| For      the quarterly period ended | March      31, 2008 |   |
|-------------------------------------|---------------------|--------|

| For      the transition period from |   | to |   |
|-------------------------------------|--------|----|--------|

| Commission      File Number: | 000-14294 |   |
|------------------------------|-----------|--------|

| GREATER      COMMUNITY BANCORP                             |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| New      Jersey                                                     | 22-2545165                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
|                                                                |                                      |
| 55      Union Boulevard, Totowa, New Jersey                         | 07512                                     |
| (Address      of principal executive offices)                       | (Zip      Code)                           |

| (973)      942-1111                                                                          |
|----------------------------------------------------------------------------------------------|
| (Registrant's      telephone number, including area code)                                    |
|                                                                                         |
|                                                                                         |
| (Former      name, former address and former fiscal year, if changed since last      report) |

| Large      accelerated filer  ̈                                                                   | Accelerated      filer ý         |
|-------------------------------------------------------------------------------------------------------|---------------------------------------|
| Non-accelerated      filer    ̈ (do not check if      a smaller reporting company) | Smaller      reporting company  ̈ |

----

O

|                                                                                                                                    | PAGE    |
|-----------------------------------------------------------------------------------------------------------------------------------------|---------|
| PART I - FINANCIAL INFORMATION                                                                                                          |    |
|                                                                                                                                    |    |
| Item 1.  Financial Statements.                                                                                                |    |
|                                                                                                                                    |    |
| Consolidated Balance Sheets at March 31, 2008 (unaudited) and      December 31, 2007                                                    | 1       |
|                                                                                                                                    |    |
| Consolidated Statements of Income (unaudited), Three months      ended March 31, 2008 and 2007                                          | 2       |
|                                                                                                                                    |    |
| Consolidated Statements of Comprehensive Income      (unaudited), Three months ended March 31, 2008 and      2007                  |  3 |
|                                                                                                                                    |    |
| Consolidated Statements of Changes in Shareholders’ Equity      (unaudited), Three months ended March 31, 2008 and      2007 |  3 |
|                                                                                                                                    |    |
| Consolidated Statements of Cash Flows (unaudited), Three months      ended March 31, 2008 and 2007                                      | 4       |
|                                                                                                                                    |    |
| Notes to Consolidated Financial Statements      (unaudited)                                                                             | 5       |
|                                                                                                                                    |    |
| Item 2. Management’s Discussion and Analysis of Financial      Condition and Results of Operations                                | 11      |
|                                                                                                                                    |    |
| Item 3. Quantitative and Qualitative Disclosures About Market      Risk                                                                 | 19      |
|                                                                                                                                    |    |
| Item 4. Controls and Procedures                                                                                                         | 20      |
|                                                                                                                                    |    |
|                                                                                                                                    |    |
| PART II - OTHER INFORMATION                                                                                                             |    |
|                                                                                                                                    |    |
| Items 1 through 6                                                                                                                       | 20      |
|                                                                                                                                    |    |
| Signatures                                                                                                                              | 22      |
|                                                                                                                                    |    |
| Exhibit Index                                                                                                                           | 23      |
|                                                                                                                                    |    |

----

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N

M

|                                                                                                                                                                                                                                 |   | March      31, |    |   | December      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                 |   | 2008           |    |   | 2007              |   |
| ASSETS                                                                                                                                                                                                                               |   |           |    |   |              |   |
| CASH      AND DUE FROM BANKS - Non interest-bearing                                                                                                                                                                                  |   | $              | 21,750  |   |              | $      | 16,801 |   |
| FEDERAL      FUNDS SOLD                                                                                                                                                                                                              |   |           | 24,090  |   |              |   | 7,640 |   |
|                  Total      cash and cash equivalents                                                                                           |   |           | 45,840  |   |              |   | 24,441 |   |
| DUE      FROM BANKS - Interest-bearing                                                                                                                                                                                               |   |           | 4,751   |   |              |   | 4,868 |   |
| INVESTMENT      SECURITIES - Available-for-sale                                                                                                                                                                                      |   |           | 76,702  |   |              |   | 82,283 |   |
| INVESTMENT      SECURITIES - Held-to-maturity (aggregate fair values of   $10,690      and $12,213 at March 31, 2008 and December 31, 2007,      respectively)                                                        |   |           | 11,638  |   |              |   | 12,878 |   |
|                  Total      investment securities                                                                                               |   |           | 88,340  |   |              |   | 95,161 |   |
| LOANS      AND LEASES, net of unearned income                                                                                                                                                                                        |   |           | 809,677 |   |              |   | 802,865 |   |
|   Less:  Allowance      for loan and lease losses                                                                                                                                                                |   |           | (11,326 | )      |              |   | (11,188 | ) |
|                  Net      loans and leases                                                                                                      |   |           | 798,351 |   |              |   | 791,677 |   |
| PREMISES      AND EQUIPMENT, net                                                                                                                                                                                                     |   |           | 12,464  |   |              |   | 12,505 |   |
| ACCRUED      INTEREST RECEIVABLE                                                                                                                                                                                                     |   |           | 4,303   |   |              |   | 4,318 |   |
| INVESTMENT      IN REAL ESTATE JOINT VENTURE                                                                                                                                                                                         |   |           | 870     |   |              |   | 870 |   |
| BANK-OWNED      LIFE INSURANCE                                                                                                                                                                                                       |   |           | 16,130  |   |              |   | 15,955 |   |
| GOODWILL                                                                                                                                                                                                                             |   |           | 11,574  |   |              |   | 11,574 |   |
| OTHER      ASSETS                                                                                                                                                                                                                    |   |           | 15,455  |   |              |   | 14,621 |   |
|     TOTAL      ASSETS                                                                                                                                                                                            |   | $              | 998,078 |   |              | $      | 975,990 |   |
|                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                                                                                                            |   |           |    |   |              |   |   |   |
| DEPOSITS:                                                                                                                                                                                                                            |   |           |    |   |              |   |   |   |
| Non      interest-bearing                                                                                                                                                                                                            |   | $              | 164,315 |   |              | $      | 166,550 |   |
| Interest-bearing      checking                                                                                                                                                                                                       |   |           | 79,702  |   |              |   | 99,319 |   |
| Money      market                                                                                                                                                                                                                    |   |           | 200,282 |   |              |   | 193,884 |   |
| Savings                                                                                                                                                                                                                              |   |           | 66,725  |   |              |   | 67,433 |   |
| Time      deposits less than $100                                                                                                                                                                                                    |   |           | 155,200 |   |              |   | 150,523 |   |
| Time      deposits $100 and over                                                                                                                                                                                                     |   |           | 84,287  |   |              |   | 71,763 |   |
|                   Total      deposits                                                                                                      |   |           | 750,511 |   |              |   | 749,472 |   |
| SECURITIES      SOLD UNDER AGREEMENTS TO REPURCHASE                                                                                                                                                                                  |   |           | 6,374   |   |              |   | 4,729 |   |
| FHLB      ADVANCES                                                                                                                                                                                                                   |   |           | 132,500 |   |              |   | 112,500 |   |
| SUBORDINATED      DEBENTURES                                                                                                                                                                                                         |   |           | 24,743  |   |              |   | 24,743 |   |
| ACCRUED      INTEREST PAYABLE                                                                                                                                                                                                        |   |           | 4,913   |   |              |   | 4,942 |   |
| OTHER      LIABILITIES                                                                                                                                                                                                               |   |           | 6,098   |   |              |   | 7,215 |   |
|                  Total      liabilities                                                                                                         |   |           | 925,139 |   |              |   | 903,601 |   |
| SHAREHOLDERS'      EQUITY:                                                                                                                                                                                                           |   |           |    |   |              |   |   |   |
| Common      stock, par value $0.50 per share: 20,000,000 shares authorized, 8,721,646      and       8,709,940      shares outstanding at March 31, 2008 and December 31, 2007,      respectively |   |           | 4,361   |   |              |   | 4,355 |   |
| Additional      paid-in capital                                                                                                                                                                                                      |   |           | 63,296  |   |              |   | 63,139 |   |
| Retained      earnings                                                                                                                                                                                                               |   |           | 4,819   |   |              |   | 4,787 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                          |   |           | 463     |   |              |   | 108 |   |
|                 Total      shareholders' equity                                                                                                      |   |           | 72,939  |   |              |   | 72,389 |   |
|    TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                    |   | $              | 998,078 |   |              | $      | 975,990 |   |
|                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
|                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
|                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                                                                                                                    |   |

