ** **                     | **2,255** |   |                              |   | 0 |   |
|     Total                  Non-Performing Loans |   | **$**                          | **5,061** |   |                              | $      | 2,529 |   |
|                                                                |   |                           |      |   |                              |   |   |   |

| The                Company did not record any interest income related to non-accrual                loans                for the three-month period ended March 31, 2007.  Had the loans                in non-accrual status performed in accordance with their original                terms,                additional interest income of $78,000 would have been recorded for                the                three-month period ended March 31, 2007.               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| Had                the troubled debt restructured loans performed in accordance with                their                original terms, the Company would have recorded interest income                of  $53,000 for the three-month period ended March 31,                2007.  Under the restructured terms, the Company recorded                interest income of $56,000 for the three-month period ended March                31,                2007. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |

----

*Index*

E

*Critical      Accounting Policies.*

*Recent      Accounting Pronouncements*

----

*Index*

----

*Index*

|                                                                                                                                                                                                                                              |   | **For                the Three Months Ended March 31,**  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|
|                                                                                                                                                                                                                                              |   | **2007**                                                 |  **2006** |   |
|                                                                                                                                                                                                                                              |   | AverageOutstandingBalance                                     |   |   | InterestEarned                /Paid |   |   | Yield                / Rate |   |   | AverageOutstandingBalance |   |   | InterestEarned                /Paid |   |   | Yield                / Rate |   |
|                                                                                                                                                                                                                                              |   | (Dollars                in thousands)                         |   |
| **Earning                Assets:**                                                                                                                                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                funds sold                                                                                                                                                                                                                 |   | $                                                             | 17,228 |   |   | $ | 224 |   |   |   | 5.27 | % |   | $ | 4,000 |   |   | $ | 44 |   |   |   | 4.46 | % |
| Interest                bearing deposits                                                                                                                                                                                                          |   |                                                          | 1,252 |   |   |   | 12 |   |   |   | 3.89 | % |   |   | 2,314 |   |   |   | 19 |   |   |   | 3.33 | % |
| Securities                (1)                                                                                                                                                                                                                     |   |                                                          | 292,139 |   |   |   | 3,189 |   |   |   | 4.43 | % |   |   | 302,373 |   |   |   | 3,097 |   |   |   | 4.15 | % |
| Loans                                                                                                                                                                                                                                             |   |                                                          | 407,992 |   |   |   | 7,689 |   |   |   | 7.64 | % |   |   | 401,749 |   |   |   | 7,310 |   |   |   | 7.38 | % |
| Total                earning assets                                                                                                                                                                                                               |   |                                                          | 718,611 |   |   |   | 11,114 |   |   |   | 6.27 | % |   |   | 710,436 |   |   |   | 10,470 |   |   |   | 5.98 | % |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-earning                assets                                                                                                                                                                                                                 |   |                                                          | 39,809 |   |   |   |   |   |   |   |   |   |   |   | 42,062 |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                                                                                                                                                                       |   | $                                                             | 758,420 |   |   |   |   |   |   |   |   |   |   | $ | 752,498 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities:**                                                                                                                                                                                                                                  |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                accounts                                                                                                                                                                                                                   |   | $                                                             | 81,209 |   |   | $ | 127 |   |   |   | 0.63 | % |   | $ | 92,406 |   |   | $ | 142 |   |   |   | 0.62 | % |
| Money                market accounts                                                                                                                                                                                                              |   |                                                          | 86,721 |   |   |   | 846 |   |   |   | 3.96 | % |   |   | 53,122 |   |   |   | 451 |   |   |   | 3.44 | % |
| NOW                accounts                                                                                                                                                                                                                       |   |                                                          | 80,280 |   |   |   | 243 |   |   |   | 1.23 | % |   |   | 97,031 |   |   |   | 280 |   |   |   | 1.17 | % |
| Time                & other deposit accounts                                                                                                                                                                                                  |   |                                                          | 312,469 |   |   |   | 3,263 |   |   |   | 4.24 | % |   |   | 293,476 |   |   |   | 2,642 |   |   |   | 3.65 | % |
| Borrowings                                                                                                                                                                                                                                        |   |                                                          | 59,779 |   |   |   | 571 |   |   |   | 3.87 | % |   |   | 75,507 |   |   |   | 705 |   |   |   | 3.79 | % |
| Total                interest bearing liabilities                                                                                                                                                                                                 |   |                                                          | 620,458 |   |   |   | 5,050 |   |   |   | 3.30 | % |   |   | 611,542 |   |   |   | 4,220 |   |   |   | 2.80 | % |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                bearing deposits                                                                                                                                                                                                      |   |                                                          | 70,407 |   |   |   |   |   |   |   |   |   |   |   | 68,332 |   |   |   |   |   |   |   |   |   |
| Other                non-interest bearing liabilities                                                                                                                                                                                             |   |                                                          | 4,684 |   |   |   |   |   |   |   |   |   |   |   | 4,962 |   |   |   |   |   |   |   |   |   |
| Total                liabilities                                                                                                                                                                                                                  |   |                                                          | 695,549 |   |   |   |   |   |   |   |   |   |   |   | 684,836 |   |   |   |   |   |   |   |   |   |
| Shareholders'                equity                                                                                                                                                                                                               |   |                                                          | 62,871 |   |   |   |   |   |   |   |   |   |   |   | 67,662 |   |   |   |   |   |   |   |   |   |
| Total                liabilities and shareholders' equity                                                                                                                                                                                         |   | $                                                             | 758,420 |   |   |   |   |   |   |   |   |   |   | $ | 752,498 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                                                                                                                                                                |   |                                                          |   |   |   | $ | 6,064 |   |   |   |   |   |   |   |   |   |   | $ | 6,250 |   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest rate spread (2)                                                                                                                                                                                                       |   |                                                          |   |   |   |   |   |   |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 3.18 | % |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                earning assets                                                                                                                                                                                                                 |   | $                                                             | 98,153 |   |   |   |   |   |   |   |   |   |   | $ | 98,894 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin (3)                                                                                                                                                                                                            |   |                                                          |   |   |   |   |   |   |   |   | 3.42 | % |   |   |   |   |   |   |   |   |   |   | 3.57 | % |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin (tax-equivalent)                                                                                                                                                                                               |   |                                                          |   |   |   |   |   |   |   |   | 3.68 | % |   |   |   |   |   |   |   |   |   |   | 3.81 | % |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of earning assets to interest bearing liabilities                                                                                                                                                                            |   |                                                          | 115.82 | % |   |   |   |   |   |   |   |   |   |   | 116.17 | % |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                Securities are shown at average amortized cost with net unrealized                gains                or losses on securities available-for-sale included as a component                of                non-earning assets. |   |
|                                                                                                                                                                                                                                              |   |
| (2)                Net interest rate spread represents the difference between the weighted                average yield on interest-earning assets and the weighted average                cost of                interest-bearing liabilities.   |   |
|                                                                                                                                                                                                                                              |   |
| (3)                The net interest margin, also known as the net yield on average                interest-earning assets, represents net interest income as a percentage                of                average interest-earning assets.       |   |

