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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

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**Quarterly      Report Pursuant to Section 13 or 15(d)**

**of      the Securities Exchange Act of 1934**

**For      the quarterly period ended:**

**June      30, 2006**

***Commission      File Number: 000-13086***

**FNB      Financial Services Corporation**

**(Exact      name of Registrant as specified in its Charter) **

|                                                        |                                                    |
|-------------------------------------------------------------|---------------------------------------------------------|
| **North                Carolina**                           | **56-1382275**                                          |
| **(State                of Incorporation)**                 | **(I.R.S.                Employer Identification No.)** |
|                                                        |                                                    |
| **1501                Highwoods Boulevard, Suite 400**      |                                                    |
| **Greensboro,                North Carolina**               | **27410**                                               |
| **(Address                of principal executive offices)** | **(Zip                Code)**                           |

**(336)      369-0900 **

**(Registrant's      telephone number, including area code) **

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

**At      July 31, 2006, 7,051,124 shares of the registrant's common stock, $1.00 stated      value, were outstanding.**

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**FNB      FINANCIAL SERVICES CORPORATION**

**FORM      10-Q**

**INDEX**

|                 |   |                         |   |                                                                                                                                                                                |   | Page     |
|----------------------|--------|------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| **PART**             |   | **I**                        |   | **FINANCIAL                    INFORMATION**                                                                                                                                        |   |     |
|  Item           |   |  1                      |   |  Financial                    Statements                                                                                                                                       |   |     |
|                 |   |                         |   |  Consolidated                    Balance Sheets                    June 30, 2006 and December 31, 2005                                                                         |   |  3  |
|                 |   |                         |   |  Consolidated                    Statements of Income and Comprehensive                    Income for the Three and Six Months Ended June 30, 2006 and                    2005 |   |  4  |
|                 |   |                         |   |  Consolidated                    Statements of Cash Flows for the Six                    Months Ended June 30, 2006 and 2005                                                   |   |  6  |
|                 |   |                         |   |  Notes                    to Consolidated Financial                    Statements                                                                                              |   |  7  |
|  Item           |   |  2                      |   |  Management’s                    Discussion and Analysis of Financial Condition                    and Results of Operations                                             |   |  11 |
|  Item           |   |  3                      |   |  Quantitative                    and Qualitative Disclosures About Market                    Risk                                                                              |   |  20 |
|  Item           |   |  4                      |   |  Controls                    and Procedures                                                                                                                                    |   |  20 |
|   **PART** |   |   **II**           |   |   **OTHER                    INFORMATION**                                                                                                                                |   |     |
|  Item           |   |  1                      |   |  Legal                    Proceedings                                                                                                                                          |   |  21 |
|  Item           |   |  1                    A |   | Risk                    Factors                                                                                                                                                     |   |  21 |
|  Item           |   |  2                      |   |  Unregistered                    Sales of Equity Securities and Use of                    Proceeds                                                                             |   |  21 |
|  Item           |   |  3                      |   |  Defaults                    Upon Senior Securities                                                                                                                            |   |  22 |
|  Item           |   |  4                      |   |  Submission                    of Matters to a Vote of Security                    Holders                                                                                     |   |  22 |
|  Item           |   |  5                      |   |  Other                    Information                                                                                                                                          |   |  23 |
|  Item           |   |  6                      |   |  Exhibits                                                                                                                                                                      |   |  23 |
|                 |   |                         |   |                                                                                                                                                                                |   |     |
|                 |   |                         |   |                                                                                                                                                                                |   |     |

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**PART      I. FINANCIAL INFORMATION**

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

**FNB      Financial Services Corporation and Subsidiary**

**Consolidated      Balance Sheets**

*(Dollars      in thousands except per share data)*

|                                                                          |   | June                30,2006*(Unaudited)* |      | December                31,2005                * |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------|-----------|--------------------------------------------------|--------|
| ASSETS                                                                        |   |                                     |      |                                             |   |   |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Cash                and due from banks                                        |   | $                                        | 33,139    |                                             | $      | 27,148 |   |
| Investment                securities:                                         |   |                                     |      |                                             |   |   |   |
| Securities                available for sale                                  |   |                                     | 204,855   |                                             |   | 195,926 |   |
| Federal                Home Loan Bank and Federal Reserve Bank Stock          |   |                                     | 7,016     |                                             |   | 5,964 |   |
| Federal                funds sold                                             |   |                                     | 5,530     |                                             |   | - |   |
| Loans,                net of allowance for credit losses of $18,239 at        |   |                                     |      |                                             |   |   |   |
| June                30, 2006 and $19,142 at December 31, 2005                 |   |                                     | 732,486   |                                             |   | 738,825 |   |
| Premises                and equipment, net                                    |   |                                     | 15,884    |                                             |   | 14,307 |   |
| Accrued                income and other assets                                |   |                                     | 28,917    |                                             |   | 25,236 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Total                assets                                                   |   | $                                        | 1,027,827 |                                             | $      | 1,007,406 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| LIABILITIES                AND SHAREHOLDERS’ EQUITY                     |   |                                     |      |                                             |   |   |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Deposits:                                                                     |   |                                     |      |                                             |   |   |   |
| Noninterest                bearing                                            |   | $                                        | 90,116    |                                             | $      | 92,884 |   |
| Interest                bearing                                               |   |                                     | 756,668   |                                             |   | 731,747 |   |
| Total                deposits                                                 |   |                                     | 846,784   |                                             |   | 824,631 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Short-term                borrowings                                          |   |                                     | 7,327     |                                             |   | 7,305 |   |
| Long-term                debt                                                 |   |                                     | 100,774   |                                             |   | 100,774 |   |
| Accrued                expenses and other liabilities                         |   |                                     | 3,579     |                                             |   | 7,462 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Total                liabilities                                              |   |                                     | 958,464   |                                             |   | 940,172 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Shareholders’                Equity:                                    |   |                                     |      |                                             |   |   |   |
| Preferred                stock no stated value; authorized 10,000,000 shares; |   |                                     |      |                                             |   |   |   |
| none                issued                                                    |   |                                     | -         |                                             |   | - |   |
| Common                stock, $1.00 stated value; authorized 75,000,000        |   |                                     |      |                                             |   |   |   |
| shares;                outstanding 7,048,976 at June 30, 2006 and             |   |                                     |      |                                             |   |   |   |
| and                7,038,110 at December 31, 2005                             |   |                                     | 7,049     |                                             |   | 7,038 |   |
| Paid-in                capital                                                |   |                                     | 22,290    |                                             |   | 21,957 |   |
| Retained                earnings                                              |   |                                     | 43,824    |                                             |   | 40,483 |   |
| Accumulated                other comprehensive loss                           |   |                                     | (3,800    | )                                                |   | (2,245 | ) |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Total                shareholders’ equity                               |   |                                     | 69,363    |                                             |   | 67,233 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
| Total                liabilities and shareholders’ equity               |   | $                                        | 1,027,827 |                                             | $      | 1,007,406 |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
|                                                                          |   |                                     |      |                                             |   |   |   |
|                                                                          |   |                                     |      |                                             |   |   |   |

*See      notes to unaudited consolidated financial statements.*

**      Derived from audited consolidated financial statements.*

*Back          to Index*

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**FNB      Financial Services Corporation and Subsidiary**