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T

|                                                                                                                                       |   | Three      Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                       |   | March      31,          |   |
|                                                                                                                                       |   | 2008                    |   |   | 2007 |   |
| INTEREST      INCOME:                                                                                                                      |   |                    |   |   |   |   |
|    Loans      and leases, including fees                                                                                    |   | $                       | 13,585 |   |   | $ | 12,614 |   |
|    Investment      securities                                                                                               |   |                    | 1,280  |   |   |   | 1,394 |   |
|    Federal      funds sold and deposits with banks                                                                          |   |                    | 163    |   |   |   | 606 |   |
|              Total      interest income                                   |   |                    | 15,028 |   |   |   | 14,614 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| INTEREST      EXPENSE:                                                                                                                     |   |                    |   |   |   |   |   |   |
|    Deposits                                                                                                                 |   |                    | 4,862  |   |   |   | 5,050 |   |
|    Short-term      borrowings                                                                                               |   |                    | 1,560  |   |   |   | 1,366 |   |
|    Long-term      borrowings                                                                                                |   |                    | 422    |   |   |   | 507 |   |
|              Total      interest expense                                  |   |                    | 6,844  |   |   |   | 6,923 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| NET      INTEREST INCOME                                                                                                                   |   |                    | 8,184  |   |   |   | 7,691 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| PROVISION      FOR LOAN AND LEASE LOSSES                                                                                                   |   |                    | 328    |   |   |   | 313 |   |
|             Net      interest income after provision for loan and lease losses |   |                    | 7,856  |   |   |   | 7,378 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| NON-INTEREST      INCOME:                                                                                                                  |   |                    |   |   |   |   |   |   |
|    Service      charges on deposit accounts                                                                                 |   |                    | 598    |   |   |   | 681 |   |
|    Commissions      and fees                                                                                                |   |                    | 334    |   |   |   | 318 |   |
|    Loan      fee income                                                                                                     |   |                    | 264    |   |   |   | 238 |   |
|    Gain      on sale of investment securities                                                                               |   |                    | -      |   |   |   | 141 |   |
|    Loss      on impaired investment securities                                                                              |   |                    | (13    | ) |   |   | - |   |
|    Bank-owned      life insurance                                                                                           |   |                    | 175    |   |   |   | 136 |   |
|    All      other income                                                                                                    |   |                    | 85     |   |   |   | 107 |   |
|              Total      non-interest income                               |   |                    | 1,443  |   |   |   | 1,621 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| NON-INTEREST      EXPENSE:                                                                                                                 |   |                    |   |   |   |   |   |   |
|    Salaries      and employee benefits                                                                                      |   |                    | 3,879  |   |   |   | 3,746 |   |
|    Occupancy      and equipment                                                                                             |   |                    | 985    |   |   |   | 976 |   |
|    Regulatory,      professional and other fees                                                                             |   |                    | 749    |   |   |   | 542 |   |
|    Computer      services                                                                                                   |   |                    | 230    |   |   |   | 253 |   |
|    Office      expenses                                                                                                     |   |                    | 262    |   |   |   | 248 |   |
|    Interest      on income taxes                                                                                            |   |                    | 6      |   |   |   | 120 |   |
|    Merger      agreement termination fee                                                                                    |   |                    | 700    |   |   |   | - |   |
|    Other      operating expenses                                                                                            |   |                    | 504    |   |   |   | 598 |   |
|             Total      non-interest expense                                    |   |                    | 7,315  |   |   |   | 6,483 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| INCOME      BEFORE PROVISION FOR INCOME TAXES                                                                                              |   |                    | 1,984  |   |   |   | 2,516 |   |
| PROVISION      FOR INCOME TAXES                                                                                                            |   |                    | 685    |   |   |   | 788 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| NET      INCOME                                                                                                                            |   | $                       | 1,299  |   |   | $ | 1,728 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| Weighted      average shares outstanding - Basic                                                                                           |   |                    | 8,717  |   |   |   | 8,623 |   |
| Weighted      average shares outstanding - Diluted                                                                                         |   |                    | 8,731  |   |   |   | 8,642 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| Earnings      per share - Basic                                                                                                            |   | $                       | 0.15   |   |   | $ | 0.20 |   |
| Earnings      per share - Diluted                                                                                                          |   | $                       | 0.15   |   |   | $ | 0.20 |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
|                                                                                                                                       |   |                    |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                          |   |