----

*Index*

|                                                                                                                                                                                                                                                                  |   |                      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
| *Dollars                in Thousands*                                                                                                                                                                                                                                 |   | At                March 31, 2007                   |   |   | At                December 31, 2006 |   |
| Loans                in Non-Accrual Status:                                                                                                                                                                                                                           |   |                                               |   |   |   |   |
|    Residential                real estate (1)                                                                                                                                                                                                          |   | $                                                  | 699    |   |   | $ | 450 |   |
|    Commercial                real estate                                                                                                                                                                                                               |   |                                               | 1,821  |   |   |   | 1,626 |   |
|    Commercial                (2)                                                                                                                                                                                                                       |   |                                               | 253    |   |   |   | 271 |   |
|    Consumer                                                                                                                                                                                                                                            |   |                                               | 2      |   |   |   | 0 |   |
| Total                non-accruing loans                                                                                                                                                                                                                               |   |                                               | 2,775  |   |   |   | 2,347 |   |
| Loans                Contractually Past Due 90 Days or More and Still Accruing                Interest                                                                                                                                                                |   |                                               | 31     |   |   |   | 182 |   |
| Troubled                Debt Restructured Loans                                                                                                                                                                                                                       |   |                                               | 2,255  |   |   |   | 0 |   |
| Total                non-performing loans                                                                                                                                                                                                                             |   |                                               | 5,061  |   |   |   | 2,529 |   |
| Other                real estate owned                                                                                                                                                                                                                                |   |                                               | 86     |   |   |   | 103 |   |
| Total                non-performing assets                                                                                                                                                                                                                            |   | $                                                  | 5,147  |   |   | $ | 2,632 |   |
| Total                non-performing assets as a percentage of total assets                                                                                                                                                                                            |   |                                               | 0.67   | % |   |   | 0.35 | % |
| Total                non-performing loans as a percentage of total loans                                                                                                                                                                                              |   |                                               | 1.23   | % |   |   | 0.62 | % |
|                                                                                                                                                                                                                                                                  |   |                                               |   |   |   |   |   |   |
|  (1)              Includes loans secured by 1-4 family dwellings, 5+ family residential              dwellings, home equity loans and residential construction              loans.                                       |
|                                                                                                                                                                                                                                                                  |
| (2)              Includes commercial and industrial loans, agricultural loans and              obligations (other than securities and leases) of states and political              subdivisions in the United States.         |