**Consolidated      Statements of Income and Comprehensive      Income**

*(Unaudited;      dollars in thousands, except per share data)*

|                                                                   |   | Three                  Months EndedJune                  30, |      | Six                  Months EndedJune                  30, |   |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------|-----------|------------------------------------------------------------|--------|
|                                                                   |   | 2006                                                         |      | 2005                                                       |   | 2006 |   | 2005 |   |
| Interest                  income                                       |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Loans                                                                  |   | $                                                            | 15,814    |                                                       | $      | 13,629 |   | $ | 31,571 |   | $ | 25,732 |   |
| Federal                  funds sold and overnight deposits             |   |                                                         | 63        |                                                       |   | 61 |   |   | 148 |   |   | 127 |   |
| Investment                  securities                                 |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   |                                                         | 1,625     |                                                       |   | 976 |   |   | 3,201 |   |   | 1,799 |   |
| Tax                  exempt                                            |   |                                                         | 405       |                                                       |   | 318 |   |   | 777 |   |   | 637 |   |
| Other                                                                  |   |                                                         | 111       |                                                       |   | 77 |   |   | 209 |   |   | 143 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Total                  interest income                                 |   |                                                         | 18,018    |                                                       |   | 15,061 |   |   | 35,906 |   |   | 28,438 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                      |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Deposits                                                               |   |                                                         | 6,977     |                                                       |   | 5,253 |   |   | 13,496 |   |   | 9,536 |   |
| Short-term                  borrowings                                 |   |                                                         | 188       |                                                       |   | 141 |   |   | 245 |   |   | 241 |   |
| Long-term                  debt                                        |   |                                                         | 1,314     |                                                       |   | 581 |   |   | 2,524 |   |   | 1,062 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Total                  interest expense                                |   |                                                         | 8,479     |                                                       |   | 5,975 |   |   | 16,265 |   |   | 10,839 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |  |   |   |  |   |
| Net                  interest income                                   |   |                                                         | 9,539     |                                                       |   | 9,086 |   |   | 19,640 |   |   | 17,599 |   |
| Provision                  for credit losses                           |   |                                                         | 365       |                                                       |   | 638 |   |   | 1,120 |   |   | 1,318 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Net                  interest income after provision for credit losses |   |                                                         | 9,174     |                                                       |   | 8,448 |   |   | 18,520 |   |   | 16,281 |   |
| Noninterest                  income                                    |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts                   |   |                                                         | 968       |                                                       |   | 964 |   |   | 1,841 |   |   | 1,788 |   |
| Net                  loss on sale of securities                        |   |                                                         | -         |                                                       |   | (3 | ) |   | - |   |   | (5 | ) |
| Income                  from investment services                       |   |                                                         | 84        |                                                       |   | 95 |   |   | 212 |   |   | 233 |   |
| Mortgage                  banking fees                                 |   |                                                         | 199       |                                                       |   | 618 |   |   | 441 |   |   | 1,622 |   |
| Other                  noninterest income                              |   |                                                         | 60        |                                                       |   | 141 |   |   | 150 |   |   | 315 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Total                  noninterest income                              |   |                                                         | 1,311     |                                                       |   | 1,815 |   |   | 2,643 |   |   | 3,953 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Noninterest                  expense                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits                        |   |                                                         | 4,012     |                                                       |   | 3,428 |   |   | 8,165 |   |   | 6,895 |   |
| Occupancy                                                              |   |                                                         | 381       |                                                       |   | 394 |   |   | 796 |   |   | 796 |   |
| Furniture                  and equipment                               |   |                                                         | 753       |                                                       |   | 789 |   |   | 1,528 |   |   | 1,547 |   |
| Telecommunications                                                     |   |                                                         | 169       |                                                       |   | 152 |   |   | 321 |   |   | 311 |   |
| Marketing                                                              |   |                                                         | 228       |                                                       |   | 220 |   |   | 417 |   |   | 482 |   |
| Printing                  and supplies                                 |   |                                                         | 149       |                                                       |   | 174 |   |   | 270 |   |   | 347 |   |
| Other                  noninterest expense                             |   |                                                         | 1,153     |                                                       |   | 1,888 |   |   | 2,406 |   |   | 3,559 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Total                  noninterest expense                             |   |                                                         | 6,845     |                                                       |   | 7,045 |   |   | 13,903 |   |   | 13,937 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Income                  before provision for income taxes              |   |                                                         | 3,640     |                                                       |   | 3,218 |   |   | 7,261 |   |   | 6,297 |   |
| Provision                  for income taxes                            |   |                                                         | 1,250     |                                                       |   | 1,083 |   |   | 2,493 |   |   | 2,119 |   |
|                                                                   |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Net                  income                                            |   |                                                         | 2,390     |                                                       |   | 2,135 |   |   | 4,768 |   |   | 4,178 |   |
| Other                  comprehensive income (loss)                     |   |                                                         | (940      | )                                                          |   | 604 |   |   | (1,555 | ) |   | (369 | ) |
| Comprehensive                  income                                  |   | $                                                            | 1,450     |                                                       | $      | 2,739 |   | $ | 3,213 |   | $ | 3,809 |   |
| Per                  share data                                        |   |                                                         |      |                                                       |   |   |   |   |   |   |   |   |   |
| Net                  income, basic                                     |   | $                                                            | 0.34      |                                                       | $      | 0.30 |   | $ | 0.68 |   | $ | 0.60 |   |
| Net                  income, diluted                                   |   | $                                                            | 0.33      |                                                       | $      | 0.29 |   | $ | 0.66 |   | $ | 0.58 |   |
| Cash                  dividends                                        |   | $                                                            | 0.12      |                                                       | $      | 0.11 |   | $ | 0.24 |   | $ | 0.22 |   |
| Weighted                  average shares outstanding, basic            |   |                                                         | 7,074,254 |                                                       |   | 6,991,912 |   |   | 7,057,701 |   |   | 6,974,376 |   |
| Weighted                  average shares outstanding, diluted          |   |                                                         | 7,237,182 |                                                       |   | 7,229,261 |   |   | 7,237,525 |   |   | 7,215,780 |   |

*See      notes to unaudited consolidated financial statements.*

*Back          to Index*

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**FNB      Financial Services Corporation and Subsidiary**