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A

|                                                                                    |   | Three      Months EndedMarch      31, |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                    |   | 2008                                  |   |   | 2007 |   |
|                                                                                    |   |                                  |   |   |   |   |
| NET      INCOME                                                                         |   | $                                     | 1,299  |   |   | $ | 1,728 |   |
| OTHER      COMPREHENSIVE INCOME NET OF TAX:                                             |   |                                  |   |   |   |   |   |   |
|    Unrealized      securities gains arising during period                |   |                                  | 347    |   |   |   | 75 |   |
|    Less:      reclassification for gains (losses) included in net income |   |                                  | (8     | ) |   |   | 93 |   |
| Other      comprehensive income (loss), net of tax                                      |   |                                  | 355    |   |   |   | (18 | ) |
| TOTAL      COMPREHENSIVE INCOME                                                         |   | $                                     | 1,654  |   |   | $ | 1,710 |   |

A

|                                                              |   | CommonStock |   |   | AdditionalPaid-inCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome |   |   | TotalShareholders’      Equity |   |
|-------------------------------------------------------------------|--------|-------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|
|                                                              |   |        |   |   |                     |   |   |             |   |   |                                |   |   |
| Three Months Ended      March 31,      2008                       |   |        |   |   |                     |   |   |             |   |   |                                |   |   |
|                                                              |   |        |   |   |                     |   |   |             |   |   |                                |   |   |                                 |   |
| BALANCE:  January      1, 2008                          |   | $           | 4,355  |   |                     | $      | 63,139 |             |   | $      | 4,787                               |   |   | $                                    | 108    |   |   | $ | 72,389 |   |
| Net      income                                                   |   |        | -      |   |                     |   | -      |             |   |   | 1,299                               |   |   |                                 | -      |   |   |   | 1,299 |   |
| Exercise      of stock options                                    |   |        | 5      |   |                     |   | 135    |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 140 |   |
| Vesting      of restricted stock                                  |   |        | 1      |   |                     |   | 1      |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 2 |   |
| Stock-based      compensation                                     |   |        | -      |   |                     |   | 18     |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 18 |   |
| Cash      dividends declared, $0.145 per share1                   |   |        | -      |   |                     |   | -      |             |   |   | (1,267                              | )      |   |                                 | -      |   |   |   | (1,267 | ) |
| Tax      benefit from dividends on unvested restricted stock      |   |        | -      |   |                     |   | 3      |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 3 |   |
| Other      comprehensive income, net of tax                       |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |                                 | 355    |   |   |   | 355 |   |
| BALANCE:  March      31, 2008                           |   | $           | 4,361  |   |                     | $      | 63,296 |             |   | $      | 4,819                               |   |   | $                                    | 463    |   |   | $ | 72,939 |   |
|                                                              |   |        |   |   |                     |   |   |             |   |   |                                |   |   |                                 |   |   |   |   |   |   |
| Three Months Ended      March 31, 2007                            |   |        |   |   |                     |   |   |             |   |   |                                |   |   |                                 |   |   |   |
|                                                              |   |        |   |   |                     |   |   |             |   |   |                                |   |   |                                 |   |   |   |   |   |   |
| BALANCE:  January      1, 2007                          |   | $           | 4,201  |   |                     | $      | 58,633 |             |   | $      | 3,963                               |   |   | $                                    | 778    |   |   | $ | 67,575 |   |
| Net      income                                                   |   |        | -      |   |                     |   | -      |             |   |   | 1,728                               |   |   |                                 | -      |   |   |   | 1,728 |   |
| Exercise      of stock options                                    |   |        | 3      |   |                     |   | 40     |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 43 |   |
| Tax      benefit from exercise of stock options                   |   |        | -      |   |                     |   | 21     |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 21 |   |
| Issuance      of common stock                                     |   |        | 7      |   |                     |   | 233    |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 240 |   |
| Stock-based      compensation                                     |   |        | -      |   |                     |   | 9      |             |   |   | -                                   |   |   |                                 | -      |   |   |   | 9 |   |
| Cash      dividends declared, $0.137 per share1                   |   |        | -      |   |                     |   | -      |             |   |   | (1,183                              | )      |   |                                 | -      |   |   |   | (1,183 | ) |
| Other      comprehensive loss, net of tax                         |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |                                 | (18    | ) |   |   | (18 | ) |
| BALANCE:  March      31, 2007                           |   | $           | 4,211  |   |                     | $      | 58,936 |             |   | $      | 4,508                               |   |   | $                                    | 760    |   |   | $ | 68,415 |   |
|                                                              |   |
| 1      Adjusted for stock dividends.                              |   |
|                                                              |   |
|                                                              |   |
|                                                              |   |
| See      accompanying notes to consolidated financial statements. |   |