----

*Index*

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **Three                months ended****March                31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **2007**                                                          |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (Dollars                in thousands)                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |
| Balance                at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                 | 6,680  |   |   | $ | 6,640 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Charge                offs:                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                              |   |   |   |   |   |   |
| Residential                real estate (1)                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                              | 3      |   |   |   | 7 |   |
| Commercial                real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                              | 5      |   |   |   | 2 |   |
| Commercial                (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                              | 98     |   |   |   | 983 |   |
| Consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                              | 219    |   |   |   | 210 |   |
|        Total                charge offs                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                              | 325    |   |   |   | 1,202 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Recoveries:                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                              |   |   |   |   |   |   |
| Residential                real estate (1)                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                              | 5      |   |   |   | 1 |   |
| Commercial                real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                              | 0      |   |   |   | 0 |   |
| Commercial                (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                              | 12     |   |   |   | 13 |   |
| Consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                              | 86     |   |   |   | 104 |   |
|         Total                recoveries                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                              | 103    |   |   |   | 118 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Net                charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                              | 222    |   |   |   | 1,084 |   |
| Provision                for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                              | 260    |   |   |   | 420 |   |
| Balance                at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                                 | 6,718  |   |   | $ | 5,976 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Ratio                of net charge-offs during the period to average loans outstanding                during                the period (annualized)                                                                                                                                                                                                                                                                                                                                  |   |                                                              | 0.22   | % |   |   | 1.09 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Allowance                for loan losses to total loans                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                              | 1.63   | % |   |   | 1.50 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
| Allowance                for loan losses to non-performing loans                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                              | 133    | % |   |   | 298 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |
|  (1)                Includes loans secured by 1-4 family dwellings, 5+ family residential                dwellings, home equity loans and residential construction                loans. (2)                  Includes commercial and industrial loans, agricultural loans and                  obligations (other than securities and leases) of states and political                  subdivisions in the United States.         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |   |   |   |   |   |