**Consolidated      Statements of Cash Flows**

*(Unaudited;      dollars in thousands)*

|                                                                                                     |   | Six                Months EndedJune                30, |    |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                                                                     |   | 2006                                                   |    | 2005 |   |
|                                                                                                     |   |                                                   |    |   |   |
| Cash                flows from operating activities:                                                     |   |                                                   |    |   |   |   |   |
| Net                income                                                                                |   | $                                                      | 4,768   |   | $ | 4,178 |   |
| Adjustments                to reconcile net income to net cash provided by (used in)                     |   |                                                   |    |   |   |   |   |
| operating                activities:                                                                     |   |                                                   |    |   |   |   |   |
| Depreciation,                accretion, and amortization                                                 |   |                                                   | 534     |   |   | 634 |   |
| Provision                for credit losses                                                               |   |                                                   | 1,120   |   |   | 1,318 |   |
| Stock                based compensation expense                                                          |   |                                                   | 263     |   |   | - |   |
| Loss                on sale of securities available for sale                                             |   |                                                   | -       |   |   | 5 |   |
| Realized                loss on disposal of premises and equipment                                       |   |                                                   | 31      |   |   | 3 |   |
| Realized                loss on disposal of other real estate                                            |   |                                                   | 8       |   |   | - |   |
| Net                change in warehouse line of credit                                                    |   |                                                   | (409    | ) |   | 3,229 |   |
| Changes                in assets and liabilities:                                                        |   |                                                   |    |   |   |   |   |
| Increase                in other assets                                                                  |   |                                                   | (3,400  | ) |   | (4,391 | ) |
| Increase                (decrease) in other liabilities                                                  |   |                                                   | (3,400  | ) |   | 1,934 |   |
| Net                cash provided by (used in) operating activities                                       |   |                                                   | (485    | ) |   | 6,910 |   |
|                                                                                                     |   |                                                   |    |   |   |   |   |
| Cash                flows from investing activities:                                                     |   |                                                   |    |   |   |   |   |
| Proceeds                from sales, maturities, or calls of securities available for                sale |   |                                                   | 7,130   |   |   | 10,956 |   |
| Purchase                of securities available for sale                                                 |   |                                                   | (18,534 | ) |   | (26,366 | ) |
| Purchase                of premises and equipment                                                        |   |                                                   | (2,459  | ) |   | (1,089 | ) |
| Proceeds                from disposal of premises and equipment                                          |   |                                                   | 7       |   |   | 111 |   |
| Proceeds                from sale of other real estate owned                                             |   |                                                   | 339     |   |   | - |   |
| (Increase)                decrease in other real estate owned                                            |   |                                                   | (134    | ) |   | 3,005 |   |
| Net                (increase) decrease in loans                                                          |   |                                                   | 5,314   |   |   | (98,398 | ) |
| Net                cash used in investing activities                                                     |   |                                                   | (8,337  | ) |   | (111,781 | ) |
|                                                                                                     |   |                                                   |    |   |   |   |   |
| Cash                flows from financing activities:                                                     |   |                                                   |    |   |   |   |   |
| Net                increase in deposits                                                                  |   |                                                   | 22,154  |   |   | 87,080 |   |
| Net                increase in long-term debt                                                            |   |                                                   | -       |   |   | 20,000 |   |
| Net                increase in short-term borrowings                                                     |   |                                                   | 22      |   |   | 2,618 |   |
| Excess                tax benefits from share-based arrangements                                         |   |                                                   | 276     |   |   |  - |   |
| Repurchase                of common stock                                                                |   |                                                   | (1,222  | ) |   | (627 | ) |
| Proceeds                from issuance of common stock                                                    |   |                                                   | 804     |   |   | 853 |   |
| Cash                dividends paid                                                                       |   |                                                   | (1,691  | ) |   | (1,557 | ) |
| Net                cash provided by financing activities                                                 |   |                                                   | 20,343  |   |   | 108,367 |   |
|                                                                                                     |   |                                                   |    |   |   |   |   |
| Net                increase in cash and cash equivalents                                                 |   |                                                   | 11,521  |   |   | 3,496 |   |
| Cash                and cash equivalents, January 1                                                      |   |                                                   | 27,148  |   |   | 24,246 |   |
|                                                                                                     |   |                                                   |    |   |   |   |   |
| Cash                and cash equivalents, June 30                                                        |   | $                                                      | 38,669  |   | $ | 27,742 |   |
|                                                                                                     |   |                                                   |    |   |   |   |   |
|                                                                                                     |   |                                                   |    |   |   |   |   |

*See      notes to unaudited consolidated financial statements.*

*Back          to Index*

----

**FNB      Financial Services Corporation and Subsidiary**

**Notes      to Consolidated Financial Statements**

*(Unaudited)*

| **1.** | **Basis                of presentation** |
|--------|------------------------------------------|

| **2.** | **Per                share data** |
|--------|-----------------------------------|

|                                                |   | Three                Months EndedJune                30, |      | Six                Months EndedJune                30, |   |
|-----------------------------------------------------|--------|----------------------------------------------------------|-----------|--------------------------------------------------------|--------|
|                                                |   | 2006                                                     |      | 2005                                                   |   | 2006 |   | 2005 |   |
|                                                |   |                                                     |      |                                                   |   |   |   |   |   |
| Weighted                average number of shares    |   |                                                     |      |                                                   |   |   |   |   |   |   |   |   |   |
| used                in basic EPS                    |   |                                                     | 7,074,254 |                                                   |   | 6,991,912 |   |   | 7,057,701 |   |   | 6,974,376 |   |
| Effect                of dilutive stock options     |   |                                                     | 162,928   |                                                   |   | 237,349 |   |   | 179,824 |   |   | 241,404 |   |
|                                                |   |                                                     |      |                                                   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common    |   |                                                     |      |                                                   |   |   |   |   |   |   |   |   |   |
| shares                and dilutive potential common |   |                                                     |      |                                                   |   |   |   |   |   |   |   |   |   |
| shares                used in dilutive EPS          |   |                                                     | 7,237,182 |                                                   |   | 7,229,261 |   |   | 7,237,525 |   |   | 7,215,780 |   |

| **3.** | **Stock                based compensation** |
|--------|---------------------------------------------|

*Back          to Index*

----

|                                   |   |                                |   |
|----------------------------------------|--------|-------------------------------------|--------|
|                                   |   | **Six                Months Ended** |   |
|                                   |   | **June                30, 2005**    |   |
|                                   |   |                                |   |
| Dividend                yield          |   | 2.29%                               |   |
| Risk-free                interest rate |   | 3.94%                - 4.47%        |   |
| Volatility                             |   | 0.18                                |   |
| Expected                life           |   | 7.0 years                      |   |

|                                              |   | **Shares** |      | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Remaining                  Contractual****Term** |   | **Aggregate****Intrinsic****Value** |                        |
|---------------------------------------------------|--------|------------|-----------|----------------------------------------------|--------|---------------------------------------------------------------------------|--------|-------------------------------------|-----------------------------|
| Outstanding                  at December 31, 2005 |   |       | 1,134,471 |                                         | $      | 13.61                                                                     |   |                                |                        |   |   |   |   |
| Exercised                                         |   |       | (92,444   | )                                            |   | 8.70                                                                      |   |                                |                        |   |   |   |   |
| Authorized                                        |   |       | -         |                                         |   | -                                                                         |   |                                |                        |   |   |   |   |
| Forfeited                                         |   |       | (73,246   | )                                            |   | 15.42                                                                     |   |                                |                        |   |   |   |   |
| Granted                                           |   |       | -         |                                         |   | -                                                                         |   |                                |                        |   |   |   |   |
|                                              |   |       |      |                                         |   |                                                                      |   |                                |                        |   |   |   |   |
| Outstanding                  at June 30, 2006     |   |       | 968,781   |                                         | $      | 13.94                                                                     |   |                                | 6.16                  years |   | $ | 2,053,496 |   |
|                                              |   |       |      |                                         |   |                                                                      |   |                                |                        |   |   |   |   |
| Exercisable                  at June 30, 2006     |   |       | 565,431   |                                         | $      | 12.32                                                                     |   |                                | 4.26                  years |   | $ | 1,895,241 |   |