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A

|                                                                                                                                    |   | Three      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                    |   | March      31,          |   |
|                                                                                                                                    |   | 2008                    |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                              |   |                    |   |   |   |   |
| Net      income                                                                                                                         |   | $                       | 1,299  |   |   | $ | 1,728 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                             |   |                    |   |   |   |   |   |   |
|     Depreciation      and amortization                                                                              |   |                    | 330    |   |   |   | 301 |   |
|     Premium      amortization (discount accretion) on securities, net                                               |   |                    | (2     | ) |   |   | (16 | ) |
|     Provision      for loan and lease losses                                                                        |   |                    | 328    |   |   |   | 313 |   |
|     Gain      on sale of securities, net                                                                            |   |                    | -      |   |   |   | (141 | ) |
|     Loss      on impaired investment securities                                                                     |   |                    | 13     |   |   |   | - |   |
|     Stock-based      compensation                                                                                   |   |                    | 18     |   |   |   | 9 |   |
|     Tax      benefit from exercise of stock options                                                                 |   |                    | -      |   |   |   | 21 |   |
|     Tax      benefit from dividends on unvested restricted stock                                                    |   |                    | 3      |   |   |   | - |   |
|     Increase      (decrease) in accrued interest receivable                                                         |   |                    | 15     |   |   |   | (416 | ) |
|     Increase      in bank-owned life insurance and other assets                                                     |   |                    | (1,210 | ) |   |   | (509 | ) |
|     (Decrease)      increase in accrued expenses and other liabilities                                              |   |                    | (1,144 | ) |   |   | 405 |   |
|           Net      cash provided by (used in) operating activities                    |   |                    | (350   | ) |   |   | 1,695 |   |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                              |   |                    |   |   |   |   |   |   |
|     Available-for-sale      investment securities                                                                   |   |                    |   |   |   |   |   |   |
|          Purchases                                                                         |   |                    | (1,973 | ) |   |   | (12,419 | ) |
|          Sales                                                                             |   |                    | -      |   |   |   | 1,201 |   |
|          Maturities      and principal paydowns                                            |   |                    | 8,097  |   |   |   | 5,399 |   |
|     Held-to-maturity      investment securities                                                                     |   |                    |   |   |   |   |   |   |
|          Purchases                                                                         |   |                    | -      |   |   |   | (2,023 | ) |
|          Maturities      and principal paydowns                                            |   |                    | 1,242  |   |   |   | 7,950 |   |
|     Decrease      in interest-bearing deposits with banks                                                           |   |                    | 117    |   |   |   | 14,392 |   |
|     Increase      in loans and leases                                                                               |   |                    | (7,002 | ) |   |   | (26,254 | ) |
|     Purchase      of premises and equipment                                                                         |   |                    | (289   | ) |   |   | (766 | ) |
|     Increase      in investment in real estate                                                                      |   |                    | -      |   |   |   | (19 | ) |
|           Net      cash provided by (used in) investing activities                    |   |                    | 192    |   |   |   | (12,539 | ) |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
| CASH      FLOW FROM FINANCING ACTIVITIES:                                                                                               |   |                    |   |   |   |   |   |   |
|     Increase      in deposit accounts                                                                               |   |                    | 1,039  |   |   |   | 32,311 |   |
|     Decrease      in federal funds purchased                                                                        |   |                    | -      |   |   |   | (10,000 | ) |
|     Increase      in securities sold under agreements to repurchase                                                 |   |                    | 1,645  |   |   |   | 1,365 |   |
|     Increase      in FHLB advances                                                                                  |   |                    | 20,000 |   |   |   | - |   |
|     Dividends      paid to common shareholders                                                                      |   |                    | (1,267 | ) |   |   | (1,183 | ) |
|     Proceeds      from exercise of stock options                                                                    |   |                    | 140    |   |   |   | 43 |   |
|     Proceeds      from issuance of common stock                                                                     |   |                    | -      |   |   |   | 240 |   |
|           Net      cash provided by financing activities                              |   |                    | 21,557 |   |   |   | 22,776 |   |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
| NET      INCREASE IN CASH AND CASH EQUIVALENTS                                                                                          |   | $                       | 21,399 |   |   | $ | 11,932 |   |
| CASH      AND CASH EQUIVALENTS, beginning of period                                                                                     |   |                    | 24,441 |   |   |   | 53,869 |   |
| CASH      AND CASH EQUIVALENTS, end of period                                                                                           |   | $                       | 45,840 |   |   | $ | 65,801 |   |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                                                  |   |                    |   |   |   |   |   |   |
|           Cash      paid during the period for interest on deposits and    borrowings |   | $                       | 6,873  |   |   | $ | 5,932 |   |
|           Cash      paid during the period for federal and state income taxes         |   |                    | 300    |   |   |   | 710 |   |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
|                                                                                                                                    |   |                    |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                       |   |

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N

| (in      thousands, except per share data)                  |   | Three      Months Ended March 31, |   |
|-------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                        |   | 2008                              |   |   | 2007 |   |
|                                                        |   |                              |   |   |   |   |
| Net      income available to common shareholders            |   | $                                 | 1,299  |   |   | $ | 1,728 |   |
|                                                        |   |                              |   |   |   |   |   |   |
| Basic      weighted-average common shares outstanding       |   |                              | 8,717  |   |   |   | 8,623 |   |
|     Plus:      common stock equivalents |   |                              | 14     |   |   |   | 19 |   |
| Diluted      weighted average common shares outstanding     |   |                              | 8,731  |   |   |   | 8,642 |   |
|                                                        |   |                              |   |   |   |   |   |   |
| Basic      earnings per share                               |   | $                                 | 0.15   |   |   | $ | 0.20 |   |
| Diluted      earnings per share                             |   | $                                 | 0.15   |   |   | $ | 0.20 |   |

|   | § | 2001      Stock Option Plan for Nonemployee Directors (the “2001 Directors      Plan”) |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | § | 2001      Employee Stock Option Plan (the “2001 Employee  Plan”) |
|--------|--------|------------------------------------------------------------------------------|

|   | § | 2006      Long-Term Stock Compensation Plan (the “2006  Plan”) |
|--------|--------|----------------------------------------------------------------------------|

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| Stock      Options                                                                                                                                            |   | AwardsAuthorized |     |   | CumulativeGranted,Net      ofCancellations |   |    | AwardsAvailable      forGrant |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|--------------------------------------------|--------|---------|-------------------------------|--------|
| 2001      Directors Plan                                                                                                                                      |   |             | 69,853   |   |                                       |   | 62,769  |                          |   |   | - |   |
| 2001      Employee Plan                                                                                                                                       |   |             | 374,213  |   |                                       |   | 242,851 |                          |   |   | - |   |
| 2006      Plan 1                                                                                                                                              |   |             | 315,187  |   |                                       |   | 15,785  |                          |   |   | 299,402 |   |
|                                                                                                                                                          |   |             |     |   |                                       |   |    |                          |   |   |   |   |
| Restricted      Stock                                                                                                                                         |   |             |     |   |                                       |   |    |                          |   |   |   |   |
| 2006      Plan 1                                                                                                                                              |   |             | 105,0633 |   |                                       |   | 22,774  |                          |   |   | 82,289 |   |
|                                                                                                                                                          |   |             |     |   |                                       |   |    |                          |   |   |   |   |
| 1       The 2006 Plan provides for a total of 420,250 authorized      awards, of which a maximum of 105,063 awards may be in restricted      stock. |   |