----

*Index*

*Overview.*

*Asset      Quality.*

----

*Index*

*Overview.  *

*Net      Interest Income.*

----

*Index*

*Rate      and Volume Analysis:  *

----

*Index*

|                                              |   | **For                the Three Months Ended March 31,** |   |
|---------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                              |   | **2007                vs. 2006**                        |   |
|                                              |   | **Rate**                                                |   |   | **Volume** |   |   | **Total** |   |
|                                              |   | **(In                thousands)**                       |   |
| **Earning                assets:**                |   |                                                    |   |   |   |   |   |   |   |
| Federal                Funds Sold                 |   | $                                                       | 10     |   |   | $ | 170 |   |   | $ | 180 |   |
| Interest                Bearing Deposits          |   |                                                    | 3      |   |   |   | (10 | ) |   |   | (7 | ) |
| Securities                                        |   |                                                    | 199    |   |   |   | (107 | ) |   |   | 92 |   |
| Loans                                             |   |                                                    | 264    |   |   |   | 115 |   |   |   | 379 |   |
| Total                earning assets               |   |                                                    | 476    |   |   |   | 168 |   |   |   | 644 |   |
|                                              |   |                                                    |   |   |   |   |   |   |   |   |   |   |
| **Interest                bearing liabilities:**  |   |                                                    |   |   |   |   |   |   |   |   |   |   |
| Savings                accounts                   |   |                                                    | 2      |   |   |   | (17 | ) |   |   | (15 | ) |
| Money                market accounts              |   |                                                    | 75     |   |   |   | 320 |   |   |   | 395 |   |
| NOW                accounts                       |   |                                                    | 14     |   |   |   | (51 | ) |   |   | (37 | ) |
| Time                & other deposit accounts  |   |                                                    | 414    |   |   |   | 207 |   |   |   | 621 |   |
| Borrowings                                        |   |                                                    | 15     |   |   |   | (149 | ) |   |   | (134 | ) |
| Total                interest bearing liabilities |   |                                                    | 520    |   |   |   | 310 |   |   |   | 830 |   |
|                                              |   |                                                    |   |   |   |   |   |   |   |   |   |   |
| Change                in net interest income      |   | $                                                       | (44    | ) |   | $ | (142 | ) |   | $ | (186 | ) |

----

*Index*

*Provision      for Loan Losses.  *

*Non-Interest      Income.  *

----

*Index*

*Non-Interest      Expense.  *

----

*Index*

----

*Index*

|                                                                               |   | **For                the Three****Months                Ended****March                31,** |   |   |   |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Description                of Other Miscellaneous Expense                          |   | 2007                                                                                        |   |   | 2006   |   |   | Increase                / (Decrease) |   |
|                                                                               |   | *dollars                in thousands*                                                       |   |   |   |   |
| Directors’                fees                                               |   | $                                                                                           | 55     |   |   | $      | 68 |   |   | $ | (13 | ) |
| Accounts                receivable financing program services                      |   |                                                                                        | 32     |   |   |   | 48 |   |   |   | (16 | ) |
| Donations                                                                          |   |                                                                                        | 24     |   |   |   | 0 |   |   |   | 24 |   |
| Office                supplies                                                     |   |                                                                                        | 82     |   |   |   | 56 |   |   |   | 26 |   |
| Deferred                reserves for unfunded loan commitments                     |   |                                                                                        | 11     |   |   |   | (7 | ) |   |   | 18 |   |
| Travel                and entertainment                                            |   |                                                                                        | 37     |   |   |   | 50 |   |   |   | (13 | ) |
| Software                amortization                                               |   |                                                                                        | 41     |   |   |   | 57 |   |   |   | (16 | ) |
| Other                losses                                                        |   |                                                                                        | 40     |   |   |   | 0 |   |   |   | 40 |   |
| Minority                interest for Mang - Wilber LLC insurance agency subsidiary |   |                                                                                        | 20     |   |   |   | 42 |   |   |   | (22 | ) |
| All                other miscellaneous expense items, net                          |   |                                                                                        | 430    |   |   |   | 371 |   |   |   | 59 |   |
| Total                Other Miscellaneous Expense                                   |   | $                                                                                           | 772    |   |   | $      | 685 |   |   | $ | 87 |   |

*Income      Taxes. *
* *

|   | ●                maintaining the appropriate levels of currency throughout our branch                system to meet the daily cash needs of our                customers, |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ●                balancing our mandated deposit or “reserve” requirements at the Federal                Reserve Bank of New York, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ●  maintaining                adequate cash balances at our correspondent banks,                and |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   | ●                assuring that adequate levels of federal funds sold, liquid assets,                and                borrowing resources are available to meet obligations, including                reasonably anticipated daily                fluctuations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| **Source                of Funding**                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------|
| ●                Currency*                                                                                                           |
| ● Federal                Reserve and Correspondent Bank Balances*                                                               |
| ● Federal                Funds Sold*                                                                                            |
| ● Loan                and Investment Principal and Interest Payments*                                                           |
| ● Investment                Security Maturities and Calls*                                                                      |
| ● Demand                Deposits & NOW Accounts*                                                                            |
| ● Savings                & Money Market Deposits*                                                                           |
| ● Certificates                of Deposit and Other Time Deposits*                                                               |
| ● Repurchase                Agreements*                                                                                         |
| ● FHLBNY                Advances / Lines of Credit*                                                                             |
| ●                Sale of Available-for-Sale Investment Securities                                                                    |
| ● Brokered                Deposits                                                                                              |
| ● Correspondent                Lines of Credit                                                                                  |
| ● Federal                Reserve Discount Window Borrowings                                                                     |
| ● Sale                of Loans                                                                                                  |
| ● Proceeds                from Issuance of Equity Securities                                                                    |
| ● Branch                Acquisition● Cash                Surrender Value of Bank-Owned Life                Insurance |