*Back          to Index*

----

| **Exercise                Price****Range** |   | **Number                of****Options****Outstanding** |    | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Contractual****Life****Remaining****(Years)** |   | **Number                of****Options****Exercisable** |   | **Weighted****Average****Exercise****Price** |   |
|--------------------------------------------|--------|--------------------------------------------------------|---------|----------------------------------------------|--------|------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|----------------------------------------------|--------|
| $7.04                - $8.01               |   |                                                   | 81,833  |                                         | $      | 7.58                                                                   |   |                                                   | 3.71   |                                         |   | 81,833 |   | $ | 7.58 |   |
| $8.28                - $14.52              |   |                                                   | 278,086 |                                         |   | 10.04                                                                  |   |                                                   | 5.00   |                                         |   | 239,406 |   |   | 9.93 |   |
| $15.31                - $16.16             |   |                                                   | 262,572 |                                         |   | 15.96                                                                  |   |                                                   | 4.41   |                                         |   | 206,472 |   |   | 15.97 |   |
| $16.32                - $18.11             |   |                                                   | 346,290 |                                         |   | 17.05                                                                  |   |                                                   | 8.91   |                                         |   | 37,720 |   |   | 17.78 |   |
|                                       |   |                                                   |    |                                         |   |                                                                   |   |                                                   |   |                                         |   |   |   |   |   |   |
|                                       |   |                                                   | 968,781 |                                         | $      | 13.94                                                                  |   |                                                   | 6.16   |                                         |   | 565,431 |   | $ | 12.32 |   |

| Income                before income tax expense           |   | $      | (263,000 | )      |
|-----------------------------------------------------------|--------|--------|----------|--------|
| Net                income                                 |   | $      | (173,000 | )      |
|                                                      |   |   |     |   |
| Cash                flow from operating activities        |   | $      | (276,000 | )      |
| Cash                flow provided by financing activities |   | $      | 276,000  |   |
|                                                      |   |   |     |   |
| Basic                earnings per share                   |   | $      | (0.02    | )      |
| Diluted                earnings per share                 |   | $      | (0.02    | )      |

*Back          to Index*

----

| *(Dollars                in thousands, except per share data)*                                                                     |   | Three                months |   | Six                Months |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|---------------------------|--------|
| Net                income, as reported                                                                                             |   | $                           | 2,135  |                      | $      | 4,178 |   |
| Less:                Stock based compensation as calculated per fair value method, net                of tax                effect |   |                        | (92    | )                         |   | (183 | ) |
| Proforma                net income                                                                                                 |   | $                           | 2,043  |                      | $      | 3,995 |   |
|  Earnings                per share:                                                                                           |   |                        |   |                      |   |   |   |
| Basic                - as reported                                                                                                 |   | $                           | 0.30   |                      | $      | 0.60 |   |
| Basic                - proforma                                                                                                    |   | $                           | 0.29   |                      | $      | 0.58 |   |
| Diluted                - as reported                                                                                               |   | $                           | 0.29   |                      | $      | 0.58 |   |
| Diluted                - proforma                                                                                                  |   | $                           | 0.28   |                      | $      | 0.56 |   |

| **4.** | **Loans** |
|--------|-----------|

***Loan      Category:***

| *(Dollars                in thousands)*               |   | June                30, 2006 |    | December                31, 2005 |   |
|-------------------------------------------------------|--------|------------------------------|---------|----------------------------------|--------|
|                                                  |   |                         |    |                             |   |
| Real                estate - commercial               |   | $                            | 172,279 |                             | $      | 177,986 |   |
| Real                estate - residential              |   |                         | 136,170 |                             |   | 145,972 |   |
| Real                estate - construction             |   |                         | 245,871 |                             |   | 213,506 |   |
| Commercial,                financial and agricultural |   |                         | 63,223  |                             |   | 77,007 |   |
| Consumer                                              |   |                         | 137,258 |                             |   | 147,163 |   |
|                                                  |   |                         |    |                             |   |   |   |
| Subtotal                loans                         |   |                         | 754,801 |                             |   | 761,634 |   |
|  Less:                Warehouse line of credit   |   |                         | 4,076   |                             |   | 3,667 |   |
|  Gross                Loans                      |   | $                            | 750,725 |                             | $      | 757,967 |   |

***Allowance      for credit losses:***

|                                                   |   | June                30, 2006 |   | December                31, 2005                                                                    |   |
|--------------------------------------------------------|--------|------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|
|  *(Dollars                in thousands)*          |   |    Allowance  |   | %                of Loansin                EachCategory                toTotal                Loans |   |    Allowance |   | %                of Loansin                EachCategory                toTotal                Loans |   |
| Balance                at end of period applicable to: |   |                         |   |                                                                                                |   |   |   |   |   |   |   |   |   |
|                                                   |   |                         |   |                                                                                                |   |   |   |   |   |   |   |   |   |
| Real                estate - construction              |   | $                            | -      |                                                                                                |   | 33 | % | $ | 3 |   |   | 28 | % |
| Real                estate - mortgage                  |   |                         | 76     |                                                                                                |   | 41 |   |   | 81 |   |   | 42 |   |
| Commercial                                             |   |                         | 15,470 |                                                                                                |   | 8 |   |   | 16,124 |   |   | 10 |   |
| Consumer                                               |   |                         | 2,693  |                                                                                                |   | 18 |   |   | 2,934 |   |   | 20 |   |
|                                                   |   |                         |   |                                                                                                |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $                            | 18,239 |                                                                                                |   | 100 | % | $ | 19,142 |   |   | 100 | % |

*Back          to Index*

----

***Rollforward      - allowance for credit losses:***

|                                                 |   | Six                Months EndedJune                30, |   |
|------------------------------------------------------|--------|--------------------------------------------------------|--------|
| *(Dollars                in thousands)*              |   | 2006                                                   |   | 2005 |   |
|                                                 |   |                                                   |   |   |   |
| Balance,                beginning of period          |   | $                                                      | 19,142 |   | $ | 7,353 |   |
| Charge-offs                                          |   |                                                   | 2,225  |   |   | 503 |   |
| Recoveries                                           |   |                                                   | (202   | ) |   | (212 | ) |
| Net                charge-offs                       |   |                                                   | 2,023  |   |   | 291 |   |
| Provision                for credit losses           |   |                                                   | 1,120  |   |   | 1,318 |   |
| Balance,                end of period                |   | $                                                      | 18,239 |   | $ | 8,380 |   |
|                                                 |   |                                                   |   |   |   |   |   |
| Annualized                net charge-offs during the |   |                                                   |   |   |   |   |   |
| period                to average loans outstanding   |   |                                                   |   |   |   |   |   |
| during                the period                     |   |                                                   | 0.53   | % |   | 0.08 | % |
| Allowance                for credit losses to        |   |                                                   |   |   |   |   |   |
| period                end loans                      |   |                                                   | 2.43   | % |   | 1.10 | % |

***Nonperforming      assets:***

|  *(Dollars                in thousands)*                       |   | June                30,2006 |   | December                31, 2005 |   |
|---------------------------------------------------------------------|--------|-----------------------------|--------|----------------------------------|--------|
|                                                                |   |                        |   |                             |   |
| Nonaccrual                                                          |   | $                           | 14,490 |                             | $      | 10,356 |   |
| Past                due 90 days or more and still accruing interest |   |                        | -      |                             |   | 30 |   |
| Other                real estate                                    |   |                        | 1,609  |                             |   | 1,483 |   |
| Renegotiated                troubled debt                           |   |                        | -      |                             |   | - |   |

| **5.** | **Employee                benefit plans** |
|--------|-------------------------------------------|

|                                                |   | For                  the three monthsended                  June 30, |   | For                  the six monthsended                  June 30, |   |
|-----------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
| *(Dollars                  in thousands)*           |   | 2006                                                                 |   | 2005                                                               |   | 2006 |   | 2005 |   |
| Service                  cost                       |   | $                                                                    | 191    |                                                               | $      | 174 |   | $ | 382 |   | $ | 348 |   |
| Interest                  cost                      |   |                                                                 | 122    |                                                               |   | 109 |   |   | 244 |   |   | 217 |   |
| Expected                  return on plan assets     |   |                                                                 | (137   | )                                                                  |   | (131 | ) |   | (274 | ) |   | (262 | ) |
| Amortization                  of prior service cost |   |                                                                 | 39     |                                                               |   | 5 |   |   | 78 |   |   | 10 |   |
| Net                  periodic pension cost          |   | $                                                                    | 215    |                                                               | $      | 157 |   | $ | 430 |   | $ | 313 |   |

| **6.** | **Shareholders’                equity** |
|--------|-----------------------------------------------|