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| Stock      Options                  |   | NumberofShares |    |   | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualLife      (years) |   |   | AggregateIntrinsicValue |   |
|-------------------------------------|--------|----------------|---------|--------|------------------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding      at January 1, 2008 |   |           | 124,314 |   |                         | $      | 14.14  |                                                 |   |   |                    |   |   |   |
| Granted                             |   |           | -       |   |                         |   | -      |                                                 |   |   |                    |   |   |   |
| Exercised                           |   |           | (9,978  | )      |                         |   | 13.99  |                                                 |   |   |                    |   |   | 18,088 |   |
| Forfeited                           |   |           | -       |   |                         |   | -      |                                                 |   |   |                    |   |   |   |   |
| Outstanding      at March 31, 2008  |   |           | 114,336 |   |                         | $      | 14.15  |                                                 |   |   | 4.34                    |   |   |   | 418,374 |   |
| Exercisable      at March 31, 2008  |   |           | 102,496 |   |                         | $      | 14.04  |                                                 |   |   | 4.26                    |   |   |   | 386,816 |   |
|                                |   |           |    |   |                         |   |   |                                                 |   |   |                    |   |   |   |   |   |

|                              |   | Options      Outstanding        |   | Options      Exercisable                             |
|-----------------------------------|--------|---------------------------------|--------|------------------------------------------------------|
| Range      ofExercise      Prices |   | Number      ofSharesOutstanding |   | Weighted      AverageRemaining      Contractual Life |   | WeightedAverageExercise      Price |   | Number      ofSharesExercisable |   | WeightedAverageExercise      Price |
| $8.01      to $12.68              |   | 23,708                          |   | 2.93      years                                      |   | $11.80 |   | 23,708 |   | $11.80 |
| $14.60      to $15.87             |   | 90,628                          |   | 4.71      years                                      |   | $14.76 |   | 78,788 |   | $14.71 |
|                              |   | 114,336                         |   |                                                 |   |   |   |   |   | 102,496 |   |   |
|                              |   |                            |   |                                                 |   |   |   |   |   |   |   |   |

| Restricted      Stock                                                                |   | NumberofShares |   |   | WeightedAverageGrantDate      FairValue |   |   | WeightedAverageRemainingContractualLife      (years) |   |
|--------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------------------|--------|
| Outstanding      at January 1, 2008                                                  |   |           | 22,324 |   |                                    | $      | 17.83  |                                                 |   |   |   |
| Granted                                                                              |   |           | -      |   |                                    |   | -      |                                                 |   |   |   |
| Vested                                                                               |   |           | (1,728 | )      |                                    | $      | 18.01  |                                                 |   |   |   |
| Forfeited                                                                            |   |           | -      |   |                                    |   | -      |                                                 |   |   |   |
| Outstanding      at March 31, 2008                                                   |   |           | 20,596 |   |                                    | $      | 17.81  |                                                 |   |   | 2.08 |   |
|                                                                                 |   |           |   |   |                                    |   |   |                                                 |   |   |   |   |
| Weighted      average grant date fair value of awards granted during the      period |   |           |   |   |                                    | $      | -      |                                                 |   |   |   |   |

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|                                     |   | Restricted      Stock Outstanding |
|------------------------------------------|--------|-----------------------------------|
| Range      of GrantDate      Fair Values |   | Number      ofSharesOutstanding   |   | Weighted      AverageRemaining      Contractual Life |   | Weighted      AverageGrant      Date FairValue |
| $17.15      to $18.01                    |   | 20,596                            |   | 2.08      years |   | $17.81 |

| (in      thousands)                           |   | At      and for the Three Months Ended March 31, 2008 |    |
|-----------------------------------------------|--------|-------------------------------------------------------|---------|
|                                          |   | TotalCompany                                          |    |   | CommunityBanking |   |   | Leasing |   |   | Corporateand      Other 2 |   |
| Net      interest income                      |   | $                                                     | 8,184   |   |   | $ | 7,361 |   |   | $ | 823 |   |   | $ | - |   |
| Non-interest      income 1                    |   |                                                  | 1,456   |   |   |   | 1,274 |   |   |   | 199 |   |   |   | (17 | ) |
| Total      revenue                            |   |                                                  | 9,640   |   |   |   | 8,635 |   |   |   | 1,022 |   |   |   | (17 | ) |
| Provision      for loan and lease losses      |   |                                                  | 328     |   |   |   | 100 |   |   |   | 228 |   |   |   | - |   |
| Loss      on impaired investment securities   |   |                                                  | (13     | ) |   |   | (13 | ) |   |   | - |   |   |   | - |   |
| Non-interest      expense                     |   |                                                  | 7,315   |   |   |   | 6,782 |   |   |   | 550 |   |   |   | (17 | ) |
| Income      before provision for income taxes |   |                                                  | 1,984   |   |   |   | 1,740 |   |   |   | 244 |   |   |   | - |   |
| Provision      for income taxes               |   |                                                  | 685     |   |   |   | 592 |   |   |   | 93 |   |   |   | - |   |
| Net      income                               |   | $                                                     | 1,299   |   |   | $ | 1,148 |   |   | $ | 151 |   |   | $ | - |   |
|                                          |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets at period-end               |   | $                                                     | 998,078 |   |   | $ | 990,432 |   |   | $ | 86,726 |   |   | $ | (79,080 | ) |

| (in      thousands)                           |   | At      and for the Three Months Ended March 31, 2007 |    |
|-----------------------------------------------|--------|-------------------------------------------------------|---------|
|                                          |   | TotalCompany                                          |    |   | CommunityBanking |   |   | Leasing |   |   | Corporateand      Other 2 |   |
| Net      interest income                      |   | $                                                     | 7,691   |   |   | $ | 7,020 |   |   | $ | 671 |   |   | $ | - |   |
| Non-interest      income 1                    |   |                                                  | 1,480   |   |   |   | 1,386 |   |   |   | 111 |   |   |   | (17 | ) |
| Total      revenue                            |   |                                                  | 9,171   |   |   |   | 8,406 |   |   |   | 782 |   |   |   | (17 | ) |
| Provision      for loan and lease losses      |   |                                                  | 313     |   |   |   | 223 |   |   |   | 90 |   |   |   | - |   |
| Gain      on sale of investment securities    |   |                                                  | 141     |   |   |   | 141 |   |   |   | - |   |   |   |   |   |
| Non-interest      expense                     |   |                                                  | 6,483   |   |   |   | 6,015 |   |   |   | 485 |   |   |   | (17 | ) |
| Income      before provision for income taxes |   |                                                  | 2,516   |   |   |   | 2,309 |   |   |   | 207 |   |   |   | - |   |
| Provision      for income taxes               |   |                                                  | 788     |   |   |   | 711 |   |   |   | 77 |   |   |   | - |   |
| Net      income                               |   | $                                                     | 1,728   |   |   | $ | 1,598 |   |   | $ | 130 |   |   | $ | - |   |
|                                          |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets at period end               |   | $                                                     | 975,890 |   |   | $ | 969,911 |   |   | $ | 72,617 |   |   | $ | (66,638 | ) |