| Liquidity                Measure*Dollars                in Thousands*                                                                                                  | March                31, 2007 | December                31, 2006 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|----------------------------------|
| Cash                and Cash Equivalents                                                                                                                               | $27,104                       | $25,859                          |
| Available                for Sale Investment Securities at Estimated Fair Value less Securities                pledged for State and Municipal Deposits and Borrowings | $67,929                       | $72,240                          |
| Total                Loan to Total Asset Ratio                                                                                                                         | 54.01%                        | 53.26%                           |
| FHLBNY                Remaining Borrowing Capacity                                                                                                                     | $23,085                       | $24,128                          |
| Available                Correspondent Bank Lines of Credit                                                                                                            | $15,000                       | $15,000                          |

----

*Index*

E

----

*Index*

----

*Index*

| Interest                Rates        | *Dollars                in Thousands* |
|--------------------------------------|---------------------------------------|
| InterestRateShock                (1) | PrimeRate                             | ProjectedAnnualizedNetInterestIncome | ProjectedDollarChangein                NetInterestIncome | ProjectedPercentageChange                inNetInterestIncome | ProjectedChange                inNet                InterestIncome                as aPercent                ofTotalShareholders'Equity |
| 3.00%                                | 11.25%                                | $24,190   | ($642)   | -2.59% | -0.99% |
| 2.00%                                | 10.25%                                | 23,976 | (856) | -3.45% | -1.32% |
| 1.00%                                | 9.25%                                 | 24,228 | (604) | -2.43% | -0.93% |
| No                change             | 8.25%                                 | 24,832 |                    - |                    - |                    - |
| -1.00%                               | 7.25%                                 | 25,292 | 460 | 1.85% | 0.71% |
| -2.00%                               | 6.25%                                 | 24,691 | (141) | -0.57% | -0.22% |
| -3.00%                               | 5.25%                                 | 24,038 | (794) | -3.20% | -1.23% |

| (1)                Under a ramped interest rate shock, interest rates are modeled to                change                at a rate of 0.50% per month. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         |

M

----

*Index*

E

**PART      II – OTHER INFORMATION**

E

TE

T

----

*Index*

E

E

E

M

----

*Index*

**SIGNATURES**

| THE                WILBER CORPORATION                           |                                              |   |   |
|-----------------------------------------------------------------|---------------------------------------------------|--------|--------|
|                                                            |                                              |   |   |   |
|                                                            |                                              |   |   |   |
| By:                                                             |   /s/                Douglas C. Gulotty |   | Dated: | 05/07/2007 |
|                                                            |                                              |   |   |   |
| Douglas                C. Gulotty                               |                                              |   |   |
| President                and Chief Executive Officer            |                                              |   |
|                                                            |                                              |   |   |   |
|                                                            |                                              |   |   |   |
|                                                            |                                              |   |   |   |
| By:                                                             |  /s/                Joseph E. Sutaris        |   | Dated: | 05/07/2007 |
|                                                            |                                              |   |   |   |
| Joseph                E. Sutaris                                |                                              |   |   |
| Secretary,                Treasurer and Chief Financial Officer |                                              |   |

----

*Index*

**EXHIBIT      INDEX**

| **No.** | **Document** |
|---------|--------------|

| 31.1 | Certification                of Chief Executive Officer Pursuant to 302 of the Sarbanes-Oxley                Act of                2002 |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification                of Chief Financial Officer Pursuant to 302 of the Sarbanes-Oxley                Act of                2002 |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                of Chief Executive Officer Pursuant to 18 U.S.C.                1350 |
|------|---------------------------------------------------------------------------------------------------|

32.2