*Back          to Index*

----

| **7.** | **Memorandum                of Understanding** |
|--------|------------------------------------------------|

|   | § | The                creation of a Compliance Committee by the Boards of Directors of                the                Company and FNB Southeast (the “Bank”) to oversee compliance by the                Company and the Bank with the MOU. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                engagement of an independent consultant to advise the Boards on the                characteristics, composition, and structure of the Boards and the                structure and composition of management. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                adoption of a written plan to strengthen the Bank’s loan administration                capacity through supplementing and improving its lending and credit                administration staffing, management information systems, reporting                procedures, lending policies, and internal loan review                function. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                adoption of a written plan to address its risk position with respect                to                certain loans identified by its internal reviews and by its independent                consultants and also by the Reserve                Bank. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | An                increased focus upon compliance with federal regulations concerning                real                estate appraisal procedures and federal guidelines concerning loans                in                excess of certain loan-to-value                standards. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Increased                resources and staffing for the Bank’s internal audit                function. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

*Back          to Index*

----

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

*Information      set forth below contains various forward-looking statements within the meaning      of Section 27A of the Securities Act of 1933 and Section 21E of the Securities      Exchange Act of 1934, which statements represent the Company’s judgment      concerning the future and are subject to risks and uncertainties that could      cause the Company’s actual operating results to differ materially. Such      forward-looking statements can be identified by the use of forward-looking      terminology, such as “may”, “will”, “expect”, “anticipate”, “estimate”,“believe”, or “continue”, or the negative thereof or other variations thereof or      comparable terminology. The Company cautions that such forward-looking      statements are further qualified by important factors that could cause the      Company’s actual operating results to differ materially from those in the      forward-looking statements.*

**Application      of Critical Accounting Policies**

**Memorandum      of Understanding**

*Back          to Index*

----

|   | § | The                creation of a Compliance Committee by the Boards of Directors of                the                Company and the Bank to oversee compliance by the Company and the                Bank                with the MOU. This committee was established in February                2006. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                engagement of an independent consultant to advise the Boards on the                characteristics, composition, and structure of the Boards and the                structure and composition of management. An independent consultant                to                perform these functions was engaged by the Boards in November                2005. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                adoption of a written plan to strengthen the Bank’s loan administration                capacity through supplementing and improving its lending and credit                administration staffing, management information systems, reporting                procedures, lending policies, and internal loan review function.                The Bank                began this process in August 2005 as a result of its internal                investigations and reviews by independent consultants. As a consequence,                the Company believes that its compliance with the MOU’s requirements in                these areas has been significantly enhanced and that the process                is                nearing completion. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The                adoption of a written plan to address its risk position with respect                to                certain loans identified by its internal reviews and by its independent                consultants and also by the Reserve Bank. The Bank began this process                in                August 2005 and believes that significant progress in reducing its                risks                on these loans has been made. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | An                increased focus upon compliance with federal regulations concerning                real                estate appraisal procedures and federal guidelines concerning loans                in                excess of certain loan-to-value standards. The Bank adopted policies                addressing these matters in January                2006. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Increased                resources and staffing for the Bank’s internal audit function. The Bank                has met this requirement. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

**Executive      Summary**

*Back          to Index*

----

**Financial      Condition**

**Asset      Quality**

**Memorandum      of Understanding**

*Back          to Index*

----

**Results      of Operations for the Three Months Ended June 30, 2006 and      2005**

*Interest      Income and Interest Expense*

*Back          to Index*

----

| **Net                        Interest Income and Rate / Volume Analysis**  |   |                                               |        |                                             |   |                                                 |   |          |     |                                                  |   |    |   |            |       |      |   |        |   |
|----------------------------------------------------------------------------|--------|----------------------------------------------------|-------------|-------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------------------|----------|------------------------------------------------------------|--------|--------------|--------|----------------------|------------|----------------|--------|------------------|--------|
| For                        the Three Months Ended June 30, 2006 and 2005   |   |                                               |        |                                             |   |                                                 |   |          |     |                                                  |   |    |   |            |       |      |   |        |   |
|                                                                       |   |                                               |        |                                             |   |                                                 |   |          |     |                                                  |   |    |   |            |       |      |   |        |   |
|                                                                       |   | Average                        Balance   |        |  Yield                        / Rate   |   |  Income                        / Expense   |   |  **Increase** |     |  **Change                        due to**   |   |
| *Fully                        Taxable Equivalent - (Dollars in thousands)* |   | **2006**                                           |        |  2005                                            |   |  **2006**                                            |   |  2005         |     |  **2006**                                             |   |  2005   |   | **(Decrease)**  |       |  **Rate** |   |  **Volume** |   |
|                                                                       |   |                                               |        |                                             |   |                                                 |   |          |     |                                                  |   |    |   |            |       |      |   |        |   |
| **Assets**                                                                 |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Securities(1):                                                             |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Taxable                        investment securities                       |   | $                                                  | 159,290     |                                                  | $      | 114,686                                                   |   |               | 4.09     | %                                                          |   | 3.41         | %      | **$**                | **1,625**  |           | $      | 976              |   | $ | **649** |   | **$** | **(8,422** | **)** | **$** | **9,071** |   |
| Tax-exempt                        investment securities                    |   |                                               | **41,161**  |                                                  |   | 32,134                                                    |   |               | **5.98** |                                                       |   | 6.02         |   |                 | **614**    |           |   | 482              |   |   | **132** |   |   | **258** |   |   | **(126** | **)** |
| Other                        securities                                    |   |                                               | **8,590**   |                                                  |   | 6,591                                                     |   |               | **5.18** |                                                       |   | 4.69         |   |                 | **111**    |           |   | 77               |   |   | **34** |   |   | **0** |   |   | **0** |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                        securities                               |   |                                               | **209,041** |                                                  |   | 153,411                                                   |   |               | **4.51** |                                                       |   | 4.01         |   |                 | **2,350**  |           |   | 1,535            |   |   | **815** |   |   | **(8,164** | **)** |   | **8,945** |   |
| Other                        earning assets(2)                             |   |                                               | **8,041**   |                                                  |   | 8,376                                                     |   |               | **3.14** |                                                       |   | 2.92         |   |                 | **63**     |           |   | 61               |   |   | **2** |   |   | **(82** | **)** |   | **84** |   |
| Loans                        and leases, net(3)(4)                         |   |                                               | **759,949** |                                                  |   | 737,735                                                   |   |               | **8.35** |                                                       |   | 7.41         |   |                 | **15,814** |           |   | 13,629           |   |   | **2,185** |   |   | **14,392** |   |   | **(12,207** | **)** |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                        earning assets                           |   |                                               | **977,031** |                                                  |   | 899,522                                                   |   |               | **7.48** |                                                       |   | 6.79         |   |                 | **18,227** |           |   | 15,225           |   |   | **3,002** |   |   | **6,146** |   |   | **(3,178** | **)** |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Non-earning                        assets                             |   |                                               | **45,236**  |                                                  |   | 55,266                                                    |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|  Total                        assets                                  |   | $                                                  | 1,022,267   |                                                  | $      | 954,788                                                   |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                        and Shareholders' Equity**            |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                        deposits:                          |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Savings                        deposits                                    |   | $                                                  | 52,362      |                                                  | $      | 52,850                                                    |   |               | **0.32** |                                                       |   | 0.24         |   |                 | **42**     |           |   | 31               |   |   | **11** |   |   | **(12** | **)** |   | **23** |   |
| Money                        market deposits                               |   |                                               | **116,530** |                                                  |   | 127,787                                                   |   |               | **3.65** |                                                       |   | 2.58         |   |                 | **1,060**  |           |   | 823              |   |   | **237** |   |   | **(3,342** | **)** |   | **3,579** |   |
| Time                        deposits                                       |   |                                               | 565,739     |                                                  |   | 513,857                                                   |   |               | **4.16** |                                                       |   | 3.43         |   |                 | **5,874**  |           |   | 4,399            |   |   | **1,475** |   |   | **17,353** |   |   | **(15,878** | **)** |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                        interest-bearing deposits                |   |                                               | **734,631** |                                                  |   | 694,494                                                   |   |               | **3.81** |                                                       |   | 3.03         |   |                 | **6,976**  |           |   | 5,253            |   |   | **1,723** |   |   | **13,999** |   |   | **(12,276** | **)** |
| Short-term                        borrowings                               |   |                                               | **18,131**  |                                                  |   | 23,334                                                    |   |               | **4.18** |                                                       |   | 2.42         |   |                 | **189**    |           |   | 141              |   |   | **48** |   |   | **(1,930** | **)** |   | **1,978** |   |
| Long-term                        debt                                      |   |                                               | **100,774** |                                                  |   | 63,835                                                    |   |               | **5.23** |                                                       |   | 3.65         |   |                 | **1,314**  |           |   | 581              |   |   | **733** |   |   | **(13,341** | **)** |   | **14,074** |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                        interest-bearing liabilities             |   |                                               | **853,536** |                                                  |   | 781,663                                                   |   |               | **3.98** |                                                       |   | 3.07         |   |                 | **8,479**  |           |   | 5,975            |   |   | **2,504** |   |   | **(1,272** | **)** |   | **3,776** |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Demand                        deposits                                |   |                                               | **89,311**  |                                                  |   | 88,550                                                    |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Other                        liabilities                              |   |                                               | **10,523**  |                                                  |   | 12,420                                                    |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Shareholders'                        equity                           |   |                                               | **68,897**  |                                                  |   | 72,155                                                    |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                        liabilities and                          |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|  shareholders'                        equity                          |   | $                                                  | 1,022,267   |                                                  | $      | 954,788                                                   |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Average                        interest rate spread                        |   |                                               |        |                                                  |   |                                                      |   |               | 3.50     | %                                                          |   | 3.72         | %      |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Net                        yield on earning assets                         |   |                                               |        |                                                  |   |                                                      |   |               | **4.00** |                                                       |   | 4.12         |   | **$**                | **9,748**  |           | $      | 9,250            |   | $ | **498** |   | **$** | **7,418** |   | **$** | **(6,954** | **)** |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Taxable                        equivalent adjustment                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   | **$**                | **209**    |           | $      | 164              |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                               |        |                                                  |   |                                                      |   |               |     |                                                       |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |

| (1)    | Yields                        related to investment securities, loans and leases exempt                        from both                        federal and state income taxes, federal income taxes only                        or state income                        taxes only are stated |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | on                        a taxable equivalent basis assuming tax rates in effect for                        the periods                        presented.                                                                                                                                    |
| (2)    | Includes                        federal funds sold and securities purchased under resale                        agreements or                        similar arrangements.                                                                                                                    |
| (3)    | Loan                        fees, which are not material for either of the periods shown,                        have been                        included for rate calculation purposes.                                                                                                     |
| (4)    | Nonaccrual                        loans have been included in the average balances. Only the                        interest                        collected on such loans has been included as income.                                                                                      |
| (5)    | Includes                        assets which were held for                        sale.                                                                                                                                                                                                       |

*Back              to Index*

----

*Provision      for Credit Losses*

**Memorandum      of Understanding**

*Noninterest      Income and Expense*

*Provision      for Income Taxes*

**Results      of Operations for the Six Months Ended June 30, 2006 and      2005**

*Interest      Income and Interest Expense*

*Back          to Index*

----

| **Net                    Interest Income and Rate / Volume Analysis**  |   |                                           |        |                                         |   |                                             |   |          |     |                                              |   |    |   |            |       |      |   |        |   |
|------------------------------------------------------------------------|--------|------------------------------------------------|-------------|---------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------|----------|--------------------------------------------------------|--------|--------------|--------|----------------------|------------|----------------|--------|------------------|--------|
| For                    the Six Months Ended June 30, 2006 and 2005     |   |                                           |        |                                         |   |                                             |   |          |     |                                              |   |    |   |            |       |      |   |        |   |
|                                                                   |   |                                           |        |                                         |   |                                             |   |          |     |                                              |   |    |   |            |       |      |   |        |   |
|                                                                   |   | Average                    Balance   |        |  Yield                    / Rate   |   |  Income                    / Expense   |   |  **Increase** |     |  **Change                    due to**   |   |
| *Fully                    Taxable Equivalent - (Dollars in thousands)* |   | **2006**                                       |        |  2005                                        |   |  **2006**                                        |   |  2005         |     |  **2006**                                         |   |  2005   |   |  **(Decrease)** |       |  **Rate** |   |  **Volume** |   |
|                                                                   |   |                                           |        |                                         |   |                                             |   |          |     |                                              |   |    |   |            |       |      |   |        |   |
| **Assets**                                                             |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Securities(1):                                                         |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Taxable                    investment securities                       |   | $                                              | 158,787     |                                              | $      | 109,169                                               |   |               | 4.07     | %                                                      |   | 3.32         | %      | **$**                | **3,201**  |           | $      | 1,799            |   | $ | **1,402** |   | **$** | **(18,643** | **)** | **$** | **20,045** |   |
| Tax-exempt                    investment securities                    |   |                                           | **39,807**  |                                              |   | 32,231                                                |   |               | **5.96** |                                                   |   | 6.03         |   |                 | **1,177**  |           |   | 963              |   |   | **214** |   |   | **639** |   |   | **(425** | **)** |
| Other                    securities                                    |   |                                           | **8,173**   |                                              |   | 6,319                                                 |   |               | **5.16** |                                                   |   | 4.56         |   |                 | **209**    |           |   | 143              |   |   | **66** |   |   | **0** |   |   | **0** |   |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                    securities                               |   |                                           | **206,767** |                                              |   | 147,719                                               |   |               | **4.47** |                                                   |   | 3.97         |   |                 | **4,587**  |           |   | 2,905            |   |   | **1,682** |   |   | **(18,004** | **)** |   | **19,620** |   |
| Other                    earning assets(2)                             |   |                                           | **9,061**   |                                              |   | 8,686                                                 |   |               | **3.29** |                                                   |   | 2.95         |   |                 | **148**    |           |   | 127              |   |   | **21** |   |   | **191** |   |   | **(170** | **)** |
| Loans                    and leases, net(3)(4)                         |   |                                           | **759,988** |                                              |   | 717,586                                               |   |               | **8.38** |                                                   |   | 7.23         |   |                 | **31,571** |           |   | 25,732           |   |   | **5,839** |   |   | **55,721** |   |   | **(49,882** | **)** |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                    earning assets                           |   |                                           | **975,816** |                                              |   | 873,991                                               |   |               | **7.50** |                                                   |   | 6.64         |   |                 | **36,306** |           |   | 28,764           |   |   | **7,542** |   |   | **37,908** |   |   | **(30,432** | **)** |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Non-earning                    assets                             |   |                                           | **43,234**  |                                              |   | 53,098                                                |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|  Total                    assets                                  |   | $                                              | 1,019,050   |                                              | $      | 927,089                                               |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                    and Shareholders' Equity**            |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                    deposits:                          |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Savings                    deposits                                    |   | $                                              | 52,210      |                                              | $      | 52,795                                                |   |               | **0.32** |                                                   |   | 0.19         |   |                 | **84**     |           |   | 51               |   |   | **33** |   |   | **(28** | **)** |   | **61** |   |
| Money                    market deposits                               |   |                                           | **130,104** |                                              |   | 124,499                                               |   |               | **3.47** |                                                   |   | 2.41         |   |                 | **2,239**  |           |   | 1,488            |   |   | **751** |   |   | **3,045** |   |   | **(2,294** | **)** |
| Time                    deposits                                       |   |                                           | 555,535     |                                              |   | 499,966                                               |   |               | **4.06** |                                                   |   | 3.23         |   |                 | **11,172** |           |   | 7,997            |   |   | **3,175** |   |   | **36,316** |   |   | **(33,141** | **)** |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                    interest-bearing deposits                |   |                                           | **737,849** |                                              |   | 677,260                                               |   |               | **3.69** |                                                   |   | 2.84         |   |                 | **13,495** |           |   | 9,536            |   |   | **3,959** |   |   | **39,333** |   |   | **(35,374** | **)** |
| Short-term                    borrowings                               |   |                                           | **13,509**  |                                              |   | 21,784                                                |   |               | **3.67** |                                                   |   | 2.23         |   |                 | **246**    |           |   | 241              |   |   | **5** |   |   | **(5,676** | **)** |   | **5,681** |   |
| Long-term                    debt                                      |   |                                           | **100,774** |                                              |   | 59,939                                                |   |               | **5.05** |                                                   |   | 3.57         |   |                 | **2,524**  |           |   | 1,062            |   |   | **1,462** |   |   | **(24,860** | **)** |   | **26,322** |   |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                    interest-bearing liabilities             |   |                                           | **852,132** |                                              |   | 758,983                                               |   |               | **3.85** |                                                   |   | 2.88         |   |                 | **16,265** |           |   | 10,839           |   |   | **5,426** |   |   | **8,797** |   |   | **(3,371** | **)** |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Demand                    deposits                                |   |                                           | **88,248**  |                                              |   | 85,498                                                |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Other                    liabilities                              |   |                                           | **10,118**  |                                              |   | 11,117                                                |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Shareholders'                    equity                           |   |                                           | **68,552**  |                                              |   | 71,491                                                |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Total                    liabilities and                          |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
|  shareholders'                    equity                          |   | $                                              | 1,019,050   |                                              | $      | 927,089                                               |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Average                    interest rate spread                        |   |                                           |        |                                              |   |                                                  |   |               | 3.65     | %                                                      |   | 3.76         | %      |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Net                    yield on earning assets                         |   |                                           |        |                                              |   |                                                  |   |               | **4.14** |                                                   |   | 4.14         |   | **$**                | **20,041** |           | $      | 17,925           |   | $ | **2,116** |   | **$** | **29,111** |   | **$** | **(27,061** | **)** |
|                                                                   |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   |                 |       |           |   |             |   |   |   |   |   |   |   |   |   |   |
| Taxable                    equivalent adjustment                       |   |                                           |        |                                              |   |                                                  |   |               |     |                                                   |   |         |   | **$**                | **400**    |           | $      | 327              |   |   |   |   |   |   |   |   |   |   |

| (1)    | Yields                  related to investment securities, loans and leases exempt from                  both                  federal and state income taxes, federal income taxes only or state                  income                  taxes only are stated |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | on                  a                  taxable equivalent basis assuming tax rates in effect for the periods                  presented.                                                                                                                        |
| (2)    | Includes                  federal funds sold and securities purchased under resale agreements                  or                  similar arrangements.                                                                                                        |
| (3)    | Loan                  fees, which are not material for either of the periods shown, have                  been                  included for rate calculation purposes.                                                                                         |
| (4)    | Nonaccrual                  loans have been included in the average balances. Only the interest                  collected on such loans has been included as income.                                                                                           |
| (5)    | Includes                  assets which were held for                  sale.                                                                                                                                                                                     |

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----

*Provision      for Credit Losses*

**Memorandum      of Understanding**

*Noninterest      Income and Expense*

*Provision      for Income Taxes*

**Capital      Resources**

|                            |   | Regulatory                Guidelines |   |                  |   |          |   |
|---------------------------------|--------|--------------------------------------|--------|-----------------------|--------|---------------|--------|
|                            |   | WellCapitalized                      |   | AdequatelyCapitalized |   |  Company |   | FNB                Southeast |   |
|                            |   |                                 |   |                  |   |          |   |   |   |
| Total                Capital    |   |                                 | 10.0   | %                     |   | 8.0           | %      |   | 13.30 | % |   | 13.00 | % |
| Tier                1 Capital   |   |                                 | 6.0    |                  |   | 4.0           |   |   | 11.95 |   |   | 11.73 |   |
| Leverage                Capital |   |                                 | 5.0    |                  |   | 4.0           |   |   | 9.34 |   |   | 9.16 |   |

**Liquidity      Management**

*Back          to Index*

----

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

**Item      4. Controls and Procedures**

**Evaluation      of disclosure controls and procedures**

**Changes      in internal control over financial reporting**

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----

**PART      II.** **OTHER      INFORMATION**

**Item      1.                   ****Legal      Proceedings**

**Item      1.A.               ****Risk      Factors**

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

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| **Stock                Repurchase Program - Approved July 2004**                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------|
|    **Period                               ** | **(a)****Total                Number of****Shares****Purchased** | **(b)** **Average                Price****Paid                Per Share** | **(c)** **Cumulative                Number of****Shares                Purchased** | **(d)****Maximum                Number****of                Shares that May Yet Be****Purchased** |
| April                1, 2006 to April                30, 2006                                                                          | - | - | 143,338 | 200,567 |
|                                                                                                                                   |   |   |   |   |
| May                1, 2006 to May 31, 2006                                                                                             | 65,515 | $15.11 | 208,853 | 135,052 |
|                                                                                                                                   |   |   |   |   |
| June                1, 2006 to June                30, 2006                                                                            | 15,362 | $15.10 | 224,215 | 119,690 |
|                                                                                                                                   |   |   |   |   |
| Total                                                                                                                                  | 80,877 | $15.11 |   |   |

**Item      3.                   ****Defaults      Upon Senior Securities**

**Item      4.                   ****Submission      of Matters to a Vote of Security Holders**

|   | Nominee                            | For       | Withheld |
|--------|------------------------------------|-----------|----------|
|   | Alex                A. Diffey, Jr. | 5,308,629 | 168,395  |
|   | C.                Arnold Britt     | 5,179,764 | 297,259  |
|   | Barry                Z. Dodson     | 5,179,384 | 297,640  |