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| (in      thousands)                                 |   | Three      Months Ended |   |
|-----------------------------------------------------|--------|-------------------------|--------|
|                                                |   | March      31,          |   |
|                                                |   | 2008                    |   |   | 2007 |   |
| Service      cost                                   |   | $                       | 3      |   |   | $ | 5 |   |
| Interest      cost                                  |   |                    | 4      |   |   |   | 4 |   |
|    Net      periodic benefit expense |   | $                       | 7      |   |   | $ | 9 |   |

| Level 1 |   | Unadjusted      quoted prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |
| Level      2 |   | Observable      inputs other than Level 1 prices such as quoted prices for similar assets      or liabilities; quoted prices in markets that are not active; or other      inputs that are observable or can be corroborated by observable market      data for substantially the full term of the assets or      liabilities.                                                                                                                                                                         |
|         |   |
| Level      3 |   | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or      liabilities.  Level 3 assets and liabilities include financial      instruments whose value is determined using pricing models, discounted      cash flow methodologies, or other valuation techniques, as well as      instruments for which the determination of fair value requires significant      management judgment or estimation. |

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| (in      thousands)                                                         |   |                                                                 |   |   | Fair      Value Measurements at Reporting Date Using                          |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                                                        |   | Assets/LiabilitiesMeasured      atFair      ValueMarch      31, 2008 |   |   | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |   |   | SignificantOtherObservableInputs (Level      2) |   |   | SignificantUnobservableInputs(Level      3) |   |
| Assets:                                                                     |   |                                                                 |   |   |                                                                          |   |   |   |   |   |   |   |
|      Investment      securities available-for-sale |   | $                                                                    | 76,702 |   |                                                                          | $      | 1,047 |   |   | $ | 75,655 |   |   | $ | - |   |

| (in      thousands)                         |   | Carrying      Value at March 31, 2008 |   |   |                                                                          |   |
|---------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                        |   | Total                                 |   |   | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |   |   | SignificantOtherObservableInputs (Level      2) |   |   | SignificantUnobservableInputs(Level      3) |   |   | Total      FairValue      Lossesfor      theThree      MonthsEndedMarch      31,2008 |   |
| Assets:                                     |   |                                  |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
|     Impaired      loans |   | $                                     | 4,494  |   |                                                                          | $      | - |   |   | $ | - |   |   | $ | 4,494 |   |   | $ | 250 |   |

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| (tax      equivalent basis, dollars in thousands)                                                                                                                                                                                                                                                          |   | Three      Months Ended March 31, |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                                                                                                                                                                                                                            |   | 2008                              |    |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                            |   | Average                           |    |   | Interest |   |   | Yield/ |   |   | Average |   |   | Interest |   |   | Yield/ |   |
| ASSETS                                                                                                                                                                                                                                                                                                          |   | Balance                           |    |   | Earned/Paid |   |   | Rate |   |   | Balance |   |   | Earned/Paid |   |   | Rate |   |
| Earning      Assets:                                                                                                                                                                                                                                                                                            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                                                                                                                                                                                                                      |   | $                                 | 90,268  |   |   | $ | 1,344 |   |   |   | 5.99 | % |   | $ | 102,319 |   |   | $ | 1,462 |   |   |   | 5.80 | % |
| Due      from banks - interest-bearing                                                                                                                                                                                                                                                                          |   |                              | 5,088   |   |   |   | 55 |   |   |   | 4.35 | % |   |   | 14,513 |   |   |   | 188 |   |   |   | 5.25 | % |
| Federal      funds sold                                                                                                                                                                                                                                                                                         |   |                              | 15,182  |   |   |   | 108 |   |   |   | 2.86 | % |   |   | 31,524 |   |   |   | 418 |   |   |   | 5.38 | % |
| Loans      and leases, net unearned income      1                                                                                                                                                                                                                                                               |   |                              | 809,942 |   |   |   | 13,585 |   |   |   | 6.75 | % |   |   | 730,518 |   |   |   | 12,614 |   |   |   | 7.00 | % |
|             Total      earning assets                                                                                                                                                                                                               |   |                              | 920,480 |   |   |   | 15,092 |   |   |   | 6.59 | % |   |   | 878,874 |   |   |   | 14,682 |   |   |   | 6.78 | % |
| Less:      Allowance for loan and lease losses                                                                                                                                                                                                                                                                  |   |                              | (11,325 | ) |   |   |   |   |   |   |   |   |   |   | (10,130 | ) |   |   |   |   |   |   |   |   |
| All      other assets                                                                                                                                                                                                                                                                                           |   |                              | 77,131  |   |   |   |   |   |   |   |   |   |   |   | 79,195 |   |   |   |   |   |   |   |   |   |
|            Total      assets                                                                                                                                                                                                                             |   | $                                 | 986,286 |   |   |   |   |   |   |   |   |   |   | $ | 947,939 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                 |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      Liabilities:                                                                                                                                                                                                                                                                              |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Int-bearing      checking, money market and savings                                                                                                                                                                                                                                           |   | $                                 | 352,604 |   |   | $ | 2,181 |   |   |   | 2.49 | % |   | $ | 364,153 |   |   | $ | 2,911 |   |   |   | 3.24 | % |
|    Time      deposits                                                                                                                                                                                                                                                                            |   |                              | 232,321 |   |   |   | 2,681 |   |   |   | 4.64 | % |   |   | 192,937 |   |   |   | 2,139 |   |   |   | 4.50 | % |
|    Federal      funds and other borrowings 2                                                                                                                                                                                                                                                     |   |                              | 131,604 |   |   |   | 1,560 |   |   |   | 4.77 | % |   |   | 112,067 |   |   |   | 1,366 |   |   |   | 4.94 | % |
|    Subordinated      debentures                                                                                                                                                                                                                                                                  |   |                              | 24,743  |   |   |   | 422 |   |   |   | 6.86 | % |   |   | 24,743 |   |   |   | 507 |   |   |   | 8.31 | % |
|           Total      interest-bearing liabilities                                                                                                                                                                                                             |   |                              | 741,272 |   |   |   | 6,844 |   |   |   | 3.71 | % |   |   | 693,900 |   |   |   | 6,923 |   |   |   | 4.05 | % |
| Non      interest-bearing deposits                                                                                                                                                                                                                                                                              |   |                              | 161,321 |   |   |   |   |   |   |   |   |   |   |   | 169,545 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                                                                                                                                                                                                                          |   |                              | 10,926  |   |   |   |   |   |   |   |   |   |   |   | 16,905 |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity                                                                                                                                                                                                                                                                                       |   |                              | 72,767  |   |   |   |   |   |   |   |   |   |   |   | 67,589 |   |   |   |   |   |   |   |   |   |
|           Total      liabilities and shareholders' equity                                                                                                                                                                                                     |   | $                                 | 986,286 |   |   |   |   |   |   |   |   |   |   | $ | 947,939 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income and rate spread                                                                                                                                                                                                                                                                        |   |                              |    |   |   |   | 8,248 |   |   |   | 2.88 | % |   |   |   |   |   |   | 7,759 |   |   |   | 2.73 | % |
| Tax      equivalent basis adjustment                                                                                                                                                                                                                                                                            |   |                              |    |   |   |   | (64 | ) |   |   |   |   |   |   |   |   |   |   | (68 | ) |   |   |   |   |
| Net      interest income                                                                                                                                                                                                                                                                                        |   |                              |    |   |   | $ | 8,184 |   |   |   |   |   |   |   |   |   |   | $ | 7,691 |   |   |   |   |   |
| Net      interest margin 3                                                                                                                                                                                                                                                                                      |   |                              |    |   |   |   |   |   |   |   | 3.60 | % |   |   |   |   |   |   |   |   |   |   | 3.58 | % |
|                                                                                                                                                                                                                                                                                                            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 Includes      nonaccrual loans and leases, the effect of which is to reduce the yield on      loans and leases.2 Includes      federal funds purchased, securities sold under agreements to purchase, and      FHLB advances. 3 Net      interest income divided by total earning assets. |   |

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| (in      thousands)                                                                               |   | March      31, |    |   | December      31, |   |
|---------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                              |   | 2008           |    |   | 2007              |   |
| Loans      secured by 1 to 4 family residential properties                                        |   | $              | 140,482 |   |              | $      | 144,164 |   |
| Loans      secured by multifamily residential properties                                          |   |           | 47,384  |   |              |   | 46,756 |   |
| Loans      secured by nonresidential properties                                                   |   |           | 442,724 |   |              |   | 441,171 |   |
| Loans      to individuals                                                                         |   |           | 5,692   |   |              |   | 7,227 |   |
| Commercial      loans                                                                             |   |           | 40,171  |   |              |   | 42,648 |   |
| Construction      loans                                                                           |   |           | 46,968  |   |              |   | 37,819 |   |
| Lease      financing receivables, net                                                             |   |           | 86,898  |   |              |   | 83,604 |   |
| Other      loans                                                                                  |   |           | 715     |   |              |   | 774 |   |
|      Total      loans and leases                                         |   |           | 811,034 |   |              |   | 804,163 |   |
|           Less:  Unearned      income |   |           | (1,357  | )      |              |   | (1,298 | ) |
|      Loans      and leases, net of unearned income                       |   | $              | 809,677 |   |              | $      | 802,865 |   |

| (dollars      in thousands)                                             |   | March      31, |   |   | December      31, |   |
|-------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                    |   | 2008           |   |   | 2007              |   |
| Nonaccruing      loans and leases                                       |   | $              | 4,898  |   |              | $      | 1,984 |   |
| Renegotiated      loans                                                 |   |           | 21     |   |              |   | 37 |   |
|      Total      nonperforming loans and leases |   | $              | 4,919  |   |              | $      | 2,021 |   |
|      Total      nonperforming assets           |   | $              | 4,919  |   |              | $      | 2,021 |   |
|                                                                    |   |           |   |   |              |   |   |   |
| Nonperforming      assets to total assets                               |   |           | 0.49   | %      |              |   | 0.21 | % |
| Nonperforming      loans and leases to total loans and leases           |   |           | 0.61   | %      |              |   | 0.25 | % |

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| (in      thousands)              |   | March      31,                    |   |   | December      31, |   |
|----------------------------------|--------|-----------------------------------|--------|--------|-------------------|--------|
|                             |   | 2008                              |   |   | 2007              |   |
| Recorded      investment         |   | $                                 | 4,494  |   |              | $      | 1,510 |   |
| Valuation      allowance         |   |                              | 450    |   |              |   | 200 |   |
|                             |   |                              |   |   |              |   |   |   |
|                             |   | Three      Months Ended March 31, |   |
|                             |   | 2008                              |   |   | 2007              |   |
| Average      recorded investment |   | $                                 | 1,646  |   |              | $      | 1,427 |   |
| Interest      income recognized  |   |                              | 1      |   |              |   | - |   |

| (dollars      in thousands)                                       |   | Three      Months Ended March      31, |   |
|-------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                              |   | 2008                                        |   |   | 2007 |   |
|                                                              |   |                                        |   |   |   |   |
| Balance      at January 1                                         |   | $                                           | 11,188 |   |   | $ | 10,022 |   |
| Charge-offs:                                                      |   |                                        |   |   |   |   |   |   |
|      Lease      financing receivables    |   |                                        | (189   | ) |   |   | (67 | ) |
|      Credit      cards and related plans |   |                                        | (15    | ) |   |   | - |   |
|                                                              |   |                                        | (204   | ) |   |   | (67 | ) |
| Recoveries:                                                       |   |                                        |   |   |   |   |   |   |
|      Commercial                          |   |                                        | 1      |   |   |   | 1 |   |
|      Lease      financing receivables    |   |                                        | 13     |   |   |   | 3 |   |
|                                                              |   |                                        | 14     |   |   |   | 4 |   |
| Net      charge-offs                                              |   |                                        | (190   | ) |   |   | (63 | ) |
| Provision      charged to operations                              |   |                                        | 328    |   |   |   | 313 |   |
| Balance      at March 31                                          |   | $                                           | 11,326 |   |   | $ | 10,272 |   |
|                                                              |   |                                        |   |   |   |   |   |   |
| Net      charge-offs to average loans and leases (annualized)     |   |                                        | (0.08% | ) |   |   | (0.03% | ) |