*Back          to Index*

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|   | For       | Against | Abstain |
|--------|-----------|---------|---------|
|   | 5,330,162 | 95,545  | 51,317  |

|   | For       | Against   | Abstain |
|--------|-----------|-----------|---------|
|   | 2,603,203 | 1,170,605 | 378,953 |

**Item      5.                   ****Other      Information**

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

|   | Exhibit                No. | Description                                                                                                                                                                                                                                    |
|--------|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                       |                                                                                                                                                                                                                                           |
|   | 3.01                (1)    | Amended                and Restated Articles of Incorporation.                                                                                                                                                                                 |
|   | 3.02                (1)    | Bylaws                of Company, as amended.                                                                                                                                                                                                  |
|   | 4.01                (2)    | Specimen                Common Stock Certificate.                                                                                                                                                                                              |
|   | 4.02                (14)   | Amended                and Restated Trust Agreement, regarding Trust Preferred Securities,                dated                August 23, 2005.                                                                                                |
|   | 4.03                (14)   | Guarantee                Agreement, regarding Trust Preferred Securities, dated August 23,                2005.                                                                                                                                |
|   | 4.04                (14)   | Indenture,                regarding Trust Preferred Securities, dated August 23,                2005.                                                                                                                                          |
|   | 10.01                (3)   | Stock                Compensation Plan of the Registrant approved April 11, 1989, by the                shareholders of the Registrant, with forms of stock option and stock                bonus                agreements attached.          |
|   | 10.02                (4)   | Omnibus                Equity Compensation Plan of the Registrant.                                                                                                                                                                             |
|   | 10.03                (5)   | Severance                Policy for Senior Officers of the Registrant (employed for five years                or                more).                                                                                                         |
|   | 10.04                (6)   | Revised                Severance Plan for Senior Officers of the Registrant (employed for                five                years or more).                                                                                                   |
|   | 10.05                (7)   | Severance                Policy for Senior Officers of the Registrant (employed for less than                five                years).                                                                                                       |
|   | 10.06                (1)   | Change                of Control Severance Plan                                                                                                                                                                                                |
|   | 10.07                (8)   | Benefit                Equivalency Plan of the Registrant effective January 1,                1994.                                                                                                                                            |
|   | 10.08                (8)   | Long                Term Incentive Plan of the Registrant.                                                                                                                                                                                     |
|   | 10.09                (10)  | Long                Term Incentive Plan of the Registrant for certain senior management                employees.                                                                                                                              |
|   | 10.10                (8)   | Employment                Agreement dated May 18, 1995, between the Registrant, as employer,                and                Ernest J. Sewell, former President and Chief Executive Officer of                the                Registrant. |
|   | 10.11                (9)   | Split-Dollar                Agreement dated January 27, 1995, between the Registrant and Ernest                J.                Sewell.                                                                                                       |
|   | 10.12                (9)   | Split-Dollar                Agreement dated January 27, 1995, between the Registrant and C. Melvin                Gantt.                                                                                                                       |

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----

|        | 10.13                (9)  | Split-Dollar                Agreement dated December 8, 1995, between the Registrant and Richard                L.                Powell.                                                                                                                                                                   |
|--------|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.14                (11) | Amendment                to Benefit Equivalency Plan of the Registrant effective January 1,                1998.                                                                                                                                                                                            |
|   | 10.15                (9)  | Split-Dollar                Agreement, dated March 20, 1998, between the Registrant and Ernest                J.                Sewell.                                                                                                                                                                     |
|   | 10.16                (12) | Second                Amendment, dated May 19, 2004, to the Employment Agreement, dated                May 18,                1995, between the Registrant, as employer, and Ernest J. Sewell,                former                President and Chief Executive Officer of the                Registrant. |
|   | 10.17                (13) | Employment                and Change of Control Agreement dated July 1, 2004, between the                Registrant, as employer, and Pressley A. Ridgill, Executive Vice                President                and Chief Operating Officer of the Registrant.                                            |
|   | 10.18                (12) | Third                Amendment to Employment Agreement and First Amendments to Split-Dollar                Agreements and Collateral Agreements with Ernest J. Sewell effective                January 1, 2004.                                                                                             |
|   | 10.20                (14) | Fourth                Amendment to Employment Agreement with Ernest J. Sewell, executed                on                October 20, 2005 and effective February 1, 2006.                                                                                                                                   |
|   | 10.21                (14) | Independent                Contractor Consulting Agreement with Ernest J. Sewell, executed October                20, 2005 and effective February 1, 2006.                                                                                                                                                  |
|   | 10.22                (15) | 2006                Annual Management Incentive Plan of the Registrant.                                                                                                                                                                                                                                     |
|   | 10.23                (15) | Long                Term Incentive Plan of the Registrant for certain senior management                employees.                                                                                                                                                                                           |
|   | 31.01                     | Certification                of Pressley A.                Ridgill                                                                                                                                                                                                                                          |
|   | 31.02                     | Certification                of Michael W.                Shelton                                                                                                                                                                                                                                           |
|   | 32.01                     | Certification                of Periodic Financial Report Pursuant to                18 USC Section 1350.                                                                                                                                                                                                   |

|   | (1) | Incorporated                herein by reference to the Registrant’s Current Report on Form 8-K, dated                May 25, 2005, filed with the Securities and Exchange                Commission. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated                herein by reference to the Registrant’s Quarterly Report on Form 10-Q for                the fiscal quarter ended March 31, 1998, filed with the Securities                and                Exchange Commission. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated                herein by reference to the Registrant’s Statement on Form S-8 (No.                33-33186), filed with the Securities and Exchange                Commission. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-KSB for                the fiscal year ended December 31, 1996, filed with the Securities                and                Exchange Commission. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 1989, filed with the Securities and                Exchange Commission. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-KSB for                the fiscal year ended December 31, 1994, filed with the Securities                and                Exchange Commission. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Incorporated                herein by reference to the Registrant’s Quarterly Report, on Form 10-QSB                for the fiscal quarter ended June 30, 1995, filed with the Securities                and                Exchange Commission. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Incorporated                herein by reference to the Registrant’s Statement on Form S-2 (File No.                333-47203) filed with the Securities and Exchange Commission on March                3,                1998. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-KSB for                the fiscal year ended December 31, 1997, filed with the Securities                and                Exchange Commission. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 2002, filed with the Securities and                Exchange Commission |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 1998, filed with the Securities and                Exchange Commission. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 2004, filed with the Securities and                Exchange Commission. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Incorporated                herein by reference to the Registrant’s Quarterly Report, on Form 10-Qfor                the fiscal quarter ended September 30, 2004, filed with the Securities                and                Exchange Commission. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Incorporated                herein by reference to the Registrant’s Quarterly Report, on Form 10-Q for                the fiscal quarter ended September 30, 2005, filed with the Securities                and                Exchange Commission. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | Incorporated                herein by reference to the Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 2005, filed with the Securities and                Exchange Commission. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Back          to Index*

----

|                          |                                                                             |
|-------------------------------|----------------------------------------------------------------------------------|
|                          | FNB                FINANCIAL SERVICES CORPORATION                                |
|                          | (Registrant)                                                                     |
|                          |                                                                             |
|                          |                                                                             |
|                          |                                                                             |
| August                9, 2006 | /s/                K.                Dwight Willoughby                           |
|                          | K.                Dwight Willoughby                                              |
|                          | (Senior                Vice President, Chief Accounting Officer, and Controller) |

*Back      to Index*