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| Level 1 |   | Unadjusted      quoted prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |
| Level      2 |   | Observable      inputs other than Level 1 prices such as quoted prices for similar assets      or liabilities; quoted prices in markets that are not active; or other      inputs that are observable or can be corroborated by observable market      data for substantially the full term of the assets or      liabilities.                                                                                                                                                                         |
|         |   |
| Level      3 |   | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or      liabilities.  Level 3 assets and liabilities include financial      instruments whose value is determined using pricing models, discounted      cash flow methodologies, or other valuation techniques, as well as      instruments for which the determination of fair value requires significant      management judgment or estimation. |

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| (in      thousands)                                                         |   |                                                                 |   |   | Fair      Value Measurements at Reporting Date Using                          |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                                                        |   | Assets/LiabilitiesMeasured      atFair      ValueMarch      31, 2008 |   |   | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |   |   | SignificantOtherObservableInputs (Level      2) |   |   | SignificantUnobservableInputs(Level      3) |   |
| Assets:                                                                     |   |                                                                 |   |   |                                                                          |   |   |   |   |   |   |   |
|      Investment      securities available-for-sale |   | $                                                                    | 76,702 |   |                                                                          | $      | 1,047 |   |   | $ | 75,655 |   |   | $ | - |   |

| (in      thousands)                         |   | Carrying      Value at March 31, 2008 |   |   | Total      Fair                                                               |   |
|---------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                        |   | Total                                 |   |   | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |   |   | SignificantOtherObservableInputs (Level      2) |   |   | SignificantUnobservableInputs(Level      3) |   |   | Value      Lossesfor      theThree      MonthsEndedMarch      31,2008 |   |
| Assets:                                     |   |                                  |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
|     Impaired      loans |   | $                                     | 4,494  |   |                                                                          | $      | - |   |   | $ | - |   |   | $ | 4,494 |   |   | $ | 250 |   |

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|                                             |   |   |   |   |                   |   |   |             |   |   |                   |   |   | To      Be Well-Capitalized |   |
|--------------------------------------------------|--------|--------|--------|--------|------------------------|--------|--------|------------------|--------|--------|------------------------|--------|--------|-----------------------------|--------|
|                                             |   |   |   |   |                   |   |   |             |   |   |                   |   |   | Under      Prompt           |   |
|                                             |   |   |   |   |                   |   |   | For      Capital |   |   | Corrective      Action |   |
|  (dollars in      thousands)                |   | Actual |   |   | Adequacy      Purposes |   |   | Provisions       |   |
|                                             |   | Amount |   |   | Ratio                  |   |   | Amount           |   |   | Ratio                  |   |   | Amount                      |   |   | Ratio |   |
| Total      risk-based capital                    |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |
|    Greater      Community Bancorp |   | $      | 95,245 |   |                   |   | 11.40  | %                |   | $      | 66,839                 |   |   |                        | 8.00   | % |   |   | n/a |   |   |   | n/a |   |
|    Greater      Community Bank    |   |   | 92,193 |   |                   |   | 11.07  | %                |   |   | 66,625                 |   |   |                        | 8.00   | % |   | $ | 83,282 |   |   |   | 10.00 | % |
|                                             |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Tier      1 risk-based capital                   |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|    Greater      Community Bancorp |   |   | 84,625 |   |                   |   | 10.13  | %                |   |   | 33,416                 |   |   |                        | 4.00   | % |   |   | n/a |   |   |   | n/a |   |
|    Greater      Community Bank    |   |   | 81,795 |   |                   |   | 9.82   | %                |   |   | 33,318                 |   |   |                        | 4.00   | % |   |   | 49,977 |   |   |   | 6.00 | % |
|                                             |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Tier      1 leverage capital                     |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|    Greater      Community Bancorp |   |   | 84,625 |   |                   |   | 8.68   | %                |   |   | 38,998                 |   |   |                        | 4.00   | % |   |   | n/a |   |   |   | n/a |   |
|    Greater      Community Bank    |   |   | 81,795 |   |                   |   | 8.42   | %                |   |   | 38,857                 |   |   |                        | 4.00   | % |   |   | 48,572 |   |   |   | 5.00 | % |
|                                             |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| n/a      = not applicable                        |   |   |   |   |                   |   |   |             |   |   |                   |   |   |                        |   |   |   |   |   |   |   |   |   |   |

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N

|                   | GREATER      COMMUNITY BANCORP |
|------------------------|--------------------------------|
|                   |                           |   |
|                   |                           |   |
| Date:      May 7, 2008 | By:                            | /s/ Stephen J.      Mauger |
|                   |                           | Stephen      J. Mauger |
|                   |                           | Senior      Vice President, Treasurer |
|                   |                           | and      Chief Financial Officer |

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n

| Exhibit No. |   | Description      of Exhibit                                                                                                                                                                                         |   |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|             |   |                                                                                                                                                                                                                |   |
| 10.1             | *      | Amendment      No. 1 to Change in Control, Confidentiality and Non-Compete Agreement of      Stephen J. Mauger dated May 7, 2008 among Greater Community Bancorp,      Greater Community Bank and Stephen J. Mauger |   |
| 31.1             |   | Certification      of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a)      and Section 302 of the Sarbanes-Oxley Act of 2002                                                                   |   |
| 31.2             |   | Certification      of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a)      and Section 302 of the Sarbanes-Oxley Act of 2002                                                                   |   |
| 32.1             |   | Certification      of Chief Executive Officer and Chief Financial Officer Pursuant to by Rule      13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of      2002, 18 U.S.C. Section 1350       |   |
|             |   |                                                                                                                                                                                                                |   |
|             |   |                                                                                                                                                                                                                |   |
|             |   |                                                                                                                                                                                                                |   |
|             | *      | Designates      management or compensatory agreements, plans or    arrangements                                                                                                                                     |